The British Academy for Training and Development offers this training program in Financial and Accounting Analysis for Insurance Companies, carefully designed to meet the needs of professionals working in the insurance sector and related financial institutions. The program focuses on the accounting and financial challenges that distinguish this sector from others and provides a detailed overview of the mechanisms for preparing and analyzing financial statements, the accounting treatment of premiums, claims, technical provisions, as well as investments and expenses related to insurance operations.

The program also covers the most important international standards governing the work of insurance companies, such as IFRS 17, and enhances participants’ understanding of how to evaluate financial performance based on liquidity, profitability, and solvency indicators. It also highlights how to read and analyze annual reports and plan future financial strategies.

Who Should Attend?

• Accountants working in insurance companies or in accounting firms serving them.

• Employees in the financial or investment departments of insurance companies.

• Financial managers and internal auditors in insurance institutions.

• Financial analysis specialists seeking to expand into the insurance sector.

Knowledge and Benefits:

After completing the program, participants will be able to master the following:

• Gain a comprehensive understanding of accounting principles applied in the insurance sector.

• Develop professional skills in analyzing financial statements of insurance companies.

• Understand the financial reporting standards specific to the insurance industry.

• Learn methods for calculating technical provisions and how to include them in financial statements.

• Analyze the financial performance of insurance companies in terms of profitability, liquidity, and financial solvency.

• Introduction to the Insurance Industry

  • Origin and development of the insurance industry.

  • Types of insurance (life insurance, general insurance, reinsurance).

  • Financial and operational characteristics of the insurance sector.

• Regulatory and Supervisory Environment of the Insurance Sector

  • Local and international regulatory authorities.

  • Laws and regulations affecting insurance accounting.

  • The role of governance and transparency in insurance companies.

• Basic Accounting Concepts in Insurance Companies

  • Differences between general accounting and insurance accounting.

  • The matching principle of revenues and expenses in insurance.

  • How to record insurance transactions in accounting books.

• Components of the Accounting System in Insurance Companies

  • Technical accounts and general accounts.

  • Daily transaction recording cycle.

  • Preparation of initial accounting statements.

• Structure of Financial Statements for Insurance Companies

  • Components of the balance sheet for insurance companies.

  • Analysis of income statement items for insurance operations.

  • Special features in the cash flow statement for insurance companies.

• Accounting Specifics of Technical Provisions

  • Definition and types of technical provisions (claims, unearned premiums, etc.).

  • Methods for calculating and estimating provisions.

  • Impact of provisions on financial statements.

• Accounting for Insurance Premiums

  • Recording collected and deferred premiums.

  • Treatment of unearned premiums.

  • Reinsurance and ceded premiums.

• Accounting for Insurance Claims

  • Stages of recording claims from receipt to settlement.

  • Accounting estimates for claims under settlement.

  • Differences between direct and reinsured claims.

• Investments in Insurance Companies

  • Types of investments used (bonds, stocks, real estate, etc.).

  • Suitable investment policies for insurance companies.

  • Evaluating return on investments and linking it to financial results.

• Insurance Revenues and Expenses

  • Sources of operating and non-operating revenues.

  • Types of expenses: technical, administrative, underwriting.

  • Handling timing differences in expense recognition.

• Horizontal and Vertical Analysis of Financial Statements

  • Steps for conducting horizontal analysis and its applications.

  • Reading vertical analysis of balance sheets and income statements.

  • Interpreting results for financial decision-making.

• Analysis Using Financial Ratios

  • Liquidity ratios and financial solvency measurement.

  • Profitability ratios linked to underwriting and investment results.

  • Efficiency ratios and solvency for insurance companies.

• International Insurance Standards (IFRS 17)

  • Introduction to IFRS 17 and reasons for its issuance.

  • Basic principles of measurement and presentation.

  • Key differences between IFRS 17 and previous standards.

• Impact of IFRS 17 on Financial Statements

  • Changes in financial statement presentation.

  • Accounting challenges in initial implementation.

  • Effect on profitability and solvency indicators.

• Long-term and Short-term Insurance Contracts

  • Characteristics of insurance contracts by term.

  • Accounting differences in handling various contracts.

  • Actuarial estimates and their impact on financial statements.

• Differences Between Commercial and Takaful Insurance

  • Shariah and accounting principles in Takaful insurance.

  • Separate accounts between policyholders and operators.

  • Impact on reading financial statements.

• Analysis of Underwriting Results

  • Concept and importance of underwriting results.

  • Mechanism for calculating profit or loss from insurance operations.

  • Linking underwriting to operational profitability.

• Financial Risk Management in Insurance Companies

  • Types of risks (actuarial, investment, operational).

  • Mechanisms to control and mitigate risks.

  • Role of financial analysis in measuring risk levels.

• Financial Planning in Insurance Companies

  • Preparing annual budgets and forecasts.

  • Predicting revenues and expenses based on historical data.

  • Importance of financial planning in supporting sustainability.

• Expansion and Acquisition in the Insurance Sector

  • Financial indicators used to evaluate expansion opportunities.

  • Economic feasibility analysis for acquisitions.

  • Accounting considerations post-merger or acquisition.

• Analysis of Annual Financial Reports

  • Components of an insurance company’s annual report.

  • Extracting key indicators from financial statements.

  • Trend analysis and performance comparison.

• Emerging Trends in Insurance Accounting

  • Digital transformation in financial reporting.

  • Use of artificial intelligence in financial analysis.

  • Future of accounting in insurance companies amid technological development.