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Contents
Assignment 1
Introduction to Corporate Finance
and Accounting 1.1
Overview of Corporate Finance and
Accounting 1.3
Goals of Corporate Finance and
Accounting 1.4
Corporate Finance Departments 1.7
Trend Analysis of Financial
Statements 3.12
Financial Ratios: Efficiency and
Profitability 3.14
Financial Ratios: Liquidity and
Leverage 3.19
Analyzing Financial Ratios Case 3.22
Summary 3.32
GAAP Accounting 1.10
International Financial Reporting
Standards (IFRS) 1.13
Assignment 4
Insurer Statutory Accounting 4.1
Summary 1.16
Statutory Accounting Concepts 4.3
Assignment 2
GAAP Financial Statements 2.1
Statutory Accounting Principles
(SAP) Compared With GAAP 4.5
Purpose of Financial Statements 2.3
Components of the NAIC Annual
Statement 4.12
Balance Sheet 2.4
Summary 4.21
Income Statement 2.8
Statement of Changes in
Shareholders’ Equity and
Statement of Cash Flows 2.13
Assignment 5
Insurer Statutory Annual Statement
Analysis 5.1
Comparison of Property-Casualty
Insurer and Noninsurer GAAP
Financial Statements 2.17
Insurer Annual Statement Analysis
Concepts 5.3
Supplemental Sources of Financial
Information 2.24
Ratios Applied to Insurer Annual
Statements Case Study 5.5
Limitations of Financial Statements 2.30
A.M. Best Financial Strength
Ratings 5.16
Summary 2.31
IRIS Ratios 5.20
Summary 5.28
Assignment 3
GAAP Financial Statement Analysis 3.1
Financial Statement Analysis
Techniques 3.3
Vertical Analysis of Financial
Statements 3.6
Copyright 2013 American Institute For Chartered Property Casualty Underwriters
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Assignment 6
Cash Flow Valuation 6.1
Assignment 9
Insurer Capital: Needs and Sources 9.1
Future Value and Compounding 6.3
Insurer Capital Needs 9.3
Effective Annual Interest Rate 6.7
Internal Methods Used to Meet
Insurer Capital Needs 9.5
Present Value and Discounting 6.8
Rate of Return on an Investment 6.11
Future and Present Values of an
Ordinary Annuity 6.13
Annuities Due 6.17
Perpetuities 6.20
Present Value of Unequal
Payments 6.21
Net Present Value 6.23
Summary 6.25
External Methods Used to Meet
Insurer Capital Needs 9.9
Shareholder Dividends 9.16
Summary 9.21
Assignment 10
Capital Management 10.1
Capital Structure 10.3
Financial Leverage 10.5
Insurance Leverage 10.8
Insurer Cost of Capital 10.14
Assignment 7
Bonds and Stocks 7.1
Risk-Based Capital Requirements 10.19
Financial Markets 7.3
Economic Capital 10.24
Classifications of Bonds 7.7
Summary 10.29
Bond Characteristics 7.11
Determinants of a Bond’s Yield of
Maturity and Price 7.15
Assignment 11
Mergers and Acquisitions 11.1
Characteristics of Stocks 7.20
Changes in Ownership and Control 11.3
Understanding Common Stock
Prices 7.22
Reasons for Acquisitions 11.6
Annual Rate of Return for a
Security 7.26
Mechanics of Acquisitions 11.12
Valuing Bonds and Stocks 7.27
Acquisition Gains and Costs 11.9
Takeover Defenses for Mergers
and Acquisitions 11.14
Financial Reporting of Bonds and
Stocks 7.31
Summary 11.16
Summary 7.35
Assignment 12
The Underwriting Cycle 12.1
Assignment 8
Insurer Investment Portfolio
Management 8.1
The Insurance Underwriting Cycle 12.3
Quantitative Measures of Risk 8.3
Effects of Supply and Demand on
the Underwriting Cycle 12.11
Investment Portfolio Management
Concepts 8.8
Financial Factors Influencing the
Underwriting Cycle 12.8
Summary 12.18
Bond Portfolio Management 8.13
Statutory Investment Restrictions 8.18
Summary 8.19
Copyright 2013 American Institute For Chartered Property Casualty Underwriters