How Do You Value And Evaluate Insurance Companies?
Someone asked on LinkedIn: How Do You Value And Evaluate Insurance Companies? My answer is below
First off there is no such thing as determining a perfect value for any company, let alone companies as complex as insurance companies.
Second there are huge differences in valuing life and P&C insurance companies. The main difference comes in the long-range – and possible huge underpricing in long-term life insurance policies – that can have negative effects for years.
But the following links are some of the best things I’ve learned from on how to get a range of values and help you evaluate insurance companies.
Let me know if you have further questions.
How To Value Float, A Book Recommendation, And Other Thoughts
Unico American Corporation $UNAM: A Company I Would Love To Own Outright
Notes From Phone Conversation With the CFO of Unico American Corp
Evaluating insurance companies is a lot different from evaluating most companies. And the info above will help you learn how to evaluate them.
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Did I miss anything? And do you have any other questions about insurance companies? If so, let me know in the comments below.
