Mergers and Acquisitions
Bartlett Actuarial Group can assist insurance companies, investors, lawyers and other potential buyers and sellers of insurance entities by providing financial analyses and due diligence support during the merger or acquisition process.
Examples of areas in which we can assist are:
- Providing a model of the cash flows of the insurer to be purchased and estimating the net present value of those cash flows (for buyer and seller).
- Analyze and compare the statistical results of target insurance compares with industry norms (for severity trend, frequency trend, and loss development) to determine the impact on the value of the proposed transaction.
- Assisting the buyer in recognizing the synergies between the buyer’s business plan and the business operations of the target. The actuary can assist in valuing a price for the transaction.
- Reviewing the target’s accounting procedures including:
- Evaluating the intrinsic value of the company imbedded in the accounting procedures
- Quantifying the hidden value of the intangible assets
- Evaluating the adequacy of loss reserves and the unrecognized value of future investment income
If you are a potential buyer or seller of an insurance company and wish actuarial assistance in the pricing of the sale or the evaluation of the purchase, please contact us at 843-377-0993.