How we can help you to present a clear and compelling case for investment.
The share performance of most UK insurers continues to be disappointing. While this is principally a reflection of economic uncertainty and market volatility, confusing reporting has also played a part by making it difficult for analysts and investors to judge the company strategy and discern the true value being created within the business. Investors’ underlying concern is that disjointed disclosures may be symptomatic of poor management information and a lack of strategic coherence.
Cutting through to the real value
We can help your business to sharpen its financial reporting. This includes developing a better understanding of analyst expectations, conveying a more coherent statement of your strategic direction to investors and providing them with the telling information they need to track and rate progress.
We recognise that the complex nature and long-term duration of life insurance business demands a ‘dashboard’ of multiple measures rather than a single measure.
We can help you to identify and refine the particular metrics that best reflect the value being created within your business and provide a clear link between value, cash, capital and risk.
In turn, corporate insurers and reinsurers are finding it difficult to stand out from a largely undifferentiated pack. We can help you to develop and communicate a differentiated strategy that plays to your company strengths.
A key focus of the continuing debate within Europe over IFRS for insurance contracts is how closely the basis of measurement will correspond to Solvency II. Alignment between IFRS and Solvency II would open up valuable synergies in data management, modelling and investor relations and enable companies to avoid the expense and disruption of 'digging up the road twice'.
Over the last decade, the price/earnings and price/book ratios of many European insurers have fallen to low and undifferentiated levels, and many stock prices have become excessively driven by short-term macro issues. While the main factor behind this has been the exceptionally challenging market and economic backdrop, seemingly unconnected disclosures and reporting bases have been a major contributory factor.