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General insurer financial model, built free.

A three-statement Excel model for a general insurer, built from your own figures and checked to balance.

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We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Writes short-tail and long-tail property and casualty insurance (or private health insurance), earning an underwriting margin plus investment income on the premiums and reserves it holds.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued four ways

    Discounted cash flow, trading multiples, net asset value and financial institution equity valuation, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
General insurer sample model.xlsx
The Summary sheet of the sample general insurer model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for a general insurer.

  1. How it earns revenue3 formulas
    Premiums · All insurance lines
    Gross earned premiumEarned from the opening unearned premiumEarned from premium written since the start date
    Premiums · All insurance lines
    Closing unearned premiumOpening unearned premiumGross written premiumGross earned premium
    Reinsurance · All insurance lines
    Outwards reinsurance premiumGross earned premiumfrom premiumsOutwards reinsurance premium (% of gross earned premium)
  2. What drives its costs3 formulas
    Claims and loss ratios · All insurance lines
    Gross claims incurredAttritional claimsLarge lossesNatural perils claims
    Acquisition and underwriting expenses · All insurance lines
    Acquisition and underwriting expensesAcquisition costsUnderwriting administration expenses
    Operating expenses · Across the business
    Total FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
  3. What it invests in3 formulas
    Corporate fixed assets
    Capital expenditureRevenuefrom statementsCapex as % of revenueAdditional planned capex
    Corporate fixed assets
    DepreciationDepreciation of the opening asset baseDepreciation of new capex
    Corporate fixed assets
    Closing net book valueOpening net book valueCapital expenditureDepreciation
  4. How it is funded3 formulas
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
    Equity raising
    Equity raisedDistributions reinvested under the DRPOther equity raised (net of costs)Equity from an offer, milestone funding, conversions and creditor shares
  5. How profit becomes cash3 formulas
    Claims reserves · All insurance lines
    Claims paid on claims incurred since the start datePaid in the first year after being incurredPaid in the second yearPaid in the third yearPaid in the fourth yearPaid in the fifth yearPaid in the sixth yearPaid in years seven to ten
    Claims reserves · All insurance lines
    Closing outstanding claimsOpening outstanding claimsGross claims incurredfrom claims and loss ratiosClaims paid
    Claims reserves · All insurance lines
    Claims paidClaims paid on claims incurred since the start dateClaims paid from the opening liability
What it covers

26 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastCPI glide path
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalDays-based working capital
  • Income taxCorporate rate with tax losses
  • Corporate fixed assetsStraight-line over remaining life
  • DebtSingle debt facility
  • Equity raisingDistribution reinvestment plan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationPrice / NTA
  • Net asset valueBook net asset value
  • Investment incomeAsset allocation × expected returnsReturns on the investment portfolio backing technical reserves and shareholders' funds.
  • Solvency capitalRisk charges buildRegulatory capital required (prescribed capital amount or solvency capital requirement) and the coverage held, driving dividends and raisings.
  • Financial-institution equity valuationJustified price to bookEquity value of banks, insurers and other balance-sheet businesses, where debt is raw material rather than financing, so value comes from returns on equity, capital and distributable earnings.
  • LeasesLease register
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Case selectionStackable stress toggles
  • Value per shareTreasury-stock method
  • Interest-rate forecastMarket forward curve
  • Enterprise value to equity bridgeNet debt at the valuation date
  • PremiumsGWP growthGross written premium and how it is earned over the cover period, leaving an unearned premium liability.
  • ReinsuranceCession ratiosPremium ceded to reinsurers and the claims recovered from them.
  • Claims and loss ratiosLoss ratio on earned premiumClaims incurred on earned premium — attritional, large and catastrophe claims, or mortality and morbidity for life risk.
  • Claims reservesPayment patternOutstanding claims liability built from claims incurred, the payment pattern, discounting and the risk adjustment.
  • Acquisition and underwriting expensesExpense ratio on earned premiumCommissions, other acquisition costs and the underwriting expenses that make up the expense ratio.
Key numbers

The numbers it tracks.

  1. 01GWP growth
  2. 02net earned premium
  3. 03loss ratio
  4. 04expense ratio
  5. 05combined ratio
  6. 06insurance margin
  7. 07reserve releases
  8. 08capital coverage
  9. 09return on equity
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
Related models

More in insurance.

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The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.