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Reinsurer financial model, built free.

A three-statement Excel model for a reinsurer, 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

Accepts risk from primary insurers under treaty and facultative contracts across property catastrophe, casualty, specialty and life lines, retroceding peak risks, and earns underwriting profit plus investment income on long-tail reserves.

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 three ways

    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
Reinsurer sample model.xlsx
The Summary sheet of the sample reinsurer 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 reinsurer.

  1. How it earns revenue3 formulas
    Premiums · All insurance lines
    Closing unearned premiumGross earned premiumshare of the yearDays of premium paid ahead
    Premiums · All insurance lines
    Closing membersOpening membersNet growth in members
    Premiums · All insurance lines
    Member monthsOpening membersClosing membersshare of the year
  2. What drives its costs3 formulas
    Claims and loss ratios · All insurance lines
    Closing exposuresOpening exposuresGrowth in exposures
    Claims and loss ratios · All insurance lines
    Gross claims incurredClaims reportedAverage claim size
    Claims and loss ratios · All insurance lines
    Claims reportedExposure-years (average exposures × years)Claim frequency (claims per exposure a year)
  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
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  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

23 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 forecastConsensus curve with long-run anchor
  • Exchange rate (US dollar)Exchange rate by financial year
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • Corporate fixed assetsStraight-line over remaining life
  • DebtAmortising term loan
  • Equity raisingDistribution reinvestment plan
  • Dividends and distributionsPayout of net profit
  • Multiples valuationEV / EBITDA multiple
  • 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.
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Case selectionStackable stress toggles
  • Interest-rate forecastMarket forward curve
  • PremiumsMembers × premium per member per monthGross 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 ratiosFrequency × severityClaims 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 by line
  2. 02renewal rate changes
  3. 03catastrophe losses
  4. 04combined ratio
  5. 05reserve development
  6. 06investment yield
  7. 07solvency ratio
  8. 08book value per share
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
Related models

More in insurance.

Every financial services model

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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.