| Insurance |
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| Case Studies |
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| Articles and Bulletins |
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| 2007
Benchmarking and Performance Standards study |
Case Studies
Due Diligence
Client: Insurance Broker
Engagement Brief: Our client wished to purchase a book of business in order to meet growth goals. Once the target is identified we were engaged to prepare a report on the viability of the acquisition given the price and business environment. We met with our client to ensure we clearly understood their business goals for the acquisition. We then developed a due diligence plan that addresses personnel, financial, administration and sales aspects of the target business. Our analysis and the resulting report highlighted the potential opportunities and risks of the acquisition; included a financial model showing the expected cash flow post acquisition; contained our opinion on the value of the business. Our client was able to use the information in the report to negotiate a fair price for the brokerage as well as obtain financing for the purchase.
Financial Analysis
Client: International Insurance Company
Engagement Brief: Our client was concerned about the financial viability and accuracy of the data input of an insurance broker with who they had a contract. Our team attended the broker's office to document and test their accounting systems. We checked the accuracy of system compliance and substantively tested areas where we viewed there were potential weaknesses in internal controls. Our resulting report gave the Insurance Company enough confidence in the organization to renew the broker contract.
Feasibility Study
Client: A Group of Credit Unions
Engagement Brief: Our client engaged us to develop a feasibility study and related plan to facilitate the merger of a number of Credit Union owned insurance brokers. Our engagement plan involved the analysis of each brokerage's financial and operating models. We identified areas of potential synergy as well issues that may cause problems post merger. We provided our client with our opinion on the value of each brokerage. We also worked with the organizations management to develop a step plan to ensure accounting, legal and tax aspects of the process were adequately addressed.
Audit
Client: Insurance Company
Engagement Brief: We have been engaged by a British Columbia based mutually owned insurance company to provide audit and ancillary services. Phase I of our audit includes the review and testing of internal controls, policies, procedures as well as the company's adherence to their stated underwriting standards. Phase II of our audit builds on phase I and involves substantively testing of the accounts to provide assurance that the year end financial statements are reasonably stated. We provide our client with our audit opinion on the financial statements and P&C-1 within six weeks of their fiscal year end.
Profitability Planning
Client: Multi-branch Insurance Brokerage
Engagement Brief: Our client engaged us to assist them in identify and provide guidance on improving profitability at a branch that they believed was underperforming. Our team attended the branch and undertook interviews of the staff, documented procedures and analyzed financial results. Based on our 2005 benchmarking & performance standards study as well as other information we were able to identify areas were the brokerage was not meeting expected standards. We provided the brokerage with various ideas and examples of how similar brokerages have successfully addressed these issues. The branch manager and staff were able to develop a plan that resulted in significantly improved results.
