How Do You Value And Evaluate Insurance Companies?

How Do You Value And Evaluate Insurance Companies?

Someone asked on LinkedIn: How Do You Value And Evaluate Insurance Companies? My answer is below

First off there is no such thing as determining a perfect value for any company, let alone companies as complex as insurance companies.

Second there are huge differences in valuing life and P&C insurance companies. The main difference comes in the long-range – and possible huge underpricing in long-term life insurance policies – that can have negative effects for years.

But the following links are some of the best things I’ve learned from on how to get a range of values and help you evaluate insurance companies.

Let me know if you have further questions.

How To Value Float, A Book Recommendation, And Other Thoughts

Unico American Corporation $UNAM: A Company I Would Love To Own Outright

Notes From Phone Conversation With the CFO of Unico American Corp

The Float Of The Companies I Own

Some Questions For You About Insurance Companies

Evaluating insurance companies is a lot different from evaluating most companies.  And the info above will help you learn how to evaluate them.

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Did I miss anything?  And do you have any other questions about insurance companies?  If so, let me know in the comments below.