This paper discusses Enterprise Risk Management (ERM) from the perspective of an insurance company; however, the framework presented and solutions discussed are broadly applicable to any industry or business sector. The paper begins by identifying insurance value drivers as well as the risks...

This paper provides an overview of the concept of super catastrophes, or Super Cats, as alternative investment opportunities. By way of the recent Pepsi Play For a Billion sweepstakes case we previously published a methodology for valuing Super Cats with a reasonable margin of safety. This...

Property and casualty (Pamp;C) claim reserves are financial statement liabilities that represent estimated future claims. An understanding of Pamp;C reserves is important to both risk managers and investment analysts, since this information is crucial in assessing solvency and value. We review...

This paper illustrates how the modern value-investing framework can be employed to more effectively value insurance companies. By utilizing the case study of Berkshire Hathaway's 1998 purchase of General Reinsurance Corporation, this paper will demonstrate how to more effectively construct a...

Purpose - This paper aims to consider how corporate executives in a variety of industries can find important lessons in the recently published sixth edition of Benjamin Graham and David Dodd's Security Analysis (New York: McGraw-Hill, 2008). Design/methodology/approach - This paper includes an...

Changes in the property and casualty (Pamp;C) insurance industry, and changes in executive compensation in general, have lead to a situation where Pamp;C managers have increased opportunities and motivation to influence earnings. A significant opportunity to influence earnings arises out of...

Purpose: Risk management has grown increasingly popular in recent years due to the recognition that risk should be as actively managed as performance. A key objective of risk management is to evaluate performance in the context of the relative volatility in which business operations are...

Purpose: The purpose of this paper is to provide commentary on the recently published book quot;Deals from Hell - Mamp;A Lessons That Rise Above the Ashesquot; (NY: Wiley, 2005) by Robert Bruner.Design/methodology/approach: This paper is a case study based on a risk assessment framework that was...

The property and casualty insurance industry has historically focused on the underwriting ratio as the primary measure of operating performance. Many dramatic changes have occurred in this industry and its operating environment over the past 30 years. These changes have dramatically decreased...

Purpose: This paper introduces the base case valuation pattern, which is derived from the modern Graham and Dodd valuation methodology, and it demonstrates how that pattern could be utilized in Mamp;A by way of a case study.Design/methodology/approach: The paper presents a case study of the 2004...