Independent actuarial analysis that helps buyers, sellers, and investors understand insurance risk before making major business decisions

Insurance transactions can involve significant uncertainty. Historical liabilities, future loss performance, pricing adequacy, reinsurance, and self-insured exposures can all materially affect the value and risk profile of a business.

Davies provides actuarial support for acquisitions, disposals, investments, and other strategic transactions involving insurance organizations and businesses with significant insured or self-insured exposures. We help clients understand the actuarial assumptions underlying a transaction and assess how those assumptions could affect future financial performance.

Our role can range from a focused review of reserves or liabilities to broader actuarial participation within a multidisciplinary due diligence team.

Our transaction and business advisory services include:

• Buy-side and sell-side actuarial due diligence
• Independent reserve reviews
• Assessment of self-insured liabilities
• Review of future loss performance
• Pricing and rate adequacy analysis
• Feasibility studies
• Financial and actuarial projections
• Insurance program evaluation
• Review of actuarial assumptions and uncertainty
• Post-transaction actuarial support

Our consultants have participated in transaction and due diligence assignments involving insurance companies, insurance-related businesses, and organizations with material self-insured exposures. Our work has included estimating loss reserves, assessing the likely future performance of existing books, and considering the pricing or structural changes that may be required to improve future results.

We also provide actuarial input into business advisory assignments where a transaction is not necessarily involved. This can include funding studies for self-insured exposures, evaluation of existing insurance arrangements, and analysis of the uncertainty around actuarial assumptions and selections.

The value of our role is independence. By identifying and quantifying actuarial issues before decisions are made, we help clients develop a clearer view of the risks, assumptions and potential financial implications underlying a transaction.