Insurance & Reinsurance

We group property and casualty insurers, life insurers, specialty writers, reinsurers, and brokers into one insurance framework because their economics are defined by claims reserves, float management, and capital adequacy. The money-flow layer tracks total revenue, claims and losses, acquisition and administrative costs, underwriting result proxies, investment income on float, and capital returns.

The scoring and trade-off layers emphasize the metrics that matter most for insurers: premium and book-value growth, ROE, operating margin as an underwriting proxy, ROA as a float-quality signal, and solvency through equity-to-assets and leverage. Liquidity ratios and generic debt-to-EBITDA screens are intentionally de-emphasized because they do not describe insurance balance sheets well.

On the moat side, StatsAlpha(TM) looks for evidence of underwriting discipline, pricing power, resilient float investment returns, capital strength, operating efficiency, and diversification. Valuation then follows a residual-income logic similar to other financial institutions, because book value and returns on equity are more informative than a generic revenue-to-FCF model. This framework is for informational purposes only, not investment advice.