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To: Harshu Vyas who wrote (40)	6/3/2022 4:50:07 PM
From: petal	Respond to of 47

I don't know anything about the intricacies of insurance companies (except that I know very little about them). But I do know that with the curiosity and willingless to learn/understand that you display, you're likely to succeed; just think common-sensically! When one goes into the deep end of the woods, there aren't too many others around to guide/follow one. One must find one's way alone. An insurance company that might be worth keeping an eye on, is Norwegian Protector Forsikring. The charismatic former CEO Sverre Bjerkeli ( youtube.com ) has left, but still has a meaningful stake in the co. The company, like Progressive, is hard to say that it is cheap at the moment (nor is it expensive). So instead of buying the co.'s stock, it may be more interesting to look at what publicly traded securities they own, since the guy who has taken over the capital allocation responsibilities from Bjerkeli seems to be skilled and doing a good job.

To: Harshu Vyas who wrote (40)	7/27/2022 3:24:48 AM
From: Frank Sully	2 Recommendations Recommended By Harshu Vyas petal Read Replies (1) \| Respond to of 47

Harshl, Sorry for the delay in response but this is not a very active board. FWIW, I am a retired Property/Casualty Actuary so I am somewhat familiar with the Statutory Financial Statements of insurance companies, although more for Property/Casualty companies than the Life Insurance companies you’re interested in. For most purposes the SAP (Statutory) Balance Sheets and Income Statements are similar to the GAAP (Generally Accepted Accounting Principals) Balance Sheets and Income Statements. Insurance is a unique accounting animal in several respects: Valuation of Assets - The majority of an insurance company’s assets are bonds to offset loss reserve liabilities. Bonds under SAP are carried on the Balance Sheet at amortized cost, whereas under GAAP they are carried at fair value (market price). Valuation of Liabilities - The majority of an insurance company’s liabilities are loss and loss adjustment reserves. These account for the policy liabilities incurred by writing insurance policies. For Life Insurance these are computed mathematically in a straightforward manner using actuarial mortality tables and contingent annuities. Note however that the valuation of a contingent annuity is very dependent upon the interest rate or inflation assumptions. The computation of loss reserves for Property/Casualty companies is a much more complicated process fraught with uncertainty. Valuation of an Insurance Company - The large variation in valuation, or net worth or surplus, is mostly due to variation in the valuation of the reserves. Valuation of insurance companies is not a game for amateurs. New ORSA Accounting Requirements - The NAIC ORSA requirements require modeling and forecasting an Insurance company’s underwriting and loss reserving functions with probability distributions to run a Monte Carlo Simulation to demonstrate One-Year Solvency at the 99.5% Confidence Level. This is a complicated analysis to perform and evaluate. Cheers, Frank Sully