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Philipp Bigler

Philipp Bigler

Set of flashcards Details

Flashcards 40
Language Deutsch
Category Finance
Level Other
Created / Updated 30.06.2014 / 06.03.2024
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How high is the premium volume of Swiss private industry?

CHF 119,8 Billion abroad

CHF 58,9 billion in Switzerland

Price per Earnings for banks in Switzerland 2012?

9.76x

What's the job of reinsurances?

- sharing risks to keep prices affordable

- against all risks

- reducing risk exposure and own cash requirement

- protection of balance sheet

- reducing volatility

what are the main methods of the relative valuation models?

- free cash flow method (DCF)

- dividend discount model (DDM)

- Multiples

off balance sheet operations

contingent liabilities (e.g. guarantees), liabilities for calls on shares, open derivative contracts, fiduciary transactions

--> not in balance sheet, but separately reported and underpinned with equity

What's the P/S

Price per sales/revenues

not as volatile as P/E, harder to manipulate, 1.56x for banks (2012)

usually the lower the better

What's the funded status?

Assets/Liabilities (should be >1)

what are the cognitive errors?

conservatism bias

framing bias

availability bial

How many employees work in banks and insurances? (in Switzerland)

183'000 in banks

77'000 in insurances

Which factors have to be considered to choose a valuation method?

- fit to company?
- paying dividends?
- is earning growth estimable?
- data for input available?
- suitable given purpose for analysis?

Accounts Postfinance?

4.5 mio.

clients Postfinance?

2.9 mio.

staff of Postfinance?

3400 (FTE)

net income of Postfinance

865 mio.

Rating of Postfinance?

AA+ (S&P)

Market Position of Postfinance
- Population?
- companies?
- E-finance-clients?
- no. in payment and retail banking?

1/3 of population are clients
1/2 of companies are clients
1.5 mio. e-finance-clients
no. 1 in payments, no. 3 in retail banking

Differences Postfinance - banks?

payments and deposits main business
self service banking
open access
small, standardized and inexpensive offer
postfinance culture

Strategy of Postfinance?

- modernize payment infrastructure
- optimize processes
- manage costs
- develop new offerings

Requirements for future banking (Postfinance)?

- Simplicity and Transparency
- anywhere and anytime
- self service with help 
- trusted brand

net income of Swiss RE 2013?

4.4 bn USD

Rating of Swiss RE?

AA- (S&P)

Main commodity outflow from Russia - where to?

Europe

Main commodity outflow from north africa & middle east - where to?

Japan, bit less to Europe

Main commodity outflow from South America- where to?

Equal to North America, Europe,China

Main commodity outflow from Southern Africa- where to?

Equal to North America, Europe, China

What's the focus of Swiss RE in the commodity market?

low cost producers of any segment

What are the demand drivers for the commodity prices from 2000-2013 in China?

- Significant investment in infrastructure
- liberalisation in 1990, allowing foreign investments
- high saving rates (ca. 50% of GDP)
- Favourable demographics
- cheap energy (domestic coal) and cheap labour

Historical backgroud of commodity trade financing?

- emerged from colonial trade business --> from financing trading companies
- Growing Demand for credit in emerging markets with lowly developed financial markets (more money, cheaper interest in USD)
- worldwide specialization and reallocation of production

Why does Swiss RE engage in commodity trade finance (CTF)?

- very stable and reliable trade patterns between countries/regions
- limited number of highly established market players (traders, banks, technical consultants,law firms)
- attractive conditions
- low default numbers and high recovery rates
- increasing bank regulation increase demand for risk transfer to third parties

Key advantages of Swiss RE commodity financing?

- not a competitor to the banks
- no contact to underlying borrowers
- no requirement of third party
- Swiss Re only pays if default
- Banks have at least an equal amount of net exposures
 

Key drivers for market demand  (CTF)?

- Population growth
- Purchasing power increases in emerging markets
- GDP growth
- availability of trade infrastructure for transport

Key difficulties in CTF?

- more and more emergent market to emergent market instead of OECD to emergent markets
-Hard commodities: Emergent markets switching to producer AND consumers)
- Growing scarcity of soft commodities

In which divisions is Munich RE devided?

- Munich Re
- Munich Healsth
- Ergo
- MEAG (Asset management)

How much premium earned Munich RE 2013?

51.1 billion Euro

how is premium income of Munich RE splitted onto divisions?

54% reinsurance

33% primary insurance

13% munich health

Business units of Swiss RE?

Reinsurance

Corporate Solutions

Admin Re

Global client base of Swiss RE?

Insurance companies
Mid-to-large size corporations
public sector clients

Largest aquisition of Swiss RE?

GE Insurance Solutions, for 7.4 bn USD

Key events of Swiss RE?

2008 big losses due to financial crisis
2011 catastrophes (Australia, Japan)
2011 restructuring

5 Key points of Corporate Responsibility of Swiss RE?

- advancing sustainable energy solution
- funding longer lifes
- managing climate and natural disaster risk
- partnering for food security
- supporting financial stability