Mergers and Acquisitions

  • We provide a qualitative and quantitative analysis of the value of an insurance portfolio or company
  • We guide you trough the different stages of a sale or acquisition process

What?:

Whether you're buying or selling a portfolio or a complete company, it is important to calculate the economic value of the business for your company, or for a third party. The value of a company depends not only on its figures but also on qualitative measures, and the opportunities an acquisition can offer. We offer you an insight into all these issues. We will also guide you through the bidding process.

Why?

For every party who needs independent and professional advice about a merger or acquisition by an actuarial partner. A merger and acquisition project requires a multi-disciplinary skilled team that works in close contact with the management. Elips can offer you the specialized and experienced actuarial skills you need.

Who?

  • Analysing the preliminary data that comes with the offer.
    • An overall Financial review
    • Reviewing the insurance landscape (competitors, opportunities.)
    • Defining an initial price range based on this often limited information by comparing with other participants in the market and with previous offers.
  • Make an acquisition plan and timetable.
  • Perform due diligence:
    • Extracting the required information out of a data-room
    • Interviewing the management of the company for sale.
  • Determine an ANAV (Adjusted Net Asset Value) by assessing the reserves and assets according to IFRS standards.
  • Modelling future cash flows, taking into account
    • Macro-economic parameters.
    • Different growth scenarios
    • Initial costs and synergies
    • Internal Capital requirements
    • Required ROI.
  • In life insurance we will have to produce different EV, EEV and MCEV models.
  • Producing a management presentation on which a decision can be made, highlighting the different scenarios and their assumptions and distinguishing between stand-alone value, synergy value, and good-will.
  • Providing ad hoc assistance during the bidding process.

The advantages of Elips Actuarial Services ?

Our experience

We have within our team an actuary who has carried out several merger and acquisitions projects for his former employer. Elips actuarial services can therefore provide extended M&A know-how in a mixed management team of actuaries, accountants and commercial people. We can take the lead, or work under dedicated staff from your company. We can offer both a complete, or a specific projects service.

Guaranteeing results

We guarantee that we will deliver what is asked for, and that we will do this in total independence and in line with the promised budget and timing.

Project management

We guarantee that we will deliver what is asked for, and that we will do this in total independence and in line with the promised budget and timing.

Know-how transfer - and training

We will discuss our models in detail with your actuaries. The models, provided in Excel, can be used by your personnel , so that they can adapt them where necessary. However the intellectual rights on the models remain the property of Elips...

Elips Actuarial Services References

One of our actuaries has undertaken several large mergers and acquisitions dossiers in Belgium for his former employer.