scholarly journals Regulatory Solvency Prediction in Property-Liability Insurance: Risk-Based Capital, Audit Ratios, and Cash Flow Simulation

1999 ◽  
Vol 66 (3) ◽  
pp. 417 ◽  
Author(s):  
J. David Cummins ◽  
Martin F. Grace ◽  
Richard D. Phillips
Keyword(s):  
Cash Flow ◽  
Flow Simulation ◽  
Liability Insurance ◽  
Insurance Risk

scholarly journals A two asset cash flow simulation model

1973 ◽  
Author(s):  
Richard C. Grinold ◽  
Robert M. Oliver
Keyword(s):  
Simulation Model ◽  
Cash Flow ◽  
Flow Simulation

scholarly journals SIMULATION MODELLING AS A TOOL FOR RISK ANALYSIS AND DEVELOPMENT OF STRATEGY TO INCREASE REAL ESTATE INCOME

2021 ◽  
Vol 2 (1) ◽  
pp. 97-103
Author(s):  
Lesia Chubuk
Keyword(s):  
Cash Flow ◽  
Simulation Modeling ◽  
Net Present Value ◽  
Flow Simulation ◽  
Cash Flows ◽  
Annual Growth Rate ◽  
Present Value ◽  
Real Property ◽  
Operating Income ◽  
Grain Elevator

The purpose of th article is to substantiate the possibility of applying methods for assessing the effectiveness and risks of investing for the analysis of income in the strategic management of real property. Methodology. The methodical bases of sensitivity analysis and simulation modeling of cash flows of real property income are stated. Results. The critical factors of costs and revenues affecting net present value of total cash flow from grain elevator real property object have been revealed. It is evidenced that the most significant factors influencing the amount of cash flows are the volume of sales of grain elevator services, to a lesser extent the total costs and the lack of sensitivity of net present value to staff salary variations. Simulation modeling of the change in net present value due to the change of the most significant uncertain factors was performed, which confirmed the assumptions about the efficiency of the investigated real property. The key factors are the main services that generate net operating income and critical expenses. Namely, services: storage, drying, shipment by road and rail, costs: fuel for drying, electricity, fuel for transportation of grain, staff salaries. For each factor, the relevant limits of change were established (determined by experts taking into account the average annual growth rate of the indicator) and cash flow simulation was performed. Practical implications. Statistical analysis of the model's behavior under the influence of random factors shows that the most probable value of the net present value of cash flows will be positive, despite the simulation of a significant change (+/- 40%) in electricity and fuel consumption factors for grain transportation. The values of the simple and discounted payback period also confirm the efficiency of the elevator property functioning. The indicator of the stability level demonstrate the need of planning input cash flows sources to cover the output cash flows. Value/originality. The expected profitability of grain elevator real property is largely determined by the factor of the volume of basic services sales (storage, drying, shipment and transport of products). This creates the preconditions for the subsequent assessment of the value of grain elevator real property based on the methodology of the income approach.

Liquidity, solvency and cash flow simulation models in non‐life insurance companies: the Italian experience

2004 ◽  
Vol 30 (5) ◽  
pp. 76-96 ◽  
Author(s):  
Fabiano Colombini ◽  
Simone Ceccarelli
Keyword(s):  
Interest Rates ◽  
Cash Flow ◽  
Life Insurance ◽  
Flow Simulation ◽  
Simulation Models ◽  
Cash Flows ◽  
Insurance Companies ◽  
Loss Reserve ◽  
Italian Experience ◽  
Inflation Rates

This paper discusses dynamic financial approaches to solvency analysis in non‐life insurance companies by explaining cash flow simulation models which are based on the planning of their typical cash inflows and outflows. Posits that these models take into account patterns of loss reserve run‐offs and asset cash flows by implementing several hypotheses that also include expectations about external economic conditions such as inflation rates and interest rates. Acknowledges the cash inflows and outflows have been planned over a period of time to evaluate how positive net cash flow (liquidity) leads to the increase in assets over liabilities (solvency).

Cashflow Simulation for Evaluating Credit Risk on Corporate Bonds

1971 ◽  
Vol 97 (1) ◽  
pp. 85-97
Author(s):  
V. H. Karmarker
Keyword(s):  
Decision Making ◽  
Cash Flow ◽  
Financial Institutions ◽  
Investment Decision ◽  
Corporate Bonds ◽  
Flow Simulation ◽  
Rational Decision ◽  
Investment Decision Making ◽  
Rational Investment

Corporate bonds and privately placed loans constitute a large proportion of the portfolios of several financial institutions. When bonds of a corporation are purchased in the market or loans are granted by some other arrangement, the lender evaluates the risk relating to the investment in question. Determination of the level of risk is important, among other things, for facilitating comparison between different investments, setting the terms of loan agreements and making a rational decision concerning the acceptance or rejection of a loan proposal. Since evaluation of risk is very important for rational investment decision-making, the nature of risk in bond investment is examined briefly in the next section. In the subsequent sections, the prevailing techniques of evaluation of risk will be reviewed and the cash flow simulation model presented.

Liability insurance: risk assessment

1992 ◽  
Vol 15 (4-6) ◽  
pp. 403-417
Author(s):  
Helen Hatchek
Keyword(s):  
Risk Assessment ◽  
Liability Insurance ◽  
Insurance Risk

Cash Flow Risk Management in the Property/Liability Insurance Industry: A Dynamic Factor Modeling Approach

2018 ◽  
Vol 22 (2) ◽  
pp. 309-322
Author(s):  
Min-Ming Wen ◽  
H. J. Abraham Lin ◽  
Patricia H. Born ◽  
Charles Yang ◽  
Chun Wang
Keyword(s):  
Risk Management ◽  
Cash Flow ◽  
Insurance Industry ◽  
Liability Insurance ◽  
Dynamic Factor ◽  
Modeling Approach ◽  
Factor Modeling ◽  
Cash Flow Risk
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