Valuation and Value Creation of Insurance Intermediaries: Corporate Finance and Governance, Volume 21

The book offers a comprehensive analysis of insurance intermediaries from a capital markets perspective. It presents an up-to-date market perspective, drawing the attention to the important trends and developments in the industry and recommends strategies to secure future growth. Further, it offers a detailed description of a valuation approach specifically tailored to small and mid-sized brokers. Research on insurance intermediary M&A reveals that positive abnormal returns are achieved for acquirers. The author points out which factors lead to value creation and investigates performance drivers in the tied agent channel.

• Title
• Copyright
• About the author(s)/editor(s)
• About the book
• This eBook can be cited
• Acknowledgements
• Overview of Contents
• Table of Contents
• List of Figures
• List of Tables
• List of Abbreviations
• 1 Introduction
• 1.1 Motivation and Objectives
• 1.2 Approach and Course of Analysis
• 2 Agents and Brokers in the Insurance Industry: an Intriguing Area for further Research
• 2.1 Definition and Business Description
• 2.1.1 Insurance Intermediaries as Channel for Insurance Distribution
• 2.1.2 Activities and Functions of Insurance Intermediaries
• 2.1.3 Key Differences between Agents and Brokers
• 2.2 Market Overview
• 2.2.1 Reach and Relevance in Europe and North America
• 2.2.2 Relevant Segments and Players in the Insurance Intermediary Market
• 2.2.3 Status Quo of Consolidation and Competition
• 2.3 Challenges and Strategies for Counteraction
• 3 Valuation of Small and Medium-Sized Insurance Brokers: Establishing a Valuation Approach for Business Succession
• 3.1 Introduction
• 3.2 Theoretical Background and Literature Review
• 3.2.1 Value Concepts and Reasons for Valuation
• 3.2.2 Relevant Valuation Approaches
• 3.2.2.1 The Asset Approach
• 3.2.2.2 The Income Approach
• 3.2.2.3 The Market Approach
• 3.2.2.4 Mixed Approach to Company Valuation
• 3.2.3 Literature Review
• 3.3 Assessment of Specificities of Broker Valuation
• 3.3.1 Specifics of Brokers for Valuation Purposes
• 3.3.2 Assessment of Valuation Methods for the Application in Insurance Broker Valuation
• 3.4 Concretion of Selected Valuation Methods for Insurance Broker Valuation
• 3.4.1 Dividend Discount Method
• 3.4.2 “Umsatzwertverfahren”
• 3.4.3 Recent Acquisition Method
• 3.5 Summary and Conclusions
• 4 Value Creation in Insurance Intermediary Mergers and Acquisitions: an Opportunity for Realizing Positive Abnormal Returns
• 4.1 Introduction
• 4.2 M&A Activity and Status of Consolidation
• 4.3 Literature Review and Status Quo of Empirical Research
• 4.3.1 Motives for Mergers and Acquisitions
• 4.3.2 Wealth Creation in Insurance Intermediary M&A
• 4.3.3 Value Determinants in Insurance Intermediary M&A
• 4.4 Research Hypotheses
• 4.5 Methodology and Data Sample
• 4.5.1 Data Sources and Data Sample
• 4.5.2 Analysis of Value Implications
• 4.5.3 Analysis of Determinants of Value Creation
• 4.6 Empirical Results
• 4.6.1 Results on Value Implications
• 4.6.2 Results on Value Determinants
• 4.7 Summary and Conclusions
• 5 Performance Transformation in the Tied Agent Channel: Achieving a step-change in Tied Agent Productivity
• 5.1 Introduction
• 5.2 Performance Transformation in the Tied Agent Channel
• 5.3 Creating Transparency: Analysis of Agency Performance
• 5.3.1 Diagnostic of Tied Agent Channel Performance
• 5.3.2 Empirical Research on Tied Agent Channel Performance
• 5.3.3 Analysis of Drivers of Tied Agent Performance
• 5.3.3.1 Data Sources and Data Base
• 5.3.3.2 Methodology Specification
• 5.3.3.3 Performance Measures and Determinants
• 5.3.4 Empirical Results on Performance Determinants in the Tied Agent Channel
• 5.4 Designing the Program: Development of concrete Measures for Performance Improvements
• 5.4.1 Operational Levers
• 5.4.2 Structural Levers
• 5.5 Prototyping and Piloting: Preparation of Transformation
• 5.6 Rollout: Implementation of Transformation
• 5.7 Summary and Conclusions
• 6 Summary and Concluding Remarks
• Appendix
• Publication Bibliography