Department

Insurance Checklist

Key questions to ask when reviewing the accounts of an insurance client — solvency, connected transactions, large losses and sanctions.

1

Loans to directors & connected transactions

Are there loans to directors or connected transactions?

2

Goodwill

What is the intangible asset that arises when one company acquires another and pays more than the fair value of its net identifiable assets?

3

Settlements / sanctions

Are there settlements or sanctions against the company?

4

Any large expenses

Are there any large expenses?

5

Revenue vs profit growth

How does sales growth compare to how quickly those changes are being reflected on the bottom line?

6

Delayed liabilities

Are liabilities delayed (e.g., late payments of creditors)?

7

Director transactions — S. 238/239

Are there director transactions triggering Section 239/238 considerations?

8

What should I expect to find?

Think about what you expect to find in a business. Buildings? Employees? Sales? Goodwill? Debts? Profits?

9

Solvency

Is the company solvent? Are assets greater than liabilities?