Our consultants regularly provide assistance on a wide variety of projects related to merger & acquisitions, valuations, due diligence, new company feasibility studies, and other transaction-focused engagements. Our partners on these projects have been management consulting firms, insurance regulators, private equity firms, receivers, and others.
Merger & Acquisition Experience
We have experience participating on due diligence teams in estimating loss reserves, assessing the future results of existing books of business, and recommending rate structures to increase profitability. Some examples include:
- Participation on due diligence teams related to acquisitions and sales of insurance and related companies and non-insurance entities with significant insured and self-insured exposures.
- Worked with the Mississippi Insurance Department to advise on a proposal to withdraw Texas Farm Bureau and Texas Farm Bureau Investment Corporation from Southern Farm Bureau Casualty Insurance Company.
- Performed a reserve study to provide support to our client regarding the purchase of an insurance company.
- Provided a second opinion on reserve amounts for a non-management insurance company owner to help decide whether or not to invest additional capital into the company.
Our consultants also have experience being part of teams made up of accountants, auditors, risk managers, and claims consultants examiners on a variety of merger and acquisition projects both inside and outside the insurance industry.
Valuation and Due Diligence Experience
- Participation on rehabilitation and supervision teams on behalf of state insurance departments for troubled companies that were sold to new investors. This work included reserve analyses, profit projections by line of business that were incorporated into financial projections of the profitability of the business, and other rate and product management assistance.
- Actuarial assistance in due diligence engagements related to potential acquisition of medical professional liability insurance companies and loss portfolio transfers that include material medical malpractice claim reserves.
- Litigation consulting related to troubled health insurance companies in receivership. Responsibilities include analyzing legal liability of outside actuarial consultants.
- Assistance, on behalf of a state insurance department, in developing commutation proposals for estate in liquidation with unpaid claim liabilities related to assumed asbestos, environmental, and other mass tort exposures.
- Assistance on due diligence teams on behalf of buyers of insurance companies.
- Estimating the economic value of loss reserves for loss portfolio transfers.
- Valuing the reinsurance asset for insurance companies with significant excess of loss and catastrophe reinsurance programs.
Feasibility Study Experience
Our consultants work with clients who are involved in a wide variety of exploratory projects ranging from starting new national multi-line insurers to small-to-medium-sized business owners exploring self-insurance and captive options. We have assisted in over 150 feasibility studies in the past decade. The vast majority of these projects have resulted in the actual formations of operational entities to which we provide ongoing actuarial consulting services.
Merlinos & Associates specializes in providing buy-side and sell-side merger & acquisition due diligence and other transaction advisory services of professional employer organizations.
We provide actuarial due diligence consulting services to health insurance carriers, physician practices, hospitals, management service organizations, and any other entity that has health care actuarial liabilities. Our advisory work focuses on:
- Valuation of claim and policy liabilities for the targeted entity
- “Quality of Earnings” adjustments
- Review of prospective pricing or capitation rates
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