Actuarial Valuation of Property/Casualty Insurance Companies [Discussion]

Mr. Sturgis's paper presents a comprehensive model for the actuarial valuation of a property/casualty acquisition candidate. As he points out, this topic is a new one to our Proceedings; it is therefore also likely to be a new topic to many members of the profession. Mr. Sturgis's paper presents another example of the expanding role of the property/casualty actuary and actuarial techniques in insurance and in the general economy. Of particular interest to this reviewer are the relationships between the actuarial valuation process of a property/casualty company as presented in the model and the general economic principles that underlie any decision process relating to the sale or acquisition of an entity. This review will, therefore, focus initially on these relationships in an attempt to gain additional insight into the power and versatility of the actuarial valuation model.