Insurance Focused IB Interview

For an insurance-focused IB superday, based on the most helpful WSO content, here’s what you should focus on:

1. Industry-Specific Knowledge:

   • Be prepared to discuss key terms and concepts in the insurance industry, such as premiums, claims, loss ratios, combined ratios, and reserve requirements.
   • Understand how insurance companies generate revenue and manage risk. Familiarize yourself with the differences between life insurance, property & casualty insurance, and reinsurance.
   • Be ready to discuss trends in the insurance M&A space, such as consolidation, regulatory impacts, and the role of technology (e.g., insurtech).

2. Technical Questions:

   • While typical technicals (DCF, LBO, valuation methodologies) are important, tailor your preparation to include insurance-specific nuances. For example:
     • How would you value an insurance company? (Hint: Focus on metrics like Price-to-Book, Embedded Value, and Combined Ratio.)
     • How do you account for reserves and liabilities in an insurance company’s financials?
   • Be ready to discuss how you would evaluate an insurance company as an acquisition target.

3. Behavioral and Deal Experience:

   • Since you have insurance M&A experience, expect detailed questions about your past deals. Be prepared to walk through your deal experience, highlighting your role, challenges faced, and outcomes.
   • Rehearse answers to questions like: "What was the most challenging aspect of working on an insurance M&A deal?" or "How did you approach valuation for an insurance client?"

4. Fit and Strategic Thinking:

   • As with any superday, fit is critical. Be prepared to articulate why you’re interested in insurance-focused M&A and why you’re a good fit for the team.
   • Expect situational questions, such as: "How would you handle a client disagreement on valuation?" or "What would you do if you were given conflicting priorities during a live deal?"

5. Case Study or Market Trends:

   • Some firms may include a case study or ask you to discuss market trends. Be ready to pitch an M&A deal in the insurance space or discuss a recent transaction in the industry.

For additional preparation, consider reviewing the WSO Behavioral Guide and M&I 400 Questions Guide, as they provide comprehensive frameworks for both technical and behavioral prep. Good luck!

Sources: Ask an ex-IB MD anything........., Citi Superday Sales and Trading Advice, GS 2018 Superday, Q&A - Consulting interview prep - firm specific questions, Q&A: MBB -> Strategy at Media Company