This hub explains how banks, insurers, and asset managers make money—what to measure, how to value it, and where the risks hide. Start with the KPI tables, then dive into the curated posts.


Recent Research (Financials)

Latest posts from this sector to learn different bank KPIs and what to trac:

Bank valuation notes

  • P/TBV for cyclicals & stress comps; P/E on mid-cycle EPS; build excess capital & buyback math.
  • Model NIM sensitivity (bps per parallel shift) and deposit beta scenarios.
  • Watch CRE concentration, AOCI unrealized losses, and regulator-driven RWA changes.

Insurance KPIs

MetricWhy it mattersBenchmarks / Notes
Loss RatioUnderwriting qualityDepends on line (P&C vs health); weather/CATs distort
Expense RatioOperating efficiencyScale & distribution mix; digital lowers expense
Combined RatioUnderwriting profit (pre-investments)<100% = profitable; hard market can drive <95%
Reserve DevelopmentAdequacy of prior estimatesAdverse development = red flag
Solvency / RBCCapital strengthImpacts payout and growth; depends on jurisdiction
Float Growth & YieldInvestment incomeDuration/credit mix, new money yields vs portfolio

Insurance valuation notes

  • P/BV (or P/BV ex-AOCI) with sustainable RoE; for life insurers, value new business + embedded value context.
  • Normalize for CATs and reserve noise; test pricing cycle (rate increases vs trend).

Asset Managers, Brokers & Exchanges

MetricWhy it mattersBenchmarks / Notes
AUM / Net FlowsFee base trajectoryMix (active vs passive) drives fee rate; performance drives flows
Fee Rate (bps)Pricing powerCompression in passive; alternatives higher but lumpy
Operating MarginScale returnsHigh incremental margins; comp a swing factor
Capture / Take RateBroker & exchange monetizationVolume × volatility regimes

Valuation notes

  • P/E and EV/EBITDA for managers/brokers; for exchanges, EV/Revenue can work given high margins.
  • Sensitivity to markets: beta to equity/bond levels; alt managers tied to realizations.


Risks & Watchouts

  • Funding stress & deposit flight; rising funding costs vs asset yields.
  • CRE / consumer credit cycles, reserve adequacy, and model risk.
  • Regulatory capital changes (CET1, RWA); liquidity rules tightening.