Financial Management Association (FMA) would like to increase their exposure in the financial services industry. Your job is hired by the FMA as a consultant to identify possible investment opportunities in a sub-sector of the financial services industry/mutual fund, and your job is required to make a recommendation to the FMA.
1. State the purpose of the report 2. Geico Insurance company a. Why you select this Geico Insurance company for analysis? b. Discuss the background of the company, such as the age of a company, its market capitalization, management team, and their compensation, and etc. c. What are the main types of business conducted by the company? Discuss the breakdown of revenues in terms of different sectors and the proportion of revenues derived from overseas operations. d. What are the main sources of finances and its allocation of assets? e. What is your assessment of the interest risk exposure of the company (low, medium, or high)? Besides interest rate risk, to what other risk is the company exposed? Does the company use any risk management technique to hedge its exposure? Explain. f. What is the past performance of the firm? You may reference the table and chart you have created. Explain. g. What are the key economic factors and important recent events that influence the performance of the firm? Explain. Keep up with the news on the company and on the industry in which it operates. h. What is the outlook for the company?