Want to learn it? Rebuild it.

“Here’s an income statement. Rebuild it in Excel.”

On the first day of my internship at Argo Group, my fellow intern and I were given what first seemed a straightforward task. However, little did I realize by doing so how much we would learn about the meaning of every line on the profit and loss (P&L) statement of an insurance company.

While figuring out formulas by trial and error consumed a significant portion of the morning, such formulas became rather ingrained in us when we finally found them.* This makes sense - we are not being lectured to; we are not learning in a passive state. Instead, we actively re-created the income statement and through the process learned the function of the included elements for the first time. Admittedly not the smoothest ride but certainly an efficient way to gain a strong grasp of the concepts.

The same applies for learning about other industries or software. Take Adobe Creative Suite, for example. As I walk through the subway tunnel or sit in a train car, I’m often fascinated with the advertisements that plaster the walls. What if I sat down one day and recreated a Svedka subway ad with all its vibrant color, abstract brushes, and splashing water? One could learn Photoshop pretty quickly simply by doing so, simply by forcing herself to Google countless times on how to create this effect or use that tool.

My personal favorite is the set of ads by Jet Blue. Colorful and minimalistic, yet clear in their depictions. Might not be difficult to recreate in Illustrator, but the team or person who originally came up with the concept is brilliant.

Returning from my tangent, my summer internship thus far has made me realize the full value of learning through rebuilding. Subsequent projects here include rebuilding and applying various analysis models for the company's US finance department. Lots of learning!

*For instance, the Other Reinsurance Related Expenses number is not figured into Underwriting Expenses, but it is for Underwriting Income, Loss Ratio, and Expense Ratio. Just saying.