Annual Report 2011 - R+V Versicherung

70
Glossary
Glossary
Accumulation
Accumulation describes several risks insured or reinsured by the
same insurance company that could be affected by one loss
event simultaneously.
Affiliated companies
The parent company (group controlling company) and all subsidiaries.
Subsidiaries are companies over which the parent
company can exert a dominant influence on business policy
(control principle). This is possible, for example, if the group
parent holds the majority of voting rights either directly or indirectly
or has the right to appoint or dismiss the majority of the
members of company bodies (management board, supervisory
board) or if there is a contract of domination.
Assumed business
A transaction concluded between two insurance companies.
It is synonymous with with the forwarding of part of the loss
distribution assumed from the policyholder from the direct
insurance company to a reinsurance company.
Balance sheet loss ratio gross
Expenditure on claims in relation to earned premiums –
all gross.
Balance sheet loss ratio net
Expenditure on claims in relation to earned premiums – all net.
Black Formula 76
The Black Formula 76 is a finance mathematical model used to
value interest options, which was published by Fischer Black in
1976.
Black-Scholes model
The Black-Scholes model is a finance mathematical model used
to value financial options, which was published by Fischer Black
and Myron Scholes in 1973.
Combined Ratio
Percentage relationship of the total of expenditure on claims
plus expenditure on insurance operations to earned premiums –
all net. This is equivalent to the total of the loss and cost ratio.
This is an important key performance indicator when considering
the profitability of a policy, a sub-portfolio or a complete
insurance portfolio. If this figure exceeds 100% it results in an
actuarial loss for the transaction in question.
Cost ratio gross
Percentage ratio for expenditure on insurance operations in
relation to earned premiums – all gross.
Cost ratio net
Expenditure on insurance operations in relation to earned
premiums – all net.
Current value
The current value of a capital investment is usually equivalent
to its market value. If the value cannot be calculated directly,
the value at which the asset is traded between expert business
partners who are independent of each other and willing to
conclude a contract can be of assistance.
Deferred tax (assets/liabilities)
There is deferred tax in a financial statement if there are differences
between the valuations of asset items and debts in the
commercial accounting and the tax accounting. By using
the deferred tax approach, future tax charges (deferred tax
liabilities) or refunds (deferred tax assets) will be formed in
the commercial accounting.
Deposit receivable and liabilities
Security payments to cover actuarial liabilities between direct
insurers and reinsurers. In this case the retaining company
reports deposit liabilities and the ceding company reports
deposit receivables.