Annual Report 2011 - R+V Versicherung

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Glossary
Loss ratio
Percentage relation of loss expenditure to earned premiums.
Net
‘ Gross/Net
Net return on capital investments
Total earnings less total expenses for capital investments in
relation to the mean asset value of the capital investments as of
1 January and 31 December of the respective fiscal year.
Net return – three year average
Total earnings less total expenditure on capital investments in
relation to the mean asset value of the capital investments as
of 1 January and 31 December of the respective fiscal year,
calculated over a period of three years.
Own account
The respective technical items or the ratio after deduction of the
reinsurance transaction ‘ Gross/Net
Portfolio(s)
a) All risks assumed in total or in a sub-segment (e.g. insurance
class, country); b) Groups of capital investments structured in
accordance with certain criteria.
Premium
‘ Premiums
Premiums
The premium is the price for the insurance cover provided by
the insurer. It can be paid in an ongoing manner or as a one off
contribution. ‘Written premiums’ are understood to mean all
premium income that was due during the fiscal year. The proportion
of contribution income that is consideration for insurance
cover in the fiscal year is described as ‘Earned premiums.’
Provision for outstanding claims
Provision for obligations from claims that had already occurred
on the reporting date but had not yet been reported or that
could not be completely processed.
PUC method
The Projected Unit Credit method is an actuarial valuation procedure
for obligations arising from company pension provision.
Rating
Standardised assessment of the creditworthiness of debt securities
and comapnies by specialised, independent rating agencies.
Reinsurer
Insurance company that assumes the risks of other insurance
companies and does not itself have any direct contractual
relations with the policyholder.
Reserve ratio
The reserve ratio is calculated to a reporting date from capital
investments to ‘ current values in relation to the capital
investments at book values.
Rolling average return (according to Association formula)
Current gross earnings less expenditure on administration of
capital investments less scheduled depreciation in relation to
the mean asset value of the capital investments as of 1 January
and 31 December of the respective fiscal year.
Run off result
The run off result shows how reserves for loss have changed over
the course of time through payments made and by reassessment
of the expected final loss on the respective reporting date.
Shareholders’equity ratio
Net premium income written in relation to shareholders’ equity.