Annual Report 2011 - R+V Versicherung

Solvency
Capital resources of an insurance company. In order to ensure
that policies can be fulfilled permanently, insurance companies
are obliged to form capital resources of at least one solvency
margin. The amount of this margin is measured either in accordance
with the annual premiums (premium index) or the average
expenditure on claims in the last three fiscal years (claim
index). The respectively higher index is authoritative.
Stress test
Stress tests are a special type of scenario analysis. Their aim is
to make it possible to give a quantitative statement about the
loss potential of ‘ portfolios in the event of extreme market
fluctuations.
Structured products
In a structured product a ‘ derivative financial instrument
(e.g. an option) is combined with a non-derivative instrument
(e.g. a bond).
Technical provisions
Uncertain liabilities that are directly connected with the insurance
business. Their formation ensures that obligations from
insurance policies can be met permanently.
Technical result
Balance of earnings and expenditure that are attributable to the
insurance business.
Unearned premium reserves
The proportion of premiums received in the fiscal year that are
due in the time after the reporting date are shown as Unearned
premium reserve under Technical provisions.
Management Report 4 Annual Financial Statements 35 Further Information 62
Glossary
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