Investment approach that excludes problematic sectors or companies from the outset.
New business CSM (net)
The New Business Contractual Service Margin (net) is the expected net unearned profit related to newly underwritten reinsurance contracts. The new business CSM is distinct from the CSM associated with existing contracts and is recognized as revenue over time, mirroring the provision of services and assumption of risks over the life of the new reinsurance contracts. It does not include extensions on existing contracts (prolongation).
New business Loss Component (net)
The New business Loss Component (net) is recognized from newly underwritten contracts when a group of insurance contracts is onerous, meaning that the expected outflows plus risk adjustment are greater than the expected inflows, including expected future recoveries from retrocession. The amount is recognized immediately as expenses in the reinsurance service result.