innovative instruments for transferring reinsurance business to the capital markets with the goal of refinancing or placing insurance risks.
Presentation of items from the annual financial statements separated according to functional criteria such as segments and regions.
Socially Responsible Investing (SRI)
Socially Responsible Investing is a term describing an investment strategy which seeks to maximise both financial return and social good.
Special Purpose Entity (SPE)
Legal structure with specific characteristics not bound to a certain form of organisation used to conduct defined activities or to hold assets.
A specialty form of non-life primary insurance that focuses on narrowly defined, homogenous portfolios of niche or other non-standard risks (specialty business), whereby the typical insurer functions (acquisition, underwriting, policy issuing, premium collection, policy administration, claims settlement, etc.) can be outsourced to specialized managing general agents (MGAs) or third-party administrators (TPAs).
Spread loss treaty
Treaty between an insurer and a reinsurer that covers risks of a defined portfolio over a multi-year period.
Statement of Financial Accounting Standards, SFAS (auch: Financial Accounting Standards, FAS)
Reinsurance with limited potential for profits and losses. In most cases customers strive for risk equalisation over time or solvency relief, both of which have a stabilising effect on the ceding company's balance sheet.
Form of proportional reinsurance under which the risk is not spread between the insurer and reinsurer on the basis of a previously agreed, set quota share. Instead, the insurer determines a maximum sum insured per risk up to which it is prepared to be liable. Risks that exceed the ceding company's retention (surpluses) are borne by the reinsurer. The reinsurer's lines thus vary according to the level of the retention and the sum insured of the reinsured contract. The reinsurer's liability is generally limited to a multiple of the ceding company's retention.
Surplus relief treaty
A portfolio reinsurance contract under which an admitted reinsurer assumes (part of) a ceding company's business to relieve stress on the cedant's policyholders' surplus.
Reflects the ratio of loss reserves to paid losses under a specific contract or several contracts in a balance sheet year.