A financial measure of insurance underwriting profitability that expresses the total of claim costs, commission and expenses as a percentage of premiums. A COR below 100% indicates profitable underwriting. Companies with a COR over 100% can still be profitable if they earn sufficient investment income from the premiums paid by policyholders.
Claims incurred, adjusted for any reinsurance, expressed as a percentage of net premiums earned. Sometimes referred to as loss ratio.
The total of all claims sustained during an accounting period, whether paid or not. Also known as losses incurred.
Notification to an insurance company of a call by a policyholder to the benefits due under the terms of an insurance policy or scheme.
Increase in the value of an investment reflected in the higher selling price.
The tax paid on any profit or gain made by selling something for more than it was bought.
The profit made on the sale of investments, such as shares or property.
Money invetsed typically in buildings and machinery.
An investor who expects share prices to rise or, more generally, has an optimistic outlook. A bull market is a period of rising share prices. The opposite of bear.
The rate of return on a with-profit policy set by an insurance company's actuary. The rate may vary from year to year.
