The technical name given to an initial depletion of cash and/or erosion of shareholders' net assets at the moment an insurance contract is sold. This "strain" arises because, in addition to meeting costs associated with the sale of contracts, insurance companies must make actuarial provisions at the outset of a contract that are often significantly higher than the premiums received. To begin with, therefore, cash outflows exceed inflows, creating a strain.
Term used to describe the value of long-term savings policies sold to new and existing customers. Includes premium increases on existing business.
The amount left over after deducting tax, interest, depreciation, fees, minority interests and extraordinary charges from sales revenue. Also known as net earnings, or net income.
Total gross premiums written for a given period, minus premiums paid over or "ceded" to reinsurers.
The proportion of net premiums written recognised for accounting purposes as income in a given period.
The value of a company calculated by subtracting its liabilities from its assets. The difference is the capital, that is, the funds that would be available to ordinary shareholders if the company were wound up.
The central government debt.
Company with subsidiaries or operations in several different countries.
A loan to buy a home. Technically, it is the security provided by a borrower to a lender in return for funds advanced - usually the property in question. Typically there are two forms of mortgage: repayment (or capital and interest), where the homeowner pays back both the loan and interest in stages; and interest only, where the homeowner pays just the interest until the end of the loan period, when the capital is also due to be repaid.
The probability of death of a life or group of lives.
