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The acquisition costs for insurance and investment contracts (direct insurance commissions, commissions for reinsurance assumed and other acquisitions costs).
Allocated investment return transferred to the technical account
Return on average insurance liabilities in P&C insurance, after deducting the capital employed in insurance operations in the form of premium receivables, reinsurance deposits and net of other receivables and liabilities plus half of the technical result before allocated investment return.
The allocated investment return is based on risk-free interest.
Asset and liability management risk (ALM risk)
The company is exposed to ALM risks (also called as balance sheet risks) when changes in different market variables (e.g. interest rates, inflation, foreign exchange rates) cause a change in the fair value of investment assets and derivatives that is of different size than the respective change in the economic value of insurance liabilities.
The cash flows of insurance liabilities are modelled estimates and therefore uncertain in relation to both their timing and amount. This uncertainty is a central source of ALM risk as well.
Reinsurance business received from another insurance company.
Available-for-sale assets (AFS)
Financial assets that are designated as available for sale or are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss (IFRS).