Glossary
A
absolute return
The goal of an asset manager is to generate a positive return or achieve a minimum target every year (capital preservation, minimum return, maximum loss).
accumulation control
Regional controlling of written accumulation risks.
accumulation risk
Underwriting risk that a single trigger event (e.g. an earthquake or hurricane) can lead to an accumulation of claims within a portfolio.
acquisition costs
Costs incurred by an insurance company in connection with the taking out or renewal of insurance policies.
administrative expenses
Expenses for current administration that are connected with the production of insurance protection (opposite: acquisition costs).
affiliated companies
Parent or subsidiary companies which are to be included in the consolidated financial statements of a parent company in accordance with the rules of full consolidation.
alternative investments
Non-traditional investments in terms of asset classes and the trading techniques used. They exhibit a minimum correlation to traditional types of assets such as equities or fixed-income securities and can profit from both rising and falling markets.
asset allocation
Allocation of investments to different asset classes such as participations, equities and fixed-income securities.
asset-backed securities (ABS)
Financial securities (debt securities) collateralized by a portfolio of receivables.
asset/liability management (ALM)
Harmonized management of liabilities and assets. This approach draws on techniques from the actuarial sciences and investment mathematics.
asset management
Management of investments according to risk and return considerations.
at equity
Valuation using the equity method; companies in which participating interests of 20% - 50% are held are valued in the amount of their proportionate stockholders' equity.
