All expenses which vary with and are primarily related to, the acquisition of new insurance contracts.
An expert concerned with the application of probability and statistical theory to problems of insurance, investment, financial management and demography.
A determination by an Actuary at a specific date of the value of a Life Insurance Company’s assets and its liabilities. The purpose of an actuarial valuation is to ensure that the Company holds adequate assets to fund the Company’s liabilities.
Assets that are included in determining an insurer’s statutory solvency margin, specified under the Rules made by the Insurance Board of Sri Lanka under the Regulation of Insurance Industry Act No. 43 of 2000.
A series of regular payments. Annuities include annuities certain, where payments are made at definite times and life annuities where payments depend on the survival of an annuitant. A life Annuity is a contract that provides a regular payment, typically monthly, during the life time of the policy holder or a fixed period if less. If the payment starts at the outset of the contract, it is an immediate annuity. If it starts at some point in the future, it is a deferred annuity.
The person or financial institution (for e.g. a trust fund) named in the policy as the recipient of insurance money in the event of the policyholder’s death.
Bonus is a method of distribution of surplus amongst the participating policyholders of a Life Insurance Company. A bonus is an enhancement to the basic sum assured under a contract and is declared as a percentage of the sum assured.
The amount payable under a contract of insurance arising from the occurrence of an insured event.
The aggregate of all claims paid during the accounting period together with attributable claims handling expenses, where appropriate, adjusted by the gross claims reserve at the beginning and end of the accounting period.
The amounts provided to cover the estimated ultimate cost of settling claims arising out of events which have been notified by the Balance Sheet date, being sums due to beneficiaries together with claims handling expenses, less amounts already paid in respect of those claims.
Remuneration to an intermediary for services such as selling and servicing an insurer’s products. This is one component of acquisition expenses.
Profits after tax divided by dividend measures the number of times dividends are covered by distributable profits for the period.
Written premium adjusted by the unearned premium reserve at the beginning and end of the accounting period.
Net Profits of the Company after tax divided by the Number of Ordinary Shares in issue.
Premium to which the insurer is contractually entitled and receivable in the accounting period.
A not-for-profit organisation that promotes the use of sustainability reporting as a way for organisations to become more sustainable and contribute to sustainable development. Allied with the UN Global Compact, UNEP, OECD and others.
Insurance is a contract whereby one party the insurer, in return for a consideration i.e the premium, undertakes to pay to the other party – the insured, a sum of money or its equivalent in kind, upon the happening of a specified event that is contrary to the interest of the insured.
The funds or funds to be maintained by an insurer in respect of its Life insurance business in accordance with the Regulation of Insurance Industry Act No. 43 of 2000.
Periodic payments to the policyholders on a specific type of policy.
The excess of the assets over the liabilities as determined by the actuary and after the distribution of dividends to policyholders.
A policy terminated at the end of the grace period because of non-payment of premiums.
Insurance (including reinsurance) business falling within the classes of insurance specified as Long Term Insurance Business under the Regulation of Insurance Industry Act No. 43 of 2000.
Number of shares in issue multiplied by the market value of each share as at the Balance Sheet date.
The time at which payment of the sum insured under a Life Insurance Policy falls due at the end of its term.
Gross Written Premium adjusted for the reinsurance incurred and for the increase or decrease in Unearned Premium
Net assets attributable to Shareholders’ equity divided by the number of Ordinary Shares issued.
Gross Written Premium less reinsurance payable.
Claims incurred less reinsurance recoveries.
The printed document issued to the policyholder by the Company stating the terms of the insurance contract.
Under an insurance policy, the amount that can be borrowed at a specific rate of interest from the issuing Company by the policyholder, who used the value of the policy as collateral for the loan. In the event the policyholder dies with the debt partially or fully unpaid, the insurance company deducts the amount borrowed, plus any accumulated interest, from the amount payable.
Market price of a share divided by earnings per share.
The payment, or one of the periodic payments, a policyholder agrees to make for an insurance policy. Depending on the terms of the policy, the premium may be paid in one payment or a series of regular payments.
Commission received or receivable in respect of premium paid or payable to a reinsurer.
The premium payable to the reinsurer.
Profits after tax divided by the Capital employed as at Balance Sheet date.
Profits after tax divided by total assets attributable to Shareholders.
An account which shows a financial summary of the insurance related revenue transactions for the accounting period.
An amount of capital based on an assessment of risks that a company should hold to protect policyholders against adverse developments.
The difference between the value of admissible assets and the value of liabilities, required to be maintained by the insurer who carries on Long Term insurance business as defined in the Regulation of Insurance Industry Act No. 43 of 2000.
The amounts refundable to Life policyholders when they terminate their insurance contracts after a specific period.