The annual basis of accounting for general insurance business is considered to be an accrual method. A result is determined at the end of the accounting period reflecting: Profit or loss from providing insurance cover during that period (including the anticipation of losses arising from cover to be provided in subsequent periods in respect of business written prior to the end of the accounting period) Adjustments to the profit and loss from business written during earlier accounting periods Depending upon the product, this method may take into account projection of the deferral of acquisition
A financial contract between an insurance company and the policy holder (purchaser) that provides for a series of payments at regular intervals to be received for a number of years or over a lifetime. Earnings of annuities grow tax-free until payouts begin, which is usually around 65. Annuities are hybrids of insurance and investments. Examples include variable, fixed, deferred, and market value adjusted.
The appraisal value of an insurance company is the sum of the embedded value of the company and the value to its shareholders of the future profits they expect to receive from future new business. The latter part of the appraisal value is often referred to as the "goodwill" value of the company.
Attempting to profit by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. This term could also refer to a process to settle claim outside the judicial system.
An Ask Price, also known as an Offer Price, is the price at which a seller is willing to sell a security. The opposite of the ask price is the bid price, which is the price a buyer is willing to buy shares; the bid price and ask price are always quoted together, and the bid price is always the lower of the two.
Share of the insurer's assets attributable to that policy. In other words, it is the asset that a policyholder has built up in an insurance company. The asset share value is calculated as the amount the policyholder has paid in premiums, less the cost of insurance and other expenses to the insurance company. The asset share value is computed using the amount the insurance company actually spends in expenses, and is not simply an estimate.