All the glossaryGlossary

Finance

The balance sheet and investments seen from insurance: discounting, asset-liability matching, collateral, ratings, and the market mechanisms a risk carrier's solvency depends on.

72 terms
Alternative Risk Transfer (ART)Asset-liability matching and durationBasis point valueCAGR: Compound annual growth rateCash flow matchingCoase theoremCompoundingContractual service margin (CSM)ConvexityCredit spreadCurrency risk and hedgingDiscountingDuration gapEconomic value of own fundsEffective annual rate (EAR)Embedded valueEquivalent rateFinancial materialityFlash loan attackFloatFree riderFundamental spreadGeneral measurement model (GMM)IFRS 17IFRS 9Illiquidity premiumIndustry loss warranty (ILW)Insurance stress testIntangible assetsInterest rate swapInvestment yieldIrreversibilityKey rate durationLast liquid pointLiability-driven investmentLongevity bondLook-through approachLoss given defaultLoss-absorbing subordinated debtMacaulay and modified durationMargin call and collateralMatching adjustment mechanismNominal ratePassion assetsPremium allocation approach (PAA)Private credit on insurers' balance sheetsProbability of defaultRating migrationRedington immunizationRegulatory return on equityRegulatory risk-free rate curveReinvestment riskRisk adjustment (IFRS 17)Risk marginSecuritizationSelf-custodySmart contractSmith-Wilson extrapolationSPAC (special purpose acquisition company)Special purpose vehicle (SPV)Spread risk submoduleStrategic asset allocationSurvival periodThird-party litigation funding (TPLF)Tiering of own fundsTokenizationTontineTransitional measure on technical provisionsUltimate forward rate and extrapolationValue of new business (VNB)Variable fee approach (VFA)Volatility adjustment
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