Analysis of an investment by focusing on statistical measures. Efficiency, Sharpe and Sortino ratios are indicators of return per unit of volatility.
A range in which a quarter (25%) of any set of statistics lie.
Indicator of a company\'s financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities. This ratio provides information regarding the firm\'s liquidity and ability to meet its obligations. Also called the Acid test ratio.
A value that divides a sample of data into five groups containing (as far as possible) equal numbers of observations.
Quota Share Reinsurance
An agreement whereby the ceding company is bound to cede and the reinsurer is bound to accept a fixed proportion of every risk written by the ceding company within a defined category of business. The reinsurer thus shares proportionally in all losses and receives the same proportion of all premiums. Commission is usually negotiated.
A life insurance policy entitling the policyholder to share or ‘participate’ in surpluses and profit which may be distributed by the company. Participation in surplus and profits is by way of ‘bonuses’ which reflect the difference between premium charged and mortality experience.