These are non-voting shares that were popular in the 1980s when many family businesses listed. The JSE will no longer list "N" Shares.
A policyholder, the person for whom an insurance policy is issued, or any person or corporation, or any member thereof, specifically mentioned as insured in a policy.
The underwriting members of Lloyd’s
National Association of Securities Dealers. An exchange in the US that trades in technology shares.
The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies.
The basis for liability insurance; it may be contributory, imputed or comparative. It is the failure to act with the legally required degree of care for others. Also known as neglect.
Negotiable Certificates of Deposit are certificates evidencing an interest-bearing time deposit with a bank. They are negotiable.
An insurance company’s retained share of insurance business, or a class of insurance business, written by it after taking into account the effect of reinsurance ceded. Also known as retention or net line.
This represents the net approved assets, as defined by the Short-term Insurance Act, less the contingency reserve, expressed as a percentage of the greater of the premiums written less reinsurance for the current or preceding financial year. The statutory minimum ratio is 15%.
The value of a fund\'s investments. For a mutual fund, the net asset value per share usually represents the fund\'s market price, subject to a possible sales or redemption charge. For a closed-end fund, the market price may vary significantly from the net asset value.
This is the ordinary shareholder's interest per the balance sheet, divided by the number of issued shares, which can be compared to the market price per share to see if the share is trading at a discount or a premium.
Total assets minus total liabilities. Usually used in the context of the solvency calculation of an insurer.
The aggregate of claim payments less all deductions for reinsurance and other recoveries during a given period.
This refers to a life insurance premium which remains constant throughout the duration of a policy. An individual may pay R1 000 per annum for 30 years for example. The effect is to load the premium in earlier years when the risk of death is lower and to pay a lower than needed premium in later years when the mortality risk is higher. The actuary accounts for this discrepancy in payment in the life fund calculation.
A policy reserve computed by a method that makes no allowance for higher first-year expenses. A uniform portion of each year’s premiums paid by the insured is used for reserve purposes. Comes into play in the calculation of in-force premiums where there are cancellations or endorsements part-way through the policy term.
The insurance business retained by a ceding company solely for its own account and which is not reinsured other than by catastrophe cover, stop loss cover or some other form of aggregate protection. Also known as retention or net account.
The amount of loss sustained by an insurer or reinsurer in respect of a claim after taking into account all recoveries by way of reinsurance, salvage and subrogation.
The aggregate expense of investigating and adjusting claims, with deductions for all credits including reinsurance
The premium which, together with other similar premiums, along with investment income, will be exactly sufficient to pay all claims under certain specific assumptions as to mortality rates and interest yields. It does not provide for any expenses of administration nor for contingencies not contemplated in the basic mortality and interest assumptions. A level net premium is uniform in amount as between first and renewal policy years and hence makes no allowance for higher first-year expenses.
Gross premium written or received on all business less Short-term business return premiums and reinsurance cessions
An approach used in capital budgeting where the present value of cash inflow is subtracted from the present value of cash outflows. NPV compares the value of a rand today versus the value of that same rand in the future after taking inflation and return into account. If the NPV of a prospective project is positive then it should be accepted, but if it is negative then the project probably should be rejected because cash flows are negative.
A final rate after all discounts have been allowed.
The amount of any risk that an insurer keeps for its own account after taking into account all reinsurance covers taken in respect of the risk.
Returns quoted are net of management fees and Retirement Funds Taxation, which more accurately reflects the actual return credited to investors.
The net single one-time premium which, together with other similar premiums, along with investment income will be exactly sufficient to pay all claims under certain specific assumptions as to mortality rates and interest yields.
Assets less liabilities used by underwriters in assessing the risk for surety bonds
See net premiums.
The asset mix an investment manager holds if it has no firm views on the market's future movements.
Policies written in response to applications for insurance, as distinguished for renewal and cancellation rewrite policies.
Applies mainly to international equities. Price-weighted average of 225 stocks of the first section of the Tokyo Stock Exchange started on May 16, 1949. Japanese equivalent of the US Dow.
The amount by which a renewal premium is reduced if the insured has not made a claim under the insurance policy for one or more consecutive preceding years. Applied particularly to motor comprehensive cover.
Calculated annually and paid monthly, it is the amount of interest investors earn each month on their deposits.
Shares not included in the JSE All Share index, such as holding companies and pooled products.
A pension fund or provident fund under which the employer pays all the costs of the plan.
An investment is a non-directional bet if it is not dependent on the underlying asset or market moving in a specific direction to make a profit. For example, being long a straddle will be profitable if the underlying increases or decreases.
The failure to disclose material facts before entering into a policy.
Retirement funds subject to the Pension Funds Act are often referred to as "non-exempt" funds.
Those benefits in a life insurance contract that the policyholder does not forfeit, even for failure to pay premiums. Non-forfeiture benefits usually include cash value, paid-up insurance value, or extended-term insurance value.
See policy loan
The involuntary surrender of a life insurance policy in cases where its surrender value has been fully applied against unpaid premiums.
All shares that fall outside the FTSE/JSE indices.
See short-term insurance.
Insurance by which policyholders do not share in any surplus earnings distributed by the insurer. No policy dividends are payable. The premium is based on an estimate of future costs and investment earnings very close to what the insurer believes most likely will occur, with a slight margin added for contingencies and profit.
Policy not designed to give the life policyholder a dividend.
A term describing excess of loss and similar types of reinsurance in which the reinsurer’s share of the ceding company’s losses are not in the same proportion as its share of the premiums.
The earliest age an employee can retire without a reduction in pension benefits.
Debt instruments with initial maturities of more than one year but less than ten years.
The amount above which it is agreed that an estimated claim will be notified to and/or recorded by the underwriters, by brokers, or by agencies.
By international agreement such risks are excluded from all policies.
