Glossary

A

Adjusted Consolidated Profit, Adjusted Consolidated Net Assets, Adjusted Consolidated ROE

Please see below for adjusted consolidated profit, adjusted consolidated net assets, and adjusted consolidated ROE.
https://www.sompo-hd.com/-/media/hd/en/files/doc/pdf/e_ir/e_definition.pdf

Advisory Rate

The net premium rate used as a reference (indicator) when insurance companies calculate the premium rate for P&C insurance. It is calculated based on data from insurance companies that are members of the General Insurance Rating Organization of Japan.

Annualized Premiums

It is calculated by converting premium income with different payment methods, such as full payment and monthly payment, into an annual amount.

Assets Under Management

Of the total assets of an insurance company, the assets that are invested to generate income.

B

Back Spread

A situation where the actual investment yield is lower than the assumed interest rate promised by the life insurance company at the time of contract conclusion.

Balance Sheet

One of the financial statements. A statement that summarizes the value of assets, liabilities, and net assets that a company holds at a certain point of time.

Book Value Per Share

It is calculated by dividing the total net assets on the balance sheet by the number of shares issued.

C

Cash Flow Statement

A statement of the increase/decrease in funds (income and expense) during an accounting period associated with corporate activities which are divided into three segments: operation, investment, and finance.

Casualty Insurance

A general term for insurance other than automobile insurance, fire insurance, personal accident insurance, and marine insurance (includes liability insurance and cyber insurance).

Catastrophic Loss Reserve

A reserve that an insurance company sets aside a portion of premium income in advance to prepare for large payments due to natural disasters, such as typhoons and massive fires.

Combined Ratio

The sum of the net loss ratio and net expense ratio. An indicator of the ratio of the sum of insurance claims paid and expenses to premium income.

Compliance

It is to conduct business activities in accordance with basic rules, including laws and regulations. It is also the basic principle of corporate governance.

Compulsory Automobile Liability Insurance

Compulsory insurance that all automobiles (including small motorcycles) are obliged to join under the Act on Securing Compensation for Automobile Accidents. The purpose is to help victims of traffic accidents.

Core Profit

An indicator of the earning power of a life insurance company's core business. It is calculated by deducting gains/losses on sale of securities, extraordinary gains/losses, etc. from ordinary income.

Corporate Governance

A system to monitor and control the management of a company.

Corporate Governance Code

Guidelines on corporate governance describing the code of conduct that listed companies should follow. There are five basic principles: "ensuring the rights and equal treatment of shareholders", "appropriate collaboration with stakeholders other than shareholders", "appropriate information disclosure and ensuring transparency", "responsibilities of the Board of Directors, etc.", and "dialogue with shareholders".

Credit Ratings

An easy-to-understand indication of an insurance company’s financial strength and ability to pay insurance claims. In general, “AAA” indicates the best. Several rating agencies, including Standard & Poor's (S&P) in the U.S. and Rating and Investment Information, Inc. (R&I) in Japan, announce ratings based on their own research.