Glossary

D

Direct Claims Paid

The amount of claims paid to customers.

Direct Premiums Written

Insurance premiums received from customers (excluding savings insurance premiums). An indicator generally used to calculate the market share of P&C insurance companies.

Dividend

The profit that a company distributes to shareholders. Dividends may not be paid depending on financial performance (no dividend).

Dividend Yield

The annual dividend per share divided by the current stock price. An indicator of the ratio of dividends to stock price.

E

Earnings Per Share

Net income divided by the number of shares issued. A stock price indicator of the amount of profit per share of a company.

Earnings Report

A report released by all companies listed on the stock exchange at the time of financial results announcement, which summarizes the main points of financial information.

Economic Solvency Ratio

An indicator of whether or not a company has sufficient capital relative to risk.

Embedded Value (EV)

An indicator to evaluate the value and financial performance of a life insurance company. It is the sum of “net assets of the company” and “present value of future profits from policies in force” and supplements financial information, such as profit and loss statement, of life insurance companies.

Enterprise Risk Management (ERM)

Enterprise Risk Management (ERM) is a risk control system designed to appropriately respond to risks and business opportunities that affect the maintenance and enhancement of corporate value. ERM is internally referred to as strategic risk management and seeks to increase profits and maximize the Group’s corporate value by minimizing unexpected losses, effectively deploying capital, and appropriately controlling risks.

Equity Ratio

Ratio of equity capital to total capital. Equity capital is the sum of capital, capital reserve, surplus, etc. Generally, the higher the equity ratio, the smaller the debt and said to be financially sound.

F

Fair Disclosure Rule

When a company has provided material information, such as non-public earnings information, to securities analysts and others, the fair disclosure rule requires the company to promptly and fairly disclose that information to all other investors as well.

Fiduciary Duty

Fiduciary duty collectively refers to a wide range of roles and responsibilities borne by those who have gained the trust of others to perform certain services on their behalf. Among the specific obligations associated with fiduciary duty are accountability, segregated management of assets, the duty of loyalty (duty to prevent conflicts of interest), and the duty of care.

Financial Report

A report that describes the general situation of the company, business situation, financial situation, etc. Companies listed on the stock exchange submit their reports to the Prime Minister.

Fire and Allied Insurance

Insurance that covers damage to buildings and home contents caused by fires, lightning strikes, explosions, wind disasters, etc.