Glossary

M

Marine Insurance

A generic term for cargo insurance and marine hull insurance, which covers losses caused by voyage-related accidents, such as foundering, grounding, collision, and theft of ships.

Market Capitalization

Stock price multiplied by the total number of shares issued. It is the amount needed to acquire all the shares issued and is an indicator used to measure the corporate value in the market.

Market Consistent Embedded Value (MCEV)

An assessment of the present value of current and future distributable earnings to shareholders generated from assets allocated to the covered business. It is the sum of the “corporate net asset value” and the “present value of future profits from in-force business.”

N

Negative 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.

Net Assets

An accounting item calculated by deducting liabilities from total assets. It can be roughly divided into shareholders’ equity, valuation/translation adjustments, and stock acquisition rights. In the case of consolidated financial statements, minority interests are also included.

Net Claims Paid

An indicator of the size of insurance underwriting expense of an insurance company. It is calculated by deducting the insurance premiums collected by subrogation, etc. from the claims paid based on the underwriting agreement (net premiums written), adding the net claims paid based on the reinsurance agreement, and deducting the reinsurance premiums collected based on the reinsurance agreement.

Net Expense Ratio

An indicator of the business efficiency of insurance companies. It is the ratio of operating expenses (commission and collection expense + selling, general and administrative expense related to insurance underwriting) to net premiums written.

Net Income Attributable to Shareholders of the Parent

Profit after deducting taxes, etc., calculated for a certain accounting period of a company. It is the bottom line in the profit and loss statement.

Net Loss Ratio

The ratio of insurance claims paid to premiums written which is used when analyzing the management of insurance companies and calculating insurance premium rates. In general, it is the ratio of net premiums paid plus loss adjustment expense to net premiums written.

Net Premiums Written

An indicator of the size of revenue of an insurance company. It is calculated by adding or deducting reinsurance premiums from premiums received from customers (excluding savings insurance premiums).

O

Operating Expenses

Business expense of an insurance company. In the case of a P&C insurance company, it is the sum of "loss adjustment expense", "commissions and collection expense", "selling, general and administrative expense" in the profit and loss statement.

Ordinary Expenses

Expenses incurred continuously every year due to ordinary operating activities of the insurance business. In the case of a P&C insurance company, it is divided into insurance underwriting expense, investment expense, selling, general and administrative expense, and other ordinary expense.

Ordinary Income

Income generated continuously every year from the ordinary operating activities of the insurance business. In the case of a P&C insurance company, it is divided into insurance underwriting income, investment income, and other ordinary income.

Ordinary Profit

Profit from ordinary business activities of a company. In the case of an insurance company, it is calculated by deducting ordinary expenses from ordinary income.