An item in the balance sheet of an insurance company which represent a setting aside of assets to compensate for a possible reduction in the market value of securities owned by the Company.
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UK: colloquial term that broadly describes the excess of the admissible value (essentially the market value) of an insurer’s assets over its recognised liabilities to policyholders, shareholders and others; before 1995 it often appeared explicitly in the insurer’s accounts, but in the periodical return means the valuation difference shown in Form 14 Line 51 in a case where assets are given a book value below their market value.
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The assets an insurance company has put aside to compensate for a reduction in the value of the securities the company owns.
Insurance Encyclopedia
Investment risk
The risk that the rates of investment returns anticipated in insurance and investment calculations are not achieved.
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Possibility that an investment in a stock, bond or similar security may lose its market value for any reason, thus, causing loss of wealth or income to the holder of this security. This risk relates to security market conditions.
Investment trust
A company that invests in stocks and shares bought with the capital subscribed by shareholders, retained profits and loan finance. The shares of the trust are available only to the extent that existing shareholders are prepared to sell the whole or a part of their holdings.
investment year method (IYM)
Accounting system in which an insurance company keeps records of the interest rates it annually earns on funds that relate to accounts in the general account. Also called new money method .
Investment-linked assurance
long term business with investment content whose return is linked to the performance of a specified asset, group of investments, or index.
Investment-sensitive insurance
Category of insurance products that have death benefits and cash values that vary depending on the insurer’s investment earnings such as variable annuities, variable life insurance, and variable universal life insurance. Also called interest-sensitive insurance .
Investments in Affiliates
Bonds, stocks, collateral loans, short-term investments in affiliated and real estate properties occupied by the company.
Investor-owned hospital
See: propriety hospital .
Invitee
A person having an express or implied invitation to enter a given location. Also called a business visitor, an invitee is a person invited, expressly or impliedly, to come on to the land of the possessor for the business advantage of the possessor.
Involuntary plan termination
Termination of a retirement plan initiated by a government organization rather than by a plan sponsor.