An annuity term referring to that part of an annuity payment that is paid tax-free to the annuitant. It is treated as a return of capital while the balance of the payment is taxed at the annuitant’s marginal income tax rate.

A market where debt and equity are traded. By selling securitised bonds (re)insurers transfer insurance risk to the capital market. See CATASTROPHE BONDS; SECURITISATION.

An annuity under which the insurer guarantees to make total gross annuity payments equal to the purchase price regardless of the date of death.

business other than life insurance whereby in return for one or more premiums a sum or series of sums is to become payable to the insured in the future.

Policies, unrelated to human life, whereby a company regularly sets aside money so that on maturity it can retire its bonds, debentures or preferred stock. The so-called ‘sinking fund’ also enables the company to replace wasting assets such as leases (leasehold redemption policies). The policies are long-term business but not part of the life fund.
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A Policy that provides a specific sum of money after a specific interval (also known as a Sinking Fund Policy)

A charging device used by unit trust managers. In the early years (e.g. up to three) premiums are allocated to capital units in order to recover expenses.

The amount used for underwriting in relation to occupational pension schemes policies when a pension provision is to be made for a member’s spouse or other dependants.

The restaurant at Lloyd’s.

War risks’ covered under the Institute War Clauses. Capture, taking the enemy in wartime or by rebels or insurgents. Seizure, a wider term embracing every act of forcible possession. See FREE OF CAPTURE AND SEIZURE CLAUSE.

The 20 used by motor groups insurers for rating purposes; the higher the group number, the higher the premium. Groups reflect the cost of replacement parts, ease of carrying out repairs, purchase price, performance and level of security. Expensive high performance cars are in the highest group.