Glossary beginning with S

S&P rating

Credit risk assessment performed by Standard & Poor’s. An A rating means that issuers of debt securities have a high capability of servicing their obligations giving consideration to the emergence of factors diminishing that capability.


European Commission project aiming at creating a solvency system giving consideration to the risk profile to which insurance undertakings and reinsurance undertakings are exposed in connection with the business they pursue.

Solvency II Directive

The Solvency II Directive was enacted in 2009 and published in the Official Journal of the European Union (series L) on 17 December 2009 as “Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (recast) (Text with EEA relevance)” – OJ L 335, 17.12.2009.

Solvency margin

The amount of an insurance undertaking’s shareholder funds no lower than the minimum guarantee fund which is required to ensure that the undertaking remains liquid.

Solvency margin coverage ratio

Statutory ratio specifying the level of capital security for the business conducted by an insurer; by law, this ratio should be above 100%.

Sum insured

The cash amount for which an insured object is insured. In non-life insurance the sum insured ordinarily constitutes the upper limit of the insurer’s liability.