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.