Investor Services

Glossary

Common Ratios

  • Quarterly adjusted ROAE annualized = (adjusted net income / average equity) x 4;
  • Average volume = net change - average rate;
  • Average rate = (current period interest / current period balance) x (previous period balance) - (previous period interest);
  • Net change = current period interest - previous period interest;
  • Assets annualized rate = interest revenues / average earning assets balance;
  • Liabilities annualized rate = interest expenses / average interest bearing liabilities.

Insurance

  • Loss Ratio = claims incurred / earned premiums;
  • Commission Ratio = acquisition costs / earned premiums;
  • Technical Margin = (earned premiums + policies issuance revenue + claims incurred + acquisition costs + result with reinsurance) / earned premiums;
  • G&A Ratio = (administrative expenses + tax expenses + other operating income (expenses)) / earned premiums;
  • Combined Ratio = (policies issuance revenue + claims incurred + acquisition costs + result with reinsurance + administrative expenses + tax expenses + other operating income (expenses)) / earned premiums;
  • Expanded combined ratio = (policies issuance revenue + claims incurred + acquisition costs + result with reinsurance + administrative expenses + tax expenses + other operating income (expenses)) / (earned premiums + net investment income).

Pension plans

  • Commission Ratio = acquisition cost / income and premiums contributions;
  • Cost to income = (changes in other technical reserves + expenses with benefits, redemptions and claims + acquisition costs + administrative expenses + tax expenses + other operating income (expenses)) / (net revenues with contributions and VGBL premiums + revenues with management fee + earned premiums).

Premium bonds

  • Lottery Ratio = lottery results / net revenue with premium bonds;
  • Commission Ratio = acquisition costs / net revenue with premium bonds;
  • G&A Ratio = (administrative expenses + tax expenses + other operating income (expenses)) / net revenue with premium bonds;
  • Reserve quote = change in provision for redemption / premium bonds collection;
  • Premium Bond Margin = result with premium bonds / net revenue with premium bonds;
  • Net Margin = adjusted net income / net revenue with premium bonds;
  • Spread = average yield on interest earning assets – average yield on interest bearing liabilities.

Reinsurance

  • Claim Ratio = claims incurred / earned premiums;
  • Commission Ratio = acquisition costs / earned premiums;
  • Technical Margin = (claims incurred + acquisition costs + result with reinsurance) / earned premiums;
  • G&A Ratio = (administrative expenses + tax expenses + other operating income (expenses)) / earned premiums;
  • Combined Ratio = (claims incurred + acquisition costs + result with reinsurance + administrative expenses + tax expenses + other operating income (expenses)) / earned premiums;
  • Expanded combined ratio  = (claims incurred + acquisition costs + result with reinsurance + administrative expenses + tax expenses + other operating income (expenses)) / (earned premiums + net investment income).

Brokerage

  • Adjusted Operational Margin = operational results / brokerage revenues;
  • Adjusted Net Margin = adjusted net income / brokerage revenues.

Updated on February 13, 2017.