Glossary - BB Seguridade RI

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.

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).

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).

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.

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).