Glossary

E

Earned premiums

Fraction of the premium corresponding to the expired portion of time for which the reinsured policy(ies) was/were in effect. The unearned portion of premiums is recorded in the premium reserve and carried under technical reserves.

Equalization reserve

Long-term reserve set aside by the insurer or reinsurer in order to equalise operating results from certain risks, notably catastrophes.

Event

Aggregation of claims having a common fortuitous origin and affecting either a single insured under more than one policy, or more than one insured.