Glossary

Cash flow

A key figure used in the analysis of shares and companies. It represents the inflow and outflow of liquid assets during a specific accounting period. Cash flow is essentially calculated by adding together the profit for the year, depreciation, changes in long-term provisions, and income taxes.

Cash flow statement

The cash flow statement presents the changes in cash and cash equivalents during a financial year, broken down into the three areas of ordinary activities, investing activities, and financing activities. The aim is to provide information on the financial strength of the company.

Ceded reinsurance business

Deposits on assumed reinsurance business are underwriting claims of the reinsurance company against the direct insurer. When business is ceded, the direct insurer retains a portion of the reinsurer’s share of premiums and claims as security. This security portion is shown as a deposit on assumed reinsurance business in the reinsurer’s balance sheet. The direct insurer recognises a deposit on ceded reinsurance business in the same amount.

Ceded reinsurance premiums

Share of the premiums to which the reinsurer is entitled in return for covering certain risks.

CEE

The definition of “CEE” includes all of the growth markets in Central and Eastern Europe in which VIG Insurance Group is operating. This includes Albania, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Moldova, Montenegro, North Macedonia, Poland, Romania, Serbia, Slovakia, Slovenia, Turkey and Ukraine. Note that differences may exist between this definition and the definition of CEE used by other companies, financial institutions (e.g. IMF, OECD, WIFO, IHS), etc.

CEE markets

The definition of “CEE” includes all of the growth markets in Central and Eastern Europe in which VIG Insurance Group is operating. This includes Albania, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Moldova, Montenegro, North Macedonia, Poland, Romania, Serbia, Slovakia, Slovenia, Turkey and Ukraine. Note that differences may exist between this definition and the definition of CEE used by other companies, financial institutions (e.g. IMF, OECD, WIFO, IHS), etc.

Central and Eastern Europe

The definition of “CEE” includes all of the growth markets in Central and Eastern Europe in which VIG Insurance Group is operating. This includes Albania, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Moldova, Montenegro, North Macedonia, Poland, Romania, Serbia, Slovakia, Slovenia, Turkey and Ukraine. Note that differences may exist between this definition and the definition of CEE used by other companies, financial institutions (e.g. IMF, OECD, WIFO, IHS), etc.

Claims incurred but not reported

Losses that are reported in the current financial year but occurred in the previous year. Each year as of the balance sheet date, a reserve (= incurred but not reported reserve, IBNR) is formed for losses that relate to the financial statement year but are not reported until the following year.

Combined Ratio

When the total of all items in the income statement that contribute to the profit before taxes, except for income from capital assets, other non-underwriting income and expenses and the value of gross earned premiums itself, is divided by gross earned premiums, the result is called the combined ratio. If this ratio is less than 100%, the company is earning a profit from the underwriting portion of the business. This ratio is only calculated for property and casualty insurance. If the reinsurers’ share is taken into account in the calculation, the result is a net combined ratio.

Compliance

(derived from „to comply with“) has to come mean conducting business in accordance with applicable law. This relates to compliance with legal and regulatory requirements on the one hand and with internal and external obligations on a voluntary basis on the other. The term today also refers to the responsibility of the management of a company to take adequate und effective organizational measures, in order to ensure the lawful conduct of the entity and its employees as well as to swiftly detect any breaches of the law and enforce sanctions accordingly. To this extent, Compliance encompasses all organizational measures which ensure that the company acts in accordance with all applicable rules and regulations.

Consolidation

The financial statements of the parent company and those of the subsidiaries are combined when the consolidated financial statements are prepared by the parent company. During this process, intragroup equity interests, interim results, receivables and payables and income and expenses are eliminated.