Glossary

Rating

A rating is an evaluation of the creditworthiness of a debtor (countries, companies and so on) often carried out by a specialised rating agency. The evaluation is expressed as a kind of grading. It is very similar to a school grading system. The ratings of the agencies have different grading systems and symbols.

Reinsurance

Reinsurance is when an insurance company insures a portion of its risk with another insurance company.

Retained Earnings

Retained earnings are the profits generated by the company that have not been distributed as dividends.

Return on Equity

Profit before taxes divided by average shareholders’ equity (less revaluation reserve), calculated using values at the beginning and end of the year.

Return on Equity

Verhältnis von Ergebnis vor Steuern zu durchschnittlichem Eigenkapital (abzüglich Neubewertungsrücklage) aus dem Stand am Jahresanfang und Jahresende.

RoE

Profit before taxes divided by average shareholders’ equity (less revaluation reserve), calculated using values at the beginning and end of the year. See also "Return on Equity".