Glossary

V

Value of new business: The present value of profits in future years that can be generated from new policies concluded in the current financial year.
Value-at-risk: The VaR concept is a procedure used to calculate potential losses arising from changes in the price of a trading position. This loss potential is expressed using a specific confidence limit (e.g. 98%), and is calculated based on market-related price changes.
VaR: The VaR concept is a procedure used to calculate potential losses arising from changes in the price of a trading position. This loss potential is expressed using a specific confidence limit (e.g. 98%), and is calculated based on market-related price changes.
Volatility: Volatility refers to the fluctuations in securities prices, currency prices and interest rates.