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PARIS RE is a global provider of reinsurance solutions through its operating subsidiaries located in Switzerland, France, the United States, Singapore, Canada and Bermuda. The company operates in all lines of facultative and treaty reinsurance covering property, casualty, marine, aviation & space, credit & surety, life, accident & health as well as a wide range of other risks. At its formation, PARIS RE acquired essentially all of the active business of AXA RE. Based on consolidated financial figures at 31 December 2007, PARIS RE shareholders’ equity amounted to 2.474 billion US dollars. On a 12-month pro forma basis, PARIS RE wrote 1.411 billion US dollars in gross premiums in 2007.

 
 

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Glossary

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GROSS LINE

The total limit of liability accepted by an insurer on an individual line of business. (NET LINE plus all reinsurance ceded.)


GROSS LOSS

A term referring to reinsurance losses subject to the contract under consideration before the application of any RETENTION, but after reduction because of any other reinsurance which inures to the benefit of the coverage being considered. Also sometimes used to describe losses before reduction for inuring reinsurance. Also FROM THE GROUND UP - FGU.


GROSS NET PREMIUM - GNP [UK]

GROSS ORIGINAL PREMIUM after deduction of returns of premium and premiums paid for reinsurances, recoveries which would inure to the benefit of the REINSURERs.


GROSS ORIGINAL PREMIUM - GOP [UK]

The premium before COMMISSION is deducted .


GROSS PREMIUM [UK]

Total premium before deduction of BROKERAGE or discounts.


GUARANTEE ENDORSEMENT [USA]

An ENDORSEMENT added to an insurance policy covering the policyholder's mortgaged property to provide that, in the event of the insolvency of the insurance company, the REINSURER shall pay directly to the mortgage guarantor and/or the policyholder the amount of loss which would have been recovered from the reinsurer by the insurance company. The endorsement may provide that the reinsurer will pay the full loss amount in accordance with the insurance protection afforded by the insurance company. The guarantee endorsement is similar in concept to the CUT-THROUGH ENDORSEMENT. Also MORTGAGE GUARANTOR ENDORSEMENT.


GUARANTEED COST [UK]

The premium charged on a projected basis which may be fixed or adjustable on a specified rating basis but never on the basis of loss experience.


HONORABLE UNDERTAKING CLAUSE [UK]

Self explanatory clause which provides that the reinsurance agreement is considered by the parties as an honorable undertaking. The purpose of which is not to be defeated by a strict or narrow interpretation of the language thereof.


HOURS CLAUSE

A clause used in CATASTROPHE REINSURANCE which limits the time period and/or geographic scope for which the REINSURER is liable for a particular catastrophic hazard e.g., hurricane and earthquake. In most cases, the time period is limited to 72 hours.


INCURRED BUT NOT REPORTED - IBNR

The loss reserve value established by insurance and reinsurance companies in recognition of their liability for future payments on losses which have occurred but which have not yet been reported to them. This definition is often erroneously expanded to include adverse LOSS DEVELOPMENT on reported claims; the term Incurred But Not Enough Reported - IBNER is coming into increased usage to more accurately reflect the adverse development on inadequately reserved reported claims.


INCURRED LOSS RATIO [UK]

This ratio is calculated by dividing INCURRED LOSSES by the earned premium.


INCURRED LOSSES [UK]

The total amount of paid and outstanding claims brought to account in any one accounting period.


INDEX CLAUSE

A clause used in an EXCESS OF LOSS REINSURANCE treaty contract and designed to maintain the monetary value of the RETENTION or/and the indemnity of the treaty as at an agreed base date by using a specified index figure. Also STABILITY CLAUSE. Compare SEVERE INFLATION CLAUSE.


INDEXING [USA]

The procedure sometimes incorporated into an EXCESS OF LOSS REINSURANCE treaty to adjust the RETENTION and limit according to the value of a specified public economic index (for example: wage, price, or cost-of-living). Compare INDEX CLAUSE above.


INFORMATION NOT WARRANTY [UK]

A qualification in a slip which indicates that any inaccuracy in underwriting information supplied is to incur no penalty.


INSOLVENCY CLAUSE

A contractual provision, generally required by statute or regulation as a prerequisite to receiving credit for reinsurance, under which the REINSURER agrees, in the event of the CEDENT's insolvency, to pay its reinsurance obligations under the contract whether or not the insurer has paid its obligations.


INSURANCE REGULATORY INFORMATION SYSTEM - IRIS [USA]

The mechanism developed by the NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS to assist states in overseeing the financial condition of insurance companies.


INTERMEDIARY [UK]

An individual who negotiates reinsurance contracts between the CEDING COMPANY and the REINSURER(s). The intermediary generally represents the ceding company and receives a commission, almost always from the reinsurer(s), for placing the business and performing other necessary services. Also BROKER.


INTERMEDIARY CLAUSE

A contractual provision, generally required by statute or regulation as a prerequisite to receiving credit for REINSURANCE, in which the parties agree to effect all transactions through an INTERMEDIARY and the credit risk of the intermediary, as distinct from other risks, is imposed on the REINSURER.


INWARDS TREATY [UK]

Describes a treaty which has been accepted for the account of a REINSURER.


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