• Affinity-based segment

    Market segment united by its loyalty (‘affinity’) to a brand in the broadest sense (including charities and sports teams). This brand loyalty is then used to sell a new set of products or services, often provided by a third party (e.g. insurance policies branded by a supermarket).

  • Ageas’s part in inflows

    Ageas holds several partnerships in the 12 countries present. In some insurance companies, Ageas has 100% control (Ageas Insurance Limited UK, Ageas Hong Kong, Ageas France). In other operating companies, the ownership varies between 15% and 75%.  As of the full year 2012 reporting, Ageas added the inflows based on Ageas’s pro rata part in the operating companies.

  • Amortised cost

    The amount at which a financial asset or liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation/accretion of any premium/discount, and minus any write-down for impairment.

  • Associate

    A company in which Ageas has significant influence but which it doesn’t control.

  • Assurfinance

    The selling of banking products through insurance brokers.


  • Bancassurance

    The selling of insurance products through bank branches.

  • Basis point (bp)

    One hundredth of a percentage point (0.01%).


  • CAGR

    Compound Annual Growth Rate. The year-over-year growth rate applied to an investment or other element of a company’s activities over a period of several years. The formula for calculating CAGR is (Current Value/Base Value)^(1/number of years)-1.

  • Cash flow hedge

    A hedge to mitigate the exposure to variability in cash flows of a recognised asset or liability, or forecasted transaction, that is attributable to changes in variable rates or prices.

  • Combined ratio

    The ratio between the insurer’s total expenses (claims burden, commissions and general expenses) and premiums received. The combined ratio is only applied to non-life insurance.

  • Compliance

    Department responsible for monitoring and managing the risks associated with a company’s compliance with legislation and regulations. Ageas’s Compliance Officers promote adherence to the internal code of conduct by advising management, businesses and individual employees.

  • Credit spread

    The yield differential between government bonds and corporate bonds or credits.

  • Cross-selling

    The strategy of using an existing customer base for one product as prospective customers for other products.


  • Deferred acquisition cost

    The cost of acquiring new and renewed insurance business, principally commissions, underwriting, agency and policy issue expenses, all of which vary with and primarily are related to the production of new business.

  • Derivative

    A financial instrument, traded on or off an exchange, the price of which is directly dependent upon (i.e. ‘derived from’) the value of one or more underlying securities, equity indices, debt instruments, commodities, other derivative instruments, or any agreed upon pricing index or arrangement.

  • Discounted cash flow method

    An approach to valuation, whereby projected future cash flows are discounted at an interest rate that reflects the time value of money and a risk premium that reflects the extra return investors demand for the risk that the cash flow might not materialise after all.

  • Divestment

    The sale of assets. Also called ‘disinvestment’.

  • DPF

    Discretionary Participation Feature. This relates to the right of holders of certain insurance contracts and/or financial instruments to receive a supplemental return (in addition to guaranteed benefits). Its amount and/or time is contractually at the discretion of the issuers.


  • Embedded derivative

    A derivative instrument that is embedded in another contract - the host contract. The host contract might be a debt or equity instrument, a lease, an insurance contract or a sale or purchase contract.

  • Employee benefits

    All forms of considerations given by an entity in exchange for service rendered by employees, in addition to their pay or salary.


  • Fair value

    The amount for which an asset (liability) can be bought (incurred) or sold (settled), between knowledgeable, willing parties in an arm’s length transaction.

  • Forward distribution integration

    To gain access to (and control over) a distribution channel, e.g. bancassurance.


  • Goodwill

    This represents the excess of the fair value of the assets given, liabilities incurred or assumed, and equity instruments issued, plus any costs directly attributable to the business combination over Ageas’s interest in the fair value of assets acquired and liabilities and contingent liabilities assumed.

  • Gross inflow

    Sum of gross written premiums and investment contracts without DPF (Discretionary Participation Feature).

  • Gross written premiums

    Total premiums (whether or not earned) for insurance contracts written or assumed during a specific period, without deduction for premiums ceded.

  • Guaranteed products

    Family of products including Traditional products, Savings products and Group Life. Traditional products typically are protection-based while savings products mostly cover products with a minimum guaranteed interest rate. Group life products are offered by an employer or large-scale entity to its workers or members and can have various characteristics. Guaranteed products in Individual Life and Group Life are predominantly characterized by a transfer of risk from the policyholder to the insurer, opposite to Unit-linked products where the policyholder retains the (investment) risk.  


  • Hedge accounting

    Hedge accounting recognises the offsetting effects on profit or loss of changes in the fair values of the hedging instrument and the hedged item.


  • IFRS

    International Financial Reporting Standards, previously International Accounting Standards (IAS), used as a standard for all listed companies within the European Union as of 1 January 2005 to ensure transparent and comparable accounting and disclosure.

  • Impairment

    A decline in value whereby the carrying amount of the asset exceeds the recoverable amount. In such a case, the carrying amount will be reduced to its recoverable amount through the income statement.

  • Insurance contract

    A contract under which one party (Ageas) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder.

  • Intangible asset

    An identifiable non-monetary asset which is recognised at cost if and only if it will generate future economic benefits and if the cost of the asset can be measured reliably.

  • Intermediary

    Person or institution facilitating a transaction between a buying and a selling party. In the insurance business independent intermediaries market insurance products to customers. In the banking business Fortis Bank acts as intermediary in its capacity of securities broker.

  • Investment contract

    A life insurance policy contract that transfers financial risk without transferring significant insurance risk.

  • Investment property

    Property held by Ageas to earn rental income or for capital appreciation.

  • Investment result

    The sum of investment income and realised capital gains on the assets covering the technical liabilities, netted in Life, for what is allocated to the policyholder as guaranteed interest and profit sharing in Non-Life for the technical interest charge on the technical liabilities.


  • Joint venture

    A strategic alliance undertaken jointly by two or more parties bringing in capital and know-how, but otherwise retaining their separate identities.


  • Market capitalisation

    Value attributed to the company by the stock market. Market capitalisation corresponds to the number of shares outstanding multiplied by the share price at a given time.


  • Net earned premiums

    The written premiums of Non-Life covering the risks for the current period netted for the premiums paid to reinsurers and un-earned premiums.

  • Net underwriting result

    The difference between the earned premiums on the one hand and the actual payments and the year-end change in technical liabilities representing future obligations on the other hand. This covers a risk, reinsurance and expense component. In Life it also includes a surrender component.

  • Notional amount

    Amount of currency units, number of shares, a number of units of weight or volume or other units specified in a derivative contract.


  • Operating margin

    Operating income divided by net premium. Operating income is the profit or loss stemming from all operations, including underwriting and investments.  

  • Operating result

    The sum of net underwriting result, investment result and other result. As of full year 2012 results, Ageas focuses on this concept within its margin analysis and abandons the notion of technical result (as part of the operating result).

  • Option

    A privilege sold by one party to another that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price during a certain period of time or on a specific date.

  • Organic growth

    The growth rate of a company excluding any growth from acquisitions, divestments or exchange rate movements.


  • Personal lines insurance

    Insurance for individuals and families, such as car and homeowners’ insurance.

  • Prior year claims ratio

    Related to Non-Life claims that occurred in prior years: the net effect of claims paid and the evolution in technical liabilities, expressed as a percentage of the net annualised earned premiums.

  • Provision

    Provisions are liabilities involving uncertainties in the amount or timing of payments. Provisions are recognised if there is a present obligation to transfer economic benefits, such as cash flows, as a result of past events and a reliable estimate can be made at the balance sheet date.


  • Reserve ratios (%)

    The Non-Life technical liabilities divided by the annualized net earned premiums. Depending on the type of product, the reserve ratio typically varies between 80 and 300% which is related to the duration of a claim for the specific business.

  • Return on equity (ROE)

    The ratio (in percent) between the net profit and the average shareholders’ equity for a financial year. A measure of profitability of equity indicating the return that a company achieves on the capital it employs.


  • Shadow accounting

    According to IFRS 4 an insurer is permitted, but not required, to change its accounting policies so that a recognised but unrealised gain or loss on an asset affects the measurement of the insurance liabilities. The related deferred adjustment to the insurance liability (or deferred acquisition costs or intangible assets) is recognised in equity only if the unrealised gains or losses are recognised directly in equity.

  • Shareholders’ equity

    The residual interest in the assets of the entity after deducting all of its liabilities. Financial institutions are obliged to keep sufficient shareholders’ equity to meet their obligations towards customers.

  • Solvency II

    A fundamental and wide-ranging review of the current solvency rules for European insurance companies in the light of current developments in insurance, risk management, finance techniques and financial reporting.

  • Structured credits

    A general term used to describe either the practice or the result of creating securities by repackaging cash flows from financial contracts.

  • Subordinated bond (loan)

    A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings.

  • Subsidiary

    Any company, of which Ageas, either directly or indirectly, has the power to govern the financial and operating policies so as to obtain the benefits from its activities (‘control’).


  • Technical liabilities

    The obligations the insurer has towards its policyholders, based on the terms of the contracts. In Life, this concept corresponds to a large extent with the formerly used notion of Funds under Management.  


  • Value added by new life business

    The discounted present value of the future distributable shareholder net cash flows expected from the block of new business written in a specified period.

  • Value of Business acquired (VOBA)

    The present value of future profits from acquired insurance contracts. VOBA is recognised as an intangible asset and amortised over the premium or gross profit recognition period of the policies acquired.