Glossary beginning with S

S&P rating

Credit risk assessment performed by Standard and Poor’s. An A rating means that issuers of debt securities have a high capability of servicing their obligations giving consideration to the emergence of factors diminishing that capability.

Solvency I

the solvency margin for insurance companies. The system operating in the European Union from the 1970s to 31 December 2015.

Solvency II

capital requirements for European insurance companies based on the risk undertaken. The requirements have been effective as of 1 January 2016.

Solvency margin

The amount of an insurance undertaking’s shareholder funds no lower than the minimum guarantee fund which is required to ensure that the undertaking remains liquid.

Solvency margin coverage ratio

Statutory ratio specifying the level of capital security for the business conducted by an insurer. By law, this ratio should be above 100%.

Sum insured

The cash amount for which an insured object is insured. In non-life insurance the sum insured ordinarily constitutes the upper limit of the insurer’s liability.