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.