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Affiliated Corporate Agency
– Agency in Japan directly affil-
iated with a specific corporation that sells insurance policies
primarily to its employees
Earnings Per Basic Share
– Net earnings divided by the weight-
ed-average number of shares outstanding for the period
Earnings Per Diluted Share
– Net earnings divided by the weight-
ed-average number of shares outstanding for the period plus
the weighted-average shares for the dilutive effect of share-
based awards outstanding
Group Insurance
– Insurance issued to a group, such as an
employer or trade association, that covers employees or
association members and their dependents through certifi-
cates of coverage
Individual Insurance
– Insurance issued to an individual with the
policy designed to cover that person and his or her dependents
In-force Policies
– A count of policies that are active contracts
at the end of a period
Net Investment Income
– The income derived from interest
and dividends on investment securities, after deducting
investment expenses
NewAnnualized PremiumSales
– Annual premiums, on policies
sold and incremental increases from policy conversions,
collected over a 12-month period, assuming the policies
remain in force
Operating Earnings Per Share
– Profits per share derived from
operations before realized investment gains and losses from
securities transactions, impairments, and derivative and
hedging activities, as well as nonrecurring items
Persistency
– Percentage of premiums remaining in force at the
end of a period, usually one year. For example, 95%persistency
would mean that 95% of the premiums in force at the beginning
of the period were still in force at the end of the period
Premium Income
– Revenues that an insurer receives as
premiums paid by its customers for insurance products
Risk-based Capital (RBC) Ratio
– Statutory adjusted capital
divided by statutory required capital. This insurance ratio
is based on rules prescribed by the National Association of
Insurance Commissioners (NAIC) and provides an indication
of the amount of statutory capital the insurance company
maintains, relative to the inherent risks in the insurer’soperations
Solvency Margin Ratio (SMR)
– Solvency margin total divided by
one half of the risk total. This insurance ratio is prescribed by
the Japan Financial Services Agency (FSA) and is used for all
life insurance companies in Japan to measure the adequacy
of the company’s ability to pay policyholder claims in the event
actual risks exceed expected levels
Total Return to Shareholders
– Appreciation of a shareholder’s
investment over a period of time, including reinvested cash
dividends paid during that time
Voluntary Supplemental Insurance
– Benefits purchased by a
consumer at the consumer’s own expense in addition to a
(typically employer-provided) major medical plan that cover
out-of-pocket expenses not typically covered under the
primary insurance policy
GLOSSARY OF SELECTED TERMS
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