Search results for "Solvency"
showing 10 items of 110 documents
WORKING CAPITAL AS AN ENTERPRISE VALUE ASSESSMENT TOOL
2019
The valuation of an entity in off-exchange transactions involves the use of different techniques. Nevertheless, none of them guarantees the most accurate result. Therefore, it is very difficult to choose one evaluation method. Both investors, corporate managers, financial professionals, portfolio managers, and securities analysts should have a basic understanding of the process of evaluating companies. To that end, professionals recommend evaluating a company’s financial reports to detect its financial position and solvency. According to the methods of financial analysis, working capital is one of the solvency ratios, which describes the value of resources that remain after the company’s cu…
Own Risk and Solvency Assessment
2015
The own risk and solvency assessment under art. 45 of the Solvency II Directive forms the subject of this chapter. Initial attention is given to clarifying the role of ORSA in the insurance supervisory regime and the principles applicable to it. Then follows a discussion of the relationship of ORSA to the risk management function as well to the other key functions under the insurance supervisory regime. In conclusion, the chapter addresses, inter alia, the documentation, the public disclosure, and the supervisory powers involved in an ORSA procedure.
Integrating the Compliance Function into the Legal Department
2015
This chapter addresses a governance issue: whether it is permissible under the insurance supervisory regime of Solvency II for an insurance undertaking to merge its compliance function with its legal department. The Solvency II provisions in fact do not address the legal department of an insurance undertaking. But the tasks and powers of a legal department are in part the same as those of the compliance function under art. 46, para. 1 of the Solvency II Directive. The conclusion is thus: General insurance supervisory regime principles such as functional segregation and functional independence do not prohibit such a merger. Indeed, such a merger would seem to be advisable in many instances i…
Definition, Tasks and Legal Nature of the Compliance Function
2015
This chapter addresses the compliance function under art. 46, para. 1 of the Solvency II Directive. The first items to be addressed here are the normative bases of compliance under the insurance supervisory regime and its conceptual content. Then, the tasks and relevant requirements for compliance under the insurance supervisory regime are identified. The chapter concludes by examining the function of compliance under the insurance supervisory regime of the Solvency II system.
Influencia de las escuelas flautísticas en la praxis docente del profesorado superior en España
2020
Las escuelas nacionales de flauta travesera han jugado un papel importante en la generalización de las técnicas y en la creación de métodos que han conseguido ser atemporales y de probada solvencia. El objetivo radica en conocer la influencia e influjos que las diferentes escuelas puedan tener sobre el alumnado, y determinar si realmente hoy en día se pueden acotar dichas doctrinas, producto de un momento determinado y en unas circunstancias de expansión del instrumento. Este artículo se centra en datos obtenidos acerca de la influencia que estas escuelas de flauta ejercen sobre el profesorado superior de flauta. Se observa que todos los docentes aplican métodos de autores de distinta escue…
Notional defined contributions (NDC): Solvency and risk in Spain
2007
The aim of this article is twofold: to demonstrate the actuarial imbalance in the Spanish pension system in its current form; and to measure the degree of aggregate economic risk to which pensioners are exposed when applying formulas for the calculation of retirement pensions based on notional accounts. The model used generates scenarios for various periods encompassing some 10,000 different permutations of the macroeconomic indices needed to calculate such parameters as initial pension, earnings replacement rate, or internal rate of return and value at risk. The findings are analysed both objectively and subjectively. The main conclusions are that if the projections for the macroeconomic i…
Notes on Using the Hidden Asset or the Contribution Asset to Compile the Actuarial Balance for Pay-as-You-Go Pension Systems
2010
The aim of this paper is twofold: to determine the connection between the “contribution asset” and the “hidden asset” and to discover whether using either of them to compile the actuarial balance in Swedish-type pay-as-you-go pension systems will provide a reliable solvency indicator. We develop an overlapping generations model and apply it to the defined benefit pay-as-you-go system, although it would be just as valid for NDC systems. On the theoretical side the main conclusion is that, despite their very different natures, in a simplified scenario the contribution asset and the hidden asset could coincide if r - the real rate of interest - is equal to the growth in the wage bill. On the a…
Definition and Holders of Key Functions
2015
This chapter takes up the four key functions established in the Solvency II Directive. In this vein, the significance of the key functions is highlighted first. Then follows the analysis of the terms “key function” and “key function holders”, terms undefined in the Solvency II Directive. The next step points out the distinctions among key function holders and their subordinate staff members. A part of this breakdown is to examine in practice who exercises which function in an insurance undertaking. The chapter wraps up by looking at whether key functions are performed in a centralized or decentralized organization.
Board Gender Diversity and Firm Performance: Evidence from Supply-Side Shocks in China
2019
This paper identifies a positive causal effect of board gender diversity on firm performance by utilizing unique historical events in China. Specifically, the Famine resulted in an evident gender gap in the supply of qualified directors of certain cohorts. Since the shocks differ in both gender and cohorts, we construct a novel "Diff-in-Diff'" instrumental variable and a Bartik instrument for board gender representation. We find that a 10% increase in board female representation can lead to a 2.38% increase in return on assets (ROA). Moreover, our results support the critical mass theory and indicate that female directors are beneficial by lowering risk levels and improving solvency.
Supervisory Review Process
2015
This chapter addresses the legal outlining of the supervisory review process. There is an apparent contradiction between principles-based insurance supervision on the one hand and, on the other hand, legal certainty along with foreseeability of supervisory action under art. 36 of the Solvency II Directive. With this in view, the chapter next examines the objectives and subject matter of the supervisory review process, with particular scrutiny given to requirements relating to solvency and governance. The powers of supervisory authorities to remedy weaknesses and deficiencies are then taken up.