HOME
|
ABOUT US
| MARKET INTELLIGENCE |
COURSES
|
RESEARCH
|
FAIS FACULTY
|
RE EXAMS
|
CPD POINTS
|
SEARCH
|
GLOSSARY
|
CONTACT US
This glossary is a FREE SERVICE to assist the student and enthusiast alike to get a better understanding of financial terms, analyst industry jargon and monetary concepts. It is a free service to all internet users.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
  
Exact search         lion Contains the word      millions
Starts with word     lioness Ends with word          million
 
rate the sum charged per unit at risk by which the premium is calculated, often shown as a perentage

regulation a principle, rule or law designed to control or govern conduct

reinstatement the making good of damaged property; the restoration of the sum insured after settlement of loss on payment of an additional premium

reinsurance when an insurance company purchases insurance for the risks they cover in order to share the financial burden or loss

renewal the process of continuing insurance for a further period after the first or current period of cover has ended

replacement cost the value of property as indicated by the current new purchase price of a similar article

representative Any person who renders a financial service for or on behalf of a financial services provider, in terms of conditions of employment or any other mandatory agreement, but excludes a person rendering clerical, technical, administrative, legal or accounting service, which service does not require judgment on the part of that person, or does not lead a client to any specific transaction in respect of a financial product in response to general enquiries.

retained profit (Retained earnings, retained income) Retained profit is the final amount of profit remaining in the company for reinvestment after paying dividends. [Retained profit = NPAT – Dividends]

retention limit the maximum liability that an insurer wishes to keep for his own account in respect of a particular risk

return on equity, roe (Return on ordinary shareholders’ equity) ROE is the after interest and tax return on the total ordinary equity of the business. [ROE = Net income] [100/Closing ordinary equity]

return on net assets, rona (Return on capital employed, ROCE) RONA is operating profit on net assets. [RONA = EBIT] [100/Closing net assets]

risk the subject matter of an insurance contract; the possibility of a loss against which insurance is taken out

risk management the business discipline applied by large commercial and industrial organisations to manage those risks that can cause losses

risk transfer mechanism risk is taken away from one person (the insured) and given to another (the insurer)