GLOSSARY Glossary (7) Reinsurance Insurance companies transfer parts of the insurance risk they have assumed to reinsurance companies. Retained earnings In addition to the reserve legally required in the group parent company’s financial statements, this item mainly comprises the undistributed profits of group entities as well as the amounts transferred from consolidated net income. RfB Reserves for premium refunds (“Rückstellungen für Beitragsrückerstattung”): The portion of the surplus that that is to be distributed to policyholders in the future – either by virtue of statutory or contractual obligations or obligations under the company bylaws, or at the insurer’s discretion. RILA Registered index-linked annuities RoE Return on equity – Group: Represents the ratio of net income attributable to shareholders to the average shareholders' equity at the beginning of the period and at the end of the period. The net income attributable to shareholders is adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity. From the average shareholders' equity undated subordinated bonds classified as shareholders' equity and unrealized gains/losses on bonds net of shadow accounting are excluded. Return on equity P/C OE: Represents the ratio of net income to the average total equity excluding unrealized gains/losses on bonds, net of shadow accounting, deducting goodwill and deducting participations in affiliates not already consolidated in this OE, at the beginning and at the end of the period. Return on equity L/H OE: Represents the ratio of net income to the average total equity excluding unrealized gains/losses on bonds, net of shadow accounting, and deducting goodwill at the beginning and at the end of the period. Run-off ratio The run-off result (result from reserve developments for prior (accident) years in P/C business) as a percentage of premiums earned (net). SII Solvency II SII capitalization Ratio that expresses the capital adequacy of a company by comparing own funds to SCR. SCR Solvency capital requirement SE Societas Europaea: European stock company SFCR Solvency and Financial Condition Report