Glossary beginning with S

S&P rating

A credit risk assessment performed by Standard & Poor’s. An A- rating means that issuers of debt instruments have a high capability of servicing their obligations giving consideration to the emergence of factors diminishing that capability

sell side

A part of financial sector that is engaged in creating, promoting and selling shares, bonds, currencies, and other financial instruments; it encompasses investment bankers that act as agents between issuers of securities and investors, as well as market animators that ensure the market’s liquidity. Sell side analysts issue analytical reports with investment recommendations and daily comments to the buy side, i.e. the one that manages assets

Solvency Capital Requirement, SCR

A capital requirement calculated as per Solvency II provisions. Calculation of the capital requirement is based on the calculation of the following risks market, actuarial (insurance), counterparty insolvency, catastrophe, and operating risk, and afterwards undergoes a diversification analysis. The ratio can be calculated under a standard formula or, once an applicable permit of a supervisory body has been obtained, using a whole or partial internal model of the company

Solvency II

Solvency regime for European insurance companies based on the risk profile. The requirements have been effective as of 1 January 2016

solvency ratio

A statutory ratio (under Solvency II) 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