Our glossary explains technical terms from the areas finance and reinsurance. We hope it facilitates the understanding of our texts, publications and annual reports. If you have comments or suggestions, please use our
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IBNR (Incurred but not reported) reserve
Provision for claims which have already occurred but which have not yet been reported.
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Impairment
Extraordinary amortisation taken when the present value of the estimated future cash flow of an asset is less than its book value.
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International Accounting Standards Board (IASB)
Committee in the EU whose task is to determine and improve upon the international standards of accounting and reporting.
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International Financial Reporting Standards (IFRS)
Standards published by the International Accounting Standards Board on accounting and reporting (until 2002 they were named International Accounting Standards, IAS).
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International Securities Identification Number (ISIN)
Ten character universal code used to identify securities internationally. It is prefixed by a country code that specifies the country where the issuer entity is legally registered or in which it has legal domicile, e.g. DE = Germany.
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Intrinsic value creation (IVC)
The IVC is calculated according to the following formula: real operating value creation= adjusted operating profit (EBIT) – (capital allocated x-weighted cost of capital). IVC is a tool of value-based enterprise management used to measure the accomplishment of long-term targets on the level of the Group, the individual business groups and the operating units (profit centres).
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Investment grade
Investment grade ratings are awarded to companies and assigned to securities that have a low risk profile. They contrast with non-investment-grade ratings, which by definition include speculative elements and therefore entail a significantly higher risk.
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Issuer
Private enterprise or public entity that issues securities, e.g. the federal government in the case of German Treasury Bonds and a joint-stock corporation in the case of shares.