Erste Bank JPMorgan Merrill Lynch International

Shares of minority shareholders in profit for year
Shares in the profit/loss for the year that are allocated not to the Group, but to shareholders
holding interests in associated companies outside of the Group.
Swaps
Agreements between two contracting parties regarding an exchange of payment flows over a
specified period of time. Important examples are currency swaps (whereby payment flows and
principal amounts in different currencies are exchanged) and interest-rate swaps (generally the
exchange of fixed interest payments against floating-rate interest payments in the same currency).
Technical insurance
The Vienna Insurance Group offers coverage related to building construction assembly and
operation of machines and electronic equipment, i.e. assembly insurance, machinery/business interruption
insurance, construction industry insurance and computer insurance.
Underwriting costs
Underwriting costs in the insurance business are divided into costs for the selling of insurance,
extraordinary expenses less reinsurance commissions and profits from reinsurance.
The costs for the determination of the extent of damages, damage prevention and claims
management (costs associated with regulating damages) are entered as expenses for insurance
cases.
Unearned premiums
Accounted premiums, which are to be included in the income statements in future years. The
calculation is generally made for each individual insurance contract on a daily basis.
Transit insurance
Transit insurance covers goods during transport. Traditionally, film insurance (i.e. insurance of film
companies, which includes film liability and film cancellation insurance) is also treated as part of
transit insurance.
Unrealized gains on investments as set forth in item C under assets
The unrealized gains on investments refers to the current value gains on the valuation of
investments for fund-linked life insurance.
Unrecognized past service cost
Present value of pension increases pertaining to past periods of service for which pension
accruals have not yet been formed.
Unrecognized profits/losses
Actuarial profits/losses (gains/losses) from defined benefit pension plans that have not yet been
recognized, see also Corridor Method.
Value at risk (VaR)
Value at Risk (VaR) is the maximum loss not exceeded with a given probability defined as the
confidence level, over a given period of time.
Zillmerization
Zillmerization relates to the valuation of a life insurer by an actuary. Even if profitable business is
written, the value of the company may worsen (when viewed from a regulatory basis) because of what
is called new business strain. Zillmerization is one method of adjusting the valuation calculations to
ease this initial valuation strain. See also “Actuarial reserves”.
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