GLOSSARY 191 That part of net earnings for the year which is not attributable to the Group but to others outside the Group who hold shares in affiliated enterprises. cordance with the accounting principles for trading assets or invest- ment securities, respectively. The proceeds of the sale are reported in liabilities to banks or to customers, as appropriate. A reverse repo transaction involves the purchase of securities with the simultaneous obligation to sell these securities at a future date, at an agreed price. Such transactions are reported in loans and advances to banks, or loans and advances to customers, respectively. Interest income from reverse repos and interest expenses from repos are accrued evenly over the lifetime of the transactions and re- ported under interest income/interest expenses and similar in- come/expenses. Those parts of the equity of affiliated enterprises which are not owned by companies in the Group. Historical cost adjusted by depreciation to reflect permanent diminution in value. Minority interests in earnings Minority interests in shareholders’ equity New cost basis Options Reserve for loss and loss adjustment expenses Reserve for premium refunds OTC derivatives Revenue reserves Pension and similar reserves Premiums written/earned Securities available-for-sale Securities held-to-maturity Segment reporting Reinsurance Subordinated assets Repurchase and reverse repurchase agreements Derivative financial instruments where the holder is entitled – but not obliged – to buy (call option) or sell (put option) the underlying asset at a predetermined price sometime in the future. The grantor (writer) of the option, on the other hand, is obliged to transfer or buy the asset and receives a premium for granting the option to the purchaser. Derivative financial instruments which are not standardized and not traded on an exchange but are traded directly between two counter- parties via over-the-counter (OTC) transactions. Current and future post-employment benefits payable to current and former employees under company pension schemes, accrued as a liability. Premiums written represent all premium revenues in the year under review. Premiums earned represent that part of the premiums writ- ten used to provide insurance coverage in that year. In the case of life insurance products where the policyholder carries the invest- ment risk (e.g. variable annuities), only that part of the premiums used to cover the risk insured and costs involved is treated as pre- mium income. Where an insurer transfers part of the risk which he has assumed to another insurer. A repurchase (“repo”) transaction involves the sale of securities by the Group to a counterparty, subject to the simultaneous agreement to repurchase these securities at a certain later date, at an agreed price. The securities concerned are retained in the Group’s balance sheet for the entire lifetime of the transaction, and are valued in ac- Assets are recorded as subordinated assets if, in the case of liquida- tion or bankruptcy, the related claim cannot be realized before the claims of other creditors are realized. Financial information based on the consolidated financial state- ments, reported by business segments (life/health, property/casu- alty, banking business and asset management) and by regions and products. Securities held-to-maturity comprise debt securities held with the in- tent and ability that they will be held-to-maturity. They are valued at amortized cost. Securities available-for-sale are securities which are neither held with the intent that they will be held-to-maturity nor have been ac- quired for sale in the near term; securities available-for-sale are shown at their market value on the balance sheet date. In addition to the reserve required by law in the financial statements of the Group parent company, this item consists mainly of the un- distributed profits of Group enterprises and amounts transferred from consolidated net income. That part of the operating surplus which will be distributed to poli- cyholders in the future. This refund of premiums is made on the ba- sis of statutory, contractual, or company by-law obligations, or vol- untary undertaking. Reserves for the cost of insurance claims incurred by the end of the year under review but not yet settled.