Volatility adjustment definition
Volatility adjustment means: An adjustment of the risk-free interest rate term structure pursuant to section 126e(1), which ensures that the present value of the insurance provisions is calculated taking into account the investments that the group 1 insurance company has undertaken.
Volatility adjustment means the excess of the Volatility of the Equity Portfolio over the Volatility of the Equity Benchmark, if any. For example, if the volatility of the Equity Portfolio is 27% and the Volatility of the Equity Benchmark is 26%, then the Volatility Adjustment is 1%.
Volatility adjustment has the meaning provided in Section 3.05(i).
Examples of Volatility adjustment in a sentence
Volatility adjustment features are designed to trigger profit-taking decisions and to avoid markets which exhibit excessive volatility.
More Definitions of Volatility adjustment
Volatility adjustment means: An adjustment of the risk-free interest rate term structure pursuant to Section 158(1) which ensures that the present value of the technical provisions is calculated considering the investments that the group 1 insurance undertaking has undertaken.