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.
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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%.
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Volatility adjustment has the meaning provided in Section 3.05(i).
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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.
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Related to Volatility adjustment

  • Equity Adjustment means the dollar amount resulting by subtracting the Book Value, as of Bank Closing, of all Liabilities Assumed under this Agreement by the Assuming Bank from the purchase price, as determined in accordance with this Agreement, as of Bank Closing, of all Assets acquired under this Agreement by the Assuming Bank, which may be a positive or a negative number.

  • Volatility means, in respect of the price of a security, a numerical measure of the tendency of the price to vary over time.

  • Open Market Adjustment Amount shall have the meaning specified in Section 2(I).

  • Volatility Buffer means, with respect to a Transaction, an amount equal to the product of (a) the Factor applicable to the Transaction and (b) the Notional Amount of the Transaction.

  • S&P Volatility Factor means 277% or such other potential dividend rate increase factor as S&P advises the Corporation in writing is applicable.