Diversification Benefit definition

Diversification Benefit means the amount by which an overall Entity Risk Margin is less than the sum of individually assessed Outstanding Claims Liability and Future Claims Liability Risk Margins by Class of Business, where diversification between them occurs.

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Diversification Benefit means 30%

Diversification Benefit means the extent to which the combined impact of risks inherent to assets and liabilities is less than the sum of the impacts of each risk considered in isolation.

Examples of Diversification Benefit in a sentence

• If the Reinsurer’s overall ECR Ratio, after taking account of the Overall Diversification Benefit, falls below the Dividend Restriction Threshold Percentage, the Reinsurer shall not declare, set aside or pay any dividend or other distribution or make any return of capital in respect of any equity interest in the Reinsurer or any of its Subsidiaries (including any repurchase of equity), until such ECR Ratio recovers to 150% or greater for a period of 90 consecutive days.

• In addition, the Reinsurer will provide immediate written notice to the Ceding Company in the event that (i) the Reinsurer’s ECR Ratio in respect of its Long-Term Business Account, after taking account of the Long-Term Business Account Diversification Benefit, falls below 145% or (ii) to the Reinsurer’s knowledge, the occurrence of a Recapture Triggering Event pursuant to clause (ii) of the definition of such term is reasonably likely to occur.

• In addition, the Reinsurer will provide immediate written notice to the Ceding Company in the event that (i) the Reinsurer’s ECR Ratio in respect of its Long-Term Business Account, after taking account of the Long-Term Business Account Diversification Benefit, falls below [***]% or (ii) to the Reinsurer’s knowledge, the occurrence of a Recapture Triggering Event pursuant to clause (ii) of the definition of such term is reasonably likely to occur.

• The Integration of International Capital Market from Indonesian Investors’ Perspective: Do Integration Still Give Diversification Benefit.

More Definitions of Diversification Benefit

Diversification Benefit means the amount by which an overall Entity Risk Margin is less than the sum of individually assessed Outstanding Claims

Diversification Benefit means the amount by which an overall Stress Margin is less than the sum of individually assessed Stress Margins, where diversification between them occurs.