An annuity payable to an annuitant following the death of an assured life. Bonus added to the benefit of a with profit policyholder throughout the life of the policy. The benefit is not guaranteed in advance, but once added to the benefit, it is guaranteed. A term used in the context of bonus. A reversionary bonus is one which will increase benefits payable in the future.
Regular bonuses are normally reversionary.
A temporary option for the existing shareholders in a company to purchase more shares in the company at a specified price. The purpose is for the issuing company to raise more money. When reinsurance is provided for claims arising from policies that the cedant incepts during the term of an arrangement. As opposed to a loss- occurring approach. An investor who is very risk averse will require a much higher expected return to accept higher risk.