The portion of premium written in one accounting period which is held at the end of the accounting period in respect of the unexpired risks. It is usually taken to be net of acquisition costs and so is equal to the unearned premium less deferred acquisition costs. The portion of a premium that is not earned during a given accounting period. See Earned Premium . The reserve required to cover the claims and expenses which will emerge from unexpired risks.
Some people use the term unexpired risk reserve to refer to the additional unexpired risk reserve.
A term used for unit-linked business. This is closely related to the unit reserve. The value of the European Currency Unit as used when calculating the statutory minimum solvency margin. The unit of account is the ECU with a minimum of 41.66 pence. This is the process whereby the price of units is set.