Glossary
O
obligatory reinsurance
Reinsurance treaty under which the reinsurer participates in a atotal, precisely defined insurance portfolio of a cedant. Opposite: facultative reinsurance.
operating expenses
Sum total of personnel expenditures, commissions, material costs, distribution costs and regular administrative expenses.
operating expense ratio
The operating expense ratio states how much of the premiums was used to acquire and administer business. This ratio is calculated gross and net for insurance enterprises.
operating result/operating profit (EBIT)
Sum of the underwriting result before the change (allocation or withdrawal) in the (claims) equalization reserve and the result of non-underwriting business.
OTC
Over the counter. In the case of securities: not traded on a stock exchange.
