## Subordinated liabilities 

Liabilities which, in the event of liquidation or bankruptcy, are not settled until after all other liabilities. 

## Swaps 

Agreements between two counterparties to exchange payment streams over a specified period of time. Important examples include currency swaps (in which payment streams and capital in different currencies are exchanged) and interest rate swaps (in which the par- ties agree to exchange normally fixed interest payments for variable interest payments in the same currency). 

## Trading assets 

Trading assets are debt issues and stocks as other financing instru- ments (essentially derivatives, note loans und precious metals hold- ing) which have been acquired solely for sale in the near term. They are shown in the balance sheet at fair value. 

## Trading income 

Trading income includes all realized and unrealized profits and losses from trading assets and trading liabilities. In addition, it in- cludes commissions as well as any interest or dividend income from trading activities as well as refinancing costs. 

## Trading liabilities 

Trading liabilities include primarily negative market values from de- rivatives and short selling of securities. Short sales are made to generate income from short-term price changes. Shorts sales of se- curities are recorded at market value on the balance sheet date. De- rivatives shown as trading liabilities are valued the same way as trad- ing assets. 

## Underwriting costs 

Commissions, salaries, general expenses and other expenses relat- ing to the acquisition and ongoing administration of insurance poli- cies. The net figure is after expenses recovered from reinsurers have been deducted. 

## Unearned premiums 

Premiums written attributable to income of future years. The amount is calculated separately for each policy and for every day that the premium still has to cover. 

## Unrecognized gains/losses 

Amount of actuarial gains or losses, in connection with defined ben- efit pension plans, which are not yet recognized as income or ex- penses (see also “corridor approach”). 

## Unrecognized past service cost 

Present value of increases in pension benefits relating to previous years’ service, not yet recognized in the pension reserve. 

## U.S. GAAP 

U.S. Generally Accepted Accounting Principles. 

## Variable annuities 

The benefits payable under this type of life insurance depend pri- marily on the performance of the investments in a mutual fund. The policyholder shares equally in the profits or losses of the un- derlying investments. 

