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Refer to Section 13 — “Non-GAAP financial measures” for definitions of non-GAAP measures we use to measure and evaluate performance of our operations.

Catastrophe loss Generally, an event causing greater than 100 claims and gross losses in excess of $2 million.
Claims development The difference between prior year end estimates of ultimate undiscounted claim costs and the current estimates for the same block of claims. A favourable development represents a reduction in the estimated ultimate claim costs during the period for that block of claims.
Discounting To reflect the time value of money, the expected future payments of claim liabilities are discounted back to present value using the market yield rate of the investments used to support those liabilities. Provisions for adverse deviation are also included when determining the discounted value.
Frequency A measure of how often a claim is reported as a function of PIF.
Incurred but not reported
(IBNR)
The amount that is added to case reserves to establish the total claim liabilities. It is intended to cover future development on reported claims, as well as claims that have occurred but not yet been reported to the Company.
Large loss A single claim with a gross loss in excess of $1 million.
Net earned premiums The portion of NWP equal to the expired period of time an insurance policy is in effect.
Provision for adverse deviation (PfAD) An amount that is added to the discounted claims and adjustment expenses to reduce the potential adverse effect of the uncertainty that is inherent in the assumptions and data used to estimate such liabilities.
Severity A measure of the average dollar amount paid per claim.
Total equity Retained earnings plus accumulated other comprehensive income.