Loss Ratio

A loss ratio is an insurance industry metric that shows the share of premium income an insurer pays out in claims and claim-adjustment expenses.…

Loss Development

• Loss development is the change between an insurer’s originally recorded claim amounts and the claims’ final settled amounts. – Loss development factors (LDFs)…

Loss Adjustment Expense

Loss adjustment expense (LAE) is the cost an insurance company incurs to investigate, defend and settle claims. LAE includes the fees and internal costs…

Loophole

A loophole is a legal technicality or gap in a statute, regulation, contract, or code that allows a person or organization to avoid the…

Lookback Option

A lookback option is an exotic, path‑dependent option that lets the holder “look back” over the life of the contract and use the most…

Look Alike Contracts

Look-alike contracts are cash‑settled over‑the‑counter (OTC) derivatives whose payoffs are tied to the settlement price of an exchange‑traded, physically settled futures contract. Because they…

Long Term Incentive Plan

A long‑term incentive plan (LTIP) is a compensation program that rewards employees—most commonly executives and other key contributors—for achieving goals that increase shareholder value…

Long Put

Key takeaways – A long put is the purchase of a put option that gives the buyer the right (but not the obligation) to…

Long Term Liabilities

Long‑term liabilities (also called long‑term debt or noncurrent liabilities) are obligations a company must pay more than 12 months after the balance‑sheet date (or…

Long Term Growth Ltg

Key takeaways – Long-term growth (LTG) is an investment approach that targets above-market portfolio growth over an extended time horizon—typically a decade or more.…