ESR is the indicator to assess the soundness of insurers. Based on the economic valuation of assets and liabilities of insurance companies, ESR is calculated as the ratio of the eligible capital against the required capital which is evaluated as the risk amount for the losses.
Regulatory ESR refers to the indicator calculated in accordance with the Enforcement Regulations of the Insurance Business Act and related regulations, and replaces the existing Solvency Margin Ratio (SMR).
Internal ESR is the ESR which the Group uniquely calculates as an internal indicator with some appropriate adjustments on regulatory ESR reflecting its business characteristics.