diversification effects
as defined in Directive 2009/138/EC of the European Parliament and of the Council of 25…, Article 13, point (37) (Definitions)
the reduction in the risk exposure of insurance and reinsurance undertakings and groups related to the diversification of their business, resulting from the fact that the adverse outcome from one risk can be offset by a more favourable outcome from another risk, where those risks are not fully correlated