Solvency margin: related pages
Solvency ratio
A measure of the financial strength of an insurer; net assets ÷net premium written .
Free asset ratio
(Available assets - required minimum margin of solvency) ÷ admissible assets.
Reinsurance
Insurance for insurers. They pass on to reinsurers risks that they cannot absorb themselves.
Technical reserves
the amounts insurance companies set aside from profits to cover claims.
Claims ratio
Claims payable as a percentage of premium income. The equivalent of gross profit margin for an insurance business.
Embedded Value
This is an estimate of the economic worth of a life insurance business. In essence, it is the present value of distributable earnings which is made up of two components.
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