Performance ratio
Term · Insurance and risk management · MLC-T-INS-002548
A test of an insurer's or reinsurer's financial strength, such as the solvency ratios used by rating agencies. One compares net premiums with adjusted shareholders' funds, and another compares technical reserves with liquid assets. A rising premium to capital ratio, or thinner liquidity, signals a weaker financial position.
| Identifier | MLC-T-INS-002548 |
|---|---|
| Field | Insurance and risk management |
Record as JSON
{
"id": "MLC-T-INS-002548",
"term": "Performance ratio",
"field": "Insurance and risk management",
"definition": "A test of an insurer's or reinsurer's financial strength, such as the solvency ratios used by rating agencies. One compares net premiums with adjusted shareholders' funds, and another compares technical reserves with liquid assets. A rising premium to capital ratio, or thinner liquidity, signals a weaker financial position.",
"url": "https://mlchart.com/terminology/insurance/performance-ratio/"
}
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