Solvency ratio
Term · Insurance and risk management · MLC-T-INS-003117
A financial metric that measures an insurer's ability to meet its long-term financial obligations, calculated as the ratio of its capital and surplus to its net written premiums or total assets. A higher solvency ratio indicates a stronger financial position and greater capacity to absorb losses. Regulatory bodies often set minimum solvency ratio requirements.
| Identifier | MLC-T-INS-003117 |
|---|---|
| Field | Insurance and risk management |
Record as JSON
{
"id": "MLC-T-INS-003117",
"term": "Solvency ratio",
"field": "Insurance and risk management",
"definition": "A financial metric that measures an insurer's ability to meet its long-term financial obligations, calculated as the ratio of its capital and surplus to its net written premiums or total assets. A higher solvency ratio indicates a stronger financial position and greater capacity to absorb losses. Regulatory bodies often set minimum solvency ratio requirements.",
"url": "https://mlchart.com/terminology/insurance/solvency-ratio/"
}
Record 3,176 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.