policyholder | Insurance Software development

What Is a Policyholder Surplus? How is it calculated?

Author - Webner
6:04 am
| |

Policyholder Surplus

If we subtract liabilities of a policyholder-owned insurance company from its assets, we get the Policyholder surplus. The financial strength of a company can be determined through its Policyholder surplus as it indicates the financial ability of a company. If an insurance company needs to pay a higher than expected amount of claims, this surplus serves as an additional source of funds other than the company’s reserves and reinsurance. In the case of a publicly owned insurance company, the Policyholder surplus is known as shareholder’s equity.

While building the simple letter ratings ranking […]

Website security
Contact Us