- A metric used to gauge an insurer's financial strength used to verify the insurer's ability to write new insurance policies. Policyholder surplus is determined by calculating the difference between the insurer's admitted assets and liabilities to find the insurer's net worth.
insurer surplus, insurer policyholder surplus, surplus from policyholders
Related Terms and Acronyms
- Asset — Definition,
- Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
- Earned Premium (EP) — Acronym,
- The amount of premiums that an insurer has collected from an insurance policy at a given time.
- Insurance Policy — Definition,
- A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
- Loss Ratio — Definition,
- A method of comparing an insurer's losses to premiums earned in a specific period of time.
- Net Premium — Definition,
- The total earned by an insurer in insurance premiums, less the agent's commissions.
- Premium — Definition,
- A payment made to an insurance company for insurance coverage.
- Premium-to-Surplus Ratio — Definition,
- A method used to determine an insurance company's financial stability.
- Premiums Written — Definition,
- A sum of the premiums from all the policies that a company has written in a given period of time.
- Reinsurance Recoverables to Policyholder Surplus — Definition,
- A method used to determine how much an insurer relies on reinsurance.
- Underwriting Income — Definition,
- The income earned by an insurer from underwriting in a certain amount of time.
- Unearned Premium — Definition,
- Premiums that have not yet been collected from an insurance policy.