The minimum level that a regulated insurance company needs to cover with solvency capital to operate under normal conditions. The regulator prescribes the definition: the required minimum solvency margin is effectively a weighted average of the technical provisions. In general the solvency margin required for unit-linked products is significantly lower than that required for traditional life (non-linked) business. In Ireland the regulator's expectation is that a life company's capital would in practice be at or above 150% of the minimum.
The ratio by which assets exceed liabilities and is, to some extent, a yardstick of financial health of an insurance company. In many countries legislation exists to set minimum standards.
The minimum allowed excess of an insurance companyâ€(tm)s capital over its liabilities.... more on: Solvency margin
The extent to which the realisable assets of an insurance company exceed its liabilities.
The solvency margin is the excess of the reserves the insurance company holds over its liabilities.
is a measurement used to assess an insurance companyâ€(tm)s ability in fulfilling its liabilities to the policyholders, which is reflected by comparison between allowable net value or admitted assets and the companyâ€(tm)s liabilities.
the minimum size of shareholders' funds required by the supervisory authorities.