What Does Cash Flow Surplus Mean?

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What does Cash Flow Surplus mean? Read on to discover the definition & meaning of the term Cash Flow Surplus - to help you better understand the language used in insurance policies.

Cash Flow Surplus

Cash Flow Surplus

A cash flow surplus occurs when an insurance company accumulates an amount of cash during a specific period that exceeds the amount of money it needs to pay for its expenses. If an insurance company has a cash flow surplus, it can make investments with the money, reinvest it in the business, or save it for a later date.

We hope the you have a better understanding of the meaning of Cash Flow Surplus.

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