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
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.