What Does Development to Policyholder Surplus Mean?

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

Development to Policyholder Surplus

Development to Policyholder Surplus

Development to policyholder surplus refers to the relationship between an insurance company's loss reserves an estimate of an insurance company's future liabilities from claims and policyholder surplus or net worth the difference between its admitted assets and its liabilities. It identifies whether the company has set enough aside funds as loss reserves and whether they have understated or overstated their net worth.

We hope the you have a better understanding of the meaning of Development to Policyholder Surplus.

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