What Does Premium to Surplus Ratio Mean?

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

Premium to Surplus Ratio

Premium to Surplus Ratio

Premium to surplus ratio refers to how many new policies an insurance company can underwrite based on the difference between its assets and liabilities. It indicates the financial liquidity of the company. It is expressed in percentage form.

We hope the you have a better understanding of the meaning of Premium to Surplus Ratio.

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