What does Return on Policyholder Surplus mean? Read on to discover the definition & meaning of the term Return on Policyholder Surplus - to help you better understand the language used in insurance policies.
Return on Policyholder Surplus
Return on policyholder surplus refers to the calculation made when the income of the insurance company after it paid its taxes is divided by its assets which value has been computed after deducting liabilities. It is expressed in percentage form. It is also an indicator of a company's financial stature.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Return on Policyholder Surplus. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: