Solvency Margin
/ˈsɒlvənsi ˈmɑːrdʒɪn/
Definitions
- (n.) The minimum required excess of assets over liabilities that an insurer or financial institution must maintain to ensure it can meet its obligations to policyholders or creditors.
The insurance company increased its solvency margin to comply with new regulatory standards.
Forms
- solvency margin
Related terms
See also
Commentary
Typically used in insurance law and financial regulation, the solvency margin is critical for assessing an insurer's financial health and regulatory compliance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.