solvency ratio

solvency ratio
solvency ratio solvency ratio ratio

* * *

   The level of an insurance company's spare capital in excess of its projected liabilities, effectively a measure of its financial health. There are often statutory minimum solvency margins, which are sometimes known as the resilience test. In a bear market insurance companies may face problems maintaining their solvency margins because their equity investments are falling in value. Also known as solvency ratio.

* * *

solvency ratio UK US noun [C]
ACCOUNTING, FINANCE a measurement of whether a company has enough money to pay its debts: »

The key measure of any building society's strength is its solvency ratio.

INSURANCE the amount of capital that an insurance company has in relation to probable claims (= money paid to those who have bought insurance): »

A spokesman for the FSA refused to comment on whether these insurers had been forced to act in order to maintain solvency ratios.


Financial and business terms. 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Solvency Ratio — One of many ratios used to measure a company s ability to meet long term obligations. The solvency ratio measures the size of a company s after tax income, excluding non cash depreciation expenses, as compared to the firm s total debt obligations …   Investment dictionary

  • solvency ratio — The ratio of a bank s own assets to its liabilities. A ratio used by the UK Department of Trade and Industry to evaluate the stability of insurance companies; it is the ratio of the company s net assets to its non life premium income …   Big dictionary of business and management

  • solvency ratio — (Accounting) ratio of loans taken by a business compared to its capital (used to assess financial stability) …   English contemporary dictionary

  • Solvency Ratio Directive —   1989 legislation setting down legally binding requirements for banks in terms of their risk assets …   Glossary of the European Union and European Communities

  • ratio — the proportional relationship of one thing to another * * * ratio ra‧ti‧o [ˈreɪʆiəʊ ǁ ˈreɪʆoʊ] noun [countable] a relationship between two amounts that is represented by a pair of numbers showing how much greater one amount is than the other: •… …   Financial and business terms

  • Solvency Margin —    The level of an insurance company s spare capital in excess of its projected liabilities, effectively a measure of its financial health. There are often statutory minimum solvency margins, which are sometimes known as the resilience test. In a …   Financial and business terms

  • ratio analysis — The use of accounting ratios to evaluate a company s operating performance and financial stability. Such ratios as return on capital employed and gross profit percentage can be used to assess profitability. The liquidity ratio can be used to… …   Accounting dictionary

  • ratio analysis — The use of accounting ratios to evaluate a company s operating performance and financial stability. Such ratios as return on capital employed and gross profit percentage can be used to assess profitability. The liquid ratio can be used to examine …   Big dictionary of business and management

  • staff to room ratio — коэффициент отношения количества работающих к количеству номеров гостиницы net profit ratio коэффициент рентабельности signal to noise ratio отношение сигнал шум squareness ratio коэффициент прямоугольности sugar acid ratio сахарокислотный… …   English-Russian travelling dictionary

  • PEG ratio — The PEG ratio (Price/Earnings To Growth ratio) is a valuation metric for determining the relative trade off between the price of a stock, the earnings generated per share (EPS), and the company s expected growth. In general, the P/E ratio is… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”