Premium-to-surplus Ratio

Definition of "Premium-to-surplus ratio"

Marta Nazario real estate agent
Marta Nazario, Real Estate Agent Engel & Völkers Tysons

Ratio commonly used by the property and casualty insurance industry as a measure of financial strength or to indicate to what degree a particular insurance company is leveraged. A low ratio can be a sign of financial strength, but it also may indicate insufficient loss reserves or premium growth.

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