Premium-to-surplus Ratio


Definition of "Premium-to-surplus ratio"

Miryana  Eichelberger real estate agent
Miryana Eichelberger, Real Estate Agent eXp Realty

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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