Hi, Free asset is defined as value of insurer's assets over its technical reserve. However, I feel we also to add further assets held for other different risks such as credit, market etc. to technical reserve. Remaining will be free asset. Please let me know if my understanding is correct/wrong. Regards, Ashok
Ashok The glossary defines free assets as the excess of assets over technical reserves and current liabilities. You are confusing this with excess capital (ie the excess of total assets over economic capital). See Chapter 20 Page 9.
