U
uktous
Member
Hi,
For an insurance company, what is the meaning of insolvent?
I can think of 2 possible definitions.
Definition1:
PV of assets on supervisory basis < PV of liabilities on supervisory basis
Definition2:
Supervisory reserve + solvency margin + free asset < PV of liabilities on supervisory basis
Thanks
For an insurance company, what is the meaning of insolvent?
I can think of 2 possible definitions.
Definition1:
PV of assets on supervisory basis < PV of liabilities on supervisory basis
Definition2:
Supervisory reserve + solvency margin + free asset < PV of liabilities on supervisory basis
Thanks