Capital

by lakemen » Sat Jul 08, 2006 05:15 am
Posts: 1260
Joined: 18 May 2005

Capital

Shareholder's equity (for publicly-traded insurance companies) and retained earnings (for mutual insurance companies). There is no general measure of capital adequacy for property/casualty insurers. Capital adequacy is linked to the riskiness of an insurer's business. A company underwriting medical device manufacturers needs a larger cushion of capital than a company writing Main Street business, for example.

Total Comments: 1

Posted: Wed Dec 26, 2007 02:06 am Post Subject:

thanks for the information Lakemen, are you going to compile all of these definitions in a knowledge thread some day?

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