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From The Glossary »

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Solvency Margin:

Is a measurement of the financial strength of a short-term insurer. It represents the shareholders’ funds, expressed as a percentage of net premium income. This method of measurement is generally accepted internationally. In South Africa the statutory basis is commonly referred to by the Registrar of Insurance as the net asset ratio. This is because assets and liabilities are stated at values which are adjusted in accordance with the provisions ...
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