Ratio of an organization's admitted assets to liabilities, per an organization's statutory accounts, as of the end of the reporting period.
IRIS metric citation
IRIS, 2016. Solvency Ratio (FP6152). v4.0.
Organizations should footnote details about their admitted assets. See usage guidance for further information.
Organizations should note that this metric does not refer to Solvency I or II rules but rather seeks to address the financial strength of the insurance program (as a 'cover ratio' would address for international insurers).
Admitted assets are defined by the Insurance Information Institute, as applicable in the United States, as "assets that can be easily sold in the event of liquidation or borrowed against, and receivables for which payment can be reasonably anticipated". In the absence of regulatory definitions of admitted assets, organizations should include higher quality assets that can be easily liquidated.
For more detail on the ratio and for guidance on interpretation, see the Microinsurance Network's Performance Indicators for Microinsurance (2nd Edition), p. 49 (http://www.microfact.org/social-performance/).
March 2016 - IRIS v4.0 Released (current version)
Immaterial change. Metric definition language modified to improve accuracy.
March 2014 - IRIS v3.0 Released
New metric. Solvency Ratio (FP6152) developed via IRIS Taxonomy Group.
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