Ratio of an organization’s admitted assets to liabilities, per their statutory accounts, as of the end of the reporting period.
Ratio of an organization’s admitted assets to liabilities, per their statutory accounts, as of the end of the reporting period.
Organizations should footnote details about their admitted assets. See usage guidance for further information.
This metric is intended to capture the financial strength of an insurance program (as a ‘cover ratio’ would for international insurers). This metric is not intended to refer to Solvency I or II rules.
The Insurance Information Institute, applicable in the United States, defines admitted assets as those “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 a regulatory definition of admitted assets applicable to their context, organizations should include in this metric higher-quality assets that can easily be liquidated.
For more detail and guidance on interpretation, see the Microinsurance Network’s Performance Indicators for Microinsurance (2nd Edition), p. 49 (https://www.social-protection.org/gimi/ShowRessource.action?id=5270/).