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What is solvency in insurance
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[QUOTE="Nite, post: 159397, member: 28512"] The solvency of an insurance company is the size of its capital relative to all risks it has taken. With high solvency ratio, a company has adequate funds for managing its financial obligations. Generally, a high solvency ratio is viewed as a sign of trustworthiness. Conversely, with a low solvency, a company may find difficulty in managing its financial obligations and default payments. [/QUOTE]
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