Solvency Ratio

A solvency ratio expresses an insurer’s available (eligible own-fund) capital as a percentage of its required capital, such as the SCR or RBC. A ratio above 100% indicates capital exceeds the regulatory requirement. Supervisors, boards and rating agencies track it as a headline measure of financial strength and resilience.

Related terms

• SCR (Solvency Capital Requirement)
• RBC (Risk-Based Capital)
• BSCR (Bermuda Solvency Capital Requirement)
• RAROC (Risk-Adjusted Return on Capital)

See also

• Platform