Solvency


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Related to Solvency: Solvency II, solvency ratio

Solvency

The ability of an individual to pay his or her debts as they mature in the normal and ordinary course of business, or the financial condition of owning property of sufficient value to discharge all of one's debts.

solvency

n. 1) having sufficient funds or other assets to pay debts. 2) having more assets than liabilities (debts). The contrast is "insolvency," which may be a basis for filing a petition in bankruptcy. (See: insolvency, bankruptcy)

SOLVENCY. The state of a person who is able to pay all his debts; the opposite of insolvency. (q.v.)

References in periodicals archive ?
Being part of Lloyd's, syndicates have to comply not only with the Solvency II rules as formulated by EIOPA, but also the existing Lloyd's standards and bylaws.
During the events, Tagetik will be demonstrating its pre-packaged Solvency II application that ensures compliance with both current and future European Insurance and Occupational Pensions Authority (EIOPA) requirements.
It is expected that Solvency II is to come into force on January 1, 2016, which would need insurers to deal with a range of regulatory reporting requirements, and the partnership aims to create clearer connections between asset managers and insurers to ease this process.
The magnitude of the credit implications will depend on the final calibrations of Solvency II, which will influence how issuers, investors and regulators themselves react.
SAP Insurance Analyzer is intended to enable insurance companies to move away from expensive and risky tactical approaches, putting SAP at the forefront of providing an integrated standard approach for IFRS4 and Solvency II.
Radhakrishnan Nair, member of Irda, said that the changeover would bring it closer to the international Solvency II norms for insurers, which are equivalent to the Basel III norms specified for banks globally.
Regional insurers should be thinking about the upcoming financial and regulatory changes and should act on them now and with the current IFRS Phase II in mind, build some flexibility for global move towards risk-based capital solvency and risk management requirements," said Mushtaq.
It is a bit harder to get stuff done around Solvency II since the veto," said a Brussels-based industry source.
In August, the NAIC released for commentary a draft guidance manual called "Own Risk and Solvency Assessments" (ORSA).
While Solvency II will directly affect EU captives, those that write business in the EU but are domiciled elsewhere are also debating whether or not to seek Solvency II equivalence.
The focus is on valuation of assets and liabilities and calculation of capital requirement as well as the calculation of the standard formula with the European Solvency II project.