Also found in: Dictionary, Thesaurus, Medical, Financial, Encyclopedia, Wikipedia.
Related to Solvency: Solvency II, solvency ratio


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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.


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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

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

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
In the document summarizing his findings, bankruptcy examiner Kenneth Klee said Tribune did not act forthrightly in getting an independent opinion about the company s solvency.
Solvency II will lead to a change in the way the supervisors are working.
In a recent teleconference, Lex van Overmeire, head of Ernst & Young's Solvency II taskforce, noted that Solvency II increases pressures on insurers in Europe to develop sound internal economic models, improve information systems, enhance data collection and upgrade the skills of managers within their organizations.
Another indicator relating to the labor market also indicates a decrease in the solvency of the population.
Reportedly, withdrawing from the conglomerate rules (FICO) solvency calculation is subject to formal approval by the Finnish Financial Supervisory Authority.
'This trend is confirmed in 2019 and we have crossed solvency ratio over 225 per cent.
Colin Holmes, Managing Director of Insurance Solutions at Moody's Analytics, said, "We're honored that our Solvency II solution has again been recognized as best-in-class in the Markets Technology Awards." Moody's Analytics has a long and successful track record of delivering and maintaining a wide range of compliance solutions, for example for Solvency II, CECL, IFRS 9, and now IFRS 17.
ICP 16.11 specifically provides: 'The supervisor requires the insurer to perform its Orsa regularly to assess the adequacy of its risk management and current, and likely future, solvency position.' Orsa has become an integral component in the assessment of the insurers.
The remaining key points of the study found New Jersey ranked 30th for cash solvency; 49th for budget solvency; and 50th for long-run solvency, which measures whether the state's assets can protect it from shocks or long-term financial risk.View the full article from NJBIZ at
The Central Bank's Seana Cunningham said: "This is the Central Bank's first enforcement action in respect of Solvency II breaches."
'Suffice it to say that the solvency test of the financials of insurance companies in Nigeria is based on the provision of extant laws.