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Adjusted Surplus

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Adjusted Surplus
The net assets of an insurance company less its adjusted liabilities, which are its statutory liabilities less its interest maintenance reserve and its asset valuation reserve. Many financial ratios use the adjusted surplus because the fact that it utilizes the adjusted liabilities is thought to be more accurate.


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The company also reported a 2004 year-end after-tax contribution to adjusted surplus of $12.
The contribution to surplus brings Pan-American's total adjusted surplus to $257 million.
Fitch is also concerned about F&G Life's product concentration in fixed and equity indexed annuities, which Fitch views as having inherently higher risk attributes than traditional life products, and higher than industry average adjusted surplus exposure to below-investment-grade (BIG) bonds, which the company has made progress addressing in 2005.
 
 
 
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