Free Asset Ratio


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.
Related to Free Asset Ratio: Asset Coverage, Asset Cover

Free Asset Ratio

A measure of an insurance company's ability to expand its services. It is calculated as the total value of its assets over and above the value of its assets that are used to collateralize individual policies.
References in periodicals archive ?
Chief executive David Prosser said: 'While we are not immune from the impact of stock market falls, the free asset ratio for the UK long-term fund compares favourably with the industry.
It said that if the use of future profits was stripped out of the equation the fall was even steeper, with the free asset ratio dropping from an average of 9.
The key measures analysed were solvency cover, available and excess assets and free asset ratios, according to Life Strategies' analysis of the IFSRA returns of the nine largest life insurance companies currently writing new business in Ireland.
Wesleyan is ranked as one of the UK's strongest life offices and has one of the highest free asset ratios in the industry.