Solvency


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Related to Solvency: Solvency II, solvency ratio

Solvency

Ability to meet obligations.

Solvency

The state of a company being able to service its debt and meet its other obligations, especially in the long-term. Solvency is a necessary condition for a business to operate. If a company is unable to meet its obligation, it is said to be insolvent and must undergo bankruptcy in order to either liquidate or restructure. See also: Insolvency risk, Accounting insolvency.
References in periodicals archive ?
With offices in London, Paris and Luxembourg, Invoke is the trusted regulatory technology partner to supervisory bodies worldwide, as well as to firms in the financial services sector who fall under the scope of complex regulatory imperatives such as CRD IV and Solvency II.
Reports indicate this year the world's most populous country expects to put into effect a new risk-oriented and internationally comparable solvency regulatory system that meets the needs of China's insurance market.
Today, more than 40 insurance companies spanning many European countries rely on Tagetik to automate Solvency II compliance reporting," said Sabrina Rosati, executive vice president and head of professional services, Tagetik.
As per John Dowdall, managing director at Silverfinch, "The simple reality is that Solvency II is about to create a new continent of data.
This is because law-makers recognise the capital burden that a more punitive version of Solvency II would place on insurers which provide guaranteed products, particularly within an extreme low interest-rate environment.
Processes, functionality and business content for IFRS4 and Solvency II
Solvency II is the norm specified by the European Union for its insurance industry.
IFRS 4 Phase II and risk-based capital solvency requirements similar to Solvency II in Europe is the biggest set of accounting and regulatory changes sweeping across industry in long time.
The backlash has made it harder for Britain to forge allegiances in the European Parliament as it attempts to relax the capital treatment under Solvency II of long-term life insurance contracts such as annuities, more widely sold in the UK than in any other EU country.
So what is an "Own Risk and Solvency Assessment" anyway?
Japan has already introduced an unconsolidated solvency margin standard.
The session is a joint hosted session with JMR Consulting UK, Magellan Consultancy Services, Circle People and Hillway Consulting and will to cover all elements companies need to consider when dealing with Solvency II to hit the impending deadline.