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free asset ratio (FAR)

A solvency measure for an insurance company expressed as a percentage. It represents the market value of all assets in excess of liabilities and reserve obligations. For example if total assets are $60,000,000 and the liabilities and obligations in reserve funds equal $36,000,000, the free asset ratio is 30%. This ratio is a significant indicator of the insurance company's ability to expand.

Related information about free asset ratio (FAR):
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  5. Free Asset Ratio - FAR
    Dec 1, 2010 ... Free Asset Ratio - FAR. The Free Asset Ratio, abbreviated as FAR measures how much financial, that is liquid, asset an insurance company ...
     
  6. Life office financial strength: Still going strong - FTAdviser.com
    Jul 24, 2012 ... In contrast to last year, results now show that life offices have experienced a slight dip in their free asset ratio (FAR). Table A, which can be ...
     
  7. Major insurers boast promising financial strength - FTAdviser.com
    Jul 20, 2012 ... Small mutual Teacher's Assurance once again ranked first in terms of realistic free asset ratio (FAR), although all companies experienced a dip ...
     
  8. Realistic valuation confirms Royal London's financial strength
    Apr 6, 2004 ... "The free asset ratio (FAR) at end 2003 on the statutory basis is 7.8%, almost identical to the 2002 FAR of 7.9%. However, the 2003 FAR is, ...