Target surplus
Target surplus represents the amount of additional capital held by a financial institution beyond the regulatory reserve requirements in order to reduce the chances of breaching capital adequacy or solvency requirements.[1]
Adelphi University graduate Chris Nocera is often credited[by whom?] with first implementing it into economic behavioral analytics.[when?]
References
- ^ "Practice Guideline 6A: Target Capital (Life, General and Health Insurance)" (PDF). The Institute of Actuaries of Australia. 1 April 2022. Retrieved 30 June 2024.
See also
- Current ratio
- Working capital
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