Solvency margin ratio
Solvency margin means ability to pay.
The solvency margin ratio is an important financial indicator and a key benchmark for industry regulators. It measures a life insurance company's ability to pay out claims when unforeseen events occur, such as a natural disaster or a stock market collapse.
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In Japan, a solvency margin ratio of at least 200% is seen by industry regulators as one indicator for a healthy life insurance company.
Detail calculation shows in Reference Data or Investor Meeting Presentation.