MEDICAL, US: Ability of an individual or organization to pay all legal debts.
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UK: An insurer is solvent for regulatory purposes when its assets exceed its liabilities by the required minimum margin. The FSA prescribes methods for the valuation of assets and liabilities for the purpose of showing regulatory solvency. The actual solvency margin is the excess of assets over liabilities. See FREE ASSETS; SOLVENCY I; SOLVENCY II.
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Having sufficient assets – capital, surplus, reserves – and being able to satisfy financial requirements – investments, annual reports, examinations – to be eligible to transact insurance business and meet liabilities.
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Insurers must have sufficient assets (capital, surplus, reserves) in order to satisfy statutory financial requirements (investments, annual reports, examinations) and to meet liabilities.
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The ability of an insurer to cover their liabilities and meet the financial requirements of doing insurance business.