The total business of an insurer that has been so arranged by selection and reinsurance as to safeguard the financial equilibrium of the Company.
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UK: Insurers may seek to arrange their insurance and reinsurance so that their total business constitutes a well-balanced range of risks and so do not become unduly committed in a limited number of areas, activities or types of risk. The aim is to spread the exposure by a controlled underwriting approach.
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Refer: “Reinsurance, Balanced Portfolio.”