5. Based on the following financial information, find the policyholders’ surplus. (1 point)
Total invested assets $380,000,000
Loss Reserves $75,000,000
Other Assets $40,000,000
Total Liabilities $290,000,000
Answer:
Policyholder's surplus is the difference of assets and liabilities of an insurance company.
Total Assets = $380,000,000 + $40,000,000
Total Assets = $420,000,000
Total Liabilities = $290,000,000
The formula is mentioned below:
Policy holder's surplus = Total Assets-Total Liabilities
Replace the values in the above equation 1.
Policy holder's surplus = Total Assets - Total Liabilities
.
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= $420,000,000 - $290,000,000
=$130,000,000
Hence, the policy holder's surplus is $130,000,000.
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