Question

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 1

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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Really hope this helps! Thankyou!

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= $420,000,000 - $290,000,000
=$130,000,000
Hence, the policy holder's surplus is $130,000,000.