https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AAdmitted_assets 2026-06-13T21:49:29Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Admitted_assets&diff=7217&oldid=prev 2026-03-10T12:40:47Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>🏛️ &#039;&#039;&#039;Admitted assets&#039;&#039;&#039; represent the aggregate pool of resources that an [[Definition:Insurance carrier | insurance company]] is allowed to report on its [[Definition:Statutory balance sheet | statutory balance sheet]] after applying the recognition and valuation rules set by [[Definition:Insurance regulator | state regulators]] and the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC]]. In contrast to a [[Definition:Generally accepted accounting principles (GAAP) | GAAP]] balance sheet—which may include intangible assets, deferred acquisition costs, and other items—the statutory framework strips out anything that cannot be readily converted into cash to pay [[Definition:Claims | policyholder claims]], leaving only [[Definition:Admitted asset | admitted assets]] in the total.<br /> <br /> 📐 Regulators compute an insurer&#039;s [[Definition:Policyholder surplus | policyholder surplus]] by subtracting total liabilities from total admitted assets, making the composition and quality of this asset base a key metric in every [[Definition:Statutory examination | financial examination]] and [[Definition:Risk-based capital (RBC) | risk-based capital]] calculation. The NAIC&#039;s [[Definition:Accounting Practices and Procedures Manual | Accounting Practices and Procedures Manual]] defines specific categories—[[Definition:Bonds | bonds]] at amortized cost, common stock at fair value, [[Definition:Reinsurance recoverables | reinsurance recoverables]], and [[Definition:Premium receivable | premium receivables]] within aging limits, among others—and prescribes how each should be valued and tested for impairment. An insurer whose admitted assets deteriorate in quality, whether through credit downgrades, rising [[Definition:Non-admitted asset | non-admitted]] balances, or concentration risk, may find its surplus eroding faster than its income statement would suggest.<br /> <br /> 💡 Understanding admitted assets in the aggregate is essential for [[Definition:Rating agency | rating agencies]], [[Definition:Reinsurer | reinsurers]], and investors evaluating an insurer&#039;s financial strength. A surplus figure is only as meaningful as the assets behind it; a company with nominally high surplus but heavy reliance on illiquid or low-quality holdings presents a different risk profile than one backed by diversified, investment-grade securities. For [[Definition:Insurtech | insurtechs]] pursuing partnerships or [[Definition:Fronting | fronting]] arrangements with carriers, assessing a partner&#039;s admitted-asset quality is a practical due-diligence step that protects against the risk of carrier insolvency.<br /> <br /> &#039;&#039;&#039;Related concepts&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Admitted asset]]<br /> * [[Definition:Non-admitted asset]]<br /> * [[Definition:Policyholder surplus]]<br /> * [[Definition:Statutory accounting principles (SAP)]]<br /> * [[Definition:Risk-based capital (RBC)]]<br /> * [[Definition:Annual statement]]<br /> {{Div col end}}</div>

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