Skip to Content

statutory capital

Statutory capital is the amount of capital and/or surplus required in order for an insurance company to obtain and retain a license to do business.

On This Page

Additional Information

It may be stated as a minimum dollar amount or by reference to a solvency ratio or a solvency margin.

Related Terms

In captive insurance, capital has one of three different meanings: the amount initially needed to...

Solvency ratio refers to a statutory ratio test, which is usually net written premiums divided by...

The solvency margin is the insurer's unimpaired surplus as a percent of outstanding loss reserve.