Solvency Ratios – SCR, MCR

The Solvency Capital Requirements and the related solvency ratios (SCR Ratio) describes the concept of having assets available to cover your liabilities. In other words, if you have more assets than liabilities then you are solvent. The requirement itself is an amount in the company's functional currency. The ratio is a percentage. Solvency Capital Requirement Since Solvency II came into force at 1 January 2016 the rules for required capital…

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