Assume it was determined that the insurer in Question 17 had overestimated its loss reserves by $20

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Assume it was determined that the insurer in Question 17 had overestimated its loss reserves by $20 million. If the loss reserve estimate was corrected, what is the impact on policyholders’ surplus?


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An insurance company’s total assets were $400 million. Its total liabilities were $340 million. What was the insured policyholder surplus?

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Financial Institutions, Markets And Money

ISBN: 1704

12th Edition

Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias

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