Balance Sheet

A term which refers to a list of assets, investments and liabilities held by an insurance company. A quick glance over an insurer’s balance sheet offers a good indication of whether or not the company can be classified as financially stable, both presently and in the future.

Since insurers hold a certain amount of funding in surplus to pay future claims, the balance sheet also displays surplus amounts, known as company equity. As funding dips and rises and premiums paid in replace claims payments going out, company equity helps ensure financial stability and solvency.