Target surplus explained

Target surplus represents the amount of additional capital held by a financial institution beyond the regulatory reserve requirements in order to reduce the chances of breaching capital adequacy or solvency requirements.[1]

Adelphi University graduate Chris Nocera is often credited with first implementing it into economic behavioral analytics.

See also

Notes and References

  1. Web site: Practice Guideline 6A: Target Capital (Life, General and Health Insurance) . The Institute of Actuaries of Australia . 30 June 2024 . 1 April 2022.