The amount of money remaining after an insurer's liabilities are subtracted from its assets. It acts as a financial cushion above and beyond reserves, protecting policyholders against an unexpected or catastrophic situation.

"Policyholders' Surplus" In Context

"The rating downgrades reflect BIC's deteriorating operating performance trends over the past five years as a result of increased underwriting losses, which has led to the recent material decline in its policyholders' surplus. Additionally, BIC's negative ..."