The solvency margin of an insurance company, including its capital and reserves, seen as a percentage of a risk amount greater than what can be ordinarily expected, which might include catastrophic disasters or a massive drop in the price of owned assets. It is an indicator of the soundness of the company’s　management.
Solvency margin ratio = solvency margin ÷ half of total risk
                                  　  amount greater than what can be
                                   　 ordinarily expected