Admitted Assets


DEFINITION of 'Admitted Assets'

Assets of an insurance company that are permitted by state law to be included in the company's financial statements. Although each state has discretion over its own insurance laws, there is a general consensus over which assets are suitable to use when determining the insurance company's solvency.

BREAKING DOWN 'Admitted Assets'

Admitted assets generally include assets that are liquid and whose value can be assessed, or receivables that can reasonably be expected to be paid. Since admitted assets are a critical component for computing capital adequacy to state insurance regulators, they have a much narrower definition than might be applied under generally accepted accounting principles (GAAP).

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Solvency

    The ability of a company to meet its long-term financial obligations. ...
  3. National Association of Insurance ...

    A nationwide organization whose main responsibility is to protect ...
  4. Admitted Company

    An insurance company that is domiciled in one state but is admitted ...
  5. Reinsurance

    The practice of insurers transferring portions of risk portfolios ...
  6. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
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