What is the minimum margin of solvency requirement for an insurer?

Insurer Minimum Solvency Margin

General Insurers

written premiums less than $500,000 $100,000

written premiums $500,000-$5,000,000 20% of annual net written premium

written premium greater than $5,000,000 $1,000,000 PLUS 10% of difference

difference between annual net written premium and $5,000,000

Long-term Insurers $250,000

the prescribed minimum solvency margin is $100,000;

• if the insurer’s annual net written premium is greater than $500,000, but less than $5,000,000, the prescribed minimum solvency margin is 20% of the annual net written premium;
• if the insurer’s annual net written premium is greater than $5,000,000, the prescribed minimum solvency margin is $1,000,000 plus 10% of the difference between the annual net written premium and $5,000,000.

Long-term insurers - the prescribed minimum solvency margin is $250,000