What is the definition of Balance Sheet?

The Balance Sheet is a snapshot of the company's assets, liabilities and shareholders' equity. It is a picture of the company's financial condition at that point in time. The assets and the liabilities (which also includes shareholders' equity) should balance out.

For insurance companies, this is important since this is part of the valuation made by the state insurance commission. Assets include investments and reinsurance. Liabilities include loss reserves (needed to pay future claims). The company's equity (which is also known as the policyholder surplus) is also another important indicator of the insurance company's financial standing.

Insurance companies are required to submit annual financial reports, including the balance sheet.

• Reinstatement
• Registered Principal
• Liquor Liability
• Businessowners Policy (BOP)
• Directors and Officers Liability Insurance