Cash Flow Surplus

Published: | Updated: December 13, 2017

Definition - What does Cash Flow Surplus mean?

A cash flow surplus occurs when an insurance company accumulates an amount of cash during a specific period that exceeds the amount of money it needs to pay for its expenses. If an insurance company has a cash flow surplus, it can make investments with the money, reinvest it in the business, or save it for a later date.

Insuranceopedia explains Cash Flow Surplus

A cash flow surplus is usually a good indication that an insurance company is performing well and that its statistical calculations are on point. In other words, it means that the insurance company is taking in more from its premiums and other income sources than it is spending.


How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.