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Target surplus

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Target surplus represents the amount of additional capital held by a financial institution beyond the regulatory reserve requirements in order to reduce the chances of breaching capital adequacy or solvency requirements.^[1]

References

^ "Practice Guideline 6A: Target Capital (Life, General and Health Insurance)" (PDF). The Institute of Actuaries of Australia. 1 April 2022. Retrieved 30 June 2024.

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