Free Asset Ratio - FAR
The market value of an insurance company's assets in excess of its policy liabilities.
Investopedia Commentary
FAR accounts for assets that aren't being tied up as collateral for policies. Measuring the strength of capital and financial reserves, FAR represents the ability of an insurance company to expand.
Related Links
Industry Handbook
See also: Asset, Collateral, Liability, Life Insurance
Also spelled: FAR