An insurance company's liquidity is measured as

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Liquidity is the ability of an insurance company to meet its financial obligations as they come due. Invested assets divided by loss reserves and unearned premium reserves is the most commonly used ratio to measure the liquidity of an insurance company. This ratio is known as the liquidity ratio, which indicates the resources available to pay claims and other liabilities. The higher the liquidity ratio, the better the company's ability to meet its financial obligations.

An Insurance Company's Liquidity Is Measured as