Negative Equity
can Equity be negative? Does it mean insolvent or capital injection is required?
It looks like you're new here. If you want to get involved, click one of these buttons!
can Equity be negative? Does it mean insolvent or capital injection is required?
Comments
Yeah technically having 0 negative equity means the insurer is insolvent. @graham
I set up the random numbers to sometimes give negative equity. (Sometimes insurers do go insolvent!)