Current Liquidity (IRIS)

Sum of cash, unaffiliated invested assets and encumbrances on other properties compared to net liabilities plus ceded reinsurance balances payable. Expressed as a percentage, current liquidity measures the proportion of liabilities that can be met by unencumbered cash and unaffiliated investments. A percentage ratio is less than 100 indicates solvency is dependent on the collectiblilty of premium balances and investments in affiliates. Assumes all amounts are recoverable from reinsurers, paid and unpaid losses and unearned premiums.