Non-admitted Assets

What Does Non-admitted Assets Mean?

Non-admitted assets are assets that insurance companies cannot include in their financial statements. These differ from admitted assets, which are permitted to be included in the company’s financial reports.

Insuranceopedia Explains Non-admitted Assets

The classification of assets as admitted or non-admitted is crucial for accounting purposes, as it helps regulators evaluate an insurance company’s solvency. Understanding the types of assets a company holds ensures transparency and compliance with financial standards.

The criteria for admitted and non-admitted assets can vary by state, though most states follow similar guidelines for these classifications. Generally, having a higher number of assets is considered favorable for an insurance company’s financial health.

Examples of non-admitted assets include fixtures and furniture, which cannot be included in financial statements.