More surplus
Less surplus
More or less surplus
New business strain
✅ The correct answer is A.
If assets are overvalued, the result would be more surplus. As a result of over valuation of all the assets of an insurance company, the company’s financial statements would show more surplus than the actual one.
If assets are overvalued, the result would be more surplus. As a result of over valuation of all the assets of an insurance company, the company’s financial statements would show more surplus than the actual one.