Michigan Municipal League
FINANCIAL BENCHMARKING
   
   

 

Net Premium to Surplus (currently .38:1):

This ratio measures the exposure of the Pool's surplus to pricing errors. For example, if we were underpricing a large number of our members due to competition, poor loss experience would adversely affect surplus. A ratio less than 1:1 is considered a comfortable margin to offset any short-term underpricing or increase in losses and we are well below that.

 
 
MEMBERS