What does Admitted Assets mean?

Each insurance company owns a financial statement which must obey certain regulations, and so admitted assets is an inherent part of these statements. Certainly each region may have its own rules, and there might be great differences between insurance companies' policies. But there is always a greater general agreement among states regarding which are those assets which are appropriate, and which are not.

Admitted Assets explained

The position of an insurance company might get compromised by the very assets it allows being displayed on their balance sheet. As a consequence, those assets which have a high probability of being difficult to sell are excluded. Top of the list are those assets which in the event of liquidation can get immediately and well sold on the market, and which in general have a very good financial potential. Keeping a well defined and evaluated list of admitted assets helps keeping the risk at a lower degree for insurance companies.