THE COMPANY

Reinsurance
Terms

  • Kenney Rule

    The ratio of an insurer's net premium writings to its policyholder surplus which is considered safe by the author, Roger Kenney, a recognized authority on insurance company finances and author of the book, Fundamentals of Fire and Casualty Insurance Strength. For strictly fire insurance companies, the recommended ratio is 2 to 1: $2 of net premium writings for each $1 of policyholder surplus. For multiple line companies, the ratio is 3 to 1.