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Language Perils
 
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1998 Archives  —  General / Risk / Financing

Policyholder Surplus

Italian, French
Having trouble communicating the strength of your company in terms of its “(policyholder) surplus” or “shareholders’ equity” to your international audiences? There is, in fact, no difficulty in translating these terms, since, after all, they simply refer to the difference between assets and liabilities on your company’s balance sheet. The key is not to translate the words, because that leads to (at best) nonsense or (at worst) misleading information in other languages, but to translate the concept of “difference between assets and liabilities.” In Italian, for example, that concept can be expressed by the term “patrimonio netto.” In French, it’s “fonds propres.”

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