FAR

(redirected from Free Asset Ratio)
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Related to Free Asset Ratio: Asset Coverage, Asset Cover

floor area ratio

The ratio of the total floor area of a building (excluding areas such as mechanical rooms or the areas of floors used exclusively for mechanical equipment) to the area of the lot on which the building is built.
References in periodicals archive ?
The higher the 'free asset ratio', or FAR, the greater the financial strength of the life office and the greater its ability to withstand future threats to policyholders' bonuses and invest their money freely.
Our table shows that the so-called free asset ratio - spare cash divided by other assets - has been falling heavily.
Wesleyan's with profits Realistic Free Asset Ratio, a key indicator of financial strength, is 26.5 per cent - well ahead of NFU Mutual, ranked second with 22.0 per cent.
But it said its free asset ratio - the level of assets it has after meeting its liabilities and solvency requirements - remained strong at 13.4pc, although this included the value of future profits from the with-profits fund.
An assessment based on the tough new 'realistic' valuation system, gave the society a free asset ratio - a key measure of financial strength - of 26.5 per cent.
He added the group's free asset ratio - the level of assets remaining after liabilities and solvency margins have been met - was currently being calculated but was expected to remain at the 10pc level reported in December.