Investment dictionary

VALUATION RESERVE

Valuation Reserve: translation

The funds set aside by life insurers as required by state law to compensate for declines in the value of investment instruments that are held by the insurance company as assets. Valuation reserves are required because life insurance contracts can be in effect for long periods of time, and the securities valuation reserve is intended to protect the company's loss reserves in the event that the insurer's investments are under-performing.

Prior to 1992, the mandatory securities valuation reserve (MSVR) required a liability reserve to be maintained by the National Association of Insurance Commissioners (NAIC) to protect against value changes in an insurance company's securities investments. Following 1992, the requirements set forth by the MSVR were transferred into the asset valuation reserve.

  1. valuation reserve—valuation reserve translation An allowance to provide for changes in the value of a companys assets such as depreciation. Bloomberg Financial Dictionaryu...Financial and business terms
  2. valuation reserve—бухг.резерв по переоценке активов...Англо-русский словарь по экономике
  3. valuation reserve—резерв оценки...Англо-русский словарь страховых терминов
  4. valuation reserve—учет фин. резерв по переоценке [на переоценку под переоценку\] оценочный резерв резерв под изменение стоимости активовu средства резервируемые из прибыли на покрытие изме...Англо-русский экономический словарь