Asset Valuation Reserve


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Asset Valuation Reserve

The assets that a company is required to maintain in order to pay unexpected liabilities should they arise. Banks, for example, are required to keep a reserve ratio of deposits to protect against a bank run. Likewise, insurance companies must keep an asset valuation reserve (which is set by the NAIC) to be able to pay an unusually large number of claims.
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Similar to the Asset Valuation Reserve, the risk-based capital formula would apply a moving two-year average ratio of company-to-industry experience in the absence of a standardized credit rating system for commercial real estate mortgages.
44 billion and added $1 billion to surplus and asset valuation reserve for the year, increasing it to $17.
The Company is providing adjusted earnings (loss) in addition to reported results prepared in accordance with generally accepted accounting principles in order to present financial information without the impact of the deferred tax asset valuation reserve, which was recognized in the second quarter of 2010 and was established primarily based on cumulative losses over a three-year period.
PNX's statutory surplus and asset valuation reserve (AVR) was $853 million at year-end 2008 versus $1,041 million at year-end 2007.
As of June 30, 2007, New York Life's surplus and asset valuation reserve grew to $14.
2 million net tax benefit resulting from a reduction in the Company's deferred tax asset valuation reserve.
New York Life Insurance Company 2005 Financial Highlights (in millions) 2005 2004 Operating Revenue(a) $ 11,072 $ 10,264 Insurance Sales $ 2,237 $ 2,027 Investment Sales $ 28,265 $ 24,230 Operating Earnings $ 934 $ 974 Net Income(b) $ 855 $ 1,294 Surplus and Asset Valuation Reserve $ 12,853 $ 11,838 Assets Under Management(c) $ 225,223 $ 214,949 Individual Life Insurance In Force $ 651,614 $ 616,101 (a) Operating Revenue includes primarily premium and fee income from our insurance and non-insurance operations, both domestically and internationally.
As of September 30, 2005, New York Life's surplus and asset valuation reserve grew to $12.
New York Life Insurance Company 2004 Financial Highlights (in millions) 2004 2003 Assets Under Management* $ 214,949 $ 202,131 Adjusted Operating Revenue** $ 10,397 $ 9,645 Net Income*** $ 1,294 $ 1,120 Adjusted Operating Earnings $ 1,020 $ 879 Surplus and Asset Valuation Reserve $ 11,838 $ 10,810 Individual Life Insurance In Force $ 616,101 $ 556,049 *Represents Consolidated Domestic and International Insurance Company Statutory assets and third-party assets principally managed by New York Life Investment Management LLC, a wholly owned subsidiary of New York Life Insurance Company.
Partially offsetting these factors are the life company's elevated exposure to common stocks and its impact on net income and asset valuation reserve, lower operating profitability and surplus strain due to acquisition costs of writing increased amounts of new business.
Statutory capital and surplus--including the asset valuation reserve and 50% of the policyholders' dividends liability--decreased $3.