Asset Valuation Reserve

(redirected from Asset Valuation Reserves)

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.
References in periodicals archive ?
Temporary differences include unrealized gains and losses and nonadmitted assets, but do not include differences between SAP and tax for asset valuation reserves, interest maintenance reserves, Schedule F penalties, policyholder surplus attributable to stock life insurance companies prior to 1984 and, in the case of a mortgage guaranty insurer, amounts attributable to a statutory contingency reserve to the extent "tax and loss" bonds have been purchased.
Once validated by a qualified third party with regard to approximate Fair Market Value and the Viability Of A Sale, the adoption of this Plan by VFND would allow the Company to recapture the Deferred Tax asset valuation reserves from previous years.
5 billion, adjusted surplus (surplus, asset valuation reserves and interest maintenance reserves) of $127 million and operating leverage of 6.
However, the companies' asset valuation reserves - a liability insurers are required to maintain in order to insulate capital from investment losses - declined $36 billion, or 15%, reflecting deductions from the reserve as capital losses were realized.
Partially offsetting these positive factors, however, is Presidential Life's concentrated operational focus in the interest rate- sensitive individual annuity marketplace and the fact that nearly all of the company's capital and surplus, plus asset valuation reserves, is represented by less-than-investment grade securities, although the company continuously is disposing of such securities.
91 per share, when the company reduced previously recorded deferred tax asset valuation reserves.
5 million of charges for asset valuation reserves resulting from the company's product line transition to its XL platform; and (iii) approximately $1 million of R&D costs related to nonrecurring engineering and the acquisition of certain technologies being used in the company's new ATM and Ethernet switching development program.
At year-end 1992, impaired loans (including restructures) accounted for under 2 percent of total assets and 34 percent of surplus funds, including asset valuation reserves.
But under new regulations approved by the National Association of Insurance Commissioners, Asset Valuation Reserves have to be set aside for these portfolios.
Asset valuation reserves increased by about $31 million to $527.
These operating losses primarily resulted from asset valuation reserves of $11.