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Valuation Reserve
(redirected from Securities Valuation Reserve)

   Also found in: Dictionary/thesaurus 0.01 sec.
Valuation reserve
An allowance to provide for changes in the value of a company's assets, such as depreciation.

Valuation Reserve
A charge against a company's earnings set aside to account for changes in the value of a company's assets. These changes are normally due to depreciation, but also may come from bad debt.


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The new AVR will extend the previously effective mandatory securities valuation reserve (MSVR) beyond securities to cover real estate as well.
While the AVR's predecessor, the Mandatory Securities Valuation Reserve (MSVR), set reserves only for a portion of investments, the new AVR would cover all assets held by insurers and would first appear on the December 1992 statutory statement submitted by life insurance companies to the appropriate state insurance regulatory body.
The company increased its Contingency Reserves by $167 million in 1991, and increased its Mandatory Securities Valuation Reserve by $80 million -- thus comprising the 1991 total capital increase of $247 million.
 
 
 
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