AAPL 214.0 0.2389% MSFT 388.7 0.036% NVDA 119.53 -1.7589% GOOGL 164.29 -0.7251% GOOG 166.57 -0.6264% AMZN 195.74 -1.1164% META 604.9 -0.4444% AVGO 194.5 -0.5319% LLY 824.76 1.3866% TSLA 238.01 -4.7884% TSM 176.24 1.235% V 334.55 0.8288% JPM 233.93 0.641% UNH 499.02 2.1222% NVO 80.15 3.8885% WMT 87.46 2.4722% LVMUY 133.7 1.1576% XOM 113.76 1.6622% LVMHF 671.5 1.3279% MA 531.99 0.8244%
AAPL 214.0 0.2389% MSFT 388.7 0.036% NVDA 119.53 -1.7589% GOOGL 164.29 -0.7251% GOOG 166.57 -0.6264% AMZN 195.74 -1.1164% META 604.9 -0.4444% AVGO 194.5 -0.5319% LLY 824.76 1.3866% TSLA 238.01 -4.7884% TSM 176.24 1.235% V 334.55 0.8288% JPM 233.93 0.641% UNH 499.02 2.1222% NVO 80.15 3.8885% WMT 87.46 2.4722% LVMUY 133.7 1.1576% XOM 113.76 1.6622% LVMHF 671.5 1.3279% MA 531.99 0.8244%

Valuation Reserve

Updated on August 29, 2023

What is a Valuation Reserve?

A Valuation Reserve refers to the asset that insurance companies set aside as a hedge against the decrease in the value of the investment they hold or unexpected market upheavals, to ensure that the company remains solvent. The investments are allocated as per state law to protect the portfolio against devaluation risks.

As policies including health insurance, life insurance and various annuities may get affected for an extended period. Valuation Reserve helps insurance companies to protect their portfolio from any losses. This help in ensuring that policyholders are paid for claims and that annuity holder receive income even if an insurance company’s investments lose value.

However, Valuation Reserve sets life insurance companies from other insurance companies, where the allocation of these reserves is influenced by the desire to improve the security.