AAPL 212.78 -1.1429% MSFT 386.0 -0.4693% NVDA 118.159 0.5437% GOOGL 162.26 -0.9946% GOOG 164.29 -1.1968% AMZN 194.215 -0.6776% META 590.9 1.1711% AVGO 189.5096 -3.0988% LLY 839.62 0.3118% TSLA 233.08 -1.1787% TSM 177.34 2.0603% V 339.53 -0.1% JPM 239.365 0.1066% UNH 510.88 1.5262% NVO 78.63 -0.4684% WMT 85.915 -0.4807% LVMUY 130.5 -2.1152% XOM 115.85 0.3812% LVMHF 655.0 -2.1687% MA 536.55 0.0858%
AAPL 212.78 -1.1429% MSFT 386.0 -0.4693% NVDA 118.159 0.5437% GOOGL 162.26 -0.9946% GOOG 164.29 -1.1968% AMZN 194.215 -0.6776% META 590.9 1.1711% AVGO 189.5096 -3.0988% LLY 839.62 0.3118% TSLA 233.08 -1.1787% TSM 177.34 2.0603% V 339.53 -0.1% JPM 239.365 0.1066% UNH 510.88 1.5262% NVO 78.63 -0.4684% WMT 85.915 -0.4807% LVMUY 130.5 -2.1152% XOM 115.85 0.3812% LVMHF 655.0 -2.1687% MA 536.55 0.0858%

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.