Asset Valuation Reserve (AVR)

A liability established under statutory accounting rules whose purpose is to protect the company’s surplus from the effects of defaults and market value fluctuation on stocks, bonds, mortgages and real estate. This replaces the Mandatory Securities Valuation Reserve (MSVR) and is more comprehensive in that it includes a mortgage loss reserve, whereas the MSVR did not. Also see Mandatory Security Valuation Reserve (MSVR).

Asset/Liability Matching

Management of cash flows so that investments pay interest or mature at just the right time to meet the need for cash to pay claims and expenses.

Weiss Ratings