Mandatory securities valuation reserve

{
  "id": "MLC-T-INS-002116",
  "term": "Mandatory securities valuation reserve",
  "field": "Insurance and risk management",
  "definition": "A statutory reserve required by state regulators for life insurance companies to cushion surplus against fluctuations in the value of their invested assets. The mandatory securities valuation reserve (MSVR) smooths the impact of realized and unrealized capital gains and losses on the insurer's financial statements. The National Association of Insurance Commissioners (NAIC) prescribes the specific formulas for calculating the MSVR, which vary based on the risk profile of the asset classes held.",
  "url": "https://mlchart.com/terminology/insurance/mandatory-securities-valuation-reserve/"
}