Securities valuation reserve

{
  "id": "MLC-T-INS-003042",
  "term": "Securities valuation reserve",
  "field": "Insurance and risk management",
  "definition": "A mandatory reserve account maintained by life insurance companies to absorb potential losses from fluctuations in the market value of their investment portfolios. This reserve acts as a buffer against declines in the value of bonds, stocks, and other securities held by the insurer. The amount of the reserve is calculated based on regulatory formulas and the risk characteristics of the investment assets.",
  "url": "https://mlchart.com/terminology/insurance/securities-valuation-reserve/"
}