insurance companies need to contribute a certain percentage of their port return to the asset valuation reserve, which serves as a cushion to absorb investment loss. and if an insurance company makes less than the reserve rate in any given year, their surplus would decrease. my question is if the asset valuation reserve is like a cushion to surplus, shouldnt the surplus only decrease if the asset valution reserve falls below zero?? or my whole concept on asset valuation reserve is all wrong, please help
sorry, which page is this asset valuation reserve with? - sticky