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Balance Sheet Reserves

What are 'Balance Sheet Reserves'

Balance sheet reserves refer to the amount expressed as a liability on the insurance company's balance sheet for benefits owed to policy owners. Balance sheet reserves represent the amount of money insurance companies set aside for future insurance claims or claims that have been filed but not yet reported to the insurance company or settled. The amount of balance sheet reserves to be maintained is regulated by law.

Also known as "claim reserves."

Explaining 'Balance Sheet Reserves'

Balance sheet reserves are required of insurance companies by law to guarantee that an insurance company is able to pay any claims, losses or benefits promised to customers and claimants.


Further Reading


The Federal Reserve System and Eurosystem's Balance Sheet Policies During the Financial Crisis: A Comparative Analysis
mpra.ub.uni-muenchen.de [PDF]
… 4 or 2 percent of their respective assets, a recapitalization will become necessary.95 Yet, both balance sheets contain (in some cases hidden) reserves that can … Thus, the balance sheet of the Eurosystem includes a revaluation account that contains unrealized gains related to …

The Federal Reserve's balance sheet as a financial-stability toolThe Federal Reserve's balance sheet as a financial-stability tool
books.google.com [PDF]
… 4 or 2 percent of their respective assets, a recapitalization will become necessary.95 Yet, both balance sheets contain (in some cases hidden) reserves that can … Thus, the balance sheet of the Eurosystem includes a revaluation account that contains unrealized gains related to …

Financial intermediaries and monetary economicsFinancial intermediaries and monetary economics
www.sciencedirect.com [PDF]
… 4 or 2 percent of their respective assets, a recapitalization will become necessary.95 Yet, both balance sheets contain (in some cases hidden) reserves that can … Thus, the balance sheet of the Eurosystem includes a revaluation account that contains unrealized gains related to …

Crisis and responses: the Federal Reserve in the early stages of the financial crisisCrisis and responses: the Federal Reserve in the early stages of the financial crisis
www.aeaweb.org [PDF]
… 4 or 2 percent of their respective assets, a recapitalization will become necessary.95 Yet, both balance sheets contain (in some cases hidden) reserves that can … Thus, the balance sheet of the Eurosystem includes a revaluation account that contains unrealized gains related to …

The Federal Reserve's balance sheet and earnings: a primer and projectionsThe Federal Reserve's balance sheet and earnings: a primer and projections
www.ijcb.org [PDF]
… 4 or 2 percent of their respective assets, a recapitalization will become necessary.95 Yet, both balance sheets contain (in some cases hidden) reserves that can … Thus, the balance sheet of the Eurosystem includes a revaluation account that contains unrealized gains related to …

Crisis and responses: the Federal Reserve and the financial crisis of 2007-2008Crisis and responses: the Federal Reserve and the financial crisis of 2007-2008
www.nber.org [PDF]
… 4 or 2 percent of their respective assets, a recapitalization will become necessary.95 Yet, both balance sheets contain (in some cases hidden) reserves that can … Thus, the balance sheet of the Eurosystem includes a revaluation account that contains unrealized gains related to …

Confidence interval projections of the Federal Reserve balance sheet and incomeConfidence interval projections of the Federal Reserve balance sheet and income
ideas.repec.org [PDF]
… 4 or 2 percent of their respective assets, a recapitalization will become necessary.95 Yet, both balance sheets contain (in some cases hidden) reserves that can … Thus, the balance sheet of the Eurosystem includes a revaluation account that contains unrealized gains related to …

Asset‐based reserve requirements: reasserting domestic monetary control in an era of financial innovation and instabilityAsset‐based reserve requirements: reasserting domestic monetary control in an era of financial innovation and instability
www.tandfonline.com [PDF]
… 4 or 2 percent of their respective assets, a recapitalization will become necessary.95 Yet, both balance sheets contain (in some cases hidden) reserves that can … Thus, the balance sheet of the Eurosystem includes a revaluation account that contains unrealized gains related to …



Q&A About Balance Sheet Reserves


What does "claim reserves" mean in this context?

Claim reserves refers to the money an insurance company sets aside for future claims or claims that have been filed but not yet reported to the insurance company or settled.

How is this amount regulated by law?

The amount of balance sheet reserves to be maintained is regulated by law.

What does "also known as" mean in this context?

Also known as means that it has another name.

What are balance sheet reserves?

Balance sheet reserves refer to the amount expressed as a liability on the insurance company's balance sheet for benefits owed to policy owners.