Mandatory Securities Valuation Reserve. A reserve required by state insurance regulators as a liability on a life insurer's statutory financial statements intended to capture realized and unrealized gains and losses sustained by the insurer's fixed-income and equity portfolios. In December, 1991, the National Association of Insurance Commissioners (NAIC) proposed that the MSVR be replaced by Asset Valuation Reserves and Interest Maintenance Reserves, effective with 1992 statutory financial statements. See Asset Valuation Reserve and Interest Maintenance Reserve.