Interest Maintenance Reserve (IMR)

Last Updated: October 30, 2017

Definition - What does Interest Maintenance Reserve (IMR) mean?

An Interest Maintenance Reserve (IMR) is a reserve of funds and other assets that are held in order to deal with fluctuations in the interest rate. The value of financial vehicles like bonds or mortgages can change along with the interest rate. Having an IMR on hand allows companies to deal with losses related to interest rate fluctuations by tapping into this reserve.

Insuranceopedia explains Interest Maintenance Reserve (IMR)

The National Association of Insurance Commissioners (NAIC) requires insurance companies to maintain an Interest Maintenance reserve. The purpose of this reserve is to ensure that insurers accumulate enough financial assets to offset some of the losses they incur as a result of changes in the interest rate. A healthy Interest Maintenance Reserve allows insurance companies to fulfill their long-term financial obligations, rather than fall short when they experience periodical and temporary losses.

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