Override AVR or IMR Gains and Losses
- Nancy Cohn (Deactivated)
- Kinga Huszno
Gains and losses are automatically assigned to either the AVR or IMR during the ISTAR Refresh process based on NAIC guidelines for determining credit (AVR) and non-credit (IMR) related losses. Factors that are used in this determination include:
Security type
Maximum NAIC Designation during the holding period
Change in NAIC Designation during the holding period
In addition to the ISTAR determination, gains and losses on sales and impairments can be classified as credit or non-credit related. Any credit related losses are reported on the AVR and all non-credit related losses are reported on the IMR.
When booking impairments, the STAR Impairments panel allows for the total impairment amount to be allocated between Credit and Non-Credit Loss amounts. On sales, the gain/loss may also be assigned as credit and non-credit. To assign these values on a sell, after booking the trade, select the trade using the Non-Financial Trade Data Modification panel, and allocate the Total Gain Loss to Realized Credit GL and Realized Noncredit GL.
If the gain/loss on an impairment or sale has been assigned as credit and non-credit, the elected treatment takes precedence over the ISTAR determination of the placement. All credit related gain/loss is assigned to the AVR and all non-credit gain/loss is assigned to the IMR.