Value-at-Risk (VaR) Variable Annuity Variation Margin A tool for market risk management that measures the risk of loss of a portfolio. The VaR projects the maximum expected loss for a given time horizon and probability. For example, the VaR over 10 days and with 99 percent certainty measures the most one would expect to lose over a 10-day period, 99 percent of the time. A tax-deferred insurance company contract where the owner can choose investment options whose values fluctuate with the underlying securities, much like mutual funds. Variable annuities may also include minimum guarantees, which may exceed the value of the investment accounts. Payment made by clearing members to the clearinghouse based on price movements of the contracts these members hold. 104 <strong>2016</strong> | <strong>OFR</strong> <strong>Financial</strong> <strong>Stability</strong> <strong>Report</strong>
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