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Market value adjustment

A reduction made to the value of a with-profits fund if you cash in some or all of your with-profits investment before your selected pension age. Firms use MVRs to help ensure that policyholders who cash in some or all of their with-profits investment before the end of the policy term do not disadvantage the remaining policyholders. (Also called market value adjustment).

< ABI insurance glossary

The glossary is intended as a general aid to help you understand some of the commonly occurring phrases and jargon used in the insurance world.  If you have any questions about the use or meaning of a term or expression in any particular product or literature, you should raise them with the provider concerned.