Reserve

In a claims situation then this is the amount estimated to pay out the claim. Until the claim is settled this is the amount that will be regarded as likely to be the final payout.

It can also be an amount representing liabilities kept by an insurer to provide for future commitments for all the policies they have on their books.

Insurance regulations demand that certain amounts be held in reserve in case there is a major catastrophe and many people would have claims against this amount.