RenRe Estimates Impact Of U.S. Tax Bill
RenaissanceRe Holdings Ltd. announced that it has conducted a preliminary assessment of the Tax Cuts and Jobs Act of 2017, which was passed by both houses of the United States Congress as of December 20, 2017.
The Tax Bill amends a range of U.S. federal tax rules applicable to individuals, businesses and international taxation, including, among other things, altering the current taxation of insurance premiums ceded from a United States domestic corporation to any non-U.S. affiliate.
The company said, “As a result of the reduction in the corporate tax rate from 35% to 21% effective January 1, 2018 pursuant to the Tax Bill, the Company anticipates that it will write down a portion of its deferred tax asset and currently estimates that this anticipated write-down will reduce its net income by approximately $40 million in the period in which the Tax Bill is enacted.
“Other than the write-down of the deferred tax asset, the Company currently estimates that the economic impact of the Tax Bill to the Company will be minimal. However, uncertainty regarding the impact of the Tax Bill remains, as a result of factors including future regulatory and rulemaking processes, the prospects of additional corrective or supplemental legislation, potential trade or other litigation and other factors.”
