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RIMS Opposes Legislation to Increase Tax on Non-U.S. Reinsurers 9/22/2008


RIMS announced today its opposition to H.R. 6969, legislation disallowing tax deductions for reinsurance premiums paid to foreign affiliates that exceed the industry average for each line of property and casualty insurance business. Under the current tax code, the law permits insurers to deduct reinsurance premiums paid to affiliate foreign reinsurers without any limitations. H.R. 6969 would place an artificial cap on the deduction, potentially causing market disruptions.

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