Federal income taxes—Provisions affecting property and casualty insurers: An update to the Almagro/Ghezzi paper of 1988 and the Feldblum paper of 2007

Understand the key provisions in the 2017 Federal Income Tax Legislation (called the Tax Cuts and Jobs Act, and referred to as the “2017 FITL” in this paper) affecting property and casualty insurers. This paper focuses on after-tax income and the strategies that property and casualty insurers may consider in optimizing after tax-income, including:

• Background information on the key federal tax changes of 1986 and 2017 and the impacts
• Impact of the 2017 FITL on investment strategies
• Changes made to the marginal tax rates and rules for discounting loss reserves and the impact of the changes on the notional company’s after-tax income
• Pricing considerations

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This article was originally published by CAS.