January 2, 2018 / 6:25 PM / 10 months ago

BRIEF-‍Fitch Says U.S. Life Insurers Face Mixed Impact From Tax Reforms​

Jan 2 (Reuters) - Fitch:

* ‍FITCH SAYS U.S. LIFE INSURERS FACE MIXED IMPACT FROM TAX REFORMS​

* FITCH SAYS TAX CUT IN U.S. TO BE NEGATIVE FOR INSURERS’ RISK-BASED CAPITAL POSITIONS DUE TO LIKELY HIGHER RBC REQUIREMENTS, LOWER DEFERRED TAX ASSETS​

* ‍FITCH SAYS CUT IN CORPORATE INCOME TAX RATE COULD BOOST LIFE INSURERS’ CASH FLOWS, EARNINGS, DEPENDING ON HOW MUCH TAX SAVING INSURERS PASS TO CUSTOMERS

* ‍FITCH SAYS U.S. TAX REFORMS DO NOT AFFECT TAX-ADVANTAGED STATUS OF LIFE AND ANNUITY PRODUCTS​

* ‍FITCH SAYS EXPECT DEFERRED TAX ASSETS ADMITTED ON INSURERS’ STATUTORY BALANCE SHEETS TO DECLINE BY NEARLY 40 PERCENT, ON AVERAGE, AS A RESULT OF TAX CUT​

* ‍FITCH SAYS U.S. TAX REFORMS MAY ALSO LEAD TO LESS USE OF AFFILIATED OFFSHORE REINSURANCE Source text for Eikon:

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