RenaissanceRe said in a preliminary assessment of the Tax Cuts and Jobs Act of 2017 that it expects to be able to write down a portion of its deferred tax asset, reducing its net income by about $40 million in the period the Tax Bill is enacted.
The Tax Bill to reduce the corporate tax rate from 35% to 21% with effect from January 1st was passed by both houses of the United States Congress as of December 20, 2017.
The Bill amends a range of U.S. federal tax rules applicable to individuals, businesses and international taxation, including altering the current taxation of insurance premiums ceded from a United States domestic corporation to any non-U.S. affiliate.
Apart from 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 to future regulatory and rule making processes remains along with the prospects of additional corrective or supplemental legislation, potential trade or other litigation.
