EC to restrict deferred tax assets in Solvency II

Rules expected to be tightened on determination of future profits

leverage-pigs-0213

European policy-makers are planning to constrain insurers' ability to recognise deferred tax assets (DTA) as loss-absorbing capital on their Solvency II balance sheets.

A change in the wording of the delegated acts being developed by the European Commission is expected to tighten the rules on how future profits should be determined by insurers when looking to use them to take credit for DTA.

DTA are accumulated when an insurer expects to pay less tax in future because of a taxable temporary

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: