12 Days of SSAP – CARES Act Tax Considerations for Insurers

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Hot Take:

Hot Take

As the holidays approach, JLK Rosenberger is taking a new perspective on a holiday classic – the Twelve Days of Christmas. Rather than filling your head with turtle doves and gold rings, we are focusing on the latest changes to SSAP and how they will impact your insurance company in 2021 and beyond.

This article covers the more significant tax and relief provisions included in the CARES Act.

Full Article

The CARES Act includes numerous relief provisions to assist businesses and individuals impacted by the COVID-19 pandemic. Some of the more significant tax provisions intended to improve the cash flow and liquidity needs of corporate taxpayers, including insurers, are related to modifications to the carryback rules of NOLs, accelerated recovery of AMT credits, bonus depreciation eligibility for Qualified Improvement Property, and others. These provisions may also have financial reporting implications that need to be considered for US GAAP and statutory purposes.

Some financial reporting areas to consider include the following:

  • Realizability of deferred tax assets and valuation allowance assessments
  • Undistributed earnings and the indefinite reimbursement assertion
  • Statutory admissibility calculations under SSAP 101, paragraph 11a in light of the expanded NOL carryback provision
Deeper dive on this topic:

Click here to read more about taxes for insurers and the CARES Act.