Future tax breaks counted as current regulatory capital
US regulator group the National Association of Insurance Commissioners (NAIC) has changed accounting rules to temporarily allow future tax benefits to boost regulatory capital, Reuters reports.
Property-casualty insurers, such as AIG and Travelers, can count billions of dollars of deferred tax assets as regulatory capital through the end of next year.
Consumer groups such as the Center for Economic Justice and the Consumer Federation of America opposed the measure, saying it allows insurers to count more non-liquid assets as regulatory capital, potentially undermining consumers who bought insurance from these companies.
The NAIC-approved measure is more conservative than had been lobbied for by life insurers.
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