Reinsurance

The major impact on insurers from an offshore tax avoidance crackdown announced today by the Obama administration appears to be a proposal restricting a deduction of costs for financing foreign operations, according to industry sources.

A research firm's finding that a tax increase for offshore reinsurers would be expensive for customers and limit availability of the coverage has the support of the Risk and Insurance Management Society, the group said.

Eight industry trade groups supporting an optional federal insurance charter told key members of Congress in a letter yesterday that financial services regulatory reform should include a dedicated federal insurance regulator.

The Reinsurance Association of America (RAA) said today that Jacques Bonneau, president and chief executive officer of Ace Tempest Re USA, has been elected board chairman.

Lloyd's said it is opening its office in Brazil today, a year after receiving approval from the Superintendence of Private Insurance (SUSEP) to become the first admitted reinsurer in the country.

An investment bank analysis of the property-casualty insurance market finds that the outlook for this year is improving modestly but declines can be expected in earnings per share.