CHUBB EXPECTS $250M BENEFIT FROM US TAX OVERHAUL

Chubb expects to post a one-time benefit of more than $250m for the fourth quarter of 2017 with the US Congress’ passage of the Tax Cuts and Jobs Act of 2017 last month. The group said “its preliminary estimate reflects the one-time impact of the reduced US corporate income tax rate and the deemed repatriation of foreign subsidiary earnings on the company’s net deferred tax liability position.” The tax bill lowered the corporate tax rate to 21% from 35%, with effect from January 1, and amends federal tax rules applied to individuals and international companies. RenaissanceRe said that with the new tax law it anticipates writing down a portion of its deferred tax asset, resulting in a $40m reduction in fourth-quarter net earnings. The tax overhaul has come under widespread criticism in the US for favouring corporations and the wealthy at the expense of the middle class.