Tax consulting for life insurers

We assist clients to allow appropriately for tax within their valuations and product pricing environments. In the process, clients would gain a better understanding of their current tax position and how this is likely to change in the future.

The setting of tax-related assumptions (e.g. the effect of transfer relief on the effective tax rate and tax relief factors) is often not a straightforward process. There could be a number of reasons for this. For example:

• The current tax position of the office (whether XSI or XSE) may be expected to change at some point within the projection period
  
• The relief factor applied to expenses (and transfers) may change over time as the mix of business changes
  
• The extent to which allowance can be made for transfer relief may change due to a number of factors.
  

Our involvement could typically be to:

• Assess the appropriateness of the tax assumptions in the current valuation and/or embedded value bases
  
• Assist in setting assumptions for the use in pricing new business
  
• Assist in designing products that make optimal use of the insurance licence's current and future tax position.