Budget: Changed insurer status should free assets

Details of today’s Budget announcement reveal alterations are being made to the rules governing financial reinsurance contracts which should “simplify and strengthen” tax law related to the ability to use reinsurance contracts instead of holding vast sums of capital. It should mean insurance companies will have increased ability to purchase contingency loans or reinsurance contracts which they can then hold instead of capital, and which they would not usually be able to access for normal financing purposes, as existing tax rules make it difficult to do so. At the same time, the Treasury h...