Coalition Opposes Proposed Taxes for Affiliated Reinsurance

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The Honorable Max Baucus Chairman Senate Finance Committee 219 Dirksen Senate Office Building Washington, D.C. 20510

The Honorable Charles Grassley Ranking Member Senate Finance Committee 219 Dirksen Senate Office Building Washington, D.C. 20510

Dear Chairman Baucus and Ranking Member Grassley:

We’re writing to express our opinion about proposals under consideration that would impose additional taxes on some types of premium payments from U.S. insurers to their own international reinsurance parental affiliates. We have three serious concerns about these proposed taxes and we address them in this letter. In particular, we believe that such taxes would decrease the availability of insurance in areas where it is already in short supply, interfere with free trade, and reduce if not eliminate competitive pressures on reinsurance regulation. Thus, we ask you to oppose them.