Q. How do potential changes in tax policy impact my reinsurance program?

A. It’s hard to know where we’re going to end up when it comes to tax policy. Legislation is still pending, but I’m optimistic that we won’t see any changes that have a serious impact either on reinsurance companies or on distributions to shareholders in the next year. While there is no explicit change to capital gains and dividends tax rates anticipated in the current proposals, it is possible that a proposed tax surcharge and increased taxation on pass-through entities could impact the highest earners. Overall, for the large majority, I expect distributions to remain taxable at the same preferential tax rates they have enjoyed in previous years.

Expert Bio

Answered by : David DeCredico

Senior Vice President of Wealth Building and Strategic Accounts

David DeCredico joined APCO as Vice President for Reinsurance Programs in 2004 after spending the early part of his career in Public Accounting. David holds a Bachelor of Arts degree from Wake Forest University and a Master of Science in Management from the Georgia Institute of Technology. David is also a licensed Certified Public Accountant. After managing APCO’s Business Development team for several years, Dave took on the role of Senior Vice President of Wealth Building and Strategic Accounts in 2021.

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Ask the Expert: Reinsurance FAQs for 2022