Senate Panel Delays Vote
On Bermuda Tax TreatyThe Senate Foreign Relations Committee decided not to vote on the Bermuda Tax Treaty after Sen. Christopher Dodd, D-Conn., objected to consideration.
The committee chairman, Richard Lugar, R-Ind., explained Wednesday that the most likely scenario now is to put off consideration of the treaty until next year.
Sen. Dodd said he acted out of concern for the effect of the treaty on the domestic insurance industry and also because there has not yet been a general evaluation of the effects of tax treaties involving insurance.
The Reinsurance Association of America had objected to consideration before the Treasury Department conducts a congressionally mandated study of the disadvantages of such treaties. The reinsurers argue that the treaty would waive the excise tax paid by foreign insurers at the same time that U.S. reinsurers are assuming a greater tax burden under the recently passed tax bill.
Equitable Gets Approval
To Form Japanese Unit
NEW YORK - Equitable Life Assurance Society of the United States said it got final approval to form a life insurance subsidiary in Japan.
Equitable of Japan, the new subsidiary located in Tokyo, will initially sell a form" of variable life insurance, the company said.
General Re Adds Funds
To Loss Reserves
STAMFORD, Conn. - General Re Corp. said it added $60 million to loss reserves of its life reinsurance operation, resulting in a pretax charge of $60 million to third quarter results.
The strengthening after-taxes is expected to hurt results by an estimated $40 million, the company added. The life reinsurance operation is expected to show an operating loss for the quarter and a small loss" for the year.
The company said the infusion came after a review of reserves in all domestic reinsurance and insurance subsidiaries. The review didn't show a need to change property/casualty reserves, which came to $3.4 billion at the end of June.