2 February 2018 11:30
Photo : Freepik
Several insurers have already indicated that the tax reform in the us has had an impact on their financial results. This is the case of Sun Life Financial, which estimated a charge of $ 200 million ($M) to its results for the fourth quarter of 2017. In addition, Sun Life expects the tax charge included in its underlying net profit from 2018 to be reduced to approximately$130 Million.
In turn, Manulife announced a charge of $ 1.9 billion, or $ 0.96 per share, for the fourth quarter of 2017. However, the reform should allow him to release two billion dollars in capital over the next 12 to 18 months, and to improve its net income and the result from operations of basis of approximately$250 Million.
Finally, Great-West Lifeco indicates that the expected impact is a charge to take$ 216 Million, or $ 0.22 per share. The insurer has not clarified how it expects to benefit from the lower tax rate. The law Tax Cuts and Jobs Act, which entered into force on the 1st January, passed the corporate income tax rate from 35% to 21 %.
Disclosure of the results
Intact Insurance is the first insurer to disclose its fourth quarter results on 6 February. Manulife will be on the 7th of February, so that Great-West will publish on February 8. Follow Sun Life on February 14, same asStep and iA financial Group on 15 February.