IRS Issues Guidance On Reinsurer Risk Distribution

Law360, New York (September 3, 2009, 2:04 PM EDT) -- The Internal Revenue Service has clarified the risk distribution rule for reinsurance companies, reportedly ruling that they should be given favorable tax treatment even if they only take on a single risk from a primary insurer, provided that they also assume risks from other insurers.

The agency laid out the new guidance on Tuesday in Revenue Ruling 2009-26, reported Wednesday. The ruling was not immediately available in the IRS' Internal Revenue Bulletin or the Federal Register, where such rulings are published.

Revenue rulings are public...
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