BDO Questions Tables in Discount Factor Guidance

From: Timothy Kovel
To: Notice Comments
Subject: Rev Proc 2019-06
Date: Thursday, February 07, 2019 5:58:39 PM

Rev Proc 2019-06

The tables for International and all Reinsurance lines-of-business seem to indicate they are now treated as short-tail lines? Is that what was intended?

Computing a transition adjustment for a predominately reinsurance business with older accident year reserves may result in a tax benefit. If that is the case, should that benefit follow traditional IRC 481 adjustments & be recognized all in one year (as opposed to the 8 year spread for unfavorable adjustments)?

Timothy Kovel
Tax Managing Director
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