RenaissanceRe Holdings Ltd expects a $40 million reduction in income as a result of the passing of the US tax Bill.

In a statement, the Bermudian-based company said it had conducted a preliminary assessment of the Tax Cuts and Jobs Act of 2017, which was passed by Congress on December 20.

“The tax Bill amends a range of US federal tax rules applicable to individuals, businesses and international taxation, including, among other things, altering the current taxation of insurance premiums ceded from a US domestic corporation to any non-US affiliate,” RenRe said in its statement.

“As a result of the reduction in the corporate tax rate from 35 per cent to 21 per cent effective January 1, 2018 pursuant to the tax Bill, the company anticipates that it will write down a portion of its deferred tax asset and currently estimates that this anticipated writedown will reduce its net income by approximately $40 million in the period in which the tax Bill is enacted.”

Other than the writedown of the deferred tax asset, RenRe said it presently estimates that the economic impact of the tax Bill to the company will be minimal.

However, it added: “Uncertainty regarding the impact of the tax Bill remains, as a result of factors including future regulatory and rule-making processes, the prospects of additional corrective or supplemental legislation, potential trade or other litigation and other factors.”