U.S. lawmakers have responded to the COVID-19 crisis with significant legislative changes intended to temper the impact of the resulting downturn. Two Grant Thornton professionals discussed how the CARES Act will affect carriers in the property and casualty (P&C), health and life insurance industries.
John Forni, leader of Grant Thornton’s U.S. Insurance Tax practice, explained how the CARES Act provides three opportunities for liquidity during this stressful economic time:
- Loans and/or grants
- Deferral of tax payments
- Accelerated monetization of deferred tax attributes
Forni’s discussion with Mathew Tierney, who leads Grant Thornton’s Global Insurance practice, focused on the enhanced ability to utilize net operating losses, and the accelerated monetization for alternative minimum tax credits carryforward. He detailed the top components of the CARES Act that will have the most impact on P&C, health and life insurance companies.
Find further insights about insurance developments and issues, and watch “Ask the Specialists: CARES Act impact on insurance companies” to learn more about how legislation could benefit your organization.