The Internal Revenue Service (IRS) issued guidance meant to make it easier for insurance companies to get more accounting methods to comply with changes made by the 2017 tax overhaul.

The law simplified the calculation of reserves, money insurers set aside to pay future expected claims, for tax purposes under tax code Section 807.

It also increased the amount of costs related to insurance contracts that have to be capitalized, or recorded on a balance sheet, under Section 848.

Source: Bloomberg