ACLI Update

By The American Council of Life Insurers

TAXING TIMES, August 2025

On July 4, President Trump signed into law major tax legislation commonly referred to as the “One Big Beautiful Bill.” With tax legislation enactment in our rearview mirror, it is with heartfelt appreciation that ACLI contributes our final column to the TAXING TIMES publication. First, a word about the tax reconciliation legislation achieved through reconciliation measures. While many general corporate and international provisions of the tax reconciliation legislation will impact companies in our industry, this tax bill will also advance tax relief for families and small businesses. As it concerns life insurer taxation, the bill includes no changes to Subchapter L items or life insurer product taxation, no limitations on corporate state and local tax deductions, and no changes to general corporate tax rates. It includes a permanent expansion of the tax credit for paid family and medical leave.

As we pen this final ACLI column for TAXING TIMES, we find ourselves both nostalgic and profoundly grateful—reflecting on eighteen years of shared history and collaboration within the pages of this publication. TAXING TIMES was founded shortly after the 2004 birth of the Tax Section of the Society of Actuaries (SOA) and the first publication was issued in May, 2005. In September 2007, ACLI made our first contribution to the TAXING TIMES publication in form of a “Tidbit” by Bill Elwell and in February 2008, the “ACLI Update” column was introduced as a way to keep TAXING TIMES readers informed on the tax-related activities and issues facing the industry through ACLI. From our very first contribution in 2007 to this closing chapter, ACLI is proud to have been part of this phenomenal resource for actuaries, policymakers, and industry professionals navigating the ever-evolving landscape of actuarial tax issues.

At the heart of this endeavor has been our partnership with the SOA. This collaboration has amplified our collective voice—enriching both the content and the character of TAXING TIMES. The SOA’s commitment to rigorous analysis and professional development has set a high bar. We at ACLI have been honored to complement those standards with advocacy and industry perspective. Together, we have endeavored not only to inform, but also to unite our readers with a common understanding of complex issues—fostering a synergy around a community grounded in both technical expertise and a deep sense of responsibility to the insurance industry and its policyholders.

Over the years, the pages of TAXING TIMES have chronicled seismic shifts in the tax and regulatory environment. Through legislative reforms, new regulatory standards, emerging valuation and product topics, and shifting economic tides, our columns have sought to translate complex laws and rulings into actionable insight for the actuarial community. Whether interpreting the intricacies of the Tax Cuts and Jobs Act, the determination of tax reserves for life and annuity contracts, or assessing the implications of international tax developments, our commitment has remained steadfast: to deliver clarity and context in moments of uncertainty.

Some of our more memorable efforts have included the implementation of the significant changes affecting life insurers in the Tax Cuts and Jobs Act, development of the proper tax treatment of life and annuity principle based reserving including work on VA CARVM, modernization of interest rates under Internal Revenue Code Section 7702, the introduction and implementation of the Corporate Alternative Minimum Tax, creation and application of the OECD global minimum tax, and several significant Industry Directives from the IRS on hedging, partial bad debt deductions for loan-backed and structured securities, and reserving under VM-20 and VM-21.

We are especially thankful to the many contributors from ACLI who have lent their expertise and passion to these pages. Those include Ann Cammack, who was key to establishing the partnership between ACLI and the SOA. Other authors that have contributed time and expertise are Bill Elwell, Mandana Parsazad, Walter Welsh, Pete Bautz, Jim Szostek, Howard Bard, Jaclyn Walkins, Ryan Derry, Sarah Lashley and Regina Rose. Their dedication has ensured that TAXING TIMES has remained both a trusted source of information and a catalyst for thoughtful dialogue.

While this may be our final column for this publication, the work continues. The actuarial and insurance sectors are entering a new era—one marked by rapid technological change, evolving consumer needs, and an increasingly intricate regulatory landscape. The ACLI remains fully committed to representing the interests of life insurers, annuity providers, and, most importantly, the millions of individuals and families who rely on our industry for financial security.

The ACLI’s advocacy in legislative and regulatory arenas will persist, informed by the same principles that have guided our contributions to TAXING TIMES: transparency, technical excellence, and a commitment to fair and equitable rule making.

As we close this chapter, we do so with sincere appreciation for the trust and partnership of the SOA and the entire TAXING TIMES readership. Thank you for engaging with and supporting us through these years. We look forward to new ways to collaborate and educate going forward as the industry responds to tax issues arising from legislation, regulation, and actuarial developments. We are proud of the ground we have covered together, and we look forward with optimism to the new pathways we will forge in service of the profession and those it serves.

With gratitude,
The American Council of Life Insurers

This article is provided for informational and educational purposes only. Neither the Society of Actuaries nor the respective authors’ employers make any endorsement, representation or guarantee with regard to any content, and disclaim any liability in connection with the use or misuse of any information provided herein. This article should not be construed as professional or financial advice. Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries or the respective authors’ employers.