IPS - Taxes on Life vs Non-Life advise, please, correct, Insurance, everything

Muddahudda

Please advise if the below is correct. If incorrect, please kindly clarify.

1) Life Insurance Cos taxed on surplus, but not taxed on portion earned to meet policyholder reserves.

2) Non-Life Insurance Cos taxed on everything.

bkballa

bump

think this is correct

infinitybenzo

That's what I know

former

True, and this has implications to the investment selections.

Quote CFAI: "Because the tax-exempt yield curve in the US tends to be more positively sloped than the taxable curve, casualty companies find that they must invest in longer maturities (15-30 yrs) than the typical life company to optimize the yield advantage offered by tax-exempt securities."