District court finds that insurance premium excise tax does not apply to retrocession transactions

By Bruce J Wein, Gerald Rokoff, David D Luce and Michael Greenberg

On 5 February 2014, the US District Court for the District of Columbia held that the federal excise tax (FET) on insurance and reinsurance premiums does not apply to retrocession insurance transactions.

Under a plain reading of the statute, the court reasoned, premiums with respect to such retrocession policies are not subject to the FET. Of note, the court specifically declined to rule on whether the FET could be applied with respect to foreign-to-foreign reinsurance transactions (as opposed to retrocession transactions) for US-situs risks.

Retrocession agreements are essentially reinsurance agreements between reinsurers. Clients who have paid such amounts on (or had such amounts deducted or withheld from) retrocession premiums are urged to file refund claims in order to preserve their right to such refunds…

If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from DLA Piper

View more briefings from DLA Piper

Analysis from The Lawyer

View more analysis from The Lawyer


3 Noble Street

Turnover (£m): 1,566.29
No. of lawyers: 3,961 (UK 200)
Jurisdiction: global
No. of offices: more than 75
No. of qualified lawyers: 542 (International 50)
No. of partners: 142.6