A warning that a huge deferred tax bill is possible if Norway presses ahead with a controversial implementation of Solvency II has been given by Oslo-based war-risks mutual Den Norske Krigsforsikring for Skib (DNK).
DNK is not writing down reserves at the moment but is flagging up that members’ equity in the club could fall from more than $776m to $582m if it is required to pay a 25% tax bill that would potentially cost the mutual $194m.
