Royal Bank of Canada, the country’s largest lender by assets, will record a C$160 million ($152 million) charge in its insurance business on proposed changes to the tax treatment of life policies.
The charge, which Royal Bank expects to be C$118 million after tax, is a result of proposed legislation in Canada that would affect the policyholders’ tax treatment of certain individual life-insurance policies, the Toronto-based lender said today in a statement. The government tabled the legislation on Oct. 22, the bank said.
The charge, which is based on current estimates and is subject to change, will be reflected in Royal Bank’s fourth-quarter results, which will be disclosed on Dec. 5, the lender said.
To contact the reporter on this story: Doug Alexander in Toronto at firstname.lastname@example.org