France-based April SA received a tax reassessment notification from French tax authorities after their investigations on the territoriality of reinsurance business conducted by the insurance broker's Malta-based subsidiary, Axeria Re Ltd., from financial years 2007 to 2015.
The authorities are proposing an additional tax charge of €69.8 million, which is not yet due and payable. April is contesting this, saying that its local reinsurance business was overseen by the Malta Financial Services Authority and is in compliance with European Union regulations and market practices.
The notification is not expected to affect April's outlook. The insurance broker confirmed its current EBIT growth in the upper end of the 6%-10% range or the year ended Dec. 31, 2018.