diff --git a/modules/events.inc b/modules/events.inc
index 0053be1..2d7b2e4 100644
--- a/modules/events.inc
+++ b/modules/events.inc
@@ -71,6 +71,10 @@ function rules_user_presave(&$edit, $account, $category) {
 
 function rules_user_insert(&$edit, $account, $category) {
   if ($category == 'account') {
+    // Make sure the account is not marked as new any more, such that any
+    // sub-sequent saves triggered by rules are updating the account.
+    $account->is_new = FALSE;
+    $edit['is_new'] = FALSE;
     rules_invoke_event('user_insert', $account);
   }
 }