Income Taxes (Tables)

9 Months Ended

Sep. 30, 2012

Income Tax Provision (Benefit)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2012			2011			2012		2011
Current tax provision	$	5.7		$	2.6		$	11.2	$	3.0
Deferred tax (benefit) provision related to:
Future tax deductions		(2.1	)		4.4			0.8		11.0
Valuation allowance change		0.7			(0.2	)		1.8		(0.7	)
Income tax provision	$	4.3		$	6.8		$	13.8	$	13.3

Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates

	For the Three Months Ended September 30,
(in millions)	2012						2011
	Pre-tax income (loss)			Effective Tax Rate			Pre-tax income (loss)			Effective Tax Rate
Bermuda	$	8.0			0.0	%	$	(24.4	)		0.0	%
United States		12.1			21.0	%		17.1			36.4	%
United Kingdom		0.1			1217.4	%		4.4			11.6	%
Belgium		0.1			20.0	%		0.1			25.5	%
Brazil		(1.9	)		0.0	%		(1.2	)		0.0	%
Dubai		0.0	(1)		0.0	%		0.0	(1)		0.0	%
Ireland		0.0			0.0	%		0.0			0.0	%
Malta		(0.7	)		0.0	%		n/a			n/a
Switzerland		0.0	(1)		25.0	%		0.0	(1)		0.0	%
Pre-tax income (loss)	$	17.7					$	(4.0	)

⁽¹⁾  Pre-tax income for the respective period was less than $0.1 million.

	For the Nine Months Ended September 30,
(in millions)	2012						2011
	Pre-tax income (loss)			Effective Tax Rate			Pre-tax income (loss)			Effective Tax Rate
Bermuda	$	18.2			0.0	%	$	(110.3	)		0.0	%
United States		45.8			22.8	%		67.4			27.9	%
United Kingdom		13.8			24.0	%		(25.2	)		22.1	%
Belgium		0.2			33.6	%		0.3			15.4	%
Brazil		(5.4	)		0.0	%		(2.2	)		0.0	%
Dubai		0.1			0.0	%		0.0	(1)		0.0	%
Ireland		(0.1	)		0.0	%		0.0			0.0	%
Malta		(1.8	)		0.0	%		n/a			n/a
Switzerland		0.0	(1)		24.0	%		0.0	(1)		23.1	%
Pre-tax income (loss)	$	70.8					$	(70.0	)

⁽¹⁾  Pre-tax income for the respective period was less than $0.1 million.

Reconciliation of Difference Between Provision (Benefit) for Income Taxes and Expected Tax Provision (Benefit) At Weighted Average Tax

A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate for the three and nine months ended September 30, 2012 and 2011 is as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011
Income tax provision at expected rate	$	3.3		$	7.5		$	17.0		$	17.1
Tax effect of:
Tax-exempt interest		(1.2	)		(1.4	)		(4.2	)		(4.3	)
Dividends received deduction		(0.4	)		(0.1	)		(1.3	)		(1.2	)
Valuation allowance change		0.7			(0.2	)		1.8			(0.7	)
Other permanent adjustments, net		0.1			0.9			0.8			1.8
Adjustment for annualized rate		0.0			0.9			0.0			(0.1	)
United States state tax expense (benefit)		0.0			0.1			(0.2	)		(0.3	)
Other foreign adjustments		0.0			(0.1	)		0.1			0.0
Prior year foreign taxes recovered		0.0			(0.3	)		0.0			(0.3	)
Deferred tax rate reduction		(0.6	)		(0.1	)		(0.6	)		(0.1	)
Foreign exchange adjustments		2.4			(0.4	)		0.4			1.4
Income tax provision	$	4.3		$	6.8		$	13.8		$	13.3
Income tax provision (benefit) - Foreign	$	1.8		$	0.5		$	3.4		$	(5.5	)
Income tax provision - United States Federal		2.3			6.0			10.6			19.2
Income tax provision (benefit) - United States State		0.2			0.3			(0.2	)		(0.4	)
Income tax provision	$	4.3		$	6.8		$	13.8		$	13.3