Income Taxes (Tables)

9 Months Ended

Sep. 30, 2022

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

For the three and nine months ended September 30, 2022 and 2021, pre-tax income (loss) attributable to our operations and the corresponding operations’ effective tax rates were as follows:


	For the Three Months Ended September 30,
	2022				2021
(in millions)	Pre-Tax Income (Loss)		Effective Tax Rate		Pre-Tax Income (Loss)			Effective Tax Rate
Bermuda	$	(11.3)	—	%	$	7.2		—	%
United States	(3.2)		46.3	%	21.4			26.8	%
United Kingdom	(37.6)		6.8	%	(6.1)			(1.0)	%


Brazil	—		—	%	5.9			—	%
United Arab Emirates	0.5		—	%	0.9			—	%
Ireland	(1.3)		—	%	—		(1)	—	%
Italy	0.1		(1.7)	%	0.2			—	%
Malta	—		—	%	(1.3)			—	%

Switzerland	—		—	%	—		(1)	—	%
Pre-tax income	$	(52.8)	7.6	%	$	28.2		20.6	%

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


	For the Nine Months Ended September 30,
	2022				2021
(in millions)	Pre-Tax Income (Loss)		Effective Tax Rate		Pre-Tax Income (Loss)		Effective Tax Rate
Bermuda	$	(60.3)	—	%	$	14.5	—	%
United States	81.6		20.7	%	126.7		20.7	%
United Kingdom	(23.9)		(16.2)	%	(14.9)		68.4	%

Brazil	(0.1)		(422.4)	%	9.8		—	%
United Arab Emirates	1.3		—	%	1.2		—	%
Ireland	(39.3)		—	%	(0.1)		—	%
Italy	(0.1)		(46.4)	%	1.4		—	%
Malta	(4.1)		—	%	(0.4)		—	%
Switzerland	—		—	%	(0.1)		—	%
Pre-tax income	$	(44.9)	(47.0)	%	$	138.1	11.7	%

Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate

A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:


	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions)	2022			2021		2022		2021
Income tax provision at expected rate	$	(7.8)		$	5.6	$	11.1	$	28.4
Tax effect of:
Nontaxable investment income	(0.1)			(0.1)		(0.3)		(0.4)
Foreign exchange adjustments	—			0.2		0.8		(0.3)
Goodwill and intangible assets	5.5		—	—		5.5		—
Withholding taxes	—			—		—		0.1
Sale of Brazil and Malta Operations	0.1			—		6.6		—
Change in uncertain tax position liability	—			(0.4)		0.6		(2.3)
Change in valuation allowance	(1.3)			0.8		(6.7)		(1.1)
Impact of change in tax rate related to Finance Act 2021	(0.4)			—		0.9		(7.4)
Prior period adjustment	(0.5)			—		0.3		—
Other	0.5			(0.3)		2.3		(0.9)
Income tax provision	$	(4.0)		$	5.8	$	21.1	$	16.1