Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of components of income tax expense

The components of income tax expense are as follows:



	Year Ended December 31,
	2014		2013			2012
Current income tax expense	$	26,768	$	21,669		$	18,239
Deferred income tax expense (benefit)	3,755		(11,889		)	201
Income tax expense	$	30,523	$	9,780		$	18,440

Schedule of sources of income before income tax

Our income is primarily sourced from our Bermuda, U.S., European and Asia Pacific operations. The income before income taxes for these operations are as follows:



	Year Ended December 31,
	2014		2013		2012
Non-U.S.	$	447,875	$	401,778	$	474,412
United States	72,907		25,882		37,035
Income before income taxes	$	520,782	$	427,660	$	511,447

Schedule of significant components of net deferred tax assets

The significant components of the net deferred tax assets are as follows:



	December 31,
	2014			2013
Deferred tax assets:
Reserve for losses and loss expenses	$	21,644		$	22,567
Equity compensation	15,316			15,828
Unearned premium	16,921			14,299
Deferred acquisition costs	11,184			10,604
Other-than-temporary impairments	—			407
Net loss carryforward	7,958			7,642
Total deferred tax assets	73,023			71,347
Deferred tax liabilities:
Intangible assets	(13,856		)	(14,743		)
Realized gains	(12,819		)	(6,980		)
Depreciation	(2,513		)	(2,942		)
Unrealized appreciation and timing differences on investments	(94		)	(56		)
Market discount on bonds	(740		)	(271		)
Other	(2,965		)	(1,244		)
Total deferred tax liabilities	(32,987		)	(26,236		)
Net deferred taxes before valuation allowance	40,036			45,111
Valuation allowance	(6,421		)	(7,642		)
Net deferred tax assets	$	33,615		$	37,469

Schedule of current taxes receivable or payable

Current taxes receivable or payable was as follows:



	December 31,
	2014		2013
Current tax receivable	$	8,640	$	11,684
Current tax payable	$	829	$	1,452

Schedule of reconciliation between effective and expected tax rate

The reconciliation between the Company’s effective tax rate on pre-tax accounting income and the expected tax rate is as follows:



	Year Ended December 31,
	2014		2013		2012
Expected tax rate	7.8	%	7.8	%	7.8	%
Income not subject to income tax	(7.1	)%	(8.2	)%	(7.3	)%
Foreign taxes at local expected tax rates	4.4	%	1.4	%	2.1	%
Disallowed expenses and capital allowances	0.2	%	1.0	%	0.7	%
Prior year refunds and adjustments	1.2	%	0.8	%	0.4	%
Other	(0.6	)%	(0.5	)%	(0.1	)%
Effective tax rate	5.9	%	2.3	%	3.6	%