INCOME TAXES (TABLES)

12 Months Ended

Dec. 31, 2011

INCOME TAXES [Abstract]

Schedule of income tax expense and net tax assets [Table Text Block]

The following table provides an analysis of our income tax expense and net tax assets:
	Year ended December 31,		2011		2010		2009
	Current income tax expense
	United States	$	5,064	$	26,633	$	32,182
	Europe		9,598		12,173		7,020
	Other		188		120		408
	Deferred income tax expense (benefit)
	United States		1,379		121		2,252
	Europe		(996)		(173)		113
	Other		-		(194)		-
	Total income tax expense	$	15,233	$	38,680	$	41,975
	Net current tax (liabilities) receivables	$	1,318	$	(8,525)	$	(7,322)
	Net deferred tax assets		60,836		72,606		72,362
	Net tax assets	$	62,154	$	64,081	$	65,040

Schedule of deferred tax assets and liabilities [Table Text Block]

Deferred income taxes reflect the tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. The significant components of our deferred tax assets and liabilities were as follows:
	At December 31,		2011		2010
	Deferred tax assets:
	Discounting of loss reserves	$	65,271	$	61,997
	Unearned premiums		31,640		30,623
	Operating loss carryforwards		21,074		8,671
	Accruals not currently deductible		14,187		16,282
	Net unrealized losses and impairments on investments		6,310		5,140
	Capital loss carryforwards		4,245		17,763
	Other deferred tax assets		7,357		5,541
	Deferred tax assets before valuation allowance		150,084		146,017
	Valuation allowance		(21,264)		(18,180)
	Deferred tax assets net of valuation allowance		128,820		127,837
	Deferred tax liabilities:
	Deferred acquisition costs		(29,195)		(28,697)
	Net unrealized gains on investments		(25,925)		(14,538)
	Amortization of intangible assets and goodwill		(6,999)		(5,477)
	Accrued market discounts		(4,156)		(2,753)
	Other deferred tax liabilities		(1,709)		(3,766)
	Deferred tax liabilities		(67,984)		(55,231)
	Net deferred tax assets	$	60,836	$	72,606

Valuation allowance roll forward [Table Text Block]

The following table provides an analysis of the movement in our valuation allowance:
	At December 31,		2011		2010
	Income tax expense:
	Valuation allowance - beginning of year	$	27,539	$	36,231
	Operating loss carryforwards		12,593		5,714
	Capital loss carryforwards and impairments		(9,509)		(14,406)
	Valuation allowance - end of year		30,623		27,539
	Accumulated other comprehensive income:
	Valuation allowance - beginning of year		(9,359)		(4,529)
	Net unrealized losses on investments		-		(4,830)
	Valuation allowance - end of year		(9,359)		(9,359)
	Total valuation allowance - end of year	$	21,264	$	18,180

Effective tax rate reconciliation [Table Text Block]

The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions as well as a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda law to income before income taxes:
	Year ended December 31,	2011		2010		2009
	Income before income taxes:
	Bermuda (domestic)	$	10,911	$	713,100	$	404,575
	Foreign		50,627		182,303		135,286
		$	61,538	$	895,403	$	539,861
	Reconciliation of effective tax rate (% of income before income taxes)
	Expected tax rate		0.0%		0.0%		0.0%
	Foreign taxes at local expected rates:
	United States		33.2%		5.1%		6.8%
	Europe		10.7%		1.3%		1.0%
	Other		3.3%		(0.2%)		(0.6%)
	Valuation allowance		(15.5%)		(1.0%)		1.2%
	Net tax exempt income		(11.2%)		(0.6%)		(0.9%)
	Other		4.3%		(0.3%)		0.3%
	Actual tax rate		24.8%		4.3%		7.8%