XML 81 R55.htm IDEA: XBRL DOCUMENT v3.25.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Summary of Income Tax Expense and Net Tax Assets
The following table provides an analysis of income tax expense (benefit) and net tax assets:
Year ended December 31,202420232022
Current income tax expense (benefit)
U.S.$84,255 $12,021 $11,491 
Europe19,260 32,386 2,366 
Bermuda
3,425 291 (147)
Deferred income tax expense (benefit)
U.S.716 (24,042)(8,147)
Europe7,290 18,932 16,474 
Bermuda(1)
(170,541)(13,272)— 
Total income tax expense (benefit)$(55,595)$26,316 $22,037 
Net current tax receivables$42,991 $78,570 $46,704 
Net deferred tax assets (liabilities)278,474 72,850 108,220 
Net tax assets$321,465 $151,420 $154,924 
(1)    Reflects the recognition of a tax benefit related to the Bermuda ETA, offset by a partial reversal of the 2023 tax benefit on unrealized investment losses included in other comprehensive income (loss) due to the enactment of corporate income tax, effective January 1, 2025.
Summary of Deferred Tax Assets and Liabilities The following table provides details of the significant components of deferred tax assets and liabilities:
At December 31,20242023
Deferred tax assets:
Discounting of net reserves for losses and loss expenses$66,338 $62,316 
Unearned premiums62,656 54,104 
Net unrealized investments losses36,536 54,395 
Operating and capital loss carryforwards
75,864 100,907 
Accruals not currently deductible36,253 36,407 
Tax credits 2,414 11,602 
Bermuda economic transition adjustment
176,923 — 
Other deferred tax assets3,681 4,149 
Deferred tax assets before valuation allowance460,665 323,880 
Valuation allowance(19,829)(38,711)
Deferred tax assets net of valuation allowance440,836 285,169 
Deferred tax liabilities:
Deferred acquisition costs(35,401)(27,109)
Other investment adjustments and impairments(7,933)(7,173)
Intangible assets(47,355)(49,486)
Depreciation and amortization
(7,586)(1,140)
Equalization reserves(2,347)(2,726)
Acquisition adjustments (1)
— (79,466)
Lloyd’s deferred year of account results(51,770)(38,194)
Other deferred tax liabilities(9,970)(7,025)
Deferred tax liabilities(162,362)(212,319)
Net deferred tax assets (liabilities)$278,474 $72,850 
(1) During the year ended December 31, 2024, the Company assessed that certain deferred tax assets and deferred tax liabilities related to acquisitions were no longer required.
Summary of Tax Credits
The following table summarizes total operating and capital loss carryforwards and tax credits:
At December 31,20242023
Operating and Capital Loss Carryforwards(1)
Singapore operating loss carryforward
$91,924 $70,815 
U.K. operating loss carryforward
216,928 293,533 
U.K. capital loss carryforward
93 — 
Ireland operating loss carryforward27 78,154 
Ireland capital loss carryforward1,372 716 
Switzerland operating loss carryforward(2)
68,573 123,453 
U.S. capital loss carryforward(3)
59,434 — 
Tax Credits(1)
Ireland foreign tax credit$333 $6,922 
U.K. foreign tax credit504 2,605 
U.S. foreign tax credit(4)
1,577 2,074 
(1)    At December 31, 2024, the Singapore, U.K., and Ireland operating and capital loss carryforwards and tax credits can be carried forward indefinitely.
(2)    At December 31, 2024, the Swiss net operating loss carryforwards expire in 2029.
(3)    At December 31, 2024, the U.S. capital loss carryforwards expire in 2029.
(4)    At December 31, 2024, the U.S. foreign tax credits expire in 2032.
Summary of Operating and Capital Loss Carryforwards
The following table summarizes total operating and capital loss carryforwards and tax credits:
At December 31,20242023
Operating and Capital Loss Carryforwards(1)
Singapore operating loss carryforward
$91,924 $70,815 
U.K. operating loss carryforward
216,928 293,533 
U.K. capital loss carryforward
93 — 
Ireland operating loss carryforward27 78,154 
Ireland capital loss carryforward1,372 716 
Switzerland operating loss carryforward(2)
68,573 123,453 
U.S. capital loss carryforward(3)
59,434 — 
Tax Credits(1)
Ireland foreign tax credit$333 $6,922 
U.K. foreign tax credit504 2,605 
U.S. foreign tax credit(4)
1,577 2,074 
(1)    At December 31, 2024, the Singapore, U.K., and Ireland operating and capital loss carryforwards and tax credits can be carried forward indefinitely.
(2)    At December 31, 2024, the Swiss net operating loss carryforwards expire in 2029.
(3)    At December 31, 2024, the U.S. capital loss carryforwards expire in 2029.
(4)    At December 31, 2024, the U.S. foreign tax credits expire in 2032.
Summary of Valuation Allowance Roll Forward
The following table shows an analysis of the movement in the Company's valuation allowance:
At December 31,20242023
Income tax expense (benefit):
Valuation allowance - beginning of year$31,688 $39,782 
Operating loss carryforwards(6,572)(8,713)
Foreign tax credit(6,589)4,184 
U.K. branch assets and other foreign rate differentials(1,567)(3,565)
Capital loss carryforwards and impaired investments
261 — 
Valuation allowance - end of year$17,221 $31,688 
Accumulated other comprehensive income (loss):
Valuation allowance - beginning of year$7,023 $20,287 
Change in investment - related items(4,415)(13,264)
Valuation allowance - end of year2,608 7,023 
Total valuation allowance - end of year$19,829 $38,711 
Summary of Effective Tax Rate Reconciliation
The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions and 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 31,202420232022
Income (loss) before income taxes
Bermuda (domestic)$323,688 $213,539 $236,781 
Foreign702,503 189,067 8,340 
 Total income before income taxes$1,026,191 $402,606 $245,121 
Reconciliation of effective tax rate (% of income before income taxes)
Expected tax rate0.0 %0.0 %0.0 %
Foreign taxes at local expected rates:
U.S.8.4 %(2.5 %)0.2 %
Europe6.0 %11.9 %1.9 %
Valuation allowance(1.4 %)(2.0 %)9.5 %
Prior year adjustments(1.5 %)1.3 %(0.3 %)
Incremental branch taxes1.1 %0.9 %(0.4 %)
Change in enacted tax rate(1)
(1.9 %)(3.3 %)(2.2 %)
Bermuda economic transition adjustment(17.2 %)— %— %
Change in unrealized investment gain/(loss)
0.6 %— %— %
Withholding tax
0.3 %— %— %
Other0.2 %0.2 %0.3 %
Actual tax rate(5.4 %)6.5 %9.0 %
(1)    At December 31, 2024, the change in enacted tax rate represents the rate change related to deferred tax assets and deferred tax liabilities on acquisition adjustments no longer required. At December 31, 2023, the change in enacted tax rate represents the enactment of the Bermuda Corporate Income Tax Act of 2023 related to unrealized investment losses included in other comprehensive income (loss). At December 31, 2022, the change in enacted tax rate included a change in the UK tax rate from 19% to 25% and in Belgium from 30% to 25%.