Taxation (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Income before Income Tax, Domestic and Foreign

The following is a summary of the Company’s income (loss) before taxes allocated between domestic and foreign operations:




Year ended December 31,	2016			2015			2014
Domestic
Bermuda	$	652,758		$	511,114		$	701,476
Foreign
U.K.	(24,278		)	(22,712		)	(3,166		)
U.S.	(1,236		)	12,523			(10,977		)
Ireland	964			188			1,549
Singapore	2,180			(4,737		)	(2,018		)
Income before taxes	$	630,388		$	496,376		$	686,864

Schedule of Components of Income Tax (Expense) Benefit

Income tax (expense) benefit is comprised as follows:




Year ended December 31, 2016	Current			Deferred		Total
Total income tax (expense) benefit	$	(2,090	)	$	1,750	$	(340	)
Year ended December 31, 2015
Total income tax (expense) benefit	$	(3,471	)	$	49,337	$	45,866
Year ended December 31, 2014
Total income tax (expense) benefit	$	(699	)	$	91	$	(608	)

Schedule of Effective Income Tax Rate Reconciliation

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:




Year ended December 31,	2016			2015			2014
Expected income tax benefit	$	4,856		$	1,011		$	4,725
Tax exempt income	4,487			4,939			671
Transaction costs	(131		)	3,654			—
Change in valuation allowance	(924		)	43,808			(5,554		)
Non-taxable foreign exchange (losses) gains	(1,126		)	(1,897		)	885
Withholding tax	(2,578		)	(3,036		)	(327		)
Other	(4,924		)	(2,613		)	(1,008		)
Income tax (expense) benefit	$	(340	)	$	45,866		$	(608	)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:




At December 31,	2016			2015
Deferred tax assets
Tax loss and credit carryforwards	$	51,620		$	40,512
Reserve for claims and claim expenses	26,265			29,833
Deferred interest expense	18,408			18,901
Accrued expenses	9,386			15,730
Unearned premiums	7,496			8,946
Deferred underwriting results	—			421
	113,175			114,343
Deferred tax liabilities
Deferred acquisition expenses	(7,485		)	(10,741		)
Amortization and depreciation	(3,605		)	(5,899		)
Deferred underwriting results	(2,964		)	—
Investments	(223		)	(1,479		)
	(14,277		)	(18,119		)
Net deferred tax asset before valuation allowance	98,898			96,224
Valuation allowance	(18,776		)	(17,852		)
Net deferred tax asset	$	80,122		$	78,372