Taxation (Tables)

12 Months Ended

Dec. 31, 2018

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,	2018			2017			2016
Domestic
Bermuda	$	349,959		$	(262,827	)	$	652,758
Foreign
U.S.	(56,261		)	(11,897		)	(1,236		)
U.K.	(28,574		)	(41,656		)	(24,278		)
Singapore	(3,226		)	(12,421		)	2,180
Ireland	551			617			964
Switzerland	166			—			—
Income (loss) before taxes	$	262,615		$	(328,184	)	$	630,388

Schedule of Components of Income Tax (Expense) Benefit

Income tax benefit (expense) is comprised as follows:




Year ended December 31, 2018	Current			Deferred			Total
Total income tax (expense) benefit	$	(1,668	)	$	7,970		$	6,302
Year ended December 31, 2017
Total income tax expense	$	(844	)	$	(25,643	)	$	(26,487	)
Year ended December 31, 2016
Total income tax (expense) benefit	$	(2,090	)	$	1,750		$	(340	)

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,	2018			2017			2016
Expected income tax benefit	$	17,697		$	14,216		$	4,856
Tax exempt income	944			3,794			4,487
Non-taxable foreign exchange gains (losses)	586			2,574			(1,126		)
Effect of change in tax rate	(708		)	(38,083		)	(1,421		)
U.S. base erosion and anti-abuse tax	(1,271		)	—			—
Withholding tax	(1,831		)	(216		)	(2,578		)
Transfer pricing	(2,481		)	(11		)	27
Change in valuation allowance	(5,255		)	(11,718		)	(924		)
Other	(1,379		)	2,957			(3,661		)
Income tax benefit (expense)	$	6,302		$	(26,487	)	$	(340	)

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,	2018			2017
Deferred tax assets
Tax loss and credit carryforwards	$	60,395		$	62,643
Reserve for claims and claim expenses	17,345			13,992
Deferred finance charges	14,646			11,320
Unearned premiums	10,108			9,436
Investments	4,427			—
Accrued expenses	4,292			2,641
Deferred underwriting results	3,514			3,407
	114,727			103,439
Deferred tax liabilities
Deferred acquisition expenses	(11,801		)	(12,343		)
Amortization and depreciation	(2,992		)	(3,340		)
Investments	—			(1,047		)
	(14,793		)	(16,730		)
Net deferred tax asset before valuation allowance	99,934			86,709
Valuation allowance	(35,271		)	(30,016		)
Net deferred tax asset	$	64,663		$	56,693