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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Taxes [Abstract]  
The company's provision for (recovery of) income taxes
The company’s provision for income taxes for the years ended December 31 were comprised as follows:
 
2019

 
2018

Current income tax:
 
 
 
Current year expense
175.0

 
144.1

Adjustments to prior years’ income taxes
2.7

 
5.1

 
177.7

 
149.2

Deferred income tax:
 
 
 
Origination and reversal of temporary differences
87.5

 
(108.1
)
Adjustments to prior years' deferred income taxes
(17.1
)
 
(1.6
)
Other
13.4

 
4.7

 
83.8

 
(105.0
)
 
 
 
 
Provision for income taxes
261.5

 
44.2
Earnings before income taxes by jurisdiction
The company’s earnings (loss) before income taxes by jurisdiction and the associated provision for (recovery of) income taxes for the years ended December 31 are summarized in the following table:
 
2019
 
2018
 
Canada(1)

 
U.S.(2)

 
U.K.(3)

 
Other(4)

 
Total

 
Canada(1)

 
U.S.(2)

 
U.K.(3)

 
Other(4)

 
Total

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) before income taxes
183.4

 
848.0

 
244.7

 
956.6

 
2,232.7

 
54.7

 
(78.2
)
 
(115.4
)
 
1,001.0

 
862.1

Provision for (recovery of) income taxes
79.3

 
23.5

 
24.0

 
134.7

 
261.5

 
47.4

 
(27.2
)
 
(24.0
)
 
48.0

 
44.2

Net earnings (loss)
104.1

 
824.5

 
220.7

 
821.9

 
1,971.2

 
7.3

 
(51.0
)
 
(91.4
)
 
953.0

 
817.9

(1)
Includes Fairfax India and Fairfax Africa.
(2)
Principally comprised of Crum & Forster, Zenith National, Odyssey Group (notwithstanding that certain operations of Odyssey Group conduct business outside of the U.S.), U.S. Run-off and other associated holding company results.
(3)
Principally comprised of Brit, European Run-off and other associated holding company results.
(4)
Includes companies in India, Asia and Europe (excluding the U.K.), and Allied World (the majority of Allied World's net earnings (loss) is sourced from its Bermuda operations notwithstanding certain of its operations conduct business in the U.S. and the U.K.).
Reconciliations of the provision for (recovery of) income taxes
Reconciliations of the provision for income taxes calculated at the Canadian statutory income tax rate to the provision for income taxes at the effective tax rate in the consolidated financial statements for the years ended December 31 are summarized in the following table:
 
2019

 
2018

Canadian statutory income tax rate
26.5
%
 
26.5
%
 
 
 
 
Provision for income taxes at the Canadian statutory income tax rate
591.7

 
228.5

Non-taxable investment income
(56.6
)
 
(289.7
)
Tax rate differential on income and losses outside Canada
(209.5
)
 
(36.4
)
Change in unrecorded tax benefit of losses and temporary differences
(90.7
)
 
81.6

Change in tax rate for deferred income taxes
0.5

 
4.3

Provision (recovery) relating to prior years
(14.4
)
 
3.5

Foreign exchange effect
(3.7
)
 
27.4

Other including permanent differences
44.2

 
25.0

Provision for income taxes
261.5

 
44.2
Income taxes refundable and payable
Income taxes refundable and payable were as follows:
 
December 31, 2019
 
 
December 31, 2018
 
Income taxes refundable
 
169.0

 
 
152.3

Income taxes payable
 
(78.4
)
 
 
(80.1
)
Net income taxes refundable
 
90.6

 
 
72.2
Changes net income taxes (payable) refundable
Changes in net income taxes refundable during the years ended December 31 were as follows:
 
 
2019

 
 
2018

Balance - January 1
 
72.2

 
 
51.4

Amounts recorded in the consolidated statements of earnings
 
(177.7
)
 
 
(149.2
)
Payments made during the year
 
178.9

 
 
229.9

Acquisitions of subsidiaries (note 23)
 
6.7

 
 
7.3

Assets held for sale (note 23)
 
(17.1
)
 

—

Liabilities associated with assets held for sale (note 23)
 
29.6

 
 
—

Deconsolidation of subsidiary (note 23)
 
—

 
 
(71.3
)
Foreign exchange effect and other
 
(2.0
)
 
 
4.1

Balance - December 31
 
90.6

 
 
72.2
Changes in net deferred income tax asset
Changes in the net deferred income tax asset during the years ended December 31 were as follows:
 
2019
 
Operating
and
capital
losses

 
Provision
for losses
and loss
adjustment
expenses

 
Provision
for
unearned
premiums

 
Deferred
premium
acquisition
costs

 
Intangible assets

 
Investments

 
Tax
credits

 
Other

 
Total

Balance - January 1
107.4

 
134.7

 
96.8

 
(81.1
)
 
(419.6
)
 
314.9

 
118.9

 
225.9

 
497.9

Amounts recorded in the consolidated statement of earnings
(11.7
)
 
8.8

 
23.1

 
(16.0
)
 
28.3

 
(181.0
)
 
92.5

 
(27.8
)
 
(83.8
)
Amounts recorded in total equity
2.5

 
—

 
—

 
—

 
—

 
(11.4
)
 
—

 
35.3

 
26.4

Acquisitions of subsidiaries (note 23)
22.9

 
—

 
—

 
—

 
(29.5
)
 
—

 
—

 
(58.3
)
 
(64.9
)
Assets held for sale (note 23)
—

 
—

 
—

 
—

 
—

 
0.8

 
—

 
(3.0
)
 
(2.2
)
Foreign exchange effect and other
(1.9
)
 
1.8

 
—

 
0.2

 
(7.4
)
 
4.7

 
(0.4
)
 
5.5

 
2.5

Balance - December 31
119.2

 
145.3

 
119.9

 
(96.9
)
 
(428.2
)
 
128.0

 
211.0

 
177.6

 
375.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
Operating
and
capital
losses

 
Provision
for losses
and loss
adjustment
expenses

 
Provision
for
unearned
premiums

 
Deferred
premium
acquisition
costs

 
Intangible assets

 
Investments

 
Tax
credits

 
Other

 
Total

Balance - January 1
187.7

 
131.3

 
91.9

 
(66.7
)
 
(443.5
)
 
177.5

 
118.1

 
184.5

 
380.8

Amounts recorded in the consolidated statement of earnings
(67.6
)
 
5.3

 
5.5

 
(15.6
)
 
11.2

 
128.8

 
1.1

 
36.3

 
105.0

Amounts recorded in total equity
5.0

 
—

 
—

 
—

 
—

 
7.6

 
—

 
13.9

 
26.5

Acquisitions of subsidiaries (note 23)
1.4

 
—

 
(0.8
)
 
1.4

 
(4.7
)
 
—

 
—

 
9.1

 
6.4

Deconsolidation of subsidiary (note 23)
(6.1
)
 
—

 
—

 
—

 
4.2

 
—

 
—

 
(15.3
)
 
(17.2
)
Foreign exchange effect and other
(13.0
)
 
(1.9
)
 
0.2

 
(0.2
)
 
13.2

 
1.0

 
(0.3
)
 
(2.6
)
 
(3.6
)
Balance - December 31
107.4

 
134.7

 
96.8

 
(81.1
)
 
(419.6
)
 
314.9

 
118.9

 
225.9

 
497.9