XML 75 R50.htm IDEA: XBRL DOCUMENT
v3.8.0.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
SCHEDULE OF INCOME TAX EXPENSE AND NET TAX ASSETS | An analysis of income tax expense and net tax assets is shown in the following table:
| Year ended December 31, | 2017 |  | 2016 |  | 2015 |
| Current income tax expense (benefit) |  |  |  |  |  |
| U.S. | $ | (6,207 | ) |  | $ | 606 |  |  | $ | 4,927 |  |
| Europe | 10,249 |  |  | 7,451 |  |  | 144 |  |
| Other | — |  |  | — |  |  | 5 |  |
| Deferred income tax expense (benefit) |  |  |  |  |  |
| U.S. | 18,495 |  |  | (1,829 | ) |  | (267 | ) |
| Europe | (30,079 | ) |  | 112 |  |  | (1,781 | ) |
| Total income tax expense (benefit) | $ | (7,542 | ) |  | $ | 6,340 |  |  | $ | 3,028 |  |
| Net current tax receivables (payables) | $ | (639 | ) |  | $ | 3,540 |  |  | $ | (69 | ) |
| Net deferred tax assets | 4,438 |  |  | 103,313 |  |  | 104,762 |  |
| Net tax assets | $ | 3,799 |  |  | $ | 106,853 |  |  | $ | 104,693 |  |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The significant components of deferred tax assets and liabilities were as follows:
| At December 31, | 2017 |  | 2016 |
| Deferred tax assets: |  |  |  |
| Discounting of net reserves for losses and loss expenses | $ | 27,804 |  |  | $ | 47,258 |  |
| Unearned premiums | 25,188 |  |  | 41,797 |  |
| Operating and capital loss carryforwards | 53,095 |  |  | 43,687 |  |
| Accruals not currently deductible | 31,560 |  |  | 59,098 |  |
| Other investment adjustments and impairments | — |  |  | 84 |  |
| Tax credits | 29,929 |  |  | 10,139 |  |
| Other deferred tax assets | 15,047 |  |  | 3,684 |  |
| Deferred tax assets before valuation allowance | 182,623 |  |  | 205,747 |  |
| Valuation allowance | (16,157 | ) |  | (41,100 | ) |
| Deferred tax assets net of valuation allowance | 166,466 |  |  | 164,647 |  |
| Deferred tax liabilities: |  |  |  |
| Deferred acquisition costs | (24,249 | ) |  | (45,788 | ) |
| Net unrealized investments gains | (8,033 | ) |  | (1,168 | ) |
| Amortization of VOBA, intangible assets and goodwill | (85,296 | ) |  | (13,096 | ) |
| Equalization reserves | (23,274 | ) |  | — |  |
| Other deferred tax liabilities | (21,176 | ) |  | (1,282 | ) |
| Deferred tax liabilities | (162,028 | ) |  | (61,334 | ) |
| Net deferred tax assets | $ | 4,438 |  |  | $ | 103,313 |  |
SUMMARY OF TAX CREDITS | Total operating and capital loss carryforwards and tax credits are summarized in the following table:
| At December 31, | 2017 |  | 2016 |
| Operating and Capital Loss Carryforwards(1) |  |  |  |
| Singapore (branch) operating loss carryforward | $ | 77,467 |  |  | $ | 83,532 |  |
| Australia (branch) operating loss carryforward(2) | — |  |  | 147,193 |  |
| Australia (branch) capital loss carryforward(2) | — |  |  | 4,207 |  |
| U. K. operating loss carryforward(3) | 126,839 |  |  | 19,306 |  |
| Ireland capital loss carryforward | 716 |  |  | 716 |  |
| U.S. operating loss carryforward | 115,236 |  |  | 14,221 |  |
| Tax Credits(1) |  |  |  |
| Ireland foreign tax credit | $ | 3,566 |  |  | $ | 3,298 |  |
| U.S. alternative minimum tax credit | 12,052 |  |  | 6,840 |  |
| U.K. tax credit(3) | 14,310 |  |  | — |  |
(1) | All operating and capital loss carryforwards and tax credits can be carried forward indefinitely with the exception of the U.S. net operating loss which will expire in 2037.
(2) | As a result of ceasing the Company's Australian operations, operating loss and capital loss carryforwards were written off.
(3) | As a result of the Company's acquisition of Novae, these amounts include $23.0 million and $14.8 million of acquired operating loss and tax credit carryforwards, respectively.
SUMMARY OF OPERATING AND CAPITAL LOSS CARRYFORWARDS | Total operating and capital loss carryforwards and tax credits are summarized in the following table:
| At December 31, | 2017 |  | 2016 |
| Operating and Capital Loss Carryforwards(1) |  |  |  |
| Singapore (branch) operating loss carryforward | $ | 77,467 |  |  | $ | 83,532 |  |
| Australia (branch) operating loss carryforward(2) | — |  |  | 147,193 |  |
| Australia (branch) capital loss carryforward(2) | — |  |  | 4,207 |  |
| U. K. operating loss carryforward(3) | 126,839 |  |  | 19,306 |  |
| Ireland capital loss carryforward | 716 |  |  | 716 |  |
| U.S. operating loss carryforward | 115,236 |  |  | 14,221 |  |
| Tax Credits(1) |  |  |  |
| Ireland foreign tax credit | $ | 3,566 |  |  | $ | 3,298 |  |
| U.S. alternative minimum tax credit | 12,052 |  |  | 6,840 |  |
| U.K. tax credit(3) | 14,310 |  |  | — |  |
(1) | All operating and capital loss carryforwards and tax credits can be carried forward indefinitely with the exception of the U.S. net operating loss which will expire in 2037.
(2) | As a result of ceasing the Company's Australian operations, operating loss and capital loss carryforwards were written off.
(3) | As a result of the Company's acquisition of Novae, these amounts include $23.0 million and $14.8 million of acquired operating loss and tax credit carryforwards, respectively.
VALUATION ALLOWANCE ROLL FORWARD | An analysis of the movement in the Company's valuation allowance is shown in the following table:
| At December 31, | 2017 |  | 2016 |
| Income tax expense: |  |  |  |
| Valuation allowance - beginning of year | $ | 41,100 |  |  | $ | 40,331 |  |
| Operating loss carryforwards | (27,116 | ) |  | 3,857 |  |
| Foreign tax credit | 267 |  |  | (2,775 | ) |
| Australian CTA and accruals and other foreign rate differentials | 1,006 |  |  | (313 | ) |
| Change in investment-related items | 900 |  |  | — |  |
| Valuation allowance - end of year | $ | 16,157 |  |  | $ | 41,100 |  |
EFFECTIVE TAX RATE RECONCILIATION | 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, | 2017 |  | 2016 |  | 2015 |
| Income (loss) before income taxes |  |  |  |  |  |
| Bermuda (domestic) | $ | (188,420 | ) |  | $ | 469,306 |  |  | $ | 652,235 |  |
| Foreign | (188,091 | ) |  | 50,402 |  |  | (7,576 | ) |
| Total income before income taxes | $ | (376,511 | ) |  | $ | 519,708 |  |  | $ | 644,659 |  |
| 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: |  |  |  |  |  |
| U.S. | 6.6 | % |  | (0.6 | )% |  | 0.8 | % |
| Europe | 5.8 | % |  | 1.5 | % |  | (0.2 | )% |
| Other | 0.3 | % |  | 0.0 | % |  | (0.3 | )% |
| Valuation allowance | 0.0 | % |  | 0.2 | % |  | 1.2 | % |
| Net tax exempt income | 0.1 | % |  | (0.2 | )% |  | (0.1 | )% |
| Change in U.S. enacted tax rate | (11.1 | )% |  | 0.0 | % |  | 0.0 | % |
| Other | 0.3 | % |  | 0.3 | % |  | (0.9 | )% |
| Actual tax rate | 2.0 | % |  | 1.2 | % |  | 0.5 | % |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfTaxCreditCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration