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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

SCHEDULE OF INCOME TAX EXPENSE AND NET TAX ASSETS

The following table provides an analysis of income tax expense and net tax assets:

	Year ended December 31,	2019				2018				2017
	Current income tax expense (benefit)
	U.S.	$	12,601			$	(5,401	)		$	(6,207	)
	Europe	22,425				10,409				10,249
	Other	469				51				—
	Deferred income tax expense (benefit)
	U.S.	17,665				15,288				18,495
	Europe	(29,468		)		(49,833		)		(30,079		)
	Total income tax expense (benefit)	$	23,692			$	(29,486	)		$	(7,542	)
	Net current tax receivables (payables)	$	13,130			$	9,683			$	(639	)
	Net deferred tax assets	18,621				39,775				4,438
	Net tax assets	$	31,751			$	49,458			$	3,799

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The following table provides details of the significant components of deferred tax assets and liabilities:

	At December 31,	2019				2018
	Deferred tax assets:
	Discounting of net reserves for losses and loss expenses	$	40,523			$	37,440
	Unearned premiums	42,709				40,447
	Net unrealized investments losses	—				11,438
	Operating and capital loss carryforwards(1)	85,901				83,850
	Accruals not currently deductible	29,705				32,589
	Tax credits	2,956				8,672
	Other deferred tax assets	14,355				9,195
	Deferred tax assets before valuation allowance	216,149				223,631
	Valuation allowance	(18,560		)		(18,955		)
	Deferred tax assets net of valuation allowance	197,589				204,676
	Deferred tax liabilities:
	Deferred acquisition costs	(38,320		)		(39,745		)
	Net unrealized investments gains	(30,434		)		—
	Intangible assets	(44,199		)		(49,097		)
	Equalization reserves	(2,825		)		(22,069		)
	Other deferred tax liabilities	(63,190		)		(53,990		)
	Deferred tax liabilities	(178,968		)		(164,901		)
	Net deferred tax assets	$	18,621			$	39,775

(1) At December 31, 2019 and 2018, the total operating loss carryforwards includes Lloyd's deferred year of account losses of $50 million and $68 million, respectively.

SUMMARY OF TAX CREDITS

The following table summarizes total operating and capital loss carryforwards and tax credits:

	At December 31,	2019				2018
	Operating and Capital Loss Carryforwards(1)
	Singapore (branch) operating loss carryforward	$	103,899			$	79,445
	U.K. operating loss carryforward(2)	431,374				413,504
	Ireland operating loss carryforward	9,064				12,756
	U.S. operating loss carryforward	—				15,062
	Ireland capital loss carryforward	716				716
	Tax Credits(1)
	Ireland foreign tax credit	$	2,092			$	2,248
	U.S. alternative minimum tax credit	—				6,026
	U.K. tax credit	864				398

(1) At December 31, 2019, all remaining operating and capital loss carryforwards and tax credits can be carried forward indefinitely.

(2) At December 31, 2019 and 2018, the U.K. operating loss carryforward includes Lloyd's deferred year of account losses of $293 million and $403 million, respectively.

SUMMARY OF OPERATING AND CAPITAL LOSS CARRYFORWARDS

The following table summarizes total operating and capital loss carryforwards and tax credits:

	At December 31,	2019				2018
	Operating and Capital Loss Carryforwards(1)
	Singapore (branch) operating loss carryforward	$	103,899			$	79,445
	U.K. operating loss carryforward(2)	431,374				413,504
	Ireland operating loss carryforward	9,064				12,756
	U.S. operating loss carryforward	—				15,062
	Ireland capital loss carryforward	716				716
	Tax Credits(1)
	Ireland foreign tax credit	$	2,092			$	2,248
	U.S. alternative minimum tax credit	—				6,026
	U.K. tax credit	864				398

(1) At December 31, 2019, all remaining operating and capital loss carryforwards and tax credits can be carried forward indefinitely.

(2) At December 31, 2019 and 2018, the U.K. operating loss carryforward includes Lloyd's deferred year of account losses of $293 million and $403 million, respectively.

VALUATION ALLOWANCE ROLL FORWARD

The following table shows an analysis of the movement in the Company's valuation allowance:

	At December 31,	2019				2018
	Income tax expense:
	Valuation allowance - beginning of year	$	13,891			$	16,157
	Operating loss carryforwards	2,445				198
	Foreign tax credit	(114		)		(1,359		)
	U.K. branch assets and other foreign rate differentials	2,338				(205		)
	U.S. alternative minimum tax credits	—				(900		)
	Valuation allowance - end of year	$	18,560			$	13,891
	Accumulated other comprehensive income:
	Valuation allowance - beginning of year	5,064				—
	Change in investment - related items	(5,064		)		5,064
	Valuation allowance - end of year	—				5,064
	Total valuation allowance - end of year	$	18,560			$	18,955

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,	2019				2018				2017
	Income (loss) before income taxes
	Bermuda (domestic)	$	179,418			$	181,597			$	(188,420	)
	Foreign	167,747				(168,062		)		(188,091		)
	Total income (loss) before income taxes	$	347,165			$	13,535			$	(376,511	)
	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.	8.1		%		65.7		%		6.6		%
	Europe	0.4		%		(289.7		)%		5.8		%
	Other	—		%		0.0		%		0.3		%
	Valuation allowance	1.3		%		(13.4		)%		—		%
	Net tax exempt income	—		%		(3.3		)%		0.1		%
	Change in U.S. enacted tax rate	—		%		0.0		%		(11.1		)%
	Change in European enacted tax rate	—		%		16.9		%		—		%
	Other	(3.0		)%		5.9		%		0.3		%
	Actual tax rate	6.8		%		(217.9		)%		2.0		%

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