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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

SCHEDULE OF INCOME TAX EXPENSE AND NET TAX ASSETS

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

			Year ended December 31,			2021						2020						2019
			Current income tax expense (benefit)
			U.S.			$	35,229					$	(1,122)					$	12,601
			Europe			(6,082)						365						22,425
			Other			—						—						469
			Deferred income tax expense (benefit)
			U.S.			(3,369)						(3,098)						17,665
			Europe			36,606						(8,466)						(29,468)
			Total income tax expense (benefit)			$	62,384					$	(12,321)					$	23,692
			Net current tax receivables			$	27,883					$	12,205					$	13,130
			Net deferred tax assets (liabilities)			12,860						(1,625)						18,621
			Net tax assets			$	40,743					$	10,580					$	31,751

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,			2021						2020
			Deferred tax assets:
			Discounting of net reserves for losses and loss expenses			$	53,415					$	47,912
			Unearned premiums			53,342						46,049
			Operating and capital loss carryforwards(1)			85,358						80,008
			Accruals not currently deductible			38,294						28,096
			Tax credits			2,709						11,142
			Other deferred tax assets			5,040						4,352
			Deferred tax assets before valuation allowance			238,158						217,559
			Valuation allowance			(16,918)						(20,778)
			Deferred tax assets net of valuation allowance			221,240						196,781
			Deferred tax liabilities:
			Deferred acquisition costs			(34,845)						(37,098)
			Net unrealized investments gains			(23,866)						(39,459)
			Intangible assets			(52,722)						(46,132)
			Equalization reserves			(2,365)						(2,825)
			Acquisition adjustments			(79,464)						(60,261)
			Other deferred tax liabilities			(15,118)						(12,631)
			Deferred tax liabilities			(208,380)						(198,406)
			Net deferred tax assets (liabilities)			$	12,860					$	(1,625)

(1)    At December 31, 2021 and 2020, the total operating loss carryforwards includes Lloyd's deferred year of account losses of $nil and $39 million, respectively.

SUMMARY OF TAX CREDITS

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

			At December 31,			2021						2020
			Operating and Capital Loss Carryforwards(1)
			Singapore (branch) operating loss carryforward			$	76,287					$	110,504
			U.K. operating loss carryforward(2)			308,491						357,226
			Ireland operating loss carryforward			11,850						404
			Ireland capital loss carryforward			716						716
			Switzerland operating loss carryforward			15,989						—
			Belgian operating loss carryforward			—						1,850
			Tax Credits(1)
			Ireland foreign tax credit			$	338					$	2,386
			U.K. foreign tax credit			2,372						8,756

(1)    At December 31, 2021, all remaining operating and capital loss carryforwards and tax credits can be carried forward indefinitely.

(2)    At December 31, 2021 and 2020, the U.K. operating loss carryforward includes Lloyd's deferred year of account losses of $nil and $206 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,			2021						2020
			Operating and Capital Loss Carryforwards(1)
			Singapore (branch) operating loss carryforward			$	76,287					$	110,504
			U.K. operating loss carryforward(2)			308,491						357,226
			Ireland operating loss carryforward			11,850						404
			Ireland capital loss carryforward			716						716
			Switzerland operating loss carryforward			15,989						—
			Belgian operating loss carryforward			—						1,850
			Tax Credits(1)
			Ireland foreign tax credit			$	338					$	2,386
			U.K. foreign tax credit			2,372						8,756

(1)    At December 31, 2021, all remaining operating and capital loss carryforwards and tax credits can be carried forward indefinitely.

(2)    At December 31, 2021 and 2020, the U.K. operating loss carryforward includes Lloyd's deferred year of account losses of $nil and $206 million, respectively.

VALUATION ALLOWANCE ROLL FORWARD

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

			At December 31,			2021						2020
			Income tax expense:
			Valuation allowance - beginning of year			$	20,778					$	18,560
			Operating loss carryforwards			(3,422)						661
			Foreign tax credit			(2,048)						293
			U.K. branch assets and other foreign rate differentials			1,610						1,264
			Valuation allowance - end of year			$	16,918					$	20,778

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,			2021						2020						2019
			Income (loss) before income taxes
			Bermuda (domestic)			$	431,310					$	(45,951)					$	179,418
			Foreign			249,686						(86,794)						167,747
			Total income (loss) before income taxes			$	680,996					$	(132,745)					$	347,165
			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.			4.8		%				5.6		%				8.1		%
			Europe			2.0		%				9.2		%				0.4		%
			Valuation allowance			(0.5		%)				(1.7		%)				1.3		%
			Change in enacted tax rate(1)			1.5		%				(1.7		%)				0.0		%
			Other			1.4		%				(2.1		%)				(3.0		%)
			Actual tax rate			9.2		%				9.3		%				6.8		%

(1)    At December 31, 2021, the change in enacted tax rate included a change in the UK tax rate from 19% to 25% and in Belgium from 29.58% to 25%. At December 31, 2020, the change in enacted tax rate included a change in UK tax rate from 17% to 19%.

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