XML 70 R49.htm IDEA: XBRL DOCUMENT
v3.22.4

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Summary 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, | 2022 |  | 2021 |  | 2020 |
| Current income tax expense (benefit) |  |  |  |  |  |
| U.S. | $ | 11,491 |  |  | $ | 35,229 |  |  | $ | (1,122) |  |
| Europe | 2,366 |  |  | (6,082) |  |  | 365 |  |
| Other | (147) |  |  | — |  |  | — |  |
| Deferred income tax expense (benefit) |  |  |  |  |  |
| U.S. | (8,147) |  |  | (3,369) |  |  | (3,098) |  |
| Europe | 16,474 |  |  | 36,606 |  |  | (8,466) |  |
| Total income tax expense (benefit) | $ | 22,037 |  |  | $ | 62,384 |  |  | $ | (12,321) |  |
| Net current tax receivables | $ | 46,704 |  |  | $ | 27,883 |  |  | $ | 12,205 |  |
| Net deferred tax assets (liabilities) | 108,220 |  |  | 12,860 |  |  | (1,625) |  |
| Net tax assets | $ | 154,924 |  |  | $ | 40,743 |  |  | $ | 10,580 |  |
Summary of Deferred Tax Assets and Liabilities | The following table provides details of the significant components of deferred tax assets and liabilities:
| At December 31, | 2022 |  | 2021 |
| Deferred tax assets: |  |  |  |
| Discounting of net reserves for losses and loss expenses | $ | 52,992 |  |  | $ | 53,415 |  |
| Unearned premiums | 56,146 |  |  | 53,342 |  |
| Net unrealized investments losses | 71,251 |  |  | — |  |
| Operating and capital loss carryforwards(1) | 152,896 |  |  | 85,358 |  |
| Accruals not currently deductible | 42,045 |  |  | 38,294 |  |
| Tax credits | 7,619 |  |  | 2,709 |  |
| Other deferred tax assets | 8,590 |  |  | 5,040 |  |
| Deferred tax assets before valuation allowance | 391,539 |  |  | 238,158 |  |
| Valuation allowance | (60,069) |  |  | (16,918) |  |
| Deferred tax assets net of valuation allowance | 331,470 |  |  | 221,240 |  |
| Deferred tax liabilities: |  |  |  |
| Deferred acquisition costs | (35,211) |  |  | (34,845) |  |
| Net unrealized investments gains | — |  |  | (5,732) |  |
| Other investment adjustments and impairments | (20,068) |  |  | (18,134) |  |
| Intangible assets | (51,993) |  |  | (52,722) |  |
| Equalization reserves | (2,530) |  |  | (2,365) |  |
| Acquisition adjustments | (72,351) |  |  | (79,464) |  |
| Lloyd’s deferred year of account results | (34,068) |  |  | (5,114) |  |
| Other deferred tax liabilities | (7,029) |  |  | (10,004) |  |
| Deferred tax liabilities | (223,250) |  |  | (208,380) |  |
| Net deferred tax assets (liabilities) | $ | 108,220 |  |  | $ | 12,860 |  |
(1) At December 31, 2022 and 2021, the total operating loss carryforwards does not include any Lloyd's deferred year of account losses.
Summary of Tax Credits | The following table summarizes total operating and capital loss carryforwards and tax credits:
| At December 31, | 2022 |  | 2021 |
| Operating and Capital Loss Carryforwards(1) |  |  |  |
| Singapore (branch) operating loss carryforward | $ | 73,769 |  |  | $ | 76,287 |  |
| U.K. operating loss carryforward(2) | 415,274 |  |  | 308,491 |  |
| Ireland operating loss carryforward | 200,822 |  |  | 11,850 |  |
| Ireland capital loss carryforward | 716 |  |  | 716 |  |
| Switzerland operating loss carryforward(3) | 187,057 |  |  | 15,989 |  |
| Tax Credits(1) |  |  |  |
| Ireland foreign tax credit | $ | 655 |  |  | $ | 338 |  |
| U.K. foreign tax credit | 2,372 |  |  | 2,372 |  |
| U.S. foreign tax credit(4) | 4,592 |  |  | — |  |
(1) At December 31, 2022, the Singapore, U.K., and Ireland operating and capital loss carryforwards and tax credits can be carried forward indefinitely. (2) At December 31, 2022 and 2021, the U.K. operating loss carryforward does not include any Lloyd's deferred year of account losses. (3) At December 31, 2022, the Swiss net operating losses can be carried forward 7 years of which $15,989 expires 2028 and $171,068 expires 2029. (4) At December 31, 2022, the U.S. foreign tax credit can be carried back 1 year and carried forward 10 years.
Summary of Operating and Capital Loss Carryforwards | The following table summarizes total operating and capital loss carryforwards and tax credits:
| At December 31, | 2022 |  | 2021 |
| Operating and Capital Loss Carryforwards(1) |  |  |  |
| Singapore (branch) operating loss carryforward | $ | 73,769 |  |  | $ | 76,287 |  |
| U.K. operating loss carryforward(2) | 415,274 |  |  | 308,491 |  |
| Ireland operating loss carryforward | 200,822 |  |  | 11,850 |  |
| Ireland capital loss carryforward | 716 |  |  | 716 |  |
| Switzerland operating loss carryforward(3) | 187,057 |  |  | 15,989 |  |
| Tax Credits(1) |  |  |  |
| Ireland foreign tax credit | $ | 655 |  |  | $ | 338 |  |
| U.K. foreign tax credit | 2,372 |  |  | 2,372 |  |
| U.S. foreign tax credit(4) | 4,592 |  |  | — |  |
(1) At December 31, 2022, the Singapore, U.K., and Ireland operating and capital loss carryforwards and tax credits can be carried forward indefinitely. (2) At December 31, 2022 and 2021, the U.K. operating loss carryforward does not include any Lloyd's deferred year of account losses. (3) At December 31, 2022, the Swiss net operating losses can be carried forward 7 years of which $15,989 expires 2028 and $171,068 expires 2029. (4) At December 31, 2022, the U.S. foreign tax credit can be carried back 1 year and carried forward 10 years.
Summary of Valuation Allowance Roll Forward | The following table shows an analysis of the movement in the Company's valuation allowance:
| At December 31, | 2022 |  | 2021 |
| Income tax expense (benefit): |  |  |  |
| Valuation allowance - beginning of year | $ | 16,918 |  |  | $ | 20,778 |  |
| Operating loss carryforwards | 21,724 |  |  | (3,422) |  |
| Foreign tax credit | 2,401 |  |  | (2,048) |  |
| U.K. branch assets and other foreign rate differentials | (1,261) |  |  | 1,610 |  |
| Valuation allowance - end of year | $ | 39,782 |  |  | $ | 16,918 |  |
| Accumulated other comprehensive income (loss): |  |  |  |
| Valuation allowance - beginning of year | $ | — |  |  | $ | — |  |
| Change in investment - related items | 20,287 |  |  | — |  |
| Valuation allowance - end of year | 20,287 |  |  | — |  |
| Total valuation allowance - end of year | $ | 60,069 |  |  | $ | 16,918 |  |
Summary of Effective Tax Rate Reconciliation | The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions and 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, | 2022 |  | 2021 |  | 2020 |
| Income (loss) before income taxes |  |  |  |  |  |
| Bermuda (domestic) | $ | 236,781 |  |  | $ | 431,310 |  |  | $ | (45,951) |  |
| Foreign | 8,340 |  |  | 249,686 |  |  | (86,794) |  |
| Total income (loss) before income taxes | $ | 245,121 |  |  | $ | 680,996 |  |  | $ | (132,745) |  |
| 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. | 0.2 | % |  | 4.8 | % |  | 5.6 | % |
| Europe | 1.9 | % |  | 2.0 | % |  | 9.2 | % |
| Valuation allowance | 9.5 | % |  | (0.5 | %) |  | (1.7 | %) |
| Change in enacted tax rate(1) | (2.2 | %) |  | 1.5 | % |  | (1.7 | %) |
| Other | (0.4 | %) |  | 1.4 | % |  | (2.1 | %) |
| Actual tax rate | 9.0 | % |  | 9.2 | % |  | 9.3 | % |
(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%.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfTaxCreditCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration