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INCOME TAXES | 6 Months Ended
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Jun. 30, 2024
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (the "Act") which will apply a corporate income tax of 15% for fiscal years beginning on or after January 1, 2025. The Act includes a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the tax regime. Pursuant to the Act and subsequently issued guidance, the Company recorded a net deferred tax asset of $nil and $163 million for the three and six months ended June 30, 2024 which it expects to utilize mainly over a 10-year period. The Company expects to incur increased taxes in Bermuda beginning in 2025. The following tables provide an analysis of income tax expense (benefit):
| Three months ended June 30, | 2024 |  | 2023 |  |
| Current income tax expense (benefit) |  |  |  |  |
| U.S. | $ | 29,794 |  |  | $ | 23,479 |  |  |
| Europe | 4,402 |  |  | 5,346 |  |  |
| Bermuda | — |  |  | — |  |  |
| Deferred income tax expense (benefit) |  |  |  |  |
| U.S. | (5,005) |  |  | (10,715) |  |  |
| Europe | 11,356 |  |  | 9,448 |  |  |
| Bermuda | — |  |  | — |  |  |
| Total income tax expense (benefit) | $ | 40,547 |  |  | $ | 27,558 |  |  |
| Six months ended June 30, | 2024 |  | 2023 |  |  |  |  |  |
| Current income tax expense (benefit) |  |  |  |  |  |  |  |  |
| U.S. | $ | 51,293 |  |  | $ | 34,383 |  |  |  |  |  |  |
| Europe | 9,930 |  |  | 8,520 |  |  |  |  |  |  |
| Bermuda | — |  |  | 199 |  |  |  |  |  |  |
| Deferred income tax expense (benefit) |  |  |  |  |  |  |  |  |
| U.S. | (2,260) |  |  | (10,644) |  |  |  |  |  |  |
| Europe | 19,635 |  |  | 10,996 |  |  |  |  |  |  |
| Bermuda | (162,705) |  |  | — |  |  |  |  |  |  |
| Total income tax expense (benefit) | $ | (84,107) |  |  | $ | 43,454 |  |  |  |  |  |  |
The following tables present 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:
| Three months ended June 30, | 2024 |  | 2023 |
| Income before income taxes |  |  |  |
| Bermuda (domestic) | $ | 64,090 |  | $ | 57,777 |
| Foreign | 188,421 |  | 120,455 |
| Total income before income taxes | $ | 252,511 |  | $ | 178,232 |
| Reconciliation of effective tax rate (% of income before income taxes) |  |  |  |
| Expected tax rate | — | % |  | — | % |
| Foreign taxes at local expected rates: |  |  |  |
| U.S. | 9.7 | % |  | 7.1 | % |
| Europe | 6.0 | % |  | 7.5 | % |
| Valuation allowance | (0.1 | %) |  | 0.3 | % |
| Bermuda Economic Transition Adjustment | — | % |  | — | % |
| Other | 0.5 | % |  | 0.6 | % |
| Actual tax rate | 16.1 | % |  | 15.5 | % |
| Six months ended June 30, | 2024 |  | 2023 |
| Income before income taxes |  |  |  |
| Bermuda (domestic) | $ | 147,321 |  | $ | 164,381 |
| Foreign | 375,997 |  | 209,846 |
| Total income before income taxes | $ | 523,318 |  | $ | 374,227 |
| Reconciliation of effective tax rate (% of income before income taxes) |  |  |  |
| Expected tax rate | — | % |  | — | % |
| Foreign taxes at local expected rates: |  |  |  |
| U.S. | 9.5 | % |  | 6.2 | % |
| Europe | 5.5 | % |  | 5.2 | % |
| Valuation allowance | (0.4 | %) |  | (0.8 | %) |
| Bermuda Economic Transition Adjustment | (31.1 | %) |  | — | % |
| Other | 0.4 | % |  | 1.0 | % |
| Actual tax rate | (16.1 | %) |  | 11.6 | % |

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