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INCOME TAXES | 9 Months Ended
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Sep. 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 nine months ended September 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 September 30, | 2024 |  | 2023 |  |
| Current income tax expense (benefit) |  |  |  |  |
| U.S. | $ | 25,451 |  |  | $ | 17,879 |  |  |
| Europe | 9,558 |  |  | (1,105) |  |  |
| Bermuda | 2,486 |  |  | 92 |  |  |
| Deferred income tax expense (benefit) |  |  |  |  |
| U.S. | 4,380 |  |  | (4,209) |  |  |
| Europe | 6,047 |  |  | 11,967 |  |  |
| Bermuda | — |  |  | — |  |  |
| Total income tax expense (benefit) | $ | 47,922 |  |  | $ | 24,624 |  |  |
| Nine months ended September 30, | 2024 |  | 2023 |  |  |  |  |  |
| Current income tax expense (benefit) |  |  |  |  |  |  |  |  |
| U.S. | $ | 76,744 |  |  | $ | 52,262 |  |  |  |  |  |  |
| Europe | 19,488 |  |  | 7,415 |  |  |  |  |  |  |
| Bermuda | 2,486 |  |  | 291 |  |  |  |  |  |  |
| Deferred income tax expense (benefit) |  |  |  |  |  |  |  |  |
| U.S. | 2,120 |  |  | (14,854) |  |  |  |  |  |  |
| Europe | 25,682 |  |  | 22,964 |  |  |  |  |  |  |
| Bermuda | (162,705) |  |  | — |  |  |  |  |  |  |
| Total income tax expense (benefit) | $ | (36,185) |  |  | $ | 68,078 |  |  |  |  |  |  |
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 September 30, | 2024 |  | 2023 |
| Income before income taxes |  |  |  |
| Bermuda (domestic) | $ | 6,695 |  | $ | 98,388 |
| Foreign | 221,955 |  | 114,334 |
| Total income before income taxes | $ | 228,650 |  | $ | 212,722 |
| Reconciliation of effective tax rate (% of income before income taxes) |  |  |  |
| Expected tax rate | 0.0 | % |  | 0.0 | % |
| Foreign taxes at local expected rates: |  |  |  |
| U.S. | 12.7 | % |  | 6.7 | % |
| Europe | 7.3 | % |  | 5.1 | % |
| Valuation allowance | (2.8 | %) |  | (3.5 | %) |
| Bermuda Economic Transition Adjustment | 0.0 | % |  | 0.0 | % |
| Other | 3.8 | % |  | 3.3 | % |
| Actual tax rate | 21.0 | % |  | 11.6 | % |
| Nine months ended September 30, | 2024 |  | 2023 |
| Income before income taxes |  |  |  |
| Bermuda (domestic) | $ | 154,014 |  | $ | 262,770 |
| Foreign | 597,954 |  | 324,178 |
| Total income before income taxes | $ | 751,968 |  | $ | 586,948 |
| Reconciliation of effective tax rate (% of income before income taxes) |  |  |  |
| Expected tax rate | 0.0 | % |  | 0.0 | % |
| Foreign taxes at local expected rates: |  |  |  |
| U.S. | 10.4 | % |  | 6.4 | % |
| Europe | 6.0 | % |  | 5.2 | % |
| Valuation allowance | (1.2 | %) |  | (1.8 | %) |
| Bermuda Economic Transition Adjustment | (21.6 | %) |  | 0.0 | % |
| Other | 1.6 | % |  | 1.8 | % |
| Actual tax rate | (4.8 | %) |  | 11.6 | % |

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