XML 65 R46.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Summary of Total Income Tax | Total income tax (benefit)/expense for the twelve months ended December 31, 2018, 2017 and 2016 was allocated as follows:
|  | Twelve Months Ended December 31,
|  | 2018 |  | 2017 |  | 2016
|  | ($ in millions)
Income tax (benefit)/expense allocated to net income |  | $ | (10.2 | ) |  | $ | (15.4 | ) |  | $ | 6.1 |
Income tax expense/(benefit) allocated to other comprehensive income |  | 4.1 |  |  | (17.4 | ) |  | (1.7 | )
Income tax (benefit) allocated directly to shareholders’ equity |  | — |  |  | — |  |  | (1.0 | )
Total income tax (benefit)/expense |  | $ | (6.1 | ) |  | $ | (32.8 | ) |  | $ | 3.4 |
Schedule of Income Tax by Taxing Authority | (Loss)/income from operations before income tax and income tax expense/(benefit) attributable to that income/(loss) for the twelve months ended December 31, 2018, 2017 and 2016 is provided in the tables below:
|  | Twelve Months Ended December 31, 2018
|  | (Loss)/income before tax |  | Current income tax (benefit)/expense |  | Deferred income tax (benefit)/expense |  | Total income tax (benefit)/expense
|  | ($ in millions)
Bermuda |  | $ | (72.1 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |
U.S. (1) |  | (81.0 | ) |  | 6.1 |  |  | (8.1 | ) |  | (2.0 | )
U.K.(2) |  | (4.7 | ) |  | (12.2 | ) |  | (0.1 | ) |  | (12.3 | )
Other (3) (4) |  | 1.8 |  |  | 4.4 |  |  | (0.3 | ) |  | 4.1 |
Total |  | $ | (156.0 | ) |  | $ | (1.7 | ) |  | $ | (8.5 | ) |  | $ | (10.2 | )
|  | Twelve Months Ended December 31, 2017
|  | (Loss)/income before tax |  | Current income tax (benefit)/expense |  | Deferred income tax (benefit)/expense |  | Total income tax (benefit)/expense
|  | ($ in millions)
Bermuda |  | $ | (130.0 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |
U.S. |  | (140.3 | ) |  | — |  |  | 1.1 |  |  | 1.1 |
U.K. |  | 15.3 |  |  | 14.1 |  |  | (33.3 | ) |  | (19.2 | )
Other (3) (4) |  | (26.8 | ) |  | 3.0 |  |  | (0.3 | ) |  | 2.7 |
Total |  | $ | (281.8 | ) |  | $ | 17.1 |  |  | $ | (32.5 | ) |  | $ | (15.4 | )
|  | Twelve Months Ended December 31, 2016
|  | (Loss)/income before tax |  | Current income tax (benefit)/expense |  | Deferred income tax (benefit)/expense |  | Total income tax (benefit)/expense
|  | ($ in millions)
Bermuda |  | $ | 259.5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
U.S. |  | (70.2 | ) |  | — |  |  | 2.5 |  |  | 2.5 |
U.K. |  | 43.7 |  |  | (3.2 | ) |  | 5.4 |  |  | 2.2 |
Other (3) |  | (23.5 | ) |  | 1.1 |  |  | 0.3 |  |  | 1.4 |
Total |  | $ | 209.5 |  |  | $ | (2.1 | ) |  | $ | 8.2 |  |  | $ | 6.1 |
______________
(1) | The $6.1 million current income tax expense relates to the base erosion and anti-abuse tax (“BEAT”) which applies to premiums ceded by U.S. subsidiaries to non-U.S. related parties.
(2) | In 2018, the current income tax benefit includes the release of a $12.8 million provision held against the potential disallowance of a prior period adjustment following the successful conclusion of a U.K. tax inquiry.
(3) | Beginning from the twelve months ended December 31, 2017, the total income tax (benefit)/expense allocation table has been re-presented to show the branches of Aspen U.K. under the “Other” category with the exception of the U.S. branch which is reported under the “U.S.” category.
(4) | Included within “Other” is $4.4 million (December 31, 2017 — $0.9 million) withholding tax payable in Australia in respect of reinsurance premiums payable to Aspen Bermuda by the Australian branch of Aspen U.K.
Income Tax Reconciliation | The reconciliation between the income tax (benefit)/expense and the statutory rate for the Company for the twelve months ended December 31, 2018, 2017 and 2016 is provided in the table below:
|  | Twelve Months Ended December 31,
|  | 2018 |  | 2017 |  | 2016
Income Tax Reconciliation |  | ($ in millions)
Expected tax (benefit)/expense |  | $ | — |  |  | $ | — |  |  | $ | — |
Overseas statutory tax rates differential |  | (17.1 | ) |  | (41.5 | ) |  | (19.3 | )
Base erosion and anti-abuse tax expense |  | 6.0 |  |  | — |  |  | — |
Prior year adjustments (1) |  | 1.4 |  |  | 1.3 |  |  | 3.3 |
Valuation allowance |  | 7.1 |  |  | (37.9 | ) |  | 21.0 |
Impact of unrecognized tax benefits (2) |  | (12.8 | ) |  | 0.1 |  |  | (1.9 | )
Restricted foreign tax credits |  | — |  |  | 0.7 |  |  | 1.9 |
Australian non-resident withholding tax |  | 4.4 |  |  | 0.9 |  |  | — |
Share-based payments |  | 0.2 |  |  | (0.9 | ) |  | — |
Foreign exchange |  | 0.1 |  |  | (2.1 | ) |  | 0.2 |
Non-deductible expenses |  | 0.7 |  |  | 0.4 |  |  | 0.8 |
Non-taxable items |  | (0.3 | ) |  | (0.9 | ) |  | (0.9 | )
Impact of changes in statutory tax rates |  | 0.1 |  |  | 64.5 |  |  | 1.0 |
Total income tax (benefit)/expense |  | $ | (10.2 | ) |  | $ | (15.4 | ) |  | $ | 6.1 |
________________ (1) The submission dates for filing income tax returns for the Company’s U.S. and U.K. operating subsidiaries are after the submission date of this report. Accordingly, the final tax liabilities may differ from the estimated tax expense included in this report and may result in prior year adjustments being reported. The prior period adjustments for the twelve months ended December 31, 2018, 2017 and 2016 predominantly relate to the determination of results under U.K. GAAP upon which the U.K. tax returns are based. These items can only be ultimately determined on an accurate basis after this report is filed. (2) For 2018, the $12.8 million benefit relates to the successful conclusion of a U.K. tax inquiry which enabled the release of a provision we had been holding against the potential disallowance of a prior period adjustment. For 2017, the $0.1 million charge relates to a $0.3 million benefit following the conclusion of a tax examination in respect of tax deductions for certain interest payments and accrued interest of $0.4 million in respect of the adjustment to equity reserves. For 2016, there was a $1.9 million credit primarily relating to the conclusion of a tax examination in respect of tax deductions for certain interest payments.
Schedule of Unrecognized Tax Benefits | As illustrated in the table below, unrecognized tax benefits were $Nil as at December 31, 2018. An unrecognized tax benefit of $11.0 million relating to U.K. prior period tax positions for the year 2011 was released during the year ended December 31, 2018 following the successful conclusion of a U.K. tax inquiry. An unrecognized tax benefit of $0.3 million relating to tax deductions for certain expenses was released during the year ended December 31, 2017 following the completion of the U.K. tax authority review.
|  | Twelve Months Ended December 31,
|  | 2018 |  | 2017
|  | ($ in millions)
Unrecognized tax benefits balance at January 1 |  | $ | 11.2 |  |  | $ | 10.5 |
Foreign exchange re-translation |  | (0.2 | ) |  | 1.0 |
Prior year reductions |  | $ | (11.0 | ) |  | (0.3 | )
Unrecognized tax benefits balance at December 31 |  | $ | — |  |  | $ | 11.2 |
Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and deferred tax liabilities are presented in the following table as at December 31, 2018 and 2017:
|  | As at December 31,
|  | 2018 |  | 2017
|  | ($ in millions)
Deferred tax assets:
Share-based payments |  | $ | 2.2 |  |  | $ | 4.0 |
Operating loss carryforwards |  | 126.4 |  |  | 102.5 |
Loss reserves |  | 5.0 |  |  | 4.3 |
Unrealized losses on investments |  | 0.8 |  |  | — |
Accrued expenses |  | 7.9 |  |  | 7.9 |
Foreign tax credit carryforwards |  | 3.8 |  |  | 4.0 |
Unearned premiums |  | 15.5 |  |  | 11.8 |
Deferred policy acquisition costs |  | — |  |  | 5.9 |
Office properties and equipment |  | 11.1 |  |  | 8.0 |
Other temporary differences |  | 3.3 |  |  | 2.9 |
Total gross deferred tax assets |  | 176.0 |  |  | 151.3 |
Less valuation allowance |  | (111.9 | ) |  | (104.8 | )
Net deferred tax assets |  | $ | 64.1 |  |  | $ | 46.5 |
Deferred tax liabilities: |  |  |  |  |  |
Intangible assets (other) |  | (2.5 | ) |  | (2.0 | )
Deferred policy acquisition costs |  | (18.5 | ) |  | (14.5 | )
Quota share losses |  | (0.6 | ) |  | — |
Loss portfolio transfer costs |  | (6.1 | ) |  | — |
Other temporary differences |  | (1.0 | ) |  | (1.7 | )
Total gross deferred tax (liabilities) |  | (28.7 | ) |  | (18.2 | )
Net deferred tax assets |  | $ | 35.4 |  |  | $ | 28.3 |

X
- Definition Schedule of income tax expense benefit intraperiod tax allocation. + References No definition available. + Details
Name: | ahl_ScheduleOfIncomeTaxExpenseBenefitIntraperiodTaxAllocationTableTextBlock
Namespace Prefix: | ahl_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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 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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum: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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=109238393&loc=d3e36027-109320 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration