XML 38 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

Income before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries

The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries for the quarters ended March 31, 2018 and 2017 were as follows:

Quarter Ended March 31, 2018: (Dollars in thousands)		Non-U.S. Subsidiaries				U.S. Subsidiaries				Eliminations				Total
Revenues:
Gross premiums written		$	10,315			$	113,932			$	—			$	124,247
Net premiums written		$	10,314			$	97,556			$	—			$	107,870
Net premiums earned			48,022				59,980				—				108,002
Net investment income			15,221				7,188				(11,005	)			11,404
Net realized investment losses			(5	)			(311	)			—				(316	)
Other income			51				503				—				554
Total revenues			63,289				67,360				(11,005	)			119,644
Losses and Expenses:
Net losses and loss adjustment expenses			20,565				35,507				—				56,072
Acquisition costs and other underwriting expenses			21,140				23,863				—				45,003
Corporate and other operating expenses			4,399				4,861				—				9,260
Interest expense			4,841				11,025				(11,005	)			4,861
Income (loss) before income taxes		$	12,344			$	(7,896	)		$	—			$	4,448

Quarter Ended March 31, 2017: (Dollars in thousands)		Non-U.S. Subsidiaries				U.S. Subsidiaries				Eliminations				Total
Revenues:
Gross premiums written		$	54,102			$	107,936			$	(38,287	)		$	123,751
Net premiums written		$	54,087			$	57,419			$	—			$	111,506
Net premiums earned		$	50,933			$	62,193			$	—			$	113,126
Net investment income			12,328				4,959				(8,643	)			8,644
Net realized investment gains			41				734				—				775
Other income			87				1,281				—				1,368
Total revenues			63,389				69,167				(8,643	)			123,913
Losses and Expenses:
Net losses and loss adjustment expenses			20,860				41,701				—				62,561
Acquisition costs and other underwriting expenses			22,688				23,863				—				46,551
Corporate and other operating expenses			1,207				1,847				—				3,054
Interest expense			2,324				8,786				(8,643	)			2,467
Income (loss) before income taxes		$	16,310			$	(7,030	)		$	—			$	9,280

Components of Income Tax Benefit

The following table summarizes the components of income tax benefit:

		Quarters Ended March 31,
(Dollars in thousands)		2018				2017
Current income tax expense:
Foreign		$	179			$	96
U.S. Federal			566				—
Total current income tax expense			745				96
Deferred income tax benefit:
U.S. Federal			(1,998	)			(3,098	)
Total income tax benefit		$	(1,253	)		$	(3,002	)

Differences in Tax and Estimated Tax Provisions at Weighted Average Tax Rate

The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:

		Quarters Ended March 31,
(Dollars in thousands)		2018								2017
		Amount				% of Pre- Tax Income				Amount				% of Pre- Tax Income
Expected tax provision at weighted average rate		$	(1,536	)			(34.5	%)		$	(2,364	)			(25.5	%)
Adjustments:
Tax exempt interest			(1	)			(0.0	)			(84	)			(0.9	)
Dividend exclusion			(65	)			(1.5	)			(193	)			(2.1	)
Base Erosion Anti-Abuse Tax			566				12.7				—				—
Other			(217	)			(4.9	)			(361	)			(3.8	)
Actual tax on continuing operations		$	(1,253	)			(28.2	%)		$	(3,002	)			(32.3	%)

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://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
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://www.xbrl.org/2003/role/presentationRef
-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://www.xbrl.org/2003/role/presentationRef
-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