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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Tax Provision (Benefit) Expense
The following table presents the components of income tax provision (benefit) included in the amounts reported in our consolidated financial statements:
 
For the Years Ended December 31,
(in millions)
2019
 
2018
 
2017
Current income tax provision (benefit) related to:
 
 
 
 
 
United States
$
36.5

 
$
13.4

 
$
(0.3
)
United Kingdom
(1.5
)
 
3.2

 
7.6

Other jurisdictions
0.1

 
0.1

 
0.2

Total current income tax provision
35.1

 
16.7

 
7.5

Deferred income tax provision (benefit) related to:
 
 
 
 
 
United States
(19.3
)
 
(13.8
)
 
(0.3
)
United Kingdom
(7.2
)
 
1.1

 
(17.6
)
Other jurisdictions
—

 
0.1

 
—

Total deferred income tax (benefit)
(26.5
)
 
(12.6
)
 
(17.9
)
Income tax provision (benefit)
$
8.6

 
$
4.1

 
$
(10.4
)
Schedule of Earned Premiums by Geographic Location For the years ended December 31, 2019, 2018 and 2017, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows:
(in millions)
2019
 
2018
 
2017
 
Pre-Tax
Income (Loss)
  
Effective
Tax
Rate
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
 
Pre-Tax
Income (Loss)
 
Effective
Tax
Rate
Bermuda
$
(34.8
)

—
 %

$
26.0


—
 %

$
30.2


—
 %
United States
85.2


19.7
 %

13.9


(5.5
)%

67.5


(0.9
)%
United Kingdom
(46.1
)

17.9
 %

25.0


18.8
 %

(53.8
)

18.7
 %
Belgium
—

(1)
15.8
 %

—

(1)
—
 %
(2)
0.1


75.0
 %
Brazil
5.2


—
 %

(0.5
)

—
 %

0.8


—
 %
United Arab Emirates
0.4


—
 %

0.8


—
 %

0.2


—
 %
Ireland
(0.1
)

—
 %

(0.2
)

—
 %

(0.2
)

—
 %
Italy
(7.4
)

—
 %

0.9


—
 %

—


—
 %
Malta
(2.0
)

—
 %

1.7


—
 %

0.3


—
 %
Luxembourg
—


—
 %

—

(1)
—
 %

(5.2
)

—
 %
Switzerland
(0.2
)

(0.2
)%

0.1


18.4
 %

—

(1)
21.1
 %
Pre-tax income
$
0.2


—
 %
(2)
$
67.7


6.1
 %

$
39.9


(26.1
)%
(1) Pre-tax income for the respective year was less than $0.1 million.
(2) Not Meaningful.
Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate A reconciliation of the difference between the provision for income taxes and the expected tax provision (benefit) at the weighted average tax rate is as follows:

 
For the Years Ended December 31,
(in millions)
2019
 
2018
 
2017
Income tax provision (benefit) at expected rate
$
9.0

 
$
8.2

 
$
12.7

Tax effect of:

 

 

Nontaxable investment income
(1.2
)
 
(1.9
)
 
(4.7
)
Foreign exchange adjustments
(0.1
)
 
(0.6
)
 
2.1

Impairment of goodwill
2.9


—


—

Withholding taxes
0.2

 
0.4

 
0.4

Change in valuation allowance
(1.1
)
 
(1.5
)
 
(0.9
)
Impact of change in tax rate related to TCJA
—

 
(1.6
)
 
(20.2
)
Other
(1.1
)
 
1.1

 
0.2

Income tax provision (benefit)
$
8.6

 
$
4.1

 
$
(10.4
)
Schedule of Net Deferred Tax Liability Comprises Tax Effect Related to Assets and Liabilities
The net deferred tax asset (liability) comprises the tax effects of temporary differences related to the following assets and liabilities:
 
December 31,
(in millions)
2019
 
2018
Deferred tax assets:
 
 
 
Losses and loss adjustment expense reserve discounting
$
22.8

 
$
19.3

Unearned premiums
25.3

 
23.2

Net operating loss carryforwards
30.6

 
31.6

Investment in limited partnership interests
7.1

 
12.0

Unrealized losses on fixed maturities and other investment securities
—

 
9.0

Investment
2.4

 
1.3

Right of use assets
14.5

 
—

Accrued bonus
2.2

 
4.5

Stock option expense
1.1

 
1.7

United Kingdom underwriting results
5.9

 
—

Other
5.7

 
6.3

Deferred tax assets, gross
117.6

 
108.9

Deferred tax liabilities:

 

Unrealized gains on equity securities
(3.0
)
 
(13.1
)
Unrealized gains on fixed maturities and other investment securities
(5.3
)
 
—

Unrealized gains on limited partnership interests
(15.6
)
 
(17.3
)
Depreciable fixed assets
(22.4
)
 
(27.0
)
Deferred acquisition costs
(18.6
)
 
(18.1
)
Lease liability
(14.0
)
 
—

TCJA reserve transitional liability
(3.2
)
 
(4.5
)
United Kingdom underwriting results
—

 
(0.6
)
Other
(0.6
)
 
(4.6
)
Deferred tax liabilities, gross
(82.7
)
 
(85.2
)
Deferred tax assets, net before valuation allowance
$
34.9

 
$
23.7

Valuation allowance
(28.8
)
 
(29.9
)
Deferred tax asset (liabilities), net
$
6.1

 
$
(6.2
)
Net deferred tax assets (liabilities) - Other jurisdictions
$
6.1

 
$
(0.6
)
Net deferred tax liabilities - United States
—

(1) 
(5.6
)
Deferred tax asset (liabilities), net
$
6.1

 
$
(6.2
)
(1)Net deferred tax liability for the respective year was less than $0.1 million.
Schedule of Net Operating Loss Carryforwards Amounts by Jurisdiction and Year of Expiration The NOL amounts by jurisdiction and year of expiration are as follows:
(in millions)
December 31, 2019
 
Expiration
Net operating loss carryforwards by jurisdiction:

 

Brazil
$
4.3

 
Indefinite
Italy
45.9

 
Indefinite
Malta
8.2

 
Indefinite
United States
46.1

 
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