TAXATION (Tables)

12 Months Ended

Dec. 31, 2011

Income Tax Provisions [Text Block]

Year Ended December 31
(U.S. dollars in thousands)	2011			2010		2009
Current expense:
U.S	$	9,138		$	40,413	$	29,112
Non U.S		87,220			35,113		90,079
Total current expense	$	96,358		$	75,526	$	119,191
Deferred expense (benefit):
U.S	$	(5,550	)	$	18,225	$	(4,604	)
Non U.S		(31,101	)		68,986		5,720
Total deferred expense (benefit)	$	(36,651	)	$	87,211	$	1,116
Total Tax Expense	$	59,707		$	162,737	$	120,307

Income Tax Reconciliation [Text Block]

(U.S. dollars in thousands)	2011			2010			2009
Expected tax provision at weighted average rate	$	(66,493	)	$	80,225		$	129,136
Permanent differences:
Non-taxable investment income (loss)		(14,246	)		(10,176	)		(5,715	)
Non-taxable income (loss)		(3,265	)		3,838			(91,968	)
Prior year adjustments		(9,206	)		16,594			(15,360	)
State, local and foreign taxes		42,581			44,122			59,835
Valuation allowance		24,990			1,346			11,439
Allocated investment income		21,483			12,386			20,045
Stock options		5,840			3,323			6,222
Non-deductible expenses		12,901			11,079			6,673
Non-deductible goodwill impairment		57,069			—			—
Non-taxable reserve release		(11,947	)		—			—
Total tax expense	$	59,707		$	162,737		$	120,307

Significant Components of the Deferred Tax Assets and Liabilities [Text Block]

(U.S. dollars in thousands)	2011		2010
Deferred Tax Asset:
Net unpaid loss reserve discount	$	108,981	$	105,313
Net unearned premiums		62,162		57,289
Compensation liabilities		35,830		42,347
Net operating losses		263,600		282,202
Investment adjustments		12,861		8,941
Pension		9,753		6,290
Bad debt reserve		10,829		10,502
Amortizable goodwill		10,732		—
Net unrealized depreciation on investments		320		6,004
Stock options		13,842		15,052
Depreciation		4,072		7,131
Net realized capital losses		119,307		117,358
Deferred intercompany capital losses		117,892		142,300
Other		7,573		9,527
Deferred tax asset, gross of valuation allowance	$	777,754	$	810,256
Valuation allowance		497,236		514,467
Deferred tax asset, net of valuation allowance	$	280,518	$	295,789
Deferred Tax Liability:
Net unrealized appreciation on investments	$	96,797	$	52,972
Deferred acquisition costs		20,103		19,601
Currency translation adjustments		8,062		11,115
Regulatory reserves		125,249		149,650
Untaxed Lloyd’s result		8,340		16,028
Other		4,786		8,565
Deferred tax liability	$	263,337	$	257,931
Net Deferred Tax Asset	$	17,181	$	37,858