Taxation (Tables)
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12 Months Ended |
Dec. 31, 2020 |
Income Tax Disclosure [Abstract] |
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Schedule of Income before Income Tax, Domestic and Foreign |
The following is a summary of the Company’s income (loss) before taxes allocated between domestic and foreign operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, | 2020 | | 2019 | | 2018 | | | Domestic | | | | | | | | Bermuda | $ | 1,122,261 | | | $ | 861,068 | | | $ | 349,959 | | | | Foreign | | | | | | | | Singapore | 16,416 | | | (6,334) | | | (3,226) | | | | Ireland | 1,315 | | | (388) | | | 551 | | | | U.S. | 286 | | | 102,724 | | | (56,261) | | | | Australia | (1,689) | | | 3,390 | | | — | | | | Switzerland | (40,502) | | | 14,255 | | | 166 | | | | U.K. | (102,167) | | | (7,233) | | | (28,574) | | | | Income before taxes | $ | 995,920 | | | $ | 967,482 | | | $ | 262,615 | | | | | | | | | | |
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Schedule of Components of Income Tax (Expense) Benefit |
Income tax (expense) benefit is comprised as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2020 | Current | | Deferred | | Total | | | Total income tax (expense) benefit | $ | (6,313) | | | $ | 3,451 | | | $ | (2,862) | | | | Year ended December 31, 2019 | | | | | | | | Total income tax expense | $ | (2,128) | | | $ | (15,087) | | | $ | (17,215) | | | | Year ended December 31, 2018 | | | | | | | | Total income tax (expense) benefit | $ | (1,668) | | | $ | 7,970 | | | $ | 6,302 | | | | | | | | | | |
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Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, | 2020 | | 2019 | | 2018 | | | Expected income tax benefit (expense) | $ | 25,489 | | | $ | (22,874) | | | $ | 17,697 | | | | Nondeductible expenses | 5,074 | | | (7,059) | | | (370) | | | | Income tax audit adjustment | 3,424 | | | — | | | — | | | | Effect of change in tax rate | 3,055 | | | (262) | | | (708) | | | | Tax exempt income | 218 | | | 400 | | | 944 | | | | Transfer pricing | 206 | | | 2,503 | | | (2,481) | | | | GAAP to statutory accounting difference | — | | | 6,553 | | | — | | | | Non-taxable foreign exchange (losses) gains | (7) | | | (4) | | | 586 | | | | U.S. base erosion and anti-abuse tax | (36) | | | — | | | (1,271) | | | | Withholding tax | (1,822) | | | (665) | | | (1,831) | | | | Non-taxable loss on sale of RenaissanceRe UK | (6,091) | | | — | | | — | | | | Change in valuation allowance | (13,003) | | | (5,481) | | | (5,255) | | | | Foreign branch adjustments | (17,821) | | | 7,315 | | | — | | | | Other | (1,548) | | | 2,359 | | | (1,009) | | | | Income tax (expense) benefit | $ | (2,862) | | | $ | (17,215) | | | $ | 6,302 | | | | | | | | | | |
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Schedule of Deferred Tax Assets and Liabilities |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, | 2020 | | 2019 | | | Deferred tax assets | | | | | | Tax loss and credit carryforwards | $ | 128,561 | | | $ | 111,835 | | | | Unearned premiums | 20,854 | | | 17,842 | | | | Reserve for claims and claim expenses | 14,983 | | | 8,984 | | | | Deferred finance charges | 11,427 | | | 10,160 | | | | Deferred underwriting results | 7,228 | | | 4,033 | | | | Accrued expenses | 4,826 | | | 7,196 | | | | | | | | | | | | | | | | | | | | | | | 187,879 | | | 160,050 | | | | Deferred tax liabilities | | | | | | Investments | (23,598) | | | (6,468) | | | | Deferred acquisition expenses | (23,040) | | | (16,296) | | | | Intangible assets | (1,142) | | | (2,891) | | | | Amortization and depreciation | (1,130) | | | (2,133) | | | | VOBA | (1,017) | | | (12,673) | | | | | | | | | | | (49,927) | | | (40,461) | | | | Net deferred tax asset before valuation allowance | 137,952 | | | 119,589 | | | | Valuation allowance | (88,688) | | | (75,685) | | | | Net deferred tax asset | $ | 49,264 | | | $ | 43,904 | | | | | | | | |
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