TAXATION (Tables)

12 Months Ended

Dec. 31, 2025

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,	2025		2024		2023
Domestic (Bermuda) (1)	$	3,440,704	$	2,574,104	$	2,670,888
Foreign (1)	573,371		419,056		439,172
Income (loss) before taxes	$	4,014,075	$	2,993,160	$	3,110,060

(1)In prior years, the Company disclosed income (loss) before taxes disaggregated by jurisdiction. In 2025, in conjunction with the prospective adoption of ASU 2023-09 and the January 1, 2025 effective date of the CIT, the Company revised its presentation to disclose income (loss) before taxes disaggregated between Bermuda and foreign jurisdictions. This change is intended to more accurately reflect the geographic location where income (loss) before taxes is earned. Prior period amounts have been conformed to the current year presentation for comparability.

Schedule of Components of Income Tax (Expense) Benefit

Income tax benefit (expense) is comprised as follows:



Year ended December 31,	2025		2024		2023
Current income tax benefit (expense)
Federal (Bermuda) (1)	$	(249,011)	$	—	$	—
Foreign	(138,981)		(56,718)		(57,422)
Total current income tax benefit (expense)	(387,992)		(56,718)		(57,422)

Deferred income tax benefit (expense)
Federal (Bermuda) (1)	(13,262)		(346)		593,765
Foreign	4,922		24,436		(26,276)
Total deferred income tax benefit (expense)	(8,340)		24,090		567,489
Total income tax benefit (expense)	$	(396,332)	$	(32,628)	$	510,067

(1)All Bermuda income taxes are levied by the Government of Bermuda and are considered federal income taxes in the context of FASB ASC 740, Income Taxes. As none of the parishes of Bermuda impose an income tax, the Company has not incurred any Bermuda state income tax benefit (expense).

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 Bermuda statutory tax rate for 2025 after the adoption of ASU 2023-09 is as follows:



Year ended December 31,	2025
	$		%
Expected income tax benefit (expense) at Bermuda statutory tax rate	$	(602,111)	15.0	%

Nontaxable or nondeductible items
Nontaxable income attributable to noncontrolling interests	137,613		(3.4)	%
Subtotal	(464,498)		11.6	%
Other nontaxable or nondeductible items
Other nontaxable income earned by excluded entities	34,346		(0.9)	%
Other	10,605		(0.3)	%
Foreign tax effects
U.K.
Pillar II top-up tax	(50,366)		1.3	%
Change in valuation allowance	40,838		(1.0)	%
Other	(19,139)		0.5	%
Luxembourg
Change in valuation allowance	38,827		(1.0)	%
Other	(3,927)		0.1	%
U.S.	(35,462)		0.9	%
Switzerland	(16,565)		0.4	%
Other foreign jurisdictions	(2,265)		0.1	%
Effect of changes in tax laws or rates enacted in the current period	41,841		(1.0)	%

Tax credits
Creditable foreign (non-Bermuda) taxes	32,682		(0.8)	%
Changes in valuation allowances	—		—	%

Other adjustments
Other	(3,249)		0.1	%
Income tax benefit (expense) and effective tax rate	$	(396,332)	9.9	%

A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate as presented in 2024 and 2023 prior to the adoption of ASU 2023-09 is as follows:



Year ended December 31,	2024		2023
Expected income tax benefit (expense)	$	(60,684)	$	(103,963)
Nondeductible expenses	(1,671)		(535)
Reinsurance adjustment	4,384		4,746
Effect of change in tax rate	(160)		(729)
Pillar II top-up tax	(16,603)		—

GAAP to statutory accounting difference	(1,113)		(1,781)

Withholding tax	(1,614)		(1,078)
Recognition of Bermuda net deferred tax asset	8,339		593,765
Change in valuation allowance	66,198		45,192
Foreign branch adjustments	(30,998)		(25,908)
Other	1,294		358
Income tax benefit (expense)	$	(32,628)	$	510,067

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,	2025		2024
Deferred tax assets
Intangible assets	$	382,183	$	420,143
Value of in-force business	150,840		167,599
Tax loss carryforwards	135,107		152,864
Reserve for claims and claim expenses	143,158		131,121
Unearned premiums	51,520		59,441
Amortization and depreciation	25,761		23,877
Deferred finance charges	15,935		17,832
Other	5,598		8,571
	910,102		981,448
Deferred tax liabilities
Deferred acquisition expenses	(75,558)		(125,347)
Investments	(36,123)		—
Deferred underwriting results	(22,399)		—
Deferred revenue	(14,458)		(8,685)
VOBA	—		(17,540)
Other	(14,572)		(7,312)
	(163,110)		(158,884)

Net deferred tax asset (liability) before valuation allowance	746,992		822,564
Valuation allowance	(80,078)		(147,079)
Net deferred tax asset (liability)	$	666,914	$	675,485

Schedule of Income Taxes Paid

The Company made the following net tax payments in 2025 after the adoption of ASU 2023-09:



Year ended December 31,	2025
Federal (Bermuda)	$	164,300


Foreign
U.S.	39,239
Switzerland	14,161
Other	19,277
Total net payment (refund) of income taxes	$	236,977

Schedule of Open Tax Years

The following tax years were open to examination by the local tax authorities as of February 6, 2026:



			Tax Jurisdiction						Open Tax Years
			Singapore						2021-2025
			Ireland						2021-2025
			U.S.						2018-2025
			Australia						2021-2025
			Switzerland						2020-2025
			Luxembourg						2020-2025
			Canada						2021-2025
			U.K.						2022-2025
			Bermuda						2025