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Income taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income taxes
13. Income taxes
For the three months ended June 30, 2026 and 2025, our effective tax rates were 8.5% and 41.3%, respectively. For the six months ended June 30, 2026 and 2025, our effective tax rates were 15.1% and 44.7%, respectively. We use the estimated annual effective tax rate method for calculating our tax provision in interim periods, which reflects our best estimate of the effective tax rate expected for the full year. The effective tax rates in both periods were impacted by taxable income subject to tax in certain jurisdictions, losses incurred in zero tax rate jurisdictions and valuation allowances offsetting available carry-forward losses in certain jurisdictions.
The relationship of our income tax expense to pre-tax income (loss) has been atypical because our taxable income has predominantly been generated in the US, UK, Ireland, and Puerto Rico resulting in income tax expense in those jurisdictions (entities in such jurisdictions are referred to as “tax-paying entities”).
Meanwhile, in prior periods, we have incurred operating losses in certain zero tax rate jurisdictions (such as in our reinsurance entity in the Cayman Islands) resulting in no income tax benefit. We have also incurred pre-tax operating losses in Belgium and other jurisdictions where we have generated cumulative operating losses; however, in each of those cases, a valuation allowance has been recorded against the corresponding deferred tax assets (entities in these two types of jurisdictions are referred to as “non-tax paying entities”).
Taxable losses in one jurisdiction generally cannot be applied to offset earnings in another. In certain other jurisdictions, losses in one entity may not be used to offset taxable income generated by another entity in that same jurisdiction.
The composition of our effective tax rates among our tax-paying and non-tax paying entities, which demonstrates the non-tax paying entities' effect on the total effective tax rate, were as follows:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
(in millions)Tax-paying entitiesNon-tax paying entitiesTotalTax-paying entitiesNon-tax paying entitiesTotal
Income (loss) before income taxes$29.7 $57.7 $87.4 $42.8 $(20.5)$22.3 
Income tax expense7.4 — 7.4 9.2 — 9.2 
Effective tax rate24.9 %— 8.5 %21.5 %— 41.3 %
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
(in millions)Tax-paying entitiesNon-tax paying entitiesTotalTax-paying entitiesNon-tax paying entitiesTotal
Income (loss) before income taxes$48.8 $40.6 $89.4 $97.0 $(59.2)$37.8 
Income tax expense13.5 — 13.5 16.9 — 16.9 
Effective tax rate27.7 %— 15.1 %17.4 %— 44.7 %