Company: AHL
Filing Date: 2025-03-20
Form Type: F-1/A
Source: 0001628280-25-014149
Chunk: 176

Company: ASPEN INSURANCE HOLDINGS LTD
Filing Date: 2025-03-20
Form: F-1/A
Chunk 176
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|:-------------------|:----|:---------------------------------|------:|:----|:-----|------:|:----|:-----|-----:|
| Bermuda tax        |     | $                                |  -1.3 |     | $    | 201.1 |     | $    |    — |
| U.S. tax           |     |                                  | -58.3 |     |      | -55.4 |     |      | 88.1 |
| U.K. tax           |     |                                  |  81.4 |     |      |  -5.4 |     |      | -7.0 |
| Other              |     |                                  |   0.2 |     |      |  -8.2 |     |      | -3.0 |
| Income tax benefit |     | $                                |  22.0 |     | $    | 132.1 |     | $    | 78.1 |

2024, 2023 and 2022

The effective tax rate (defined as the tax expense or benefit, divided by the profit or loss before tax), for the twelve months ended December 31, 2024, on profit before tax was (4.7)% (2023 — (32.8)%), driven by a change in judgment about the recoverability of deferred tax assets in the U.K. operating subsidiaries. As a result, the Company has recognized a $106.6 million tax benefit from the reversal of brought forward valuation allowances, relating mostly to Net Operating Losses, Deferred Syndicate Losses and Fixed Assets. We believe that the deferred tax assets of our U.K. operating subsidiaries relating to these items will more likely than not be fully utilized over time, and therefore the previously recognized valuation allowance in relation to these items has been reversed. A valuation allowance of $48.8 million remains against the deferred tax assets of these subsidiaries that we do not expect to be utilized. Refer to Note 11 of our audited consolidated financial statements, “Income Taxes”, for further details.

On December 27, 2023, the Government of Bermuda enacted the CIT Act, which applies a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025. The CIT Act includes a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the new tax regime and resulted in the recognition of a