RENAISSANCERE HOLDINGS LTD

Income taxes have been determined in accordance with the provisions of FASB ASC Topic 740, Income Taxes. Deferred tax assets and liabilities result from temporary differences between the amounts recorded in our consolidated financial statements and the tax basis of our assets and liabilities. Such temporary differences are primarily due to net operating loss and capital loss carryforwards and GAAP versus tax basis accounting differences relating to insurance-related assets and liabilities, investments, and deferred revenues and expenses, among others. The effect on deferred tax assets and liabilities of a change in tax laws or tax rates is recognized in income in the period in which the change is enacted. A valuation allowance against net deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to net deferred tax assets will not be realized. Significant judgments, assumptions and estimates which are inherently subjective are required in determining income tax expense, temporary differences, the deferred tax impact of a change in law, and valuation allowances. Refer to “Note 15. Taxation” in our “Notes to the Consolidated Financial Statements” for additional information.

Deferred Tax Assets and Liabilities

At December 31, 2025, our net deferred tax asset before valuation allowance and valuation allowance were $747.0 million and $80.1 million, respectively (2024 - $822.6 million and $147.1 million, respectively). At each balance sheet date, we assess the need to establish a valuation allowance that reduces the net deferred tax asset when it is more likely than not that all, or some portion, of the net deferred tax assets will not be realized. The valuation allowance assessment is performed separately in each taxable jurisdiction based on all available information including projections of future GAAP taxable income from each tax-paying component in each tax jurisdiction.

Unrecognized Tax Benefits

We have unrecognized tax benefits of $Nil as of December 31, 2025 (2024 - $Nil). Interest and penalties related to unrecognized tax benefits would be recognized in income tax expense. At December 31, 2025, interest and penalties accrued on unrecognized tax benefits were $Nil (2024 - $Nil).