A major French insurer is in a position to take over an Irish-based insurance company called FarmInsure Ltd. FarmInsure has a particular focus on agricultural insurance which may complement the French insurer's expertise in this sector. Using some preliminary information on FarmInsure, they can consider whether to continue their investigation into the financial position and examine whether the Irish insurer is a suitable take-over prospect. e. Although FarmInsure made a net underwriting loss last year, it paid 1.25 million in taxes. Explain why this was the case.