ODYSSEY RE HOLDINGS CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued The components of the federal and foreign income tax provision (benefit) follow (in thousands): 2004 2003 2002 Current: United States $108,467 $141,660 $ 6,593 Foreign 3,833 — — Total current income tax provision 112,300 141,660 6,593 Deferred: United States (20,449) (12,591) 80,158 Foreign — — — Total deferred income tax (benefit) provision ( 20,449) (12,591) 80,158 Total federal and foreign income tax provision $  91,851 $129,069 $86,751 Deferred federal and foreign income taxes reflect the tax impact of temporary differences between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. Components of federal and foreign income tax assets and liabilities follow (in thousands): 2004 2003 Unpaid losses and loss adjustment expenses $148,786 $ 99,431 Unearned premiums 45,066 41,342 Reserve for potentially uncollectible balances 12,465 12,465 Pension and benefit accruals 6,999 6,813 Investments 24,267 34,216 Total deferred tax assets 237,583 194,267 Deferred acquisition costs 60,059 58,901 Other 6,005 2,902 Total deferred tax liabilities 66,064 61,803 Net deferred tax assets 171,519 132,464 Deferred income taxes on accumulated other comprehensive income (73,687) (60,538) Deferred federal and foreign income tax asset 97,832 71,926 Current taxes recoverable (payable) 4,466 (743) Federal and foreign income taxes recoverable $102,298 $ 71,183 Management believes that it is mor likely than not that the Company will realize the benefits of its net deferred tax assets and, accordingly, no valuation allowance has been recorded for the periods presented. 74