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Fair Value (Tables) | 9 Months Ended
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Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Fair value hierarchy | The following table presents the Company’s financial assets and liabilities measured at fair value by level at September 30, 2021:
|  |  | Estimated Fair Value Measurements Using:
| Estimated Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets measured at fair value (1): |  |  |  |  |  |  |
Available for sale securities: |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |
Corporate bonds | $ | 6,403,617 |  |  | $ | — |  |  | $ | 6,403,604 |  |  | $ | 13 |
Mortgage backed securities | 405,797 |  |  | — |  |  | 405,797 |  |  | — |
Municipal bonds | 382,722 |  |  | — |  |  | 382,722 |  |  | — |
Commercial mortgage backed securities | 579,424 |  |  | — |  |  | 579,424 |  |  | — |
U.S. government and government agencies | 4,460,515 |  |  | 4,431,935 |  |  | 28,580 |  |  | — |
Non-U.S. government securities | 1,863,734 |  |  | — |  |  | 1,863,734 |  |  | — |
Asset backed securities | 2,672,554 |  |  | — |  |  | 2,669,110 |  |  | 3,444 |
Total | 16,768,363 |  |  | 4,431,935 |  |  | 12,332,971 |  |  | 3,457 |
Short-term investments | 3,069,965 |  |  | 2,046,391 |  |  | 1,023,574 |  |  | — |
Equity securities, at fair value | 1,790,640 |  |  | 1,756,462 |  |  | 31,596 |  |  | 2,582 |
Derivative instruments (4) | 89,958 |  |  | — |  |  | 89,958 |  |  | — |
Residential mortgage loans | 7,701 |  |  | — |  |  | 7,701 |  |  | — |
Fair value option: |  |  |  |  |  |  |
Corporate bonds | 374,326 |  |  | — |  |  | 374,326 |  |  | — |
Non-U.S. government bonds | 19,829 |  |  | — |  |  | 19,829 |  |  | — |
Mortgage backed securities | — |  |  | — |  |  | — |  |  | — |
Commercial mortgage backed securities | — |  |  | — |  |  | — |  |  | — |
Asset backed securities | 19,852 |  |  | — |  |  | 19,852 |  |  | — |
U.S. government and government agencies | — |  |  | — |  |  | — |  |  | — |
Short-term investments | 115,681 |  |  | 1,190 |  |  | 114,491 |  |  | — |
Equity securities | 24,522 |  |  | 19,987 |  |  | — |  |  | 4,535 |
Other investments | 359,011 |  |  | 17,861 |  |  | 311,393 |  |  | 29,757 |
Other investments measured at net asset value (2) | 1,130,748 |  |  |  |  |  |  |
Total | 2,043,969 |  |  | 39,038 |  |  | 839,891 |  |  | 34,292 |
Total assets measured at fair value | $ | 23,770,596 |  |  | $ | 8,273,826 |  |  | $ | 14,325,691 |  |  | $ | 40,331 |
Liabilities measured at fair value: |  |  |  |  |  |  |
Contingent consideration liabilities | $ | (17,811) |  |  | $ | — |  |  | $ | — |  |  | $ | (17,811) |
Securities sold but not yet purchased (3) | — |  |  | — |  |  | — |  |  | — |
Derivative instruments (4) | (43,526) |  |  | — |  |  | (43,526) |  |  | — |
Total liabilities measured at fair value | $ | (61,337) |  |  | $ | — |  |  | $ | (43,526) |  |  | $ | (17,811) |
(1) In securities lending transactions, the Company receives collateral in excess of the fair value of the securities pledged. For purposes of this table, the Company has excluded the collateral received under securities lending, at fair value and included the securities pledged under securities lending, at fair value. See note 8, “—Securities Lending Agreements.” In September 2021, the Company terminated its securities lending program and no longer enters into securities lending agreements with financial institutions. (2) In accordance with applicable accounting guidance, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. (3) Represents the Company’s obligations to deliver securities that it did not own at the time of sale. Such amounts are included in “other liabilities” on the Company’s consolidated balance sheets. (4) See note 10. The following table presents the Company’s financial assets and liabilities measured at fair value by level at December 31, 2020:
|  |  | Estimated Fair Value Measurements Using:
| Estimated Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets measured at fair value (1): |  |  |  |  |  |  |
Available for sale securities: |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |
Corporate bonds | $ | 7,856,571 |  |  | $ | — |  |  | $ | 7,856,558 |  |  | $ | 13 |
Mortgage backed securities | 630,001 |  |  | — |  |  | 630,001 |  |  | — |
Municipal bonds | 494,522 |  |  | — |  |  | 494,522 |  |  | — |
Commercial mortgage backed securities | 389,900 |  |  | — |  |  | 389,900 |  |  | — |
U.S. government and government agencies | 5,557,077 |  |  | 5,463,356 |  |  | 93,721 |  |  | — |
Non-U.S. government securities | 2,433,733 |  |  | — |  |  | 2,433,733 |  |  | — |
Asset backed securities | 1,634,804 |  |  | — |  |  | 1,631,378 |  |  | 3,426 |
Total | 18,996,608 |  |  | 5,463,356 |  |  | 13,529,813 |  |  | 3,439 |
Short-term investments | 1,924,922 |  |  | 1,920,565 |  |  | 4,357 |  |  | — |
Equity securities, at fair value | 1,460,959 |  |  | 1,401,653 |  |  | 17,291 |  |  | 42,015 |
Derivative instruments (4) | 177,383 |  |  | — |  |  | 177,383 |  |  | — |
Fair value option: |  |  |  |  |  |  |
Corporate bonds | 651,294 |  |  | — |  |  | 650,309 |  |  | 985 |
Non-U.S. government bonds | 35,263 |  |  | — |  |  | 35,263 |  |  | — |
Mortgage backed securities | 3,282 |  |  | — |  |  | 3,282 |  |  | — |
Commercial mortgage backed securities | 1,090 |  |  | — |  |  | 1,090 |  |  | — |
Asset backed securities | 152,151 |  |  | — |  |  | 152,151 |  |  | — |
U.S. government and government agencies | 274 |  |  | 164 |  |  | 110 |  |  | — |
Short-term investments | 557,008 |  |  | 420,131 |  |  | 136,877 |  |  | — |
Equity securities | 92,549 |  |  | 23,373 |  |  | 188 |  |  | 68,988 |
Other investments | 1,134,229 |  |  | 51,149 |  |  | 1,015,977 |  |  | 67,103 |
Other investments measured at net asset value (2) | 1,197,656 |  |  |  |  |  |  |
Total | 3,824,796 |  |  | 494,817 |  |  | 1,995,247 |  |  | 137,076 |
Total assets measured at fair value | $ | 26,384,668 |  |  | $ | 9,280,391 |  |  | $ | 15,724,091 |  |  | $ | 182,530 |
Liabilities measured at fair value: |  |  |  |  |  |  |
Contingent consideration liabilities | $ | (461) |  |  | $ | — |  |  | $ | — |  |  | $ | (461) |
Securities sold but not yet purchased (3) | (21,679) |  |  | — |  |  | (21,679) |  |  | — |
Derivative instruments (4) | (108,705) |  |  | — |  |  | (108,705) |  |  | — |
Total liabilities measured at fair value | $ | (130,845) |  |  | $ | — |  |  | $ | (130,384) |  |  | $ | (461) |
(1) In securities lending transactions, the Company receives collateral in excess of the fair value of the securities pledged. For purposes of this table, the Company has excluded the collateral received under securities lending, at fair value and included the securities pledged under securities lending, at fair value. See note 8, “—Securities Lending Agreements.” In September 2021, the Company terminated its securities lending program and no longer enters into securities lending agreements with financial institutions. (2) In accordance with applicable accounting guidance, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. (3) Represents the Company’s obligations to deliver securities that it did not own at the time of sale. Such amounts are included in “other liabilities” on the Company’s consolidated balance sheets. (4) See note 10.
Rollforward of Level 3 investments | The following table presents a reconciliation of the beginning and ending balances for all financial assets and liabilities measured at fair value on a recurring basis using Level 3 inputs:
| Assets | Liabilities
s | Available For Sale |  | Fair Value Option |  | Fair Value |  |
| Structured Securities (1) |  | Corporate Bonds |  | Corporate Bonds |  | Other Investments |  | Equity Securities |  | Equity Securities |  | Contingent Consideration Liabilities
Three Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 3,424 |  |  | $ | 13 |  |  | $ | 998 |  |  | $ | 73,900 |  |  | $ | 73,678 |  |  | $ | 49,136 |  |  | $ | (466) |
Total gains or (losses) (realized/unrealized) |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings (2) | 10 |  |  | — |  |  | — |  |  | — |  |  | 38 |  |  | 11 |  |  | — |
Included in other comprehensive income | 10 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Purchases, issuances, sales and settlements |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 208 |  |  | (17,345) |
Issuances | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Sales (3) | — |  |  | — |  |  | (998) |  |  | (44,143) |  |  | (69,181) |  |  | (46,773) |  |  | — |
Settlements | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Transfers in and/or out of Level 3 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 3,444 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 29,757 |  |  | $ | 4,535 |  |  | $ | 2,582 |  |  | $ | (17,811) |
Three Months Ended September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 3,450 |  |  | $ | 857 |  |  | $ | 998 |  |  | $ | 46,453 |  |  | $ | 61,447 |  |  | $ | 51,981 |  |  | $ | (1,250) |
Total gains or (losses) (realized/unrealized) |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings (2) | (75) |  |  | (5,872) |  |  | (34) |  |  | 885 |  |  | 2,076 |  |  | (946) |  |  | — |
Included in other comprehensive income | 191 |  |  | 6,936 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Purchases, issuances, sales and settlements |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases | — |  |  | — |  |  | — |  |  | 22,436 |  |  | — |  |  | — |  |  | — |
Issuances | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Sales | — |  |  | — |  |  | — |  |  | (3,588) |  |  | — |  |  | (8,349) |  |  | — |
Settlements | (11) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 620 |
Transfers in and/or out of Level 3 | — |  |  | (1,908) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 3,555 |  |  | $ | 13 |  |  | $ | 964 |  |  | $ | 66,186 |  |  | $ | 63,523 |  |  | $ | 42,686 |  |  | $ | (630) |
Nine Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of year | $ | 3,426 |  |  | $ | 13 |  |  | $ | 985 |  |  | $ | 67,103 |  |  | $ | 68,988 |  |  | $ | 42,015 |  |  | $ | (461) |
Total gains or (losses) (realized/unrealized) |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings (2) | (46) |  |  | — |  |  | 13 |  |  | 881 |  |  | 4,728 |  |  | 1,837 |  |  | — |
Included in other comprehensive income | 67 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Purchases, issuances, sales and settlements |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases | — |  |  | — |  |  | — |  |  | 13,003 |  |  | — |  |  | 5,503 |  |  | (17,345) |
Issuances | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Sales (3) | — |  |  | — |  |  | (998) |  |  | (51,230) |  |  | (69,181) |  |  | (46,773) |  |  | — |
Settlements | (3) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5) |
Transfers in and/or out of Level 3 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 3,444 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 29,757 |  |  | $ | 4,535 |  |  | $ | 2,582 |  |  | $ | (17,811) |
Nine Months Ended September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of year | $ | 5,216 |  |  | $ | 8,851 |  |  | $ | 932 |  |  | $ | 68,817 |  |  | $ | 58,094 |  |  | $ | 55,889 |  |  | $ | (7,998) |
Total gains or (losses) (realized/unrealized) |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings (2) | (130) |  |  | (5,865) |  |  | (34) |  |  | (129) |  |  | 5,429 |  |  | 7,132 |  |  | (72) |
Included in other comprehensive income | (118) |  |  | 397 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Purchases, issuances, sales and settlements |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases | — |  |  | — |  |  | 66 |  |  | 22,460 |  |  | — |  |  | 3,464 |  |  | — |
Issuances | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Sales | — |  |  | — |  |  | — |  |  | (27,946) |  |  | — |  |  | (23,799) |  |  | — |
Settlements | (1,413) |  |  | (1,462) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,440 |
Transfers in and/or out of Level 3 | — |  |  | (1,908) |  |  | — |  |  | 2,984 |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 3,555 |  |  | $ | 13 |  |  | $ | 964 |  |  | $ | 66,186 |  |  | $ | 63,523 |  |  | $ | 42,686 |  |  | $ | (630) |
(1) Includes asset backed securities, mortgage backed securities and commercial mortgage backed securities. (2) Gains or losses were included in net realized gains (losses). (3) Sales for the 2021 periods primarily related to the Company’s deconsolidation of Watford.

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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