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Investment Information
 12 Months Ended
Dec. 31, 2023
Disclosure Investment Information [Abstract]  
Investment
Available For Sale Investments
The following table summarizes the fair value and cost or amortized cost of the Company’s securities classified as available for sale:
Estimated
Fair
Value		Gross Unrealized GainsGross Unrealized LossesAllowance for Expected Credit LossesCost or
Amortized
Cost
December 31, 2023
Fixed maturities:
Corporate bonds$10,855 $157 $(464)$(20)$11,182 
U.S. government and government agencies5,814 63 (86)— 5,837 
Asset backed securities2,250 11 (55)(5)2,299 
Non-U.S. government securities2,062 33 (100)(1)2,130 
Commercial mortgage backed securities1,213 3 (34)(2)1,246 
Residential mortgage backed securities1,103 7 (66)— 1,162 
Municipal bonds256 1 (20)— 275 
Total23,553 275 (825)(28)24,131 
Short-term investments2,063 1 (2)— 2,064 
Total$25,616 $276 $(827)$(28)$26,195 
December 31, 2022
Fixed maturities:
Corporate bonds$8,020 $55 $(781)$(30)$8,776 
U.S. government and government agencies5,162 15 (343)— 5,490 
Asset backed securities1,927 1 (107)(6)2,039 
Non-U.S. government securities2,313 9 (238)(2)2,544 
Commercial mortgage backed securities1,047 1 (58)(3)1,107 
Residential mortgage backed securities795 5 (87)— 877 
Municipal bonds419 3 (33)— 449 
Total19,683 89 (1,647)(41)21,282 
Short-term investments1,332 1 (2)— 1,333 
Total$21,015 $90 $(1,649)$(41)$22,615 
The following table summarizes, for all available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:
Less than 12 Months12 Months or MoreTotal
Estimated Fair
Value		Gross Unrealized LossesEstimated Fair
Value		Gross Unrealized LossesEstimated Fair
Value		Gross Unrealized Losses
December 31, 2023
Fixed maturities:
Corporate bonds$1,559 $(45)$4,959 $(419)$6,518 $(464)
U.S. government and government agencies1,066 (10)941 (76)2,007 (86)
Non-U.S. government securities365 (4)897 (96)1,262 (100)
Residential mortgage backed securities221 (3)522 (63)743 (66)
Asset backed securities234 (1)1,112 (54)1,346 (55)
Commercial mortgage backed securities100 (1)909 (33)1,009 (34)
Municipal bonds20 (1)215 (19)235 (20)
Total3,565 (65)9,555 (760)13,120 (825)
Short-term investments302 (2)— — 302 (2)
Total$3,867 $(67)$9,555 $(760)$13,422 $(827)
December 31, 2022
Fixed maturities:
Corporate bonds$4,823 $(393)$2,559 $(388)$7,382 $(781)
U.S. government and government agencies3,557 (197)1,443 (146)5,000 (343)
Non-U.S. government securities1,703 (154)542 (84)2,245 (238)
Residential mortgage backed securities546 (52)154 (35)700 (87)
Asset backed securities1,148 (66)512 (41)1,660 (107)
Commercial mortgage backed securities598 (35)445 (23)1,043 (58)
Municipal bonds364 (30)16 (3)380 (33)
Total12,739 (927)5,671 (720)18,410 (1,647)
Short-term investments237 (2)— — 237 (2)
Total$12,976 $(929)$5,671 $(720)$18,647 $(1,649)
At December 31, 2023, on a lot level basis, approximately 7,100 security lots out of a total of approximately 15,720 security lots were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity portfolio was $6 million. The Company believes that such securities were temporarily impaired at December 31, 2023. At December 31, 2022, on a lot level basis, approximately 9,810 security lots out of a total of approximately 12,590 security lots were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity portfolio was $7 million.
The contractual maturities of the Company’s fixed maturities are shown in the following table. Expected maturities, which are management’s best estimates, will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
December 31, 2023December 31, 2022
Maturity
Estimated Fair Value
Amortized Cost
Estimated Fair Value
Amortized Cost
Due in one year or less$480 $499 $511 $537 
Due after one year through five years12,924 13,101 11,016 11,715 
Due after five years through 10 years5,249 5,450 3,984 4,527 
Due after 10 years334 374 403 480 
18,987 19,424 15,914 17,259 
Mortgage backed securities1,103 1,162 795 877 
Commercial mortgage backed securities1,213 1,246 1,047 1,107 
Asset backed securities2,250 2,299 1,927 2,039 
Total$23,553 $24,131 $19,683 $21,282 
Equity Securities, at Fair Value
At December 31, 2023, the Company held $1.2 billion of equity securities, at fair value, compared to $860 million at December 31, 2022.
Net Investment Income
The components of net investment income were derived from the following sources:
Year Ended December 31,
202320222021
Fixed maturities$917 $469 $331 
Short-term investments68 29 7 
Equity securities22 22 42 
Term loans— — 30 
Other (1)93 47 68 
Gross investment income1,100 567 478 
Investment expenses(77)(71)(89)
Net investment income$1,023 $496 $389 
(1)    Includes interest income on operating cash, distributions from investment funds and other items.

Net Realized Gains (Losses)

Net realized gains (losses) were as follows:
Year Ended December 31,
202320222021
Available for sale securities:
Gross gains on investment sales$116 $81 $314 
Gross losses on investment sales(547)(317)(157)
Change in fair value of assets and liabilities accounted for using the fair value option:
Fixed maturities18 (71)9 
Other investments27 (21)117 
Equity securities1 (4)13 
Short-term investments— (3)1 
Equity securities, at fair value :
Net realized gains (losses) on securities sold61 75 123 
Net unrealized gains (losses) on equity securities still held at reporting date88 (267)49 
Allowance for credit losses:
Investments related3 (44)(1)
Underwriting related(1)(13)— 
Derivative instruments (1)59 (75)(33)
Other (2)10 (4)(55)
Net realized gains (losses)$(165)$(663)$380 
(1)    See note 11, “Derivative Instruments” for information on the Company’s derivative instruments.
(2)    2021 period reflected $33 million of losses related to the Company’s
deconsolidation of Somers.

Other Investments
The following table summarizes the Company’s other investments and other investable assets:
December 31,
20232022
Other investments$1,777 $1,043 
Fixed maturities683 554 
Equity securities7 14 
Short-term investments21 33 
Total other investments$2,488 $1,644 
The following table summarizes the Company’s other investments, as detailed in the previous table, by strategy:

December 31,

2023

2022
Lending427 406 
Investment grade fixed income754 271 
Term loan investments272 164 
Private equity182 123 
Credit related funds124 56 
Energy18 23 
Total
$1,777 $1,043 
Investments Accounted For Using the Equity Method
The following table summarizes the Company’s investments accounted for using the equity method, by strategy:

December 31,

20232022
Credit related funds$1,258 $1,136 
Private equity1,175 917 
Real estate666 535 
Lending597 531 
Infrastructure320 245 
Fixed income277 130 
Equities178 169 
Energy95 111 
Total
$4,566 $3,774 
In applying the equity method, investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). Such investments are generally recorded on a one to three month lag based on the availability of reports from the investment funds.
Equity in Net Income (Loss) of Investments Accounted For Using the Equity Method
The Company recorded equity in net income related to investments accounted for using the equity method of $278 million for 2023, compared to $115 million for 2022 and $366 million for 2021. In applying the equity method,
investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the market value of the underlying securities in the funds).
A summary of financial information for the Company’s investment funds and operating affiliates accounted for using the equity method is as follows:
December 31,
20232022
Invested assets$91,534 $74,961 
Total assets108,952 88,063 
Total liabilities33,901 27,553 
Net assets$75,051 $60,510 
Year Ended December 31,
202320222021
Total revenues$7,766 $12,305 $11,786 
Total expenses7,174 5,374 3,239 
Net income (loss)$592 $6,931 $8,547 
Certain of the Company’s other investments and investments accounted for using the equity method are in investment funds for which the Company has the option to redeem at agreed upon values as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investments in investment funds may be redeemed daily, monthly, quarterly or on other terms. Two common redemption restrictions which may impact the Company’s ability to redeem these investment funds are gates and lockups. A gate is a suspension of redemptions which may be implemented by the general partner or investment manager of the fund in order to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a predetermined percentage of the investment fund's net assets which may otherwise hinder the general partner or investment manager's ability to liquidate holdings in an orderly fashion in order to generate the cash necessary to fund extraordinarily large redemption payouts. A lockup period is the initial amount of time an investor is contractually required to hold the security before having the ability to redeem. If the investment funds are eligible to be redeemed, the time to redeem such fund can take weeks or months following the notification.
Limited Partnership Interests
In the normal course of its activities, the Company invests in limited partnerships as part of its overall investment strategy. Such amounts are included in ‘investments accounted for using the equity method’ and ‘investments accounted for using the fair value option.’ The Company determined that these limited partnership interests represented variable interests in the funds. The Company’s maximum exposure to
loss with respect to these investments is limited to the investment carrying amounts reported in the Company’s consolidated balance sheet and any unfunded commitment.
The following table summarizes investments in limited partnership interests where the Company has a variable interest by balance sheet item:
December 31,
20232022
Investments accounted for using the equity method (1)$4,566 $3,774 
Investments accounted for using the fair value option (2)114 130 
Total$4,680 $3,904 
(1)     Aggregate unfunded commitments were $3.4 billion at December 31, 2023, consistent with $2.6 billion at December 31, 2022.
(2)    Aggregate unfunded commitments were $32 million at December 31, 2023, compared to $17 million at December 31, 2022.

Investments in Operating Affiliates
Investments in which the Company has significant influence over the operating and financial policies are classified as ‘investments in operating affiliates’ on the Company’s balance sheets and are accounted for under the equity method. Such investments primarily include the Company’s investment in Coface SA (“Coface”), Greysbridge and Premia. Investments in Coface and Premia are generally recorded on a three month lag, while the Company’s investment in Greysbridge is not recorded on a lag.
In 2021, the Company completed the share purchase agreement with Natixis to purchase 29.5% of the common equity of Coface, a France-based leader in the global trade credit insurance market. The consideration paid was €9.95 per share, or an aggregate €453 million (approximately $546 million) including related fees. Income (loss) from operating affiliates reflected a one-time gain of $75 million realized from the acquisition. As a result of equity method accounting rules, approximately $36 million of additional gain was deferred and will generally be recognized over the next five years. As of December 31, 2023, the Company owned approximately 29.9% of the issued shares of Coface, or 30.1% excluding treasury shares, with a carrying value of $570 million, compared to $563 million at December 31, 2022.
In July 2021, the Company announced the completion of the previously disclosed acquisition of Somers by Greysbridge for a cash purchase price of $35.00 per common share.

Effective July 1, 2021, Somers is wholly owned by Greysbridge, and Greysbridge is owned 40% by the Company, 30% by certain investment funds managed by Kelso and 30% by certain investment funds managed by
Warburg. At December 31, 2023 the Company’s carrying value in Greysbridge was $430 million, compared to $306 million at December 31, 2022. The Company’s carrying value in Greysbridge reflected aggregate purchase price of $279 million along with income (loss) from operating affiliates, which included a one-time gain of $96 million recognized from the acquisition. See note 12, “Variable Interest Entity and Noncontrolling Interests.”
The Company recorded income from operating affiliates of $184 million for 2023, compared to $75 million for 2022 and $264 million for 2021.


Allowance for Expected Credit Losses
The following table provides a roll forward of the allowance for expected credit losses of the Company’s securities classified as available for sale:
Year Ended December 31, 2023Structured Securities (1)Non-U.S. Government SecuritiesCorporate
Bonds		Total
Balance at beginning of period$9 $2 $30 $41 
Additions for current-period provision for expected credit losses2 — 5 7 
Additions (reductions) for previously recognized expected credit losses(3)— (7)(10)
Reductions due to disposals(1)(1)(8)(10)
Balance at end of period$7 $1 $20 $28 
Year Ended December 31, 2022
Balance at beginning of period$1 $— $2 $3 
Additions for current-period provision for expected credit losses14 2 39 55 
Additions (reductions) for previously recognized expected credit losses (4)— (9)(13)
Reductions due to disposals(2)— (2)(4)
Balance at end of period$9 $2 $30 $41 
(1)    Includes asset backed securities, mortgage backed securities and commercial mortgage backed securities.
Restricted Assets
The Company is required to maintain assets on deposit, which primarily consist of fixed maturities, with various regulatory authorities to support its underwriting operations. The Company’s subsidiaries maintain assets in trust accounts as collateral for transactions with affiliated companies and also have investments in segregated portfolios primarily to provide collateral or guarantees for letters of credit to third parties
The following table details the value of the Company’s restricted assets:
December 31,
20232022
Assets used for collateral or guarantees:
Affiliated transactions$4,854 $4,254 
Third party agreements2,869 2,633 
Deposits with U.S. regulatory authorities833 776 
Other (1)1,376 1,038 
Total restricted assets $9,932 $8,701 
(1) Primarily includes Funds at Lloyds, deposits with non-U.S. regulatory authorities and other restricted assets.
Reconciliation of Cash and Restricted Cash
The following table details reconciliation of cash and restricted cash within the Consolidated Balance Sheets:
December 31,
202320222021
Cash$917 $855 $859 
Restricted cash (included in ‘other assets’)581 418 455 
Cash and restricted cash$1,498 $1,273 $1,314