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Investment Information | 3 Months Ended
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Mar. 31, 2025
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 Gains |  | Gross Unrealized Losses |  | Allowance for Expected Credit Losses |  | Cost or Amortized Cost |  |
March 31, 2025 |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 13,703 |  |  | $ | 153 |  |  | $ | (267) |  |  | $ | (12) |  |  | $ | 13,829 |  |  |
U.S. government and government agencies | 6,531 |  |  | 36 |  |  | (53) |  |  | — |  |  | 6,548 |  |  |
Asset backed securities | 3,087 |  |  | 11 |  |  | (30) |  |  | (8) |  |  | 3,114 |  |  |
Non-U.S. government securities | 2,602 |  |  | 31 |  |  | (81) |  |  | (1) |  |  | 2,653 |  |  |
Commercial mortgage backed securities | 931 |  |  | 5 |  |  | (9) |  |  | — |  |  | 935 |  |  |
Residential mortgage backed securities | 1,755 |  |  | 16 |  |  | (26) |  |  | — |  |  | 1,765 |  |  |
Municipal bonds | 189 |  |  | — |  |  | (8) |  |  | — |  |  | 197 |  |  |
Total | 28,798 |  |  | 252 |  |  | (474) |  |  | (21) |  |  | 29,041 |  |  |
Short-term investments | 2,477 |  |  | 2 |  |  | (1) |  |  | — |  |  | 2,476 |  |  |
Total | $ | 31,275 |  |  | $ | 254 |  |  | $ | (475) |  |  | $ | (21) |  |  | $ | 31,517 |  |  |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 12,487 |  |  | $ | 110 |  |  | $ | (346) |  |  | $ | (12) |  |  | $ | 12,735 |  |  |
U.S. government and government agencies | 6,710 |  |  | 8 |  |  | (149) |  |  | — |  |  | 6,851 |  |  |
Asset backed securities | 2,900 |  |  | 19 |  |  | (32) |  |  | (8) |  |  | 2,921 |  |  |
Non-U.S. government securities | 2,538 |  |  | 30 |  |  | (107) |  |  | (1) |  |  | 2,616 |  |  |
Commercial mortgage backed securities | 1,058 |  |  | 6 |  |  | (11) |  |  | (1) |  |  | 1,064 |  |  |
Residential mortgage backed securities | 1,079 |  |  | 6 |  |  | (31) |  |  | — |  |  | 1,104 |  |  |
Municipal bonds | 263 |  |  | — |  |  | (16) |  |  | — |  |  | 279 |  |  |
Total | 27,035 |  |  | 179 |  |  | (692) |  |  | (22) |  |  | 27,570 |  |  |
Short-term investments | 2,784 |  |  | 2 |  |  | (2) |  |  | — |  |  | 2,784 |  |  |
Total | $ | 29,819 |  |  | $ | 181 |  |  | $ | (694) |  |  | $ | (22) |  |  | $ | 30,354 |  |  |
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 Months |  | 12 Months or More |  | Total
| Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses
March 31, 2025 |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 3,812 |  |  | $ | (84) |  |  | $ | 2,569 |  |  | $ | (183) |  |  | $ | 6,381 |  |  | $ | (267) |
U.S. government and government agencies | 2,160 |  |  | (25) |  |  | 403 |  |  | (28) |  |  | 2,563 |  |  | (53) |
Non-U.S. government securities | 1,387 |  |  | (33) |  |  | 411 |  |  | (48) |  |  | 1,798 |  |  | (81) |
Residential mortgage backed securities | 269 |  |  | (2) |  |  | 180 |  |  | (24) |  |  | 449 |  |  | (26) |
Asset backed securities | 1,016 |  |  | (7) |  |  | 396 |  |  | (23) |  |  | 1,412 |  |  | (30) |
Commercial mortgage backed securities | 367 |  |  | (2) |  |  | 238 |  |  | (7) |  |  | 605 |  |  | (9) |
Municipal bonds | 17 |  |  | (1) |  |  | 159 |  |  | (7) |  |  | 176 |  |  | (8) |
Total | 9,028 |  |  | (154) |  |  | 4,356 |  |  | (320) |  |  | 13,384 |  |  | (474) |
Short-term investments | 821 |  |  | (1) |  |  | — |  |  | — |  |  | 821 |  |  | (1) |
Total | $ | 9,849 |  |  | $ | (155) |  |  | $ | 4,356 |  |  | $ | (320) |  |  | $ | 14,205 |  |  | $ | (475) |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 4,582 |  |  | $ | (114) |  |  | $ | 2,924 |  |  | $ | (232) |  |  | $ | 7,506 |  |  | $ | (346) |
U.S. government and government agencies | 5,130 |  |  | (100) |  |  | 516 |  |  | (49) |  |  | 5,646 |  |  | (149) |
Non-U.S. government securities | 1,650 |  |  | (58) |  |  | 418 |  |  | (49) |  |  | 2,068 |  |  | (107) |
Residential mortgage backed securities | 571 |  |  | (6) |  |  | 186 |  |  | (25) |  |  | 757 |  |  | (31) |
Asset backed securities | 236 |  |  | (8) |  |  | 426 |  |  | (24) |  |  | 662 |  |  | (32) |
Commercial mortgage backed securities | 180 |  |  | (1) |  |  | 434 |  |  | (10) |  |  | 614 |  |  | (11) |
Municipal bonds | 48 |  |  | (1) |  |  | 176 |  |  | (15) |  |  | 224 |  |  | (16) |
Total | 12,397 |  |  | (288) |  |  | 5,080 |  |  | (404) |  |  | 17,477 |  |  | (692) |
Short-term investments | 97 |  |  | (2) |  |  | — |  |  | — |  |  | 97 |  |  | (2) |
Total | $ | 12,494 |  |  | $ | (290) |  |  | $ | 5,080 |  |  | $ | (404) |  |  | $ | 17,574 |  |  | $ | (694) |
At March 31, 2025, on a lot level basis, approximately 10,420 security lots out of a total of approximately 21,650 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 $5 million. At December 31, 2024, on a lot level basis, approximately 9,980 security lots out of a total of approximately 20,930 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 $8 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.
|  | March 31, 2025 |  | December 31, 2024
Maturity |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost
Due in one year or less |  | $ | 493 |  |  | $ | 507 |  |  | $ | 438 |  |  | $ | 451 |
Due after one year through five years |  | 16,026 |  |  | 16,088 |  |  | 15,364 |  |  | 15,590 |
Due after five years through 10 years |  | 5,981 |  |  | 6,106 |  |  | 5,811 |  |  | 6,039 |
Due after 10 years |  | 525 |  |  | 526 |  |  | 385 |  |  | 401 |
|  | 23,025 |  |  | 23,227 |  |  | 21,998 |  |  | 22,481 |
Residential mortgage backed securities |  | 1,755 |  |  | 1,765 |  |  | 1,079 |  |  | 1,104 |
Commercial mortgage backed securities |  | 931 |  |  | 935 |  |  | 1,058 |  |  | 1,064 |
Asset backed securities |  | 3,087 |  |  | 3,114 |  |  | 2,900 |  |  | 2,921 |
Total |  | $ | 28,798 |  |  | $ | 29,041 |  |  | $ | 27,035 |  |  | $ | 27,570 |
Equity Securities, at Fair Value At March 31, 2025, the Company held $1.6 billion of equity securities, at fair value, compared to $1.7 billion at December 31, 2024. Such holdings include publicly traded common stocks, primarily in the consumer cyclical and non-cyclical, technology, communication and financial sectors, and exchange-traded funds in fixed income, equity and other sectors. Other Investments, at Fair Value The following table summarizes the Company’s other investments:
| March 31, 2025 |  | December 31, 2024
Other investments | $ | 1,866 |  |  | $ | 2,135 |
Fixed maturities | 913 |  |  | 854 |
Short term investments | 104 |  |  | 70 |
Equity securities | 5 |  |  | 7 |
Total | $ | 2,888 |  |  | $ | 3,066 |
The following table summarizes the Company’s other investments, as detailed in the previous table, by strategy:
| March 31, 2025 |  | December 31, 2024
Investment grade fixed income | $ | 1,085 |  |  | $ | 1,055 |
Private equity | 252 |  |  | 229 |
Lending | 237 |  |  | 303 |
Term loan investments | 200 |  |  | 430 |
Credit related funds | 74 |  |  | 99 |
Energy | 18 |  |  | 19 |
Total | $ | 1,866 |  |  | $ | 2,135 |
Net Investment Income The components of net investment income were derived from the following sources:
| March 31,
| 2025 |  | 2024
Three Months Ended |  |  |
Fixed maturities | $ | 342 |  |  | $ | 280 |
Short term investments | 26 |  |  | 29 |
Equity securities | 11 |  |  | 8 |
Other (1) | 28 |  |  | 33 |
Gross investment income | 407 |  |  | 350 |
Investment expenses | (29) |  |  | (23) |
Net investment income | $ | 378 |  |  | $ | 327 |
(1) Amounts include dividends and other distributions on investment funds, term loan investments, funds held balances, cash balances and other items. Net Realized Gains (Losses) Net realized gains (losses), which include changes in the allowance for credit losses on financial assets and net impairment losses recognized in earnings were as follows:
| March 31,
| 2025 |  | 2024
Three Months Ended |  |  |
Available for sale securities: |  |  |
Gross gains on investment sales | $ | 51 |  |  | $ | 50 |
Gross losses on investment sales | (113) |  |  | (78) |
Change in fair value of assets and liabilities accounted for using the fair value option: |  |  |
Fixed maturities | 2 |  |  | 2 |
Other investments | 13 |  |  | (2) |
Equity securities, at fair value: |  |  |
Net realized gains (losses) on sales during the period | 47 |  |  | 11 |
Net unrealized gains (losses) on equity securities still held at reporting date | (95) |  |  | 82 |
Allowance for credit losses: |  |  |
Investments related | — |  |  | (6) |
Underwriting related | 1 |  |  | 1 |
Derivative instruments (1) | 99 |  |  | (10) |
Other | (2) |  |  | 17 |
Net realized gains (losses) | $ | 3 |  |  | $ | 67 |
(1) See note 10 for information on the Company’s derivative instruments. Investments Accounted For Using the Equity Method The following table summarizes the Company’s investments accounted for using the equity method, by strategy:
| March 31, 2025 |  | December 31, 2024
Private equity | $ | 1,978 |  |  | $ | 1,915 |
Credit related funds | 1,522 |  |  | 1,487 |
Lending | 869 |  |  | 616 |
Real estate | 861 |  |  | 869 |
Fixed income | 449 |  |  | 384 |
Infrastructure | 413 |  |  | 425 |
Equities | 202 |  |  | 217 |
Energy | 46 |  |  | 67 |
Total | $ | 6,340 |  |  | $ | 5,980 |
Certain of the Company’s other investments 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 that 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 has determined that it is not required to consolidate these investments because it is not the primary beneficiary of 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 line item:
| March 31, 2025 |  | December 31, 2024
Investments accounted for using the equity method (1) | $ | 6,340 |  |  | $ | 5,980 |
Investments accounted for using the fair value option (2) | 31 |  |  | 48 |
Total | $ | 6,371 |  |  | $ | 6,028 |
(1) Aggregate unfunded commitments were $4.3 billion at March 31, 2025, consistent with $4.3 billion at December 31, 2024. (2) Aggregate unfunded commitments were $21 million at March 31, 2025, consistent with $21 million at December 31, 2024. Equity in Net Income (Loss) of Investments Accounted for Using the Equity Method Income from investment funds accounted for using the equity method for the 2025 first quarter was $53 million, compared to $99 million for the 2024 first quarter. 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). Such investments are generally recorded on a one to three month lag based on the availability of reports from the investment funds. 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 Holdings Ltd. (“Greysbridge”), and Premia Holdings Ltd. Investments in Coface and Premia Holdings Ltd. are generally recorded on a three month lag, while the Company’s investment in Greysbridge is not recorded on a lag. As of March 31, 2025, the Company owned approximately 29.9% of the issued shares of Coface, or 30% excluding treasury shares, with a carrying value of $650 million, compared to $592 million at December 31, 2024. As of March 31, 2025, the Company owned 40% of Greysbridge with a carrying value of $538 million, compared to $523 million at December 31, 2024. Income from operating affiliates for the 2025 first quarter was $17 million, compared to $55 million for the 2024 first quarter. See note 16 for information on Company’s transactions with related parties. 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:
|  | Structured Securities (1) |  |  |  | Corporate Bonds |  |  |  | Non-U.S. Government Securities |  | Total
Three Months Ended March 31, 2025 |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 9 |  |  |  |  | $ | 12 |  |  |  |  | $ | 1 |  |  | $ | 22 |
Additions for current-period provision for expected credit losses |  | 3 |  |  |  |  | — |  |  |  |  | — |  |  | 3 |
Additions (reductions) for previously recognized expected credit losses |  | (4) |  |  |  |  | 1 |  |  |  |  | — |  |  | (3) |
Reductions due to disposals |  | — |  |  |  |  | (1) |  |  |  |  | — |  |  | (1) |
Balance at end of period |  | $ | 8 |  |  |  |  | $ | 12 |  |  |  |  | $ | 1 |  |  | $ | 21 |
Three Months Ended March 31, 2024 |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 7 |  |  |  |  | $ | 20 |  |  |  |  | $ | 1 |  |  | $ | 28 |
Additions for current-period provision for expected credit losses |  | — |  |  |  |  | — |  |  |  |  | — |  |  | — |
Additions (reductions) for previously recognized expected credit losses |  | — |  |  |  |  | 5 |  |  |  |  | — |  |  | 5 |
Reductions due to disposals |  | — |  |  |  |  | (1) |  |  |  |  | — |  |  | (1) |
Balance at end of period |  | $ | 7 |  |  |  |  | $ | 24 |  |  |  |  | $ | 1 |  |  | $ | 32 |
(1) Includes asset backed securities, residential 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. See note 18, “Commitments and Contingencies,” of the notes to consolidated financial statements in the Company’s 2024 Form 10-K. The following table details the value of the Company’s restricted assets:
| March 31, 2025 |  | December 31, 2024
Assets used for collateral or guarantees: |  |  |
Affiliated transactions | $ | 5,034 |  |  | $ | 4,730 |
Third party agreements | 6,344 |  |  | 5,999 |
Deposits with U.S. regulatory authorities | 945 |  |  | 882 |
Other (1) | 1,446 |  |  | 1,437 |
Total restricted assets | $ | 13,769 |  |  | $ | 13,048 |
(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:
| March 31, 2025 |  | December 31, 2024
Cash | $ | 1,187 |  |  | $ | 979 |
Restricted cash (included in ‘other assets’) | 798 |  |  | 781 |
Cash and restricted cash | $ | 1,985 |  |  | $ | 1,760 |

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