INVESTMENTS

Fixed Maturity Investments Trading

The following table summarizes the fair value of fixed maturity investments trading:




	September 30, 2017		December 31, 2016
U.S. treasuries	$	2,956,952	$	2,617,894
Agencies	41,109		90,972
Municipal	521,220		519,069
Non-U.S. government (Sovereign debt)	177,855		333,224
Non-U.S. government-backed corporate	121,892		133,300
Corporate	2,028,750		1,877,243
Agency mortgage-backed	499,310		462,493
Non-agency mortgage-backed	299,530		258,944
Commercial mortgage-backed	263,029		409,747
Asset-backed	183,322		188,358
Total fixed maturity investments trading	$	7,092,969	$	6,891,244

Contractual maturities of fixed maturity investments trading are described in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.




September 30, 2017	Amortized Cost		Fair Value
Due in less than one year	$	366,988	$	367,091
Due after one through five years	4,326,788		4,324,948
Due after five through ten years	985,535		1,001,975
Due after ten years	151,964		153,764
Mortgage-backed	1,047,676		1,061,869
Asset-backed	182,536		183,322
Total	$	7,061,487	$	7,092,969

Equity Investments Trading

The following table summarizes the fair value of equity investments trading:




	September 30, 2017		December 31, 2016
Financials	$	275,373	$	275,065
Communications and technology	45,592		36,770
Industrial, utilities and energy	32,922		30,303
Consumer	22,613		20,501
Healthcare	21,113		17,245
Basic materials	4,422		3,429
Total	$	402,035	$	383,313

Pledged Investments

At September 30, 2017, $3.3 billion of cash and investments at fair value were on deposit with, or in trust accounts for the benefit of, various counterparties, including with respect to the Company’s letter of credit facilities (December 31, 2016 - $2.7 billion). Of this amount, $1.4 billion is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities (December 31, 2016 - $842.6 million).

Reverse Repurchase Agreements

At September 30, 2017, the Company held $477.5 million (December 31, 2016 - $78.7 million) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of short term investments on the Company’s consolidated balance sheets. The required collateral for these loans typically includes high-quality, readily marketable instruments at a minimum amount of 102% of the loan principal. Upon maturity, the Company receives principal and interest income.

Net Investment Income

The components of net investment income are as follows:




	Three months ended						Nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Fixed maturity investments	$	45,305		$	39,959		$	133,080		$	122,056
Short term investments	2,771			1,174			7,476			3,401
Equity investments	930			797			2,630			3,325
Other investments
Private equity investments	6,371			4,572			20,784			(430		)
Other	(11,491		)	8,765			(4,520		)	17,109
Cash and cash equivalents	352			246			836			584
	44,238			55,513			160,286			146,045
Investment expenses	(3,981		)	(4,090		)	(11,541		)	(11,635		)
Net investment income	$	40,257		$	51,423		$	148,745		$	134,410

Net Realized and Unrealized Gains on Investments

Net realized and unrealized gains on investments are as follows:




	Three months ended						Nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Gross realized gains	$	16,343		$	20,383		$	43,053		$	60,794
Gross realized losses	(6,126		)	(3,363		)	(29,902		)	(25,832		)
Net realized gains on fixed maturity investments	10,217			17,020			13,151			34,962
Net unrealized gains (losses) on fixed maturity investments trading	5,545			(4,235		)	48,940			125,501
Net realized and unrealized (losses) gains on investments-related derivatives	(4,020		)	1,727			(4,344		)	(26,873		)
Net realized gains on equity investments trading	13,675			127			49,736			14,038
Net unrealized gains (losses) on equity investments trading	16,635			45,231			36,055			43,667
Net realized and unrealized gains on investments	$	42,052		$	59,870		$	143,538		$	191,295