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Investments
 3 Months Ended
Mar. 31, 2019
Investments [Abstract]  
Investments INVESTMENTS
Fixed Maturity Investments Trading
The following table summarizes the fair value of fixed maturity investments trading:
 
 
 
 
 
 
 
 
March 31,
2019
 
December 31,
2018
 
 
U.S. treasuries
$
3,097,089

 
$
3,331,411

 
 
Agencies
182,904

 
174,883

 
 
Municipal
256,967

 
6,854

 
 
Non-U.S. government
687,021

 
279,818

 
 
Non-U.S. government-backed corporate
286,331

 
160,063

 
 
Corporate
2,971,018

 
2,450,244

 
 
Agency mortgage-backed
955,616

 
817,880

 
 
Non-agency mortgage-backed
272,880

 
278,680

 
 
Commercial mortgage-backed
245,323

 
282,294

 
 
Asset-backed
518,011

 
306,743

 
 
Total fixed maturity investments trading (1)
$
9,473,160

 
$
8,088,870

 
 
 
 
 
 
 

(1)
Included in total fixed maturity investments trading at March 31, 2019 was $2.2 billion of fixed maturity investments trading acquired as a result of the acquisition of the TMR Group Entities. See “Note 3. Acquisition of Tokio Millennium Re” for additional information related to the acquisition of the TMR Group Entities.
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.
 
 
 
 
 
 
 
March 31, 2019
Amortized 
Cost
 
Fair Value
 
 
Due in less than one year
$
746,898

 
$
744,030

 
 
Due after one through five years
5,287,434

 
5,301,425

 
 
Due after five through ten years
1,147,028

 
1,154,682

 
 
Due after ten years
281,009

 
281,193

 
 
Mortgage-backed
1,460,090

 
1,473,819

 
 
Asset-backed
519,911

 
518,011

 
 
Total
$
9,442,370

 
$
9,473,160

 
 
 
 
 
 
 

Equity Investments Trading
The following table summarizes the fair value of equity investments trading:
 
 
 
 
 
 
 
 
March 31,
2019
 
December 31,
2018
 
 
Financials
$
222,604

 
$
200,357

 
 
Communications and technology
66,428

 
42,333

 
 
Industrial, utilities and energy
37,574

 
24,520

 
 
Consumer
31,378

 
20,639

 
 
Healthcare
26,867

 
18,925

 
 
Basic materials
5,086

 
3,478

 
 
Total
$
389,937

 
$
310,252

 
 
 
 
 
 
 

Pledged Investments
At March 31, 2019, $6.0 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, 2018 - $5.7 billion). Of this amount, $1.9 billion is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities (December 31, 2018 - $2.0 billion).
Reverse Repurchase Agreements
At March 31, 2019, the Company held $99.9 million (December 31, 2018 - $3.7 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
 
 
 
March 31,
2019
 
March 31,
2018
 
 
Fixed maturity investments
$
61,483

 
$
45,643

 
 
Short term investments
11,844

 
5,304

 
 
Equity investments
1,027

 
698

 
 
Other investments
 
 
 
 
 
Private equity investments
2,454

 
(434
)
 
 
Other
7,245

 
8,023

 
 
Cash and cash equivalents
1,517

 
565

 
 
 
85,570

 
59,799

 
 
Investment expenses
(4,108
)
 
(3,323
)
 
 
Net investment income
$
81,462

 
$
56,476

 
 
 
 
 
 
 

Net Realized and Unrealized Gains (Losses) on Investments
Net realized and unrealized gains (losses) on investments are as follows:
 
 
 
 
 
 
 
 
Three months ended
 
 
 
March 31,
2019
 
March 31,
2018
 
 
Gross realized gains
$
24,373

 
$
4,583

 
 
Gross realized losses
(22,943
)
 
(25,853
)
 
 
Net realized gains (losses) on fixed maturity investments
1,430

 
(21,270
)
 
 
Net unrealized gains (losses) on fixed maturity investments trading
103,922

 
(55,372
)
 
 
Net realized and unrealized gains (losses) on investments-related derivatives
13,796

 
(4,364
)
 
 
Net realized (losses) gains on equity investments trading sold during the period
(1,161
)
 
234

 
 
Net unrealized gains (losses) on equity investments trading still held at reporting date
52,658

 
(1,372
)
 
 
Net realized and unrealized gains (losses) on equity investments trading
51,497

 
(1,138
)
 
 
Net realized and unrealized gains (losses) on investments
$
170,645

 
$
(82,144
)