XML 16 R11.htm IDEA: XBRL DOCUMENT v3.19.2
Investments
 6 Months Ended
Jun. 30, 2019
Investments [Abstract]  
Investments INVESTMENTS
Fixed Maturity Investments Trading
The following table summarizes the fair value of fixed maturity investments trading:
 
 
 
 
 
 
 
 
June 30,
2019
 
December 31,
2018
 
 
U.S. treasuries
$
3,961,306

 
$
3,331,411

 
 
Agencies
334,923

 
174,883

 
 
Municipal
2,859

 
6,854

 
 
Non-U.S. government
370,505

 
279,818

 
 
Non-U.S. government-backed corporate
207,668

 
160,063

 
 
Corporate
3,268,511

 
2,450,244

 
 
Agency mortgage-backed
1,167,735

 
817,880

 
 
Non-agency mortgage-backed
266,963

 
278,680

 
 
Commercial mortgage-backed
374,584

 
282,294

 
 
Asset-backed
524,612

 
306,743

 
 
Total fixed maturity investments trading
$
10,479,666

 
$
8,088,870

 
 
 
 
 
 
 

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.
 
 
 
 
 
 
 
June 30, 2019
Amortized 
Cost
 
Fair Value
 
 
Due in less than one year
$
618,766

 
$
616,578

 
 
Due after one through five years
5,104,023

 
5,176,183

 
 
Due after five through ten years
1,841,585

 
1,896,176

 
 
Due after ten years
450,065

 
456,835

 
 
Mortgage-backed
1,785,109

 
1,809,282

 
 
Asset-backed
524,770

 
524,612

 
 
Total
$
10,324,318

 
$
10,479,666

 
 
 
 
 
 
 

Equity Investments Trading
The following table summarizes the fair value of equity investments trading:
 
 
 
 
 
 
 
 
June 30,
2019
 
December 31,
2018
 
 
Financials
$
211,756

 
$
200,357

 
 
Communications and technology
24,621

 
42,333

 
 
Industrial, utilities and energy
13,486

 
24,520

 
 
Consumer
11,811

 
20,639

 
 
Healthcare
9,791

 
18,925

 
 
Basic materials
2,181

 
3,478

 
 
Total
$
273,646

 
$
310,252

 
 
 
 
 
 
 

Pledged Investments
At June 30, 2019, $7.0 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, $2.9 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 June 30, 2019, the Company held $189.0 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
 
Six months ended
 
 
 
June 30,
2019
 
June 30,
2018
 
June 30,
2019
 
June 30,
2018
 
 
Fixed maturity investments
$
88,106

 
$
50,416

 
$
149,589

 
$
96,059

 
 
Short term investments
17,807

 
7,633

 
29,651

 
12,937

 
 
Equity investments
916

 
1,490

 
1,943

 
2,188

 
 
Other investments
 
 
 
 
 
 
 
 
 
Private equity investments
10,309

 
3,860

 
12,763

 
3,426

 
 
Other
630

 
10,658

 
7,875

 
18,681

 
 
Cash and cash equivalents
2,306

 
1,039

 
3,823

 
1,604

 
 
 
120,074

 
75,096

 
205,644

 
134,895

 
 
Investment expenses
(4,242
)
 
(3,740
)
 
(8,350
)
 
(7,063
)
 
 
Net investment income
$
115,832

 
$
71,356

 
$
197,294

 
$
127,832

 
 
 
 
 
 
 
 
 
 
 

Net Realized and Unrealized Gains (Losses) on Investments
Net realized and unrealized gains (losses) on investments are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
 
 
June 30,
2019
 
June 30,
2018
 
June 30,
2019
 
June 30,
2018
 
 
Gross realized gains
$
28,512

 
$
5,133

 
$
52,885

 
$
9,716

 
 
Gross realized losses
(7,217
)
 
(26,519
)
 
(30,160
)
 
(52,372
)
 
 
Net realized gains (losses) on fixed maturity investments
21,295

 
(21,386
)
 
22,725

 
(42,656
)
 
 
Net unrealized gains (losses) on fixed maturity investments trading
121,991

 
(9,420
)
 
225,913

 
(64,792
)
 
 
Net realized and unrealized gains (losses) on investments-related derivatives
37,173

 
1,038

 
50,969

 
(3,326
)
 
 
Net realized gains on equity investments trading sold during the period
31,899

 
348

 
30,738

 
582

 
 
Net unrealized (losses) gains on equity investments trading still held at reporting date
(18,355
)
 
11,519

 
34,303

 
10,147

 
 
Net realized and unrealized gains on equity investments trading
13,544

 
11,867

 
65,041

 
10,729

 
 
Net realized and unrealized gains (losses) on investments
$
194,003

 
$
(17,901
)
 
$
364,648

 
$
(100,045
)