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Investments
 12 Months Ended
Dec. 31, 2021
Investments [Abstract]  
Investments INVESTMENTS
Fixed Maturity Investments Trading
The following table summarizes the fair value of fixed maturity investments trading:
At December 31.20212020
U.S. treasuries$6,247,779 $4,960,409 
Agencies361,684 368,032 
Non-U.S. government549,613 491,531 
Non-U.S. government-backed corporate474,848 338,014 
Corporate3,214,438 4,261,025 
Agency mortgage-backed721,955 1,113,792 
Non-agency mortgage-backed233,346 291,444 
Commercial mortgage-backed634,925 791,272 
Asset-backed1,068,543 890,984 
Total fixed maturity investments trading$13,507,131 $13,506,503 
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.
At December 31, 2021Amortized 
Cost		Fair Value
Due in less than one year
$363,795 $365,418 
Due after one through five years
6,317,351 6,297,063 
Due after five through ten years
3,911,221 3,877,715 
Due after ten years
306,123 308,166 
Mortgage-backed
1,584,871 1,590,226 
Asset-backed1,069,218 1,068,543 
Total
$13,552,579 $13,507,131 
Equity Investments Trading
The following table summarizes the fair value of equity investments trading:
At December 31.20212020
Financials$146,615 $452,765 
Communications and technology82,444 119,592 
Consumer51,083 44,477 
Industrial, utilities and energy26,645 43,380 
Healthcare28,796 35,140 
Basic materials5,092 7,263 
Equity exchange traded funds114,919 — 
Fixed income exchange traded funds90,422 — 
Total
$546,016 $702,617 
Pledged Investments
At December 31, 2021, $8.7 billion (2020 - $8.1 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. Of this amount, $1.8 billion (2020 - $2.5 billion) is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities.
Reverse Repurchase Agreements
At December 31, 2021, the Company held $5.1 million (2020 - $126.5 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:
Year ended December 31,202120202019
Fixed maturity investments$234,911 $278,215 $318,503 
Short term investments2,333 20,799 56,264 
Equity investments9,017 6,404 4,808 
Other investments
Catastrophe bonds64,860 54,784 46,154 
Other28,811 9,417 8,447 
Cash and cash equivalents297 2,974 7,676 
 340,229 372,593 441,852 
Investment expenses(20,750)(18,555)(17,645)
Net investment income$319,479 $354,038 $424,207 
Net Realized and Unrealized Gains (Losses) on Investments
Net realized and unrealized gains (losses) on investments are as follows:
Year ended December 31,202120202019
Net realized gains (losses) on fixed maturity investments$79,588 $276,901 $90,260 
Net unrealized gains (losses) on fixed maturity investments trading
(389,376)216,859 170,183 
Net realized and unrealized gains (loss) on fixed maturity investments trading(309,788)493,760 260,443 
Net realized and unrealized gains (losses) on investments-related derivatives (1)
(12,237)68,608 58,891 
Net realized gains (losses) on equity investments trading sold during the period335,491 3,532 31,062 
Net unrealized gains (losses) on equity investments trading still held at reporting date
(285,882)262,064 64,087 
Net realized and unrealized gains (losses) on equity investments trading
49,609 265,596 95,149 
Net realized and unrealized gains (losses) on other investments - catastrophe bonds(35,033)(7,031)(9,392)
Net realized and unrealized gains (losses) on other investments - other89,315 (297)9,018 
Net realized and unrealized gains (losses) on investments$(218,134)$820,636 $414,109 
(1)Net realized and unrealized gains (losses) on investment-related derivatives includes fixed maturity investments related derivatives (interest rate futures, interest rate swaps, credit default swaps and total return swaps), and equity investments related derivatives (equity futures). See “Note 19. Derivative Instruments” for additional information.
Other Investments
The table below shows the fair value of the Company’s portfolio of other investments:
At December 31,20212020
Catastrophe bonds$1,104,034 $881,290 
Direct private equity investments88,373 79,807 
Fund investments725,802 295,851 
Term loans74,850 — 
Total other investments$1,993,059 $1,256,948 
Included in net realized and unrealized gains (losses) on investments for 2021 is income of $7.0 million (2020 - a loss of $2.4 million, 2019 - loss of $5.5 million) representing the change in estimate during the period related to the difference between the Company’s estimated fair value for those funds for which the reported net asset values had not been received, as discussed in “Note 2. Significant Accounting Policies,” and the actual amount as reported in the final net asset values provided by the Company’s fund managers.
The Company has committed capital to direct private equity investments, fund investments, term loans and investments in other ventures of $2.7 billion, of which $1.3 billion has been contributed at December 31, 2021. The Company’s remaining commitments to these investments at December 31, 2021 totaled $1.4 billion. In the future, the Company may enter into additional commitments in respect of direct private equity investments, term loans or fund investment opportunities.
Catastrophe bonds
Catastrophe bonds are non-investment grade bonds issued by unrelated third parties that generally mature within one to five years.
Direct private equity investments
Direct private equity investments are the Company’s direct equity investments in companies that are not traded on any nationally recognized equity markets.
Fund investments
Fund investments are limited partnership or similar interests in private equity funds, private credit funds and hedge funds managed by unrelated third parties.
Term loans
Term loans represent the Company’s loan participation interest in an underwritten term loan facility. The Company has committed to a loan participation interest of $100 million and as of December 31, 2021 had funded $75 million of its commitment. This facility pays interest, has a 5-year maturity and is fully secured by a diversified pool of primarily private equity assets.
Investments in Other Ventures, under Equity Method
The table below shows the Company’s portfolio of investments in other ventures, under equity method:
20212020
At December 31,Ownership %Carrying  ValueOwnership %Carrying  Value
Tower Hill Companies (1)
2.0% - 25.0%
25,575 
2.0% - 25.0%
30,470 
Top Layer Re50.0%25,903 50.0%26,958 
Other22.4%46,590 25.0%40,945 
Total investments in other ventures, under equity method$98,068 $98,373 
(1) The Company has equity interests in Bluegrass Insurance Management, LLC, Tower Hill Claims Service, LLC, Tower Hill Holdings, Inc., Tower Hill Insurance Group, LLC, Tower Hill Insurance Managers, LLC, Tower Hill Re Holdings, Inc., Tower Hill Signature Insurance Holdings, Inc., Tower Hill Risk Management LLC and Tomoka Re Holdings, Inc. (collectively, the “Tower Hill Companies”).
The table below shows the Company’s equity in earnings of other ventures, under equity method:
Year ended December 31,202120202019
Top Layer Re$8,286 $9,595 $8,801 
Tower Hill Companies(2,073)3,104 10,337 
Other6,096 4,495 4,086 
Total equity in earnings of other ventures, under equity method$12,309 $17,194 $23,224 
During 2021, the Company received $33.9 million of distributions from its investments in other ventures, under equity method (2020 – $30.0 million, 2019 – $36.5 million). Except for Top Layer Re, which is recorded on a current quarter basis, the equity in earnings of the Company’s investments in other ventures are reported one quarter in arrears.