XML 31 R13.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Investments | 12 Months Ended
--- | ---
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
Investments | INVESTMENTS Fixed Maturity Investments Trading The following table summarizes the fair value of fixed maturity investments trading:
| At December 31. | 2023 |  | 2022 |
| U.S. treasuries | $ | 10,060,203 |  |  | $ | 7,180,129 |  |
| Corporate (1) | 6,499,075 |  |  | 4,390,568 |  |
| Asset-backed | 1,491,695 |  |  | 1,077,302 |  |
| Residential mortgage-backed | 1,420,362 |  |  | 710,429 |  |
| Agencies | 489,117 |  |  | 395,149 |  |
| Non-U.S. government | 483,576 |  |  | 383,838 |  |
| Commercial mortgage-backed | 433,080 |  |  | 213,987 |  |
| Total fixed maturity investments trading | $ | 20,877,108 |  |  | $ | 14,351,402 |  |
(1)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments. 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, 2023 |  | At December 31, 2022 |
|  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |
| Due in less than one year | $ | 587,720 |  |  | $ | 582,519 |  |  | $ | 364,501 |  |  | $ | 356,770 |  |
| Due after one through five years | 11,439,510 |  |  | 11,468,263 |  |  | 8,117,971 |  |  | 7,875,771 |  |
| Due after five through ten years | 5,182,667 |  |  | 5,188,716 |  |  | 4,072,142 |  |  | 3,805,287 |  |
| Due after ten years | 307,392 |  |  | 292,473 |  |  | 356,268 |  |  | 311,856 |  |
| Mortgage-backed | 1,864,520 |  |  | 1,853,442 |  |  | 1,009,205 |  |  | 924,416 |  |
| Asset-backed | 1,490,641 |  |  | 1,491,695 |  |  | 1,118,464 |  |  | 1,077,302 |  |
| Total | $ | 20,872,450 |  |  | $ | 20,877,108 |  |  | $ | 15,038,551 |  |  | $ | 14,351,402 |  |
Equity Investments The following table summarizes the fair value of equity investments:
| At December 31. | 2023 |  | 2022 |
| Financials | $ | 106,542 |  |  | $ | 103,250 |  |
| Consumer | 212 |  |  | 33,447 |  |
| Communications and technology | 12 |  |  | 48,687 |  |
| Fixed income exchange traded funds | — |  |  | 295,481 |  |
| Equity exchange traded funds | — |  |  | 90,510 |  |
| Industrial, utilities and energy | — |  |  | 25,326 |  |
| Healthcare | — |  |  | 24,617 |  |
| Basic materials | — |  |  | 3,740 |  |
| Total | $ | 106,766 |  |  | $ | 625,058 |  |
Pledged Investments At December 31, 2023, $10.5 billion (2022 - $7.9 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, $2.9 billion (2022 - $1.2 billion) is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities. Reverse Repurchase Agreements At December 31, 2023, the Company held $159.7 million (2022 - $38.5 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. 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, | 2023 |  | 2022 |  | 2021 |
| Fixed maturity investments trading | $ | 744,457 |  |  | $ | 382,165 |  |  | $ | 234,911 |  |
| Short term investments | 213,303 |  |  | 41,042 |  |  | 2,333 |  |
| Equity investments | 7,261 |  |  | 20,864 |  |  | 9,017 |  |
| Other investments |  |  |  |  |  |
| Catastrophe bonds | 200,572 |  |  | 94,784 |  |  | 64,860 |  |
| Other | 87,296 |  |  | 37,497 |  |  | 28,811 |  |
| Cash and cash equivalents | 23,123 |  |  | 5,197 |  |  | 297 |  |
|  | 1,276,012 |  |  | 581,549 |  |  | 340,229 |  |
| Investment expenses | (22,902) |  |  | (21,617) |  |  | (20,750) |  |
| Net investment income | $ | 1,253,110 |  |  | $ | 559,932 |  |  | $ | 319,479 |  |
Net Realized and Unrealized Gains (Losses) on Investments Net realized and unrealized gains (losses) on investments are as follows:
| Year ended December 31, | 2023 |  | 2022 |  | 2021 |
| Net realized gains (losses) on fixed maturity investments trading | $ | (393,041) |  |  | $ | (732,561) |  |  | $ | 79,588 |  |
| Net unrealized gains (losses) on fixed maturity investments trading | 685,095 |  |  | (636,762) |  |  | (389,376) |  |
| Net realized and unrealized gains (losses) on fixed maturity investments trading | 292,054 |  |  | (1,369,323) |  |  | (309,788) |  |
| Net realized and unrealized gains (losses) on investment-related derivatives (1) | (68,272) |  |  | (165,293) |  |  | (12,237) |  |
| Net realized gains (losses) on equity investments | (27,492) |  |  | 43,035 |  |  | 335,491 |  |
| Net unrealized gains (losses) on equity investments | 73,243 |  |  | (166,823) |  |  | (285,882) |  |
| Net realized and unrealized gains (losses) on equity investments | 45,751 |  |  | (123,788) |  |  | 49,609 |  |
| Net realized and unrealized gains (losses) on other investments - catastrophe bonds | 101,897 |  |  | (130,335) |  |  | (35,033) |  |
| Net realized and unrealized gains (losses) on other investments - other | 43,092 |  |  | (11,746) |  |  | 89,315 |  |
| Net realized and unrealized gains (losses) on investments | $ | 414,522 |  |  | $ | (1,800,485) |  |  | $ | (218,134) |  |
(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, | 2023 |  | 2022 |
| Catastrophe bonds | $ | 1,942,199 |  |  | $ | 1,241,468 |  |
| Fund investments | 1,415,804 |  |  | 1,086,706 |  |
| Term loans | 97,658 |  |  | 100,000 |  |
| Direct private equity investments | 59,905 |  |  | 66,780 |  |
| Total other investments | $ | 3,515,566 |  |  | $ | 2,494,954 |  |
During 2023, the Company recorded a net loss of $3.0 million (2022 - income of $19.8 million, 2021 - income of $7.0 million), representing the change between the Company’s fair value estimate for funds as at the prior year end, and the final reported net asset values provided by the Company’s fund investment managers, as discussed in “Note 2. Significant Accounting Policies.” This net loss was included between net investment income and net realized and unrealized gains (losses) on investments for the year ended December 31, 2023. The Company has committed capital to direct private equity investments, fund investments, term loans and investments in other ventures of $3.6 billion, of which $2.0 billion has been contributed at December 31, 2023 (2022 - $2.9 billion and $1.7 billion, respectively). The Company’s remaining commitments to these investments at December 31, 2023 totaled $1.6 billion (2022 - $1.2 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 generally issued by unrelated third parties that generally mature within one to five years. 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 participation interest in a senior secured term loan facility. The Company has committed to a loan participation interest of $100.0 million and, as of December 31, 2023, had fully funded its commitment (2022 - $100.0 million). This facility pays interest, has a 5-year maturity and is fully secured by a diversified pool of primarily private equity assets. 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. Investments in Other Ventures, under Equity Method The table below shows the Company’s portfolio of investments in other ventures, under equity method:
|  |  |  | 2023 |  |  |  | 2022 |
| At December 31, |  |  | Ownership % |  | Carrying Value |  |  |  | Ownership % |  | Carrying Value |
| Tower Hill Companies (1) |  |  | 2.0% - 25.0% |  | 13,970 |  |  |  |  | 2.0% - 25.0% |  | 10,897 |  |
| Top Layer |  |  | 50.0% |  | 31,768 |  |  |  |  | 50.0% |  | 23,562 |  |
| Other |  |  | 25.3% |  | 66,886 |  |  |  |  | 22.8% |  | 45,291 |  |
| Total investments in other ventures, under equity method |  |  |  |  | $ | 112,624 |  |  |  |  |  |  | $ | 79,750 |  |
(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 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, | 2023 |  | 2022 |  | 2021 |
| Top Layer | $ | 15,977 |  |  | $ | 6,347 |  |  | $ | 8,286 |  |
| Tower Hill Companies | 24,815 |  |  | (921) |  |  | (2,073) |  |
| Other | 2,682 |  |  | 5,823 |  |  | 6,096 |  |
| Total equity in earnings of other ventures, under equity method | $ | 43,474 |  |  | $ | 11,249 |  |  | $ | 12,309 |  |
During 2023, the Company received $41.4 million of distributions from its investments in other ventures, under equity method (2022 – $24.2 million, 2021 – $33.9 million). The equity in earnings of Top Layer Reinsurance Ltd. (“Top Layer”), a managed joint venture formed by the Company to write high excess non-U.S. property catastrophe reinsurance, 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. Net Sales (Purchases) of Investments The table below shows the Company’s cash flows in respect of gross and net purchases and sales of equity investments, short term investments, other investments and investments in other ventures.
| Year ended December 31, 2023 | Gross Purchases |  | Gross Sales |  | Net |
| Equity investments | $ | (1,715) |  |  | $ | 566,041 |  |  | $ | 564,326 |  |
| Short term investments | $ | (39,309,700) |  |  | $ | 41,152,880 |  |  | $ | 1,843,180 |  |
| Other investments | $ | (1,291,508) |  |  | $ | 489,658 |  |  | $ | (801,850) |  |
| Investments in other ventures | $ | (25,265) |  |  | $ | 5,554 |  |  | $ | (19,711) |  |
| Year ended December 31, 2022 | Gross Purchases |  | Gross Sales |  | Net |
| Equity investments | $ | (861,508) |  |  | $ | 659,199 |  |  | $ | (202,309) |  |
| Short term investments | $ | (25,972,174) |  |  | $ | 26,612,585 |  |  | $ | 640,411 |  |
| Other investments | $ | (1,027,734) |  |  | $ | 408,944 |  |  | $ | (618,790) |  |
| Investments in other ventures | $ | (4,318) |  |  | $ | 3,545 |  |  | $ | (773) |  |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration