INVESTMENTS

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Investments Trading

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



	September 30, 2024		December 31, 2023
U.S. treasuries	$	11,736,158	$	10,060,203
Corporate (1)	7,790,634		6,499,075
Residential mortgage-backed	1,753,318		1,420,362
Asset-backed	1,440,194		1,491,695
Agencies	615,627		489,117
Non-U.S. government	609,355		483,576
Commercial mortgage-backed	341,899		433,080
Total fixed maturity investments trading	$	24,287,185	$	20,877,108

(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.




	September 30, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in less than one year	$	1,224,238	$	1,226,745	$	587,720	$	582,519
Due after one through five years	12,783,659		12,971,037		11,439,510		11,468,263
Due after five through ten years	5,993,586		6,155,650		5,182,667		5,188,716
Due after ten years	406,699		398,342		307,392		292,473
Mortgage-backed	2,085,663		2,095,217		1,864,520		1,853,442
Asset-backed	1,433,446		1,440,194		1,490,641		1,491,695
Total	$	23,927,291	$	24,287,185	$	20,872,450	$	20,877,108

Equity Investments

The following table summarizes the fair value of equity investments:



	September 30, 2024		December 31, 2023
Financials	$	131,775	$	106,542
Basic materials	754		—
Industrial, utilities and energy	288		—
Consumer	141		212
Communications and technology	101		12


Healthcare	32		—
Total	$	133,091	$	106,766

Pledged Investments

At September 30, 2024, $10.1 billion (December 31, 2023 - $10.5 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, $3.0 billion (December 31, 2023 - $2.9 billion) is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities.

Reverse Repurchase Agreements

At September 30, 2024, the Company held $48.5 million (December 31, 2023 - $159.7 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. 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, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Fixed maturity investments trading	$	289,687	$	188,781	$	820,876	$	514,020
Short term investments	46,746		66,722		141,923		149,903
Equity investments	670		510		1,819		6,675
Other investments
Catastrophe bonds	61,175		54,583		177,860		142,936
Other	20,937		20,031		59,525		65,422
Cash and cash equivalents	10,226		4,160		40,347		13,009
	429,441		334,787		1,242,350		891,965
Investment expenses	(5,582)		(5,679)		(16,871)		(15,817)
Net investment income	$	423,859	$	329,108	$	1,225,479	$	876,148

Net Realized and Unrealized Gains (Losses) on Investments

Net realized and unrealized gains (losses) on investments are as follows:



	Three months ended				Nine months ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023


Net realized gains (losses) on fixed maturity investments trading	$	22,052	$	(121,112)	$	(33,965)	$	(300,089)
Net unrealized gains (losses) on fixed maturity investments trading	590,309		(158,226)		353,465		14,007
Net realized and unrealized gains (losses) on fixed maturity investments trading	612,361		(279,338)		319,500		(286,082)
Net realized and unrealized gains (losses) on investment-related derivatives (1)	97,534		30,594		50,102		(22,295)
Net realized gains (losses) on equity investments	340		(10)		355		(27,503)
Net unrealized gains (losses) on equity investments	18,778		2,261		26,368		62,039
Net realized and unrealized gains (losses) on equity investments	19,118		2,251		26,723		34,536
Net realized and unrealized gains (losses) on other investments - catastrophe bonds	66,291		32,474		51,091		94,786
Net realized and unrealized gains (losses) on other investments - other	148,441		(14,068)		155,091		7,638
Net realized and unrealized gains (losses) on investments	$	943,745	$	(228,087)	$	602,507	$	(171,417)

(1)Net realized and unrealized gains (losses) on investment-related derivatives includes fixed maturity investments related derivatives (interest rate futures and credit default swaps), equity investments related derivatives (equity futures) and commodity investments related derivatives (commodity futures and commodity options). See “Note 13. Derivative Instruments” for additional information.