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FAIR VALUE MEASUREMENTS | 3 Months Ended
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Mar. 31, 2025
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The use of fair value to measure certain assets and liabilities with resulting unrealized gains or losses is pervasive within the Company’s consolidated financial statements. Fair value is defined under accounting guidance currently applicable to the Company as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date. The Company recognizes the change in unrealized gains or losses arising from changes in fair value in its consolidated statements of operations. FASB ASC Topic 820, Fair Value Measurement prescribes a fair value hierarchy that prioritizes the inputs to the respective valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to valuation techniques that use at least one significant input that is unobservable (Level 3). The three levels of the fair value hierarchy are described below: •Fair values determined by Level 1 inputs utilize unadjusted quoted prices obtained from active markets for identical assets or liabilities for which the Company has access at the measurement date. The fair value is determined by multiplying the quoted price by the quantity held by the Company; •Fair values determined by Level 2 inputs utilize inputs (other than quoted prices included in Level 1) that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals, broker quotes and certain pricing indices; and •Level 3 inputs are based all or in part on significant unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In these cases, significant management assumptions can be used to establish management’s best estimate of the assumptions used by other market participants in determining the fair value of the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement of the asset or liability. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and the Company considers factors specific to the asset or liability. In order to determine if a market is active or inactive for a security, the Company considers a number of factors, including, but not limited to, the spread between what a seller is asking for a security and what a buyer is bidding for the same security, the volume of trading activity for the security in question, the price of the security compared to its par value (for fixed maturity investments), and other factors that may be indicative of market activity. There have been no material changes in the Company’s valuation techniques, nor have there been any transfers between Level 1 and Level 2, or Level 2 and Level 3 during the period represented by these consolidated financial statements. Below is a summary of the assets and liabilities that are measured at fair value on a recurring basis and also represents the carrying amount on the Company’s consolidated balance sheets:
| At March 31, 2025 | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |
| Fixed maturity investments trading |  |  |  |  |  |  |  |
| U.S. treasuries | $ | 11,199,657 |  |  | $ | 11,199,657 |  |  | $ | — |  |  | $ | — |  |
| Corporate (1) | 7,795,056 |  |  | — |  |  | 7,795,056 |  |  | — |  |
| Residential mortgage-backed | 1,393,065 |  |  | — |  |  | 1,393,065 |  |  | — |  |
| Asset-backed | 1,396,178 |  |  | — |  |  | 1,396,178 |  |  | — |  |
| Agencies | 617,537 |  |  | — |  |  | 617,537 |  |  | — |  |
| Non-U.S. government | 600,986 |  |  | — |  |  | 600,986 |  |  | — |  |
| Commercial mortgage-backed | 307,729 |  |  | — |  |  | 307,729 |  |  | — |  |
| Total fixed maturity investments trading | 23,310,208 |  |  | 11,199,657 |  |  | 12,110,551 |  |  | — |  |
| Short term investments | 5,054,254 |  |  | 44,219 |  |  | 5,010,035 |  |  | — |  |
| Equity investments |  |  |  |  |  |  |  |
| Fixed income exchange traded funds | 764,191 |  |  | 764,191 |  |  | — |  |  | — |  |
| Other equity investments | 123,317 |  |  | 123,317 |  |  | — |  |  | — |  |
| Total equity investments | 887,508 |  |  | 887,508 |  |  | — |  |  | — |  |
| Other investments |  |  |  |  |  |  |  |
| Catastrophe bonds | 1,653,148 |  |  | — |  |  | 1,653,148 |  |  | — |  |
| Direct private equity investments | 207,676 |  |  | — |  |  | 168,689 |  |  | 38,987 |  |
| Fund investments (2) | 2,379,128 |  |  | — |  |  | — |  |  | — |  |
| Total other investments | 4,239,952 |  |  | — |  |  | 1,821,837 |  |  | 38,987 |  |
| Other assets and (liabilities) |  |  |  |  |  |  |  |
| Assumed and ceded (re)insurance contracts (3) | (234) |  |  | — |  |  | — |  |  | (234) |  |
| Derivative assets (4) | 24,277 |  |  | 16,000 |  |  | 8,277 |  |  | — |  |
| Derivative liabilities (4) | (18,656) |  |  | (4,198) |  |  | (14,458) |  |  | — |  |
| Total other assets and (liabilities) | 5,387 |  |  | 11,802 |  |  | (6,181) |  |  | (234) |  |
|  | $ | 33,497,309 |  |  | $ | 12,143,186 |  |  | $ | 18,936,242 |  |  | $ | 38,753 |  |
(1)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments. (2)Fund investments, which may include private equity funds, private credit funds, hedge funds and insurance-linked securities funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. The fair value presented in this table is provided to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (3)Included in assumed and ceded (re)insurance contracts at March 31, 2025 was $1.1 million of other assets and $1.3 million of other liabilities. (4)Refer to “Note 13. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company.
| At December 31, 2024 | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |
| Fixed maturity investments trading |  |  |  |  |  |  |  |
| U.S. treasuries | $ | 11,001,893 |  |  | $ | 11,001,893 |  |  | $ | — |  |  | $ | — |  |
| Corporate (1) | 7,862,423 |  |  | — |  |  | 7,862,423 |  |  | — |  |
| Residential mortgage-backed | 1,707,056 |  |  | — |  |  | 1,707,056 |  |  | — |  |
| Asset-backed | 1,422,393 |  |  | — |  |  | 1,422,393 |  |  | — |  |
| Agencies | 623,489 |  |  | — |  |  | 623,489 |  |  | — |  |
| Non-U.S. government | 618,809 |  |  | — |  |  | 618,809 |  |  | — |  |
| Commercial mortgage-backed | 326,451 |  |  | — |  |  | 326,451 |  |  | — |  |
| Total fixed maturity investments trading | 23,562,514 |  |  | 11,001,893 |  |  | 12,560,621 |  |  | — |  |
| Short term investments | 4,531,655 |  |  | 99,343 |  |  | 4,432,312 |  |  | — |  |
| Equity investments | 117,756 |  |  | 117,756 |  |  | — |  |  | — |  |
| Other investments |  |  |  |  |  |  |  |
| Catastrophe bonds | 1,984,396 |  |  | — |  |  | 1,984,396 |  |  | — |  |
| Direct private equity investments | 211,866 |  |  | — |  |  | 168,089 |  |  | 43,777 |  |
| Fund investments (2) | 2,128,499 |  |  | — |  |  | — |  |  | — |  |
| Total other investments | 4,324,761 |  |  | — |  |  | 2,152,485 |  |  | 43,777 |  |
| Other assets and (liabilities) |  |  |  |  |  |  |  |
| Assumed and ceded (re)insurance contracts (3) | (405) |  |  | — |  |  | — |  |  | (405) |  |
| Derivative assets (4) | 34,538 |  |  | 10,614 |  |  | 23,924 |  |  | — |  |
| Derivative liabilities (4) | (75,878) |  |  | (7,872) |  |  | (68,006) |  |  | — |  |
| Total other assets and (liabilities) | (41,745) |  |  | 2,742 |  |  | (44,082) |  |  | (405) |  |
|  | $ | 32,494,941 |  |  | $ | 11,221,734 |  |  | $ | 19,101,336 |  |  | $ | 43,372 |  |
(1)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments. (2)Fund investments, which may include private equity funds, private credit funds, hedge funds and insurance-linked securities funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. The fair value presented in this table is provided to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (3)Included in assumed and ceded (re)insurance contracts at December 31, 2024 was $2.0 million of other assets and $2.4 million of other liabilities. (4)Refer to “Note 13. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company. Level 1 and Level 2 Assets and Liabilities Measured at Fair Value Fixed Maturity Investments Fixed maturity investments included in Level 1 consist of the Company’s investments in U.S. treasuries. Fixed maturity investments included in Level 2 are agencies, corporate (including non-U.S. government-backed corporate), non-U.S. government, residential mortgage-backed, commercial mortgage-backed and asset-backed. The Company’s fixed maturity investments are primarily priced using pricing services, such as index providers and pricing vendors, as well as broker quotations. In general, the pricing vendors provide pricing for a high volume of liquid securities that are actively traded. For securities that do not trade on an exchange, the pricing services generally utilize market data and other observable inputs in matrix pricing models to determine month end prices. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, bids, offers, reference data and industry and economic events. Index pricing generally relies on market traders as the primary source for pricing; however, models are also utilized to provide prices for all index eligible securities. The models use a variety of observable inputs such as benchmark yields, transactional data, dealer runs, broker-dealer quotes and corporate actions. Prices are generally verified using third-party data. Securities which are priced by an index provider are generally included in the index. In general, broker-dealers value securities through their trading desks based on observable inputs. The methodologies include mapping securities based on trade data, bids or offers, observed spreads, and performance on newly issued securities. Broker-dealers also determine valuations by observing secondary trading of similar securities. Prices obtained from broker quotations are considered non-binding, however they are based on observable inputs and by observing secondary trading of similar securities obtained from active and non-distressed markets. The Company considers these broker quotations to be Level 2 inputs as they are corroborated with other market observable inputs. The techniques generally used to determine the fair value of the Company’s fixed maturity investments are detailed below by asset class. U.S. Treasuries Level 1 - At March 31, 2025, the Company’s U.S. treasuries fixed maturity investments were primarily priced by pricing services and had a weighted average yield to maturity of 4.0% and a weighted average credit quality of AA (December 31, 2024 - 4.4% and AA, respectively). When pricing these securities, the pricing services utilize daily data from many real time market sources, including active broker-dealers. Certain data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source is used for each issue and maturity date. Corporate Level 2 - At March 31, 2025, the Company’s corporate fixed maturity investments principally consisted of U.S. and international corporations and non-U.S. government-backed corporations and had a weighted average yield to maturity of 5.3% and a weighted average credit quality of BBB (December 31, 2024 - 5.5% and BBB, respectively). The Company’s corporate fixed maturity investments, other than non-U.S. government-backed corporations, are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources regarding the issuer of the security and obtain credit data, as well as other observations, from markets and sector news. Evaluations are updated by obtaining broker-dealer quotes and other market information, including actual trade volumes, when available. The pricing services also consider the specific terms and conditions of the securities, including any specific features which may influence risk. In certain instances, securities are individually evaluated using a spread which is added to the U.S. treasury curve or a security specific swap curve as appropriate. Non-U.S. government-backed corporate fixed maturity investments are primarily priced by pricing services that employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high-quality credits. The pricing services then apply a credit spread to the respective curve for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets. Agencies Level 2 - At March 31, 2025, the Company’s agency fixed maturity investments had a weighted average yield to maturity of 4.5% and a weighted average credit quality of AA (December 31, 2024 - 4.7% and AA, respectively). The issuers of the Company’s agency fixed maturity investments primarily consist of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and other agencies. Fixed maturity investments included in agencies are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources and integrate other observations from markets and sector news. Evaluations are updated by obtaining broker-dealer quotes and other market information, including actual trade volumes, when available. The fair value of each security is individually computed using analytical models which incorporate option adjusted spreads and other daily interest rate data. Non-U.S. Government Level 2 - At March 31, 2025, the Company’s non-U.S. government fixed maturity investments had a weighted average yield to maturity of 4.2% and a weighted average credit quality of AA (December 31, 2024 - 4.5% and AA, respectively). The issuers of securities in this sector are non-U.S. governments and their respective agencies as well as supranational organizations. Securities held in these sectors are primarily priced by pricing services that employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high issuance credits. The pricing services then apply a credit spread for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets. Residential Mortgage-backed Level 2 - At March 31, 2025, the Company’s residential mortgage-backed fixed maturity investments had a weighted average yield of maturity of 5.2%, a weighted average credit quality of AA, and a weighted average life of 7.3 years (December 31, 2024 - 5.4%, AA and 7.7 years, respectively). Residential mortgage-backed securities include both agency and non-agency mortgage-backed securities. The Company’s agency mortgage-backed fixed maturity investments are primarily priced by pricing services using a mortgage pool specific model which utilizes daily inputs from the active to-be-announced market which is very liquid, as well as the U.S. treasury market. The model also utilizes additional information, such as the weighted average maturity, weighted average coupon and other available pool level data which is provided by the sponsoring agency. Valuations are also corroborated with active market quotes. Non-agency mortgage-based securities are primarily priced by pricing services using an option adjusted spread model or other relevant models, which principally utilize inputs including benchmark yields, available trade information or broker quotes, and issuer spreads. The pricing services also review collateral prepayment speeds, loss severity and delinquencies among other collateral performance indicators for the securities valuation, when applicable. Commercial Mortgage-backed Level 2 - At March 31, 2025, the Company’s commercial mortgage-backed fixed maturity investments had a weighted average yield to maturity of 5.6%, a weighted average credit quality of AAA, and a weighted average life of 3.6 years (December 31, 2024 - 5.7%, AAA and 3.8 years, respectively). Securities held in these sectors are primarily priced by pricing services. The pricing services apply dealer quotes and other available trade information such as bids and offers, prepayment speeds which may be adjusted for the underlying collateral or current price data, the U.S. treasury curve and swap curve as well as cash settlement. The pricing services discount the expected cash flows for each security held in this sector using a spread adjusted benchmark yield based on the characteristics of the security. Asset-backed Level 2 - At March 31, 2025, the Company’s asset-backed fixed maturity investments had a weighted average yield to maturity of 5.9%, a weighted average credit quality of AAA and a weighted average life of 4.6 years (December 31, 2024 - 5.9%, AAA and 4.7 years, respectively). The underlying collateral for the Company’s asset-backed fixed maturity investments primarily consists of collateralized loan obligations and other receivables. Securities held in these sectors are primarily priced by pricing services. The pricing services apply dealer quotes and other available trade information such as bids and offers, prepayment speeds which may be adjusted for the underlying collateral or current price data, the U.S. treasury curve and swap curve as well as cash settlement. The pricing services determine the expected cash flows for each security held in this sector using historical prepayment and default projections for the underlying collateral and current market data. In addition, a spread is applied to the relevant benchmark and used to discount the cash flows noted above to determine the fair value of the securities held in this sector. Short Term Investments Level 1 - At March 31, 2025, the Company’s short term investments in U.S. treasuries were primarily priced by pricing services and had a weighted average yield to maturity of 4.3% and a weighted average credit quality of AA (December 31, 2024 - 4.2% and AA, respectively). When pricing these securities, the pricing services utilize daily data from many real time market sources, including active broker-dealers. Certain data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source is used for each issue and maturity date. Level 2 - At March 31, 2025, the Company’s other short term investments had a weighted average yield to maturity of 4.3% and a weighted average credit quality of AAA (December 31, 2024 - 4.4% and AAA, respectively). Amortized cost approximates fair value for the majority of the remainder of the Company’s short term investments portfolio and, in certain cases, fair value is determined in a manner similar to the Company’s fixed maturity investments noted above. Equity Investments Level 1 - The fair value of the Company’s portfolio of equity investments are primarily priced by pricing services, reflecting the closing price quoted for the final trading day of the period. When pricing these securities, the pricing services utilize daily data from many real time market sources, including applicable securities exchanges. All data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source was used for each security. Other Investments Catastrophe Bonds Level 2 - The Company’s other investments include investments in catastrophe bonds which are recorded at fair value based on broker or underwriter bid indications. Direct Private Equity Investments Level 2 - At March 31, 2025, the Company’s other investments included $168.7 million (December 31, 2024 - $168.1 million) of direct private equity investments which are recorded at fair value based on quoted prices for similar assets. Other Assets and Liabilities Derivatives Level 1 and Level 2 - Other assets and liabilities include certain derivatives entered into by the Company. The fair value of these transactions includes certain exchange traded futures and options contracts which are considered Level 1, and foreign currency contracts and certain credit derivatives, determined using standard industry valuation models and considered Level 2, as the inputs to the valuation model are based on observable market inputs. For credit derivatives, these inputs include credit spreads, credit ratings of the underlying referenced security, the risk-free rate and the contract term. For foreign currency contracts, these inputs include spot rates and interest rate curves. Level 3 Assets and Liabilities Measured at Fair Value Below is a summary of quantitative information regarding the significant unobservable inputs (Level 3) used in determining the fair value of assets and liabilities measured at fair value on a recurring basis:
| At March 31, 2025 | Fair Value (Level 3) |  | Valuation Technique |  | Unobservable Inputs |  |  |  |  |  | Weighted Average or Actual |
| Other investments |  |  |  |  |  |  |  |  |  |  |  |
| Direct private equity investments | $ | 38,987 |  |  | Internal valuation model |  | Discount rate |  |  |  |  |  | 14.0 | % |
|  |  |  |  |  | Liquidity discount |  |  |  |  |  | 10.0 | % |
| Total other investments | 38,987 |  |  |  |  |  |  |  |  |  |  |  |
| Other assets and (liabilities) |  |  |  |  |  |  |  |  |  |  |  |
| Assumed and ceded (re)insurance contracts | (234) |  |  | Internal valuation model |  | Net undiscounted cash flows |  |  |  |  |  | $ | 12,702 |
|  |  |  |  |  | Expected loss ratio |  |  |  |  |  | 0.9 | % |
|  |  |  |  |  | Discount rate |  |  |  |  |  | 4.0 | % |
| Total other assets and (liabilities) | (234) |  |  |  |  |  |  |  |  |  |  |  |
| Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | $ | 38,753 |  |  |  |  |  |  |  |  |  |  |  |
| At December 31, 2024 | Fair Value (Level 3) |  | Valuation Technique |  | Unobservable Inputs |  |  |  |  |  | Weighted Average or Actual |
| Other investments |  |  |  |  |  |  |  |  |  |  |  |
| Direct private equity investments | $ | 43,777 |  |  | Internal valuation model |  | Discount rate |  |  |  |  |  | 10.0 | % |
|  |  |  |  |  | Liquidity discount |  |  |  |  |  | 15.0 | % |
| Total other investments | 43,777 |  |  |  |  |  |  |  |  |  |  |  |
| Other assets and (liabilities) |  |  |  |  |  |  |  |  |  |  |  |
| Assumed and ceded (re)insurance contracts | (405) |  |  | Internal valuation model |  | Net undiscounted cash flows |  |  |  |  |  | $ | 12,657 |
|  |  |  |  |  | Expected loss ratio |  |  |  |  |  | 1.2 | % |
|  |  |  |  |  | Discount rate |  |  |  |  |  | 4.4 | % |
| Total other assets and (liabilities) | (405) |  |  |  |  |  |  |  |  |  |  |  |
| Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | $ | 43,372 |  |  |  |  |  |  |  |  |  |  |  |
Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs.
|  |  |  | Direct Private Equity Investments |  |  |  | Other Assets and (Liabilities) |  | Total |
| Balance - January 1, 2025 |  |  | $ | 43,777 |  |  |  |  | $ | (405) |  |  | $ | 43,372 |  |
| Net investment income |  |  | 69 |  |  |  |  | — |  |  | 69 |  |
| Net realized and unrealized gains (losses) on investments |  |  | (4,873) |  |  |  |  | — |  |  | (4,873) |  |
| Other income (loss) |  |  | — |  |  |  |  | 367 |  |  | 367 |  |
| Net foreign exchange gains (losses) |  |  | 14 |  |  |  |  | — |  |  | 14 |  |
| Settlements |  |  | — |  |  |  |  | (196) |  |  | (196) |  |
| Balance - March 31, 2025 |  |  | $ | 38,987 |  |  |  |  | $ | (234) |  |  | $ | 38,753 |  |
|  |  |  | Other Investments |  |  |  |  |
|  |  |  | Direct Private Equity Investments |  | Term Loans |  | Other Assets and (Liabilities) |  | Total |
| Balance - January 1, 2024 |  |  | $ | 59,905 |  |  | $ | 97,658 |  |  | $ | (515) |  |  | $ | 157,048 |  |
| Net investment income |  |  | 63 |  |  | — |  |  | — |  |  | 63 |  |
| Other income (loss) |  |  | — |  |  | — |  |  | (143) |  |  | (143) |  |
| Net foreign exchange gains (losses) |  |  | (4) |  |  | — |  |  | — |  |  | (4) |  |
| Purchases |  |  | — |  |  | — |  |  | 141 |  |  | 141 |  |
| Settlements |  |  | — |  |  | (225) |  |  | — |  |  | (225) |  |
| Balance - March 31, 2024 |  |  | $ | 59,964 |  |  | $ | 97,433 |  |  | $ | (517) |  |  | $ | 156,880 |  |
Other Investments Direct Private Equity Investments Level 3 - At March 31, 2025, the Company’s other investments included $39.0 million (December 31, 2024 - $43.8 million) of direct private equity investments which are recorded at fair value, with the fair value obtained through the use of internal valuation models. The Company measured the fair value of these investments using multiples of net tangible book value of the underlying entities. The significant unobservable inputs used in the fair value measurement of these investments are liquidity discount rates applied to each of the book value multiples used in the internal valuation models, and discount rates applied to the expected cash flows of the underlying entities in various scenarios. These unobservable inputs in isolation can cause significant increases or decreases in fair value. Generally, an increase in the liquidity discount rate or discount rates would result in a decrease in the fair value of these private equity investments. Term Loans Level 3 - During the fourth quarter of 2024, the Company disposed of its investment in a term loan. At March 31, 2024, the Company’s other investments included a $97.4 million investment which was recorded at fair value, with the fair value obtained through the use of a discounted cash flow model. The significant unobservable inputs used in the discounted cash flow model were the cash flow projection of the associated term loan, and the discount rate. The discount rate used was based on the Secured Overnight Financing Rate (“SOFR”), which was then adjusted for credit risk and a risk premium. These adjustments may be impacted by market movements implied by transactions of similar or related assets, loan-to-value, tenor, liquidity, credit risk adjustment or other risk factors. Assumptions used in the valuation process may significantly impact the resulting fair value. Other Assets and Liabilities Assumed and Ceded (Re)insurance Contracts Level 3 - At March 31, 2025, the Company had a $0.2 million net liability (December 31, 2024 - $0.4 million net liability) related to assumed and ceded (re)insurance contracts accounted for at fair value, with the fair value obtained through the use of an internal valuation model. The inputs to the internal valuation model are principally based on proprietary data as observable market inputs are generally not available. The most significant unobservable inputs include the assumed and ceded expected net cash flows related to the contracts, including the expected premium, acquisition expenses and losses; the expected loss ratio and the relevant discount rate used to present value the net cash flows. The contract period and acquisition expense ratio are considered an observable input as each is defined in the contract. Generally, an increase in the net expected cash flows and expected term of the contract and a decrease in the discount rate, expected loss ratio or acquisition expense ratio, would result in an increase in the expected profit and ultimate fair value of these assumed and ceded (re)insurance contracts. Financial Instruments Disclosed, But Not Carried, at Fair Value The Company uses various financial instruments in the normal course of its business. The Company’s (re)insurance contracts are excluded from the fair value of financial instruments accounting guidance, unless the Company elects the fair value option, and therefore, are not included in the amounts discussed herein. The carrying values of cash and cash equivalents, accrued investment income, receivables for investments sold, certain other assets, payables for investments purchased, certain other liabilities, and other financial instruments not included herein approximated their fair values. Debt Included on the Company’s consolidated balance sheet at March 31, 2025 were debt obligations of $2.8 billion (December 31, 2024 - $1.9 billion). At March 31, 2025, the fair value of the Company’s debt obligations was $2.7 billion (December 31, 2024 - $1.9 billion). The fair value of the Company’s debt obligations is determined using indicative market pricing obtained from third-party service providers, which the Company considers Level 2 in the fair value hierarchy. There have been no changes during the period in the Company’s valuation technique used to determine the fair value of the Company’s debt obligations. Refer to “Note 7. Debt and Credit Facilities” for additional information related to the Company’s debt obligations. The Fair Value Option for Financial Assets and Financial Liabilities The Company has elected to account for certain financial assets and financial liabilities at fair value using the guidance under FASB ASC Topic 825, Financial Instruments, as the Company believes it represents the most meaningful measurement basis for these assets and liabilities. Below is a summary of the balances the Company has elected to account for at fair value:
|  | At March 31, 2025 |  | At December 31, 2024 |
| Other investments | $ | 4,239,952 |  |  | $ | 4,324,761 |  |
| Other assets | $ | 1,100 |  |  | $ | 2,029 |  |
| Other liabilities | $ | 1,334 |  |  | $ | 2,434 |  |
The change in fair value of other investments resulted in net unrealized losses on investments for the three months ended March 31, 2025 of $49.0 million (March 31, 2024 - gains of $26.0 million). Measuring the Fair Value of Other Investments Using Net Asset Valuations The table below shows the Company’s portfolio of other investments measured using net asset valuations as a practical expedient:
| At March 31, 2025 | Fair Value |  | Unfunded Commitments |  | Redemption Frequency |  | Redemption Notice Period (Minimum Days) |  | Redemption Notice Period (Maximum Days) |
| Private credit funds | $ | 1,268,388 |  |  | $ | 1,253,591 |  |  | See below |  | See below |  | See below |
| Private equity funds | 630,765 |  |  | 694,912 |  |  | See below |  | See below |  | See below |
| Hedge funds | 338,891 |  |  | — |  |  | See below |  | See below |  | See below |
| Insurance-linked securities funds | 141,084 |  |  | — |  |  | See below |  | See below |  | See below |
| Total other investments measured using net asset valuations | $ | 2,379,128 |  |  | $ | 1,948,503 |  |  |  |  |  |  |  |
| At December 31, 2024 | Fair Value |  | Unfunded Commitments |  | Redemption Frequency |  | Redemption Notice Period (Minimum Days) |  | Redemption Notice Period (Maximum Days) |
| Private credit funds | $ | 1,181,146 |  |  | $ | 1,284,699 |  |  | See below |  | See below |  | See below |
| Private equity funds | 609,105 |  |  | 664,234 |  |  | See below |  | See below |  | See below |
| Hedge funds | 338,248 |  |  | — |  |  | See below |  | See below |  | See below |
| Total other investments measured using net asset valuations | $ | 2,128,499 |  |  | $ | 1,948,933 |  |  |  |  |  |  |  |
Private Credit Funds The Company’s investments in private credit funds include limited partnership or similar interests that invest in certain private credit asset classes, including U.S. direct lending funds, secondaries, mezzanine investments, distressed securities and senior secured bank loan funds. The Company generally has no right to redeem its interest in any of these private credit funds in advance of dissolution of the applicable limited partnerships. Instead, distributions are received by the Company in connection with the liquidation or maturity of the underlying private credit assets of the fund. It is estimated that the majority of the underlying assets of the limited partnerships would liquidate over 5 to 10 years from inception of the limited partnership. Private Equity Funds The Company’s investments in private equity funds include limited partnership or similar interests that invest in certain private equity asset classes including U.S. and global leveraged buyouts. The Company generally has no right to redeem its interest in any of these private equity funds in advance of dissolution of the applicable limited partnerships. Instead, distributions are received by the Company in connection with the exit from the underlying private equity investments of the fund. It is estimated that the majority of the underlying assets of the limited partnerships would liquidate over 5 to 10 years from inception of the limited partnership. Hedge Funds The Company’s investments in hedge funds are primarily focused on global multi-strategy opportunities. These investments are generally redeemable at the option of the Company, at less than a month’s notice. Certain restrictions on redemptions, including initial lock-up periods or redemption gates, may also apply to the Company, as defined by each fund’s governing documents. Redemption gates allow the investment manager of a fund to defer part or all of a redemption request so as to not negatively impact the value of the redemption or the value of any interests that remain in the fund. Insurance-Linked Securities (“ILS”) Funds Effective March 3, 2025, the Company made an investment in RenaissanceRe Medici UCITS Fund (“Medici UCITS”), a sub-fund of RenaissanceRe Medici ICAV, whose primary investment objective is to invest substantially all of its assets in global insurance-linked securities, specifically catastrophe bonds. Medici UCITS is considered a related party and the Company has elected to account for its investment at fair value, for consistency in reporting with its other fund investments. The Company can redeem from Medici UCITS fortnightly with a minimum of four business days’ prior written notice, subject to certain redemption gates. The Company has no outstanding commitment to Medici UCITS. During the three months ended March 31, 2025, investors subscribed for $341.5 million of the participating shares of Medici UCITS, including $140.0 million from the Company. Of this amount, $316.5 million represented a transfer in kind from existing investors in RenaissanceRe Medici Fund Ltd. (“Medici”), including the Company. For the three months ended March 31, 2025, net income of $1.1 million from Medici UCITS was attributable to the Company. At March 31, 2025, the total net asset value of Medici UCITS was $348.8 million, of which $141.1 million was attributable to the Company, and the Company’s ownership in Medici UCITS was 40.4%. Limited Partnerships Entities The Company’s fund investments, included within other investments, are primarily variable interests in limited partnerships entities with unaffiliated fund managers in the normal course of business. The Company determined that certain of these interests represent investments in variable interest entities (“VIEs”) and that it is not required to consolidate these investments because it is not the primary beneficiary of these VIEs. The Company’s maximum exposure to loss with respect to these VIEs is limited to the carrying amounts reported in the Company’s consolidated balance sheets and any unfunded commitment. The following table summarizes the aggregate carrying amount of the unconsolidated fund investments in VIEs, as well as the Company’s maximum exposure to loss associated with these VIEs:
|  | Maximum Exposure to Loss |
| Other Investments | Carrying Amount |  | Unfunded Commitments |  | Total |
| At March 31, 2025 | $ | 2,105,096 |  |  | $ | 1,864,244 |  |  | $ | 3,969,341 |  |
| At December 31, 2024 | $ | 1,993,362 |  |  | $ | 1,863,142 |  |  | $ | 3,856,504 |  |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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