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DERIVATIVE INSTRUMENTS
 9 Months Ended
Sep. 30, 2025
Summary of Derivative Instruments [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
The Company may enter into derivative instruments to manage its foreign currency exposure, obtain exposure to a particular financial market, or for trading and to assume or hedge risk. The Company’s derivative instruments are primarily exchange traded futures, centrally cleared credit default swaps or over-the-counter foreign currency forward contracts. The over-the-counter derivatives are generally traded under International Swaps and Derivatives Association master agreements, which establish the terms of the transactions entered into with the Company’s derivative counterparties. In the event a party becomes insolvent or otherwise defaults on its obligations, a master agreement generally permits the non-defaulting party to accelerate and terminate all outstanding transactions and net the transactions’ marked-to-market values so that a single sum in a single currency will be owed by, or owed to, the non-defaulting party. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. Where the Company has entered into master netting agreements with counterparties, or the Company has the legal and contractual right to offset positions, the derivative positions are generally netted by counterparty and are reported accordingly in other assets and other liabilities.
The Company is not aware of the existence of any credit-risk related contingent features that it believes would be triggered in its derivative instruments that are in a net liability position at September 30, 2025.
The tables below show the gross and net amounts of recognized derivative assets and liabilities at fair value, including the location on the consolidated balance sheets of the Company’s principal derivative instruments:
Derivative Assets
At September 30, 2025Gross Amounts of Recognized AssetsGross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance SheetBalance Sheet LocationCollateral ReceivedNet Amount
Derivative instruments not designated as hedges
Interest rate futures$7,412 $— $7,412 Other assets$— $7,412 
Foreign currency forward contracts (1)
8,408 — 8,408 Other assets— 8,408 
Foreign currency forward contracts (2)
53 — 53 Other assets— 53 
Equity futures4,586 — 4,586 Other assets— 4,586 
Commodity futures5,193 — 5,193 Other assets— 5,193 
Total derivative instruments not designated as hedges25,652 — 25,652 — 25,652 
Total$25,652 $— $25,652 $— $25,652 
Derivative Liabilities
At September 30, 2025Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance SheetBalance Sheet LocationCollateral PledgedNet Amount
Derivative instruments not designated as hedges
Interest rate futures$474 $— $474 Other liabilities$429 $45 
Foreign currency forward contracts (1)
2,291 — 2,291 Other liabilities2,058 233 
Foreign currency forward contracts (2)
633 — 633 Other liabilities— 633 
Credit default swaps717 — 717 Other liabilities717 — 
Total derivative instruments not designated as hedges4,115 — 4,115 3,204 911 
Derivative instruments designated as hedges
Foreign currency forward contracts (3)
865 — 865 Other liabilities— 865 
Total$4,980 $— $4,980 $3,204 $1,776 
(1)Contracts used to manage foreign currency risks in underwriting and non-investment operations.
(2)Contracts used to manage foreign currency risks in investment operations.
(3)Contracts designated as hedges of net investments in a foreign operation.
Derivative Assets
At December 31, 2024Gross Amounts of Recognized AssetsGross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance SheetBalance Sheet LocationCollateral ReceivedNet Amount
Derivative instruments not designated as hedges
Interest rate futures$4,198 $— $4,198 Other assets$— $4,198 
Foreign currency forward contracts (1)
16,275 — 16,275 Other assets— 16,275 
Foreign currency forward contracts (2)
4,085 — 4,085 Other assets— 4,085 
Commodity futures5,933 — 5,933 Other assets— 5,933 
Commodity options483 — 483 Other assets— 483 
Total derivative instruments not designated as hedges30,974 — 30,974 — 30,974 
Derivative instruments designated as hedges
Foreign currency forward contracts (3)
3,564 — 3,564 Other assets— 3,564 
Total$34,538 $— $34,538 $— $34,538 
Derivative Liabilities
At December 31, 2024Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance SheetBalance Sheet LocationCollateral PledgedNet Amount
Derivative instruments not designated as hedges
Interest rate futures$6,178 $— $6,178 Other liabilities$5,408 $770 
Foreign currency forward contracts (1)
53,160 — 53,160 Other liabilities5,632 47,528 
Foreign currency forward contracts (2)
13,171 — 13,171 Other liabilities— 13,171 
Credit default swaps1,675 — 1,675 Other liabilities1,675 — 
Equity futures1,694 — 1,694 Other liabilities— 1,694 
Total derivative instruments not designated as hedges75,878 — 75,878 12,715 63,163 
Total$75,878 $— $75,878 $12,715 $63,163 
(1)Contracts used to manage foreign currency risks in underwriting and non-investment operations.
(2)Contracts used to manage foreign currency risks in investment operations.
(3)Contracts designated as hedges of net investments in a foreign operation.
The location and amount of the gain (loss) recognized in the Company’s consolidated statements of operations related to its principal derivative instruments are shown in the following table:
Location of Gain (Loss)
Recognized on Derivatives
Amount of Gain (Loss) Recognized on
Derivatives
Three months ended September 30,20252024
Derivative instruments not designated as hedges
Interest rate futures (1)
Net realized and unrealized gains (losses) on investments$(33,115)$50,961 
Foreign currency forward contracts (2)
Net foreign exchange gains (losses)(4,027)16,885 
Foreign currency forward contracts (3)
Net foreign exchange gains (losses)(2,388)12,803 
Credit default swaps (1)
Net realized and unrealized gains (losses) on investments(7,395)(21,007)
Equity futures (4)
Net realized and unrealized gains (losses) on investments77,954 10,409 
Commodity optionsNet realized and unrealized gains (losses) on investments— (1,427)
Commodity futuresNet realized and unrealized gains (losses) on investments143,568 58,598 
Total derivative instruments not designated as hedges174,597 127,222 
Derivative instruments designated as hedges
Foreign currency forward contracts (5)
Accumulated other comprehensive income (loss)(571)(2,181)
Total$174,026 $125,041 
(1)Fixed income related derivatives included in net realized and unrealized gains (losses) on investment-related derivatives. See “Note 3. Investments” for additional information.
(2)Contracts used to manage foreign currency risks in underwriting and non-investment operations.
(3)Contracts used to manage foreign currency risks in investment operations.
(4)Equity related derivatives included in net realized and unrealized gains (losses) on investment-related derivatives. See “Note 3. Investments” for additional information.
(5)Contracts designated as hedges of net investments in a foreign operation.
Location of Gain (Loss)
Recognized on Derivatives
Amount of Gain (Loss) Recognized on
Derivatives
Nine months ended September 30,20252024
Derivative instruments not designated as hedges
Interest rate futures (1)
Net realized and unrealized gains (losses) on investments$70,780 $(1,388)
Foreign currency forward contracts (2)
Net foreign exchange gains (losses)40,907 20,958 
Foreign currency forward contracts (3)
Net foreign exchange gains (losses)(5,263)(7,049)
Credit default swaps (1)
Net realized and unrealized gains (losses) on investments20,243 (44,036)
Equity futures (4)
Net realized and unrealized gains (losses) on investments112,654 10,419 
WarrantsNet realized and unrealized gains (losses) on investments— (1,046)
Commodity optionsNet realized and unrealized gains (losses) on investments(2,602)(3,676)
Commodity futuresNet realized and unrealized gains (losses) on investments297,014 89,829 
Total derivative instruments not designated as hedges533,733 64,011 
Derivative instruments designated as hedges
Foreign currency forward contracts (5)
Accumulated other comprehensive income (loss)(3,948)(688)
Total$529,785 $63,323 
(1)Fixed income related derivatives included in net realized and unrealized gains (losses) on investment-related derivatives. See “Note 3. Investments” for additional information.
(2)Contracts used to manage foreign currency risks in underwriting and non-investment operations.
(3)Contracts used to manage foreign currency risks in investment operations.
(4)Equity related derivatives included in net realized and unrealized gains (losses) on investment-related derivatives. See “Note 3. Investments” for additional information.
(5)Contracts designated as hedges of net investments in a foreign operation.
Derivative Instruments Not Designated as Hedges
Interest Rate Derivatives
The Company uses interest rate futures within its portfolio of fixed maturity investments to manage its exposure to interest rate risk, which may result in increasing or decreasing its exposure to this risk.
Interest Rate Futures
The fair value of interest rate futures is determined using exchange traded prices. At September 30, 2025, the Company had $6.9 billion of notional long positions and $3.4 billion of notional short positions of primarily U.S. treasury and non-U.S. government bond futures contracts (December 31, 2024 - $7.1 billion and $3.1 billion, respectively).
Foreign Currency Derivatives
The Company’s functional currency is the U.S. dollar. The Company writes a portion of its business in currencies other than U.S. dollars and may, from time to time, experience foreign exchange gains and losses in the Company’s consolidated financial statements. The impact of changes in exchange rates on the Company’s assets and liabilities denominated in currencies other than the U.S. dollar, excluding non-monetary assets and liabilities, are recognized in the Company’s consolidated statements of operations.
Underwriting and Non-investments Operations Related Foreign Currency Contracts
The Company’s foreign currency policy with regard to its underwriting operations is generally to enter into foreign currency forward and option contracts for notional values that approximate the foreign currency liabilities, including claims and claim expense reserves and reinsurance balances payable, net of any cash, investments and receivables held in the respective foreign currency. The Company’s use of foreign currency forward and option contracts is intended to minimize the effect of fluctuating foreign currencies on the value of non-U.S. dollar denominated assets and liabilities associated with its underwriting operations. The Company may determine not to match a portion of its projected underwriting related assets or liabilities with underlying foreign currency exposure with investments in the same currencies, which would increase its exposure to foreign currency fluctuations and potentially increase the impact and volatility of foreign exchange gains and losses on its results of operations. The fair value of the Company’s underwriting operations related foreign currency contracts is determined using indicative pricing obtained from counterparties or broker quotes. At September 30, 2025, the Company had outstanding underwriting related foreign currency contracts of $941.4 million in notional long positions and $168.8 million in notional short positions, denominated in U.S. dollars (December 31, 2024 - $1.0 billion and $508.8 million, respectively).
Investment Portfolio Related Foreign Currency Forward Contracts
The Company’s investment operations are exposed to currency fluctuations through its investments in non-U.S. dollar fixed maturity investments, short term investments and other investments. From time to time, the Company may employ foreign currency forward contracts in its investment portfolio to either assume foreign currency risk or to economically hedge its exposure to currency fluctuations from these investments. The fair value of the Company’s investment portfolio related foreign currency forward contracts is determined using an interpolated rate based on closing forward market rates. At September 30, 2025, the Company had outstanding investment portfolio related foreign currency contracts of $428.5 million in notional long positions and $120.0 million in notional short positions, denominated in U.S. dollars (December 31, 2024 - $345.0 million and $107.0 million, respectively).
Credit Derivatives
The Company’s exposure to credit risk is primarily due to its fixed maturity investments, short term investments, premiums receivable and reinsurance recoverable. From time to time, the Company may purchase credit derivatives to manage its exposures in the insurance industry, and to assist in managing the credit risk associated with ceded reinsurance. The Company also employs credit derivatives in its investment portfolio to either assume credit risk or manage its credit exposure.
Credit Default Swaps
The fair value of the Company’s credit default swaps is determined using industry valuation models, broker bid indications or internal pricing valuation techniques. The fair value of these credit default swaps can change based on a variety of factors including changes in credit spreads, default rates and recovery rates, the correlation of credit risk between the referenced credit and the counterparty, and market rate inputs such as interest rates. At September 30, 2025, the Company had outstanding credit default swaps of $845.7 million in notional positions to protect against increasing credit risk, denominated in U.S. dollars (December 31, 2024 - $1.4 billion).
Equity Derivatives
Equity Futures
From time to time, the Company uses equity derivatives in its investment portfolio to either assume equity risk or hedge its equity exposure. The fair value of the Company’s equity futures is determined using market-based prices from pricing vendors. At September 30, 2025, the Company had $1.3 billion of notional long positions of equity futures (December 31, 2024 - $437.2 million).
Commodity Derivatives
The Company uses commodity derivatives within its investments portfolio to assume or hedge risk. Commodity derivatives expose the Company to potentially unfavorable price changes to the underlying commodities.
Commodity Futures
The fair value of the Company’s commodity futures is determined using market-based prices from pricing vendors. At September 30, 2025, the Company had $1.1 billion of notional long positions of gold futures, denominated in U.S. dollars (December 31, 2024 - $684.3 million).
Commodity Options
The fair value of these derivatives is determined using market-based prices from pricing vendors. At September 30, 2025, the Company had no exposure to exchange traded commodity option contracts (December 31, 2024 - $0.5 million). The notional amounts for options are based on the fair value of the underlying commodities as if the options were exercised at the reporting date.
Derivative Instruments Designated as Hedges of Net Investments in Foreign Operations
Foreign Currency Derivatives
Hedges of Net Investments in Foreign Operations
One of the Company’s subsidiaries currently uses a non-U.S. dollar functional currency. The Company, from time to time, enters into foreign exchange forwards to hedge non-U.S. dollar functional currencies, on an after-tax basis, from changes in the exchange rate between the U.S. dollar and these currencies.
As of September 30, 2025 and December 31, 2024, this included the Australian dollar net investment in a foreign operation. These foreign exchange forward contracts were formally designated as hedges of its investment in subsidiaries with non-U.S. dollar functional currencies and there was no ineffectiveness in these transactions.
The table below provides a summary of derivative instruments designated as hedges of net investments in a foreign operation, including the weighted average U.S. dollar equivalent of foreign denominated net assets (liabilities) that were hedged and the resulting derivative gains (losses) that are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive income (loss) on the Company’s consolidated statements of changes in shareholders’ equity:
Three months endedNine months ended
September 30,
2025		September 30,
2024		September 30,
2025		September 30,
2024
Weighted average of U.S. dollar equivalent of foreign denominated net assets (liabilities) $62,870 $61,544 $60,893 $62,205 
Derivative gains (losses)
$(571)$(2,181)$(3,948)$(688)