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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
A member of the Company’s Board of Directors, Mr. Charles Davis, is the Chief Executive Officer of Stone Point Capital, LLC ("Stone Point"). In the ordinary course of business, the Company engages SKY Harbor Capital Management, LLC, which is majority-owned by Stone Point's private equity fund Trident V L.P. ("Trident V"), to provide asset management services for certain high yield debt portfolios. For the year ended December 31, 2023, total fees paid to SKY Harbor Capital Management, LLC, were $3 million (2022: $2 million; 2021: $2 million).
In addition, the Company has an investment of $17 million in the Freedom Consumer Credit Fund, LLC - Series B. The manager of this fund is Freedom Financial Asset Management, LLC ("Freedom") which is an indirect subsidiary of Pantheon Partners, LLC ("Pantheon"). A Stone Point private equity fund, Trident VI L.P. ("Trident VI") owns approximately 14.5% of Pantheon. For the year ended December 31, 2023, fees paid to Freedom were $1 million (2022: $2 million; 2021: $3 million).
The Company has an investment of $87 million in Stone Point's private equity fund, Trident VIII L.P. ("Trident VIII") and co-investments of $26 million with Trident VIII. For the year ended December 31, 2023, fees paid to Stone Point in relation to Trident VIII were $2 million (2022: $2 million; 2021: $4 million).
The Company has an investment of $24 million in Stone Point's private equity fund, Trident IX L.P. ("Trident IX"). For the year ended December 31, 2023, fees paid to Stone Point in relation to Trident IX were $1 million (2022: $1 million; 2021: $nil).
The Company has an investment of $43 million with Rialto Real Estate IV-Property ("Rialto") and co-investments of $19 million with Rialto, a fund managed by a portfolio company of Stone Point's private equity fund, Trident VII L.P. ("Trident VII "). For the year ended December 31, 2023, fees paid to Rialto were $2 million (2022: $2 million; 2021: $1 million).
The Company has an investment of $18 million in Stone Point Credit Corporation. For the year ended December 31, 2023, fees paid to Stone Point in relation to Stone Point Credit Corporation were $0.5 million (2022: $0.3 million; 2021: $nil).
The Company has an investment of $18 million in Stone Point Credit Corporation bonds. For the year ended December 31, 2023, the Company earned income of $1 million (2022: $0.6 million) in relation to this bond.
The Company has an investment of $5 million in a syndicated accounts receivable loan for which Sound Point Capital Management LP ("Sound Point"), an affiliate of Stone Point, is the lead originator. For the year ended December 31, 2023, the Company has not paid any fees to Sound Point.
The Company has co-investments of $9 million with Gordon Brothers, which is majority-owned by Trident VII. For the year ended December 31, 2023, fees paid to Gordon Brothers were $0.1 million (2022: $0.1 million).
The Company has an investment of $7 million in a loan to Eagle Point Credit Management LLC ("Eagle Point"), which is majority-owned by Trident IX. For the year ended December 31, 2023, the Company has not paid any fees to Eagle Point.
The Company has an investment of $6 million in cumulative preferred shares of Aspida Holdings Ltd. ("Aspida"). The investment was syndicated to the Company by Stone Point. For the year ended December 31, 2023, the Company has not paid any fees to Aspida.
The Company has an investment of $22 million in Monarch Point Re (refer to Note 5 'Investments'), a newly created collateralized reinsurer which is jointly sponsored by the Company and Stone Point. For the year ended December 31, 2023, fees paid to Monarch Point Re were $0.1 million.
The Company's investment portfolio includes certain investments where it is considered to have the ability to exercise significant influence over the operating and financial policies of the investee. Significant influence is generally deemed to exist where the Company has an investment of 20% or more in the common stock of a corporation or an investment greater than 3% to 5% in closed end funds, limited partnerships, LLCs or similar investment vehicles. 
At December 31, 2023, the Company has $424 million (2022: $462 million) of investments where it is deemed to have the ability to exercise such significant influence. The Company generally pays management and performance fees to the
investment managers of these investments. The Company considers all fees paid to the investment managers to be at market rates consistent with negotiated arms-length contracts.
Retrocession Agreement with Monarch Point Re
On September 22, 2023 (the "closing date"), the Company entered into an agreement, with an effective date of January 1, 2023, to retrocede a diversified portfolio of casualty reinsurance business to Monarch Point Re.
The agreement covers losses both on a prospective basis and on a retroactive basis. Therefore, the Company has bifurcated the prospective and retroactive elements of the agreement and is accounting for each element separately.

Retroactive element
Reinsurance premiums of $119 million were allocated to the retroactive element of the agreement which was deemed to have met the established criteria for retroactive reinsurance accounting. At the closing date, the Company recognized acquisition costs of $33 million and a loss expense of $7 million in the consolidated statement of operations associated with the retroactive element of the agreement. In addition, the Company recognized reinsurance recoverable on unpaid losses of $76 million and reinsurance recoverable on paid losses of $4 million in the consolidated balance sheets associated with the retroactive element of the agreement (refer to Note 8 'Reserve for Losses and Loss Expenses').

Prospective element
For the year ended December 31, 2023, the Company ceded reinsurance premiums of $287 million and ceded losses of $37 million to Monarch Point Re. In addition, Monarch Point Re paid certain acquisition costs and administrative fees to the Company.
At December 31, 2023, the amount of reinsurance recoverable on unpaid and paid losses was $37 million and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $166 million in the consolidated balance sheets.
This transaction was conducted at market rates consistent with negotiated arms-length contracts.
Loan to Monarch Point Re
During 2023, the Company advanced an amount of $297 million to Monarch Point Re. This loan will be repaid in a manner consistent with the timing of amounts due to Monarch Point Re under the retrocession agreement. At December 31, 2023, an amount of $72 million was repaid and was treated as a non-cash activity in the consolidated statement of cash flows. The loan is expected to be repaid in full by May 15, 2025. The loan balance receivable at December 31, 2023 of $225 million is included in loan advances made in the consolidated balance sheets. At December 31, 2023, the Company had committed to advance a further $16 million to Monarch Point Re.
Interest on this loan was payable for the three months ended December 31, 2023 at interest rates between 5.7% and 5.85%. Interest related to this loan was received in advance and is included in other liabilities in the consolidated balance sheets and interest income for this period is included in other insurance related income in the consolidated statement of operations.
Retrocession Agreement with Harrington Re
Harrington and Harrington Re commenced operations in 2016 (refer to Note 5 'Investments'). The Company has the ability to exercise significant influence over the operating and financial policies of Harrington and Harrington Re. In the normal course of business, the Company enters into certain reinsurance transactions with Harrington Re.
For the year ended December 31, 2023, the Company ceded reinsurance premiums of $298 million (2022: $324 million; 2021: $283 million) and ceded losses of $229 million (2022: $234 million; 2021: $188 million) to Harrington Re. In addition, Harrington Re paid certain acquisition costs and administrative fees to the Company.
At December 31, 2023, the amount of reinsurance recoverable on unpaid and paid losses was $933 million (2022: $819 million) and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $219 million (2022: $220 million) in the consolidated balance sheets. This transaction was conducted at market rates consistent with negotiated arms-length contracts.
On June 29, 2021, the Company invested $10 million in 7.25% fixed to floating rate, senior unsecured notes due 2031, issued by Harrington.