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DERIVATIVE INSTRUMENTS | 6 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The following table provides the balance sheet classifications of derivatives recorded at fair value:
|  | June 30, 2024 |  | December 31, 2023 |
|  | Derivative notional amount |  | Derivative asset fair value(1) |  | Derivative liability fair value(1) |  | Derivative notional amount |  | Derivative asset fair value(1) |  | Derivative liability fair value(1) |
| Relating to investment portfolio: |  |  |  |  |  |  |  |  |  |  |  |
| Foreign exchange forward contracts | $ | 92,654 |  |  | $ | 414 |  |  | $ | 10 |  |  | $ | 49,307 |  |  | $ | 66 |  |  | $ | 274 |  |
| Relating to underwriting portfolio: |  |  |  |  |  |  |  |  |  |  |  |
| Foreign exchange forward contracts | 1,565,756 |  |  | 1,408 |  |  | 4,812 |  |  | 1,347,559 |  |  | 4,358 |  |  | 9,891 |  |
| Total derivatives |  |  | $ | 1,822 |  |  | $ | 4,822 |  |  |  |  | $ | 4,424 |  |  | $ | 10,165 |  |
(1)Derivative assets and derivative liabilities are classified within other assets and other liabilities in the consolidated balance sheets. The notional amounts of derivative contracts represent the basis on which amounts paid or received are calculated and are presented in the above table to quantify the volume of the Company's derivative activities. Notional amounts are not reflective of credit risk. None of the Company's derivative instruments are designated as hedges. Offsetting Assets and Liabilities The Company's derivative instruments are generally traded under International Swaps and Derivatives Association master netting agreements which establish terms that apply to all transactions. In the event of a bankruptcy or other stipulated event, master netting agreements provide that individual positions be replaced with a new amount, usually referred to as the termination amount, determined by taking into account market prices and converting into a single currency. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. The following table provides a reconciliation of gross derivative assets and liabilities to the net amounts presented in the consolidated balance sheets, with the difference being attributable to the impact of master netting agreements:
|  | June 30, 2024 |  | December 31, 2023 |
|  | Gross amounts | Gross amounts offset | Net amounts(1) |  | Gross amounts | Gross amounts offset | Net amounts(1) |
| Derivative assets | $ | 5,780 |  | $ | (3,958) |  | $ | 1,822 |  |  | $ | 8,708 |  | $ | (4,284) |  | $ | 4,424 |  |
| Derivative liabilities | $ | 8,780 |  | $ | (3,958) |  | $ | 4,822 |  |  | $ | 14,449 |  | $ | (4,284) |  | $ | 10,165 |  |
(1)Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. Refer to Note 4 'Investments' for information on reverse repurchase agreements. a) Relating to Investment Portfolio Foreign Currency Risk The Company's investment portfolio is exposed to foreign currency risk. Therefore, the fair values of its investments are partially influenced by changes in foreign exchange rates. The Company may enter into foreign exchange forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes. b) Relating to Underwriting Portfolio Foreign Currency Risk The Company's insurance and reinsurance subsidiaries and branches operate in various countries. Some of its business is written in currencies other than the U.S. dollar, therefore the underwriting portfolio is exposed to significant foreign currency risk. The Company manages foreign currency risk by seeking to match its foreign-denominated net liabilities under insurance and reinsurance contracts with cash and investments that are denominated in the same currencies. The Company uses derivative instruments, specifically, forward contracts to economically hedge foreign currency exposures. The following table provides the total unrealized and realized gains (losses) recognized in net income (loss) for derivatives not designated as hedges:
|  |  | Consolidated statement of operations line item that includes gain (loss) recognized in net income (loss) | Three months ended June 30, |  | Six months ended June 30, |
|  |  | 2024 |  | 2023 |  | 2024 |  | 2023 |
|  | Relating to investment portfolio: |  |  |  |  |  |  |  |  |
|  | Foreign exchange forward contracts | Net investment gains (losses) | $ | 228 |  |  | $ | (527) |  |  | $ | 1,023 |  |  | $ | (1,474) |  |
|  | Relating to underwriting portfolio: |  |  |  |  |  |  |  |  |
|  | Foreign exchange forward contracts | Foreign exchange (losses) gains | 3,097 |  |  | (3,013) |  |  | 1,081 |  |  | 8,237 |  |
|  | Total |  | $ | 3,325 |  |  | $ | (3,540) |  |  | $ | 2,104 |  |  | $ | 6,763 |  |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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