Investment Funds

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

The Company evaluates whether it is an investor in a variable interest entity ("VIE"). Such entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support, or the equity investors, as a group, do not have the characteristics of a controlling financial interest (primary beneficiary). The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE and on an ongoing basis. The Company is not the primary beneficiary in any of its investment funds, and accordingly, carries its interests in investments funds under the equity method of accounting.

The Company’s maximum exposure to loss with respect to these investments is limited to the carrying amount reported on the Company’s consolidated balance sheet and its unfunded commitments of $402 million as of December 31, 2022.

Investment funds consist of the following:


	Carrying Value as of December 31,				Income (Loss) From Investment Funds For the Year Ended
(In thousands)	2022		2021		2022		2021		2020
Financial services	$	465,683	$	431,818	$	34,030	$	98,893	$	34,763
Transportation	336,753		336,688		53,180		42,424		(616)
Real estate	204,644		273,690		48,723		29,484		7,543
Energy	116,432		150,224		1,425		22,118		(11,039)
Infrastructure	115,428		12,314		4,603		1,372		1,672
Other funds	369,608		275,878		3,138		25,723		21,930
Total	$	1,608,548	$	1,480,612	$	145,099	$	220,014	$	54,253

The Company's share of the earnings or losses of investment funds is primarily reported on a one-quarter lag in order to facilitate the timely completion of the Company's consolidated financial statements.

Financial services investment funds include the Company’s minority investment in Lifson Re, a Bermuda reinsurance company. Effective January 1, 2021, Lifson Re participated on a fully collateralized basis in a majority of the Company’s reinsurance placements for a 22.5% share of placed amounts. The percentage increased from 22.5% to 30.0% effective July 1, 2022. This pertains to all traditional reinsurance/retrocessional placements for both property and casualty business where there is more than one open market reinsurer participating. For the years ended December 31, 2022 and 2021, the Company ceded approximately $399 million and $245 million, respectively, of written premiums to Lifson Re.

Other funds include deferred compensation trust assets of $30 million and $34 million in 2022 and 2021, respectively. These assets support other liabilities reflected in the balance sheet of an equal amount for employees who have elected to defer a portion of their compensation. The change in the net asset value of the trust is recorded in other funds within net investment income with an offsetting equal amount within corporate expenses.