Investment Funds

12 Months Ended

Dec. 31, 2024

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 $279 million as of December 31, 2024.

Investment funds consist of the following:


	Carrying Value as of December 31,				(Loss) Income From Investment Funds For the Year Ended
(In thousands)	2024		2023		2024		2023		2022
Financial services	$	430,163	$	433,407	$	(39,418)	$	(10,911)	$	34,030
Transportation	286,426		344,278		13,335		40,607		53,180
Real estate	178,685		201,625		12,195		(6,676)		48,723
Infrastructure	151,560		130,589		17,071		13,049		4,603
Energy	42,776		114,794		14,501		5,058		1,425
Other funds	378,636		396,962		(29,175)		(24,384)		3,138
Total	$	1,468,246	$	1,621,655	$	(11,491)	$	16,743	$	145,099

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 share was increased to 30% on July 1, 2022 and was increased to 32.5% effective January 1, 2025. 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, 2024 and 2023, the Company ceded approximately $417 million and $437 million, respectively, of written premiums to Lifson Re.

Other funds include deferred compensation trust assets of $38 million and $36 million in 2024 and 2023, 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.