INVESTMENTS

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

a)    Fixed Maturities, Available for Sale

The following table provides the amortized cost and fair values of the Company's fixed maturities classified as available for sale:

	Amortized cost		Allowance for expected credit losses		Gross unrealized gains		Gross unrealized losses		Fair value
At December 31, 2022
Available for sale
U.S. government and agency	$	2,731,733	$	—	$	5,386	$	(97,789)	$	2,639,330
Non-U.S. government	612,546		—		2,395		(52,912)		562,029
Corporate debt	4,680,798		(11,521)		5,269		(418,990)		4,255,556
Agency RMBS(1)	1,297,423		—		4,663		(99,301)		1,202,785
CMBS(2)	1,029,863		—		60		(82,145)		947,778
Non-agency RMBS	151,907		(123)		275		(18,525)		133,534
ABS(3)	1,499,728		(35)		555		(70,721)		1,429,527
Municipals(4)	172,475		(54)		139		(16,205)		156,355
Total fixed maturities, available for sale	$	12,176,473	$	(11,733)	$	18,742	$	(856,588)	$	11,326,894
At December 31, 2021
Available for sale
U.S. government and agency	$	2,693,319	$	—	$	9,776	$	(20,647)	$	2,682,448
Non-U.S. government	794,705		—		10,158		(9,685)		795,178
Corporate debt	4,446,585		(236)		87,075		(38,112)		4,495,312
Agency RMBS(1)	1,065,973		—		17,397		(8,781)		1,074,589
CMBS(2)	1,223,051		—		29,827		(4,687)		1,248,191
Non-agency RMBS	185,854		(77)		2,410		(2,023)		186,164
ABS(3)	1,628,739		—		3,406		(9,665)		1,622,480
Municipals(4)	203,556		—		5,928		(646)		208,838
Total fixed maturities, available for sale	$	12,241,782	$	(313)	$	165,977	$	(94,246)	$	12,313,200

(1)Residential mortgage-backed securities ("RMBS") originated by U.S. government-sponsored agencies.

(2)Commercial mortgage-backed securities ("CMBS").

(3)Asset-backed securities ("ABS") include debt tranched securities collateralized primarily by auto loans, student loans, credit card receivables and collateralized loan obligations ("CLOs").

(4)Municipals include bonds issued by states, municipalities and political subdivisions.

Contractual Maturities

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The table below provides the contractual maturities of fixed maturities classified as available for sale:

	Amortized cost		Fair value		% of Total fair value
At December 31, 2022
Maturity
Due in one year or less	$	422,039	$	409,972	3.7	%
Due after one year through five years	5,349,123		5,078,273		44.8	%
Due after five years through ten years	2,192,344		1,919,450		16.9	%
Due after ten years	234,046		205,575		1.8	%
	8,197,552		7,613,270		67.2	%
Agency RMBS	1,297,423		1,202,785		10.6	%
CMBS	1,029,863		947,778		8.4	%
Non-agency RMBS	151,907		133,534		1.2	%
ABS	1,499,728		1,429,527		12.6	%
Total	$	12,176,473	$	11,326,894	100.0	%
At December 31, 2021
Maturity
Due in one year or less	$	503,716	$	505,602	4.1	%
Due after one year through five years	4,878,151		4,908,640		39.9	%
Due after five years through ten years	2,478,542		2,488,478		20.2	%
Due after ten years	277,756		279,056		2.3	%
	8,138,165		8,181,776		66.5	%
Agency RMBS	1,065,973		1,074,589		8.7	%
CMBS	1,223,051		1,248,191		10.1	%
Non-agency RMBS	185,854		186,164		1.5	%
ABS	1,628,739		1,622,480		13.2	%
Total	$	12,241,782	$	12,313,200	100.0	%

Gross Unrealized Losses

The following table summarizes fixed maturities, available for sale in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:

	12 months or greater				Less than 12 months				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
At December 31, 2022
Fixed maturities, available for sale
U.S. government and agency	$	467,032	$	(41,365)	$	1,414,181	$	(56,424)	$	1,881,213	$	(97,789)
Non-U.S. government	207,637		(33,027)		298,048		(19,885)		505,685		(52,912)
Corporate debt	1,562,355		(268,289)		2,350,504		(150,701)		3,912,859		(418,990)
Agency RMBS	220,595		(40,469)		771,191		(58,832)		991,786		(99,301)
CMBS	343,494		(40,888)		599,877		(41,257)		943,371		(82,145)
Non-agency RMBS	75,137		(14,691)		53,484		(3,834)		128,621		(18,525)
ABS	685,990		(48,913)		686,190		(21,808)		1,372,180		(70,721)
Municipals	52,994		(10,120)		96,003		(6,085)		148,997		(16,205)
Total fixed maturities, available for sale	$	3,615,234	$	(497,762)	$	6,269,478	$	(358,826)	$	9,884,712	$	(856,588)
At December 31, 2021
Fixed maturities, available for sale
U.S. government and agency	$	101,776	$	(4,852)	$	2,014,880	$	(15,795)	$	2,116,656	$	(20,647)
Non-U.S. government	11,011		(1,830)		463,498		(7,855)		474,509		(9,685)
Corporate debt	152,962		(6,542)		1,681,859		(31,570)		1,834,821		(38,112)
Agency RMBS	41,024		(1,678)		503,988		(7,103)		545,012		(8,781)
CMBS	30,128		(1,001)		347,515		(3,686)		377,643		(4,687)
Non-agency RMBS	4,481		(523)		109,937		(1,500)		114,418		(2,023)
ABS	43,466		(1,152)		1,040,363		(8,513)		1,083,829		(9,665)
Municipals	5,293		(137)		35,649		(509)		40,942		(646)
Total fixed maturities, available for sale	$	390,141	$	(17,715)	$	6,197,689	$	(76,531)	$	6,587,830	$	(94,246)

At December 31, 2022, 4,525 fixed maturities (2021: 2,333) were in an unrealized loss position of $857 million (2021: $94 million) of which $64 million (2021: $8 million) was related to securities below investment grade or not rated.

At December 31, 2022, 1,842 fixed maturities (2021: 344) had been in a continuous unrealized loss position for twelve months or greater and had a fair value of $3,615 million (2021: $390 million).

The unrealized losses of $857 million (2021: $94 million) were due to non-credit factors and were expected to be recovered as the related securities approach maturity.

At December 31, 2022, the Company did not intend to sell the securities in an unrealized loss position and it is more likely than not that the Company will not be required to sell these securities before the anticipated recovery of their amortized costs.

b)    Fixed Maturities, Held to Maturity

The following table provides the amortized cost and fair values of the Company's fixed maturities classified as held to maturity:

	Amortized cost		Allowance for expected credit losses		Net carrying value		Gross unrealized gains		Gross unrealized losses		Fair value
At December 31, 2022
Held to maturity
Corporate debt	$	85,200	$	—	$	85,200	$	—	$	(11,428)	$	73,772
ABS(1)	613,151		—		613,151		—		(12,180)		600,971
Total fixed maturities, held to maturity	$	698,351	$	—	$	698,351	$	—	$	(23,608)	$	674,743
At December 31, 2021
Held to maturity
Corporate debt	$	37,700	$	—	$	37,700	$	18	$	(146)	$	37,572
ABS(1)	408,316		—		408,316		81		(936)		407,461
Total fixed maturities, held to maturity	$	446,016	$	—	$	446,016	$	99	$	(1,082)	$	445,033

(1)Asset-backed securities ("ABS") include debt tranched securities collateralized primarily by collateralized loan obligations ("CLOs").

On March 1, 2021, the Company transferred ABS securities with total fair value of $405 million from fixed maturities, available for sale to fixed maturities, held to maturity. These securities, which the Company has the intent and ability to hold to maturity, were transferred in order to better align the accounting classification with their management strategy. The net unrealized gain at the date of the transfer, March 1, 2021, continues to be reported in the carrying value of the transferred securities and is amortized over the remaining life of the securities using the effective yield method.

At December 31, 2022, fixed maturities, held to maturity of $698 million (2021: $446 million) were presented net of an allowance for expected credit losses of $nil (2021: $nil).

The Company's ABS, held to maturity consist of CLO debt tranched securities. The Company uses a scenario-based approach to review its CLO debt portfolio and reviews subordination levels of these securities to determine their ability to absorb credit losses of the underlying collateral. If losses are forecast to be below the subordination level for a tranche held by the Company, the security is determined not to have a credit loss. At December 31, 2022, the allowance for credit losses expected to be recognized over the life of the Company's ABS, held to maturity was $nil.

To estimate expected credit losses for corporate debt securities, held to maturity, the Company's projected cash flows are primarily driven by assumptions regarding the severity of loss, which is a function of the probability of default and projected recovery rates. The Company's default and recovery rates are based on credit ratings, credit analysis and macroeconomic forecasts. At December 31, 2022, the allowance for credit losses expected to be recognized over the life of the Company's corporate debt, held to maturity was $nil.

Contractual Maturities

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. ABS classified as held to maturity with a net carrying value of $613 million (2021: $408 million) do not have a single maturity date and cannot be allocated over several maturity groupings.

Corporate debt classified as held to maturity with a net carrying value of $81 million (2021: $34 million) is due between 3 years and 10 years and corporate debt classified as held to maturity with a net carrying value of $4 million (2021: $4 million) is due after ten years.

c)    Equity Securities

The following table provides the cost and fair values of the Company's equity securities:

	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
At December 31, 2022
Equity securities
Common stocks	$	7,279	$	636	$	(442)	$	7,473
Preferred stocks	115		—		(43)		72
Exchange-traded funds	207,505		68,058		(5,757)		269,806
Bond mutual funds	279,457		—		(71,555)		207,902
Total equity securities	$	494,356	$	68,694	$	(77,797)	$	485,253
At December 31, 2021
Equity securities
Common stocks	$	1,264	$	585	$	(485)	$	1,364
Preferred stocks	115		64		—		179
Exchange-traded funds	203,455		134,037		(677)		336,815
Bond mutual funds	324,030		544		(7,257)		317,317
Total equity securities	$	528,864	$	135,230	$	(8,419)	$	655,675

d)    Mortgage Loans

The following table provides details of the Company's mortgage loans held for investment:

	December 31, 2022				December 31, 2021
	Carrying value		% of Total		Carrying value		% of Total
Mortgage loans held for investment:
Commercial	$	627,437	100	%	$	594,088	100	%
Total mortgage loans held for investment	$	627,437	100	%	$	594,088	100	%

The primary credit quality indicators for commercial mortgage loans are the debt service coverage ratio which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan, (generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss) and the loan-to-value ratio which compares the unpaid principal balance of the loan to the estimated fair value of the underlying collateral (generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss). The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated annually, on a rolling basis.

The Company has a high quality mortgage loan portfolio with a weighted average debt service coverage ratio of 2.3x (2021: 2.5x) and a weighted average loan-to-value ratio of 60% (2021: 60%). At December 31, 2022 and 2021, there were no credit losses or past due amounts associated with the commercial mortgage loans held by the Company.

e)    Other Investments

The following table provides a summary of the Company's other investments, together with additional information relating to the liquidity of each category:

	Fair value				Redemption frequency (if currently eligible)	Redemption notice period
At December 31, 2022
Long/short equity funds	$	—	—	%	n/a	n/a
Multi-strategy funds	32,616		3	%	Quarterly	60-90 days
Direct lending funds	258,626		26	%	Quarterly(1)	90 days
Private equity funds	265,836		27	%	n/a	n/a
Real estate funds	298,499		30	%	Quarterly(2), Annually(3)	45-90 days
CLO-Equities	5,016		—	%	n/a	n/a
Other privately held investments	136,158		14	%	n/a	n/a
Total other investments	$	996,751	100	%
At December 31, 2021
Long/short equity funds	$	3,476	—	%	Annually	60 days
Multi-strategy funds	56,012		6	%	Quarterly	60-90 days
Direct lending funds	289,867		31	%	Quarterly(1)	90 days
Private equity funds	249,974		26	%	n/a	n/a
Real estate funds	238,222		25	%	Quarterly(2)	45 days
CLO-Equities	5,910		1	%	n/a	n/a
Other privately held investments	104,521		11	%	n/a	n/a
Total other investments	$	947,982	100	%

n/a – not applicable

(1)Applies to one fund with a fair value of $39 million (2021: $47 million).

(2)Applies to one fund with a fair value of $73 million (2021: $73 million).

(3)Applies to one fund with a fair value of $27 million (2021: $nil).

The investment strategies for the above funds are as follows:

•Long/short equity funds: Seek to achieve attractive returns primarily by executing an equity trading strategy involving long and short investments in publicly-traded equity securities.

•Multi-strategy funds: Seek to achieve above-market returns by pursuing multiple investment strategies to diversify risks and reduce volatility. This category includes funds of hedge funds which invest in a large pool of hedge funds across a diversified range of hedge fund strategies.

•Direct lending funds: Seek to achieve attractive risk-adjusted returns, including current income generation, by investing in funds which provide financing directly to borrowers.

•Private equity funds: Seek to achieve attractive risk-adjusted returns by investing in private transactions over the course of several years.

•Real estate funds: Seek to achieve attractive risk-adjusted returns by making and managing investments in real estate and real estate securities and businesses.

Two common redemption restrictions which may impact the Company's ability to redeem hedge funds are gates and lockups. A gate is a suspension of redemptions which may be implemented by the general partner or investment manager of the fund in order to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a predetermined percentage of the fund’s net assets which may otherwise hinder the general partner or investment manager’s ability to liquidate holdings in an orderly fashion in order to generate the cash necessary to fund extraordinarily large redemption payouts. A lockup period is the initial amount of time an investor is contractually required to hold the security before having the ability to redeem. During 2022 and 2021, neither of these restrictions impacted the Company's redemption requests. At December 31, 2022, there were no hedge fund holdings (2021: $3 million) where the Company is still within the lockup period.

At December 31, 2022, the Company had $26 million (2021: $23 million) of unfunded commitments as a limited partner in multi-strategy hedge funds. Once the full amount of committed capital has been called by the General Partner of each of these funds, the assets will not be fully returned until after the completion of the funds' investment term. These funds have investment terms ranging from two years to the dissolution of the underlying fund.

At December 31, 2022, the Company had $183 million (2021: $224 million) of unfunded commitments as a limited partner in direct lending funds. Once the full amount of committed capital has been called by the General Partner of each of these funds, the assets will not be fully returned until the completion of the fund's investment term. These funds have investment terms ranging from four to ten years and the General Partners of certain funds have the option to extend the term by up to three years.

At December 31, 2022, the Company had $158 million (2021: $178 million) of unfunded commitments as a limited partner in private equity funds. The life of the funds is subject to the dissolution of the underlying funds. The Company expects the overall holding period to be over five years.

At December 31, 2022, the Company had $141 million (2021: $173 million) of unfunded commitments as a limited partner in real estate funds. These funds include an open-ended fund and funds with investment terms ranging from two years to the dissolution of the underlying fund.

f)    Equity Method Investments

During 2016, the Company paid $108 million including direct transaction costs to acquire 19% of the common equity of Harrington Reinsurance Holdings Limited ("Harrington"), the parent company of Harrington Re Ltd. ("Harrington Re"), an independent reinsurance company jointly sponsored by the Company and The Blackstone Group L.P. ("Blackstone"). Through long-term service agreements, the Company will serve as Harrington Re's reinsurance underwriting manager and Blackstone will serve as exclusive investment management service provider. As an investor, the Company expects to benefit from underwriting profit generated by Harrington Re and the income and capital appreciation Blackstone seeks to deliver through its investment management services. In addition, the Company has entered into an arrangement with Blackstone under which underwriting and investment related fees will be shared equally. Harrington is not a Variable Interest Entities ("VIEs") that is required to be included in the Company's consolidated financial statements. The Company accounts for its ownership interest in Harrington under the equity method of accounting. The Company's proportionate share of the underlying equity in net assets resulted in a basis difference of $5 million which represents initial transactions costs.

g)    Variable Interest Entities

In the normal course of investing activities, the Company actively manages allocations to non-controlling tranches of structured securities which are variable interests issued by VIEs. These structured securities include RMBS, CMBS and ABS.

The Company also invests in limited partnerships which represent 71% of the Company's other investments. The investments in limited partnerships include hedge funds, direct lending funds, private equity funds, real estate funds and CLO equity tranched securities, which are variable interests issued by VIEs (refer to Note 5(e) 'Other Investments').

The Company does not have the power to direct the activities that are most significant to the economic performance of these VIEs therefore the Company is not the primary beneficiary of these VIEs. The maximum exposure to loss on these interests is limited to the amount of commitment made by the Company. The Company has not provided financial or other support to these structured securities other than the original investment.

h)    Net Investment Income

Net investment income was derived from the following sources:

Year ended December 31,	2022		2021		2020
Fixed maturities	$	329,858	$	262,049	$	317,121
Other investments	57,043		181,906		16,059
Equity securities	10,390		12,752		9,328
Mortgage loans	23,407		17,427		15,432
Cash and cash equivalents	20,273		4,454		13,582
Short-term investments	3,535		664		2,749
Gross investment income	444,506		479,252		374,271
Investment expenses	(25,677)		(24,951)		(24,670)
Net investment income	$	418,829	$	454,301	$	349,601

i)    Net Investment Gains (Losses)

The following table provides an analysis of net investment gains (losses):

Year ended December 31,	2022		2021		2020
Gross realized investment gains
Fixed maturities and short-term investments	$	16,671	$	137,729	$	186,726
Equity securities	7,687		5,413		25,648
Gross realized investment gains	24,358		143,142		212,374
Gross realized investment losses
Fixed maturities and short-term investments	(328,493)		(42,613)		(94,607)
Equity securities	(406)		(696)		(5,840)
Gross realized investment losses	(328,899)		(43,309)		(100,447)
Change in allowance for expected credit losses	(11,421)		11		(323)
Impairment losses(1)	(12,568)		(22)		(1,486)
Change in fair value of investment derivatives(2)	7,656		4,346		(2,434)
Net unrealized gains (losses) on equity securities	(135,915)		30,111		21,449
Net investment gains (losses)	$	(456,789)	$	134,279	$	129,133

(1)Related to instances where the Company intends to sell securities or it is more likely than not that the Company will be required to sell securities before their anticipated recovery.

(2)Refer to Note 7 'Derivative Instruments'.

The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on fixed maturities classified as available for sale:

Year ended December 31,	2022		2021		2020
Balance at beginning of period	$	313	$	323	$	—
Expected credit losses on securities where credit losses were not previously recognized	17,830		95		22,570
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	(3,831)		50		(11,542)
Impairments of securities which the Company intends to sell or more likely than not will be required to sell	—		—		—
Securities sold/redeemed/matured	(2,579)		(155)		(10,705)
Balance at end of period	$	11,733	$	313	$	323

Fixed Maturities

The Company evaluates available for sale securities for expected credit losses when fair value is below amortized cost. If the Company intends to sell or will be required to sell the security before its anticipated recovery, the full amount of the impairment loss is charged to net income (loss). If the Company does not intend to sell or will not be required to sell the security before its anticipated recovery, an allowance for expected credit losses is established and the portion of the loss that relates to credit losses is recorded in net income (loss).

A summary of credit loss activity by asset class, the significant inputs and the methodology used to estimate credit losses are described below.

U.S. Government, U.S. Agency and U.S. Agency RMBS

Unrealized losses on securities issued or backed, either explicitly or implicitly by the U.S. government are not analyzed for credit losses. The Company has concluded that the possibility of a credit loss on these securities is highly unlikely due to the explicit U.S. government guarantee related to certain securities (e.g., Government National Mortgage Association issuances) and the implicit guarantee related to other securities that has been validated by past actions (e.g., U.S. government bailout of Federal National Mortgage Association and Federal Home Loan Mortgage Corporation during the 2008 credit crisis).

Although these securities are not analyzed for credit losses, they are evaluated for intention to sell and likely requirement to sell.

Non-U.S. Government

Non-U.S. government securities are evaluated for expected credit losses primarily through qualitative assessments of the likelihood of credit losses using information such as severity of unrealized losses, credit ratings and price volatility. At December 31, 2022, the gross unrealized losses of $53 million included foreign exchange losses of $24 million. At December 31, 2022, the Company does not anticipate any credit losses on its non-U.S. government fixed maturities.

At December 31, 2021, the gross unrealized losses of $10 million and were mainly due to foreign exchange losses. At December 31, 2021, the Company did not anticipate any credit losses on its non-U.S. government fixed maturities.

Corporate Debt

To estimate expected credit losses for corporate debt securities, the Company's projected cash flows are primarily driven by assumptions regarding the severity of loss, probability of default and projected recovery rates. The Company's default and loss severity rates are based on credit rating, credit analysis and macroeconomic forecasts. At December 31, 2022 and 2021, the allowance for expected credit losses on corporate debt securities mainly related to loss severity where the forecasted recovery to amortized cost was uncertain.

CMBS

The Company's investments in CMBS are diversified and primarily rated AA or better. At December 31, 2022, CMBS had a weighted average estimated subordination percentage of 38% (2021: 37%). Based on discounted cash flows at December 31, 2022 and 2021, the current level of subordination is sufficient to cover the estimated loan losses on the underlying collateral of the CMBS.

Non-agency RMBS

To estimate expected credit losses for non-agency RMBS, the Company's projected cash flows incorporated underlying data from widely accepted third-party data sources along with certain internal assumptions and judgments regarding the future performance of the security. These assumptions included default, delinquency, loss severity and prepayment rates.

At December 31, 2022, the fair value of the Company's non-agency RMBS was $134 million (2021: $186 million), consisting primarily of $39 million (2021: $87 million) of Prime and $76 million (2021: $74 million) of Alt-A MBS. At December 31, 2022 and 2021, the allowance for expected credit losses on non-agency RMBS related to loss severity where the forecasted recovery to amortized cost is uncertain.

ABS

The Company's investments in ABS consist mainly of CLO debt tranched securities ("CLO Debt") purchased primarily as new issues between 2018 and 2022. Substantially all of these new issues had credit ratings of AA or better. The Company utilizes a scenario-based approach to review its CLO Debt portfolio based on the current asset market price. The Company also reviews subordination levels of these securities to determine their ability to absorb credit losses of underlying collateral. If losses are forecast to be below the subordination level for a tranche held by the Company, the security is determined not to have a credit loss. At December 31, 2022, the allowance for expected credit losses on ABS related to loss severity where the forecasted recovery to amortized cost is uncertain. At December 31, 2021, the Company did not anticipate any credit losses on its CLO Debt. 

Municipals

Municipal securities are evaluated for expected credit losses primarily through qualitative assessments of the likelihood of credit losses using information such as severity of unrealized losses, credit ratings and price volatility. At December 31, 2022, the allowance for expected credit losses on municipals related to loss severity where the forecasted recovery to amortized cost is uncertain. At December 31, 2021, the Company did not anticipate any credit losses on its municipal securities. 

j)    Restricted Assets

In order to support the Company's obligations in regulatory jurisdictions where it operates as a non-admitted carrier, the Company provides collateral in the form of assets held in trust and, to a lesser extent, letters of credit (refer to Note 10(b) 'Debt and Financing Arrangements').

In addition, the Company operates in the Lloyd’s market through its corporate members, AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited, which provide 70% and 30%, respectively of Syndicate 1686's capital support. Lloyd’s sets capital requirements for corporate members annually through the application of a capital model that is based on regulatory rules pursuant to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking up and pursuit of business of Insurance and Reinsurance (Solvency II) ("Solvency II").

The capital provided to support underwriting, or Funds at Lloyd’s ("FAL"), may be satisfied by cash, certain investments and letters of credit provided by approved banks (refer to Note 12 'Commitments and Contingencies' and Note 22 'Statutory Financial Information').

At December 31, 2022, collateral held in trust for third-party agreements of $2,491 million (2021: $2,413 million) included $539 million (2021: $507 million) of fixed maturities, and cash of $217 million (2021: $326 million) held on deposit to support the underwriting activities of Syndicate 1686.

The Company's restricted investments and cash primarily consist of high-quality fixed maturity and short-term investment securities.

The table below provides the fair values of the Company's restricted investments and cash:

At December 31,	2022		2021
Collateral in Trust for inter-company agreements	$	790,449	$	886,903
Collateral for secured letter of credit facility	424,624		402,478
Funds at Lloyd's	748,573		936,862
Collateral in Trust for third-party agreements	2,491,317		2,412,882
Securities on deposit or in trust with regulatory authorities	731,660		729,072
Total restricted investments and cash	$	5,186,623	$	5,368,197