RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

At June 30, 2024, the Company had invested $10 million in Monarch Point Re (refer to Note 4 'Investments'), a collateralized reinsurer which is jointly sponsored by the Company and Stone Point.

Loan to Monarch Point Re

During 2024, the Company advanced $164 million (2023: $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 June 30, 2024, an amount of $95 million (2023: $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 November 15, 2025. The loan balance receivable at June 30, 2024 of $294 million (2023: $225 million) is included in loan advances made in the consolidated balance sheets. At June 30, 2024, the Company had committed to advance a further $89 million (2023: $16 million) to Monarch Point Re.

Interest on this loan is payable for this period at interest rate of 5.3% (2023: interest rates between 5.7% and 5.9%) Interest related to this loan of $1 million (2023: $9 million) was received in advance and is included in other liabilities in the consolidated balance sheets.

Harrington Re

During 2018, the Company entered into a quota share retrocessional agreement with Harrington Re which was deemed to have met the established criteria for retroactive reinsurance accounting. During 2024, the Company entered into a reinsurer novation and replacement agreement with Harrington Re and a third party reinsurer with respect to this quota share retrocession contract.