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INVESTMENTS

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

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 June 30, 2025
Available for sale
U.S. government and agency	$	2,378,539	$	—	$	17,688	$	(9,052)	$	2,387,175
Non-U.S. government	767,027		(16)		27,373		(3,908)		790,476
Corporate debt	4,788,604		(4,773)		83,530		(55,530)		4,811,831
Agency RMBS(1)	1,767,469		—		10,280		(36,769)		1,740,980
CMBS(2)	840,909		—		4,906		(22,233)		823,582
Non-agency RMBS	190,656		(199)		990		(5,296)		186,151
ABS(3)	1,329,187		(55)		10,276		(5,729)		1,333,679
Municipals(4)	65,149		—		359		(1,907)		63,601
Total fixed maturities, available for sale	$	12,127,540	$	(5,043)	$	155,402	$	(140,424)	$	12,137,475







At December 31, 2024
Available for sale
U.S. government and agency	$	2,830,111	$	—	$	6,011	$	(33,136)	$	2,802,986
Non-U.S. government	753,315		—		2,584		(25,960)		729,939
Corporate debt	4,941,510		(3,690)		30,594		(126,224)		4,842,190
Agency RMBS(1)	1,245,681		—		1,154		(61,990)		1,184,845
CMBS(2)	852,534		—		1,244		(34,170)		819,608
Non-agency RMBS	132,116		(195)		597		(9,982)		122,536
ABS(3)	1,547,350		(53)		5,812		(13,277)		1,539,832
Municipals(4)	117,288		—		125		(6,596)		110,817
Total fixed maturities, available for sale	$	12,419,905	$	(3,938)	$	48,121	$	(311,335)	$	12,152,753

(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 June 30, 2025
Maturity
Due in one year or less	$	693,954	$	693,236	5.8	%
Due after one year through five years	5,269,141		5,320,176		43.8	%
Due after five years through ten years	1,843,158		1,847,825		15.2	%
Due after ten years	193,066		191,846		1.6	%
	7,999,319		8,053,083		66.4	%
Agency RMBS	1,767,469		1,740,980		14.3	%
CMBS	840,909		823,582		6.8	%
Non-agency RMBS	190,656		186,151		1.5	%
ABS	1,329,187		1,333,679		11.0	%
Total	$	12,127,540	$	12,137,475	100.0	%

At December 31, 2024
Maturity
Due in one year or less	$	895,177	$	885,866	7.4	%
Due after one year through five years	5,637,336		5,567,905		45.8	%
Due after five years through ten years	1,895,116		1,826,564		15.0	%
Due after ten years	214,595		205,597		1.7	%
	8,642,224		8,485,932		69.9	%
Agency RMBS	1,245,681		1,184,845		9.7	%
CMBS	852,534		819,608		6.7	%
Non-agency RMBS	132,116		122,536		1.0	%
ABS	1,547,350		1,539,832		12.7	%
Total	$	12,419,905	$	12,152,753	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 June 30, 2025
Fixed maturities, available for sale
U.S. government and agency	$	191,104	$	(7,703)	$	284,551	$	(1,349)	$	475,655	$	(9,052)
Non-U.S. government	51,913		(2,937)		88,634		(971)		140,547		(3,908)
Corporate debt	612,795		(40,511)		653,866		(15,019)		1,266,661		(55,530)
Agency RMBS	211,459		(21,542)		608,114		(15,227)		819,573		(36,769)
CMBS	295,077		(14,764)		207,460		(7,469)		502,537		(22,233)
Non-agency RMBS	46,613		(5,277)		17,089		(19)		63,702		(5,296)
ABS	108,310		(5,221)		184,532		(508)		292,842		(5,729)
Municipals	30,817		(1,736)		8,203		(171)		39,020		(1,907)
Total fixed maturities, available for sale	$	1,548,088	$	(99,691)	$	2,052,449	$	(40,733)	$	3,600,537	$	(140,424)







At December 31, 2024
Fixed maturities, available for sale
U.S. government and agency	$	262,368	$	(17,515)	$	1,026,139	$	(15,621)	$	1,288,507	$	(33,136)
Non-U.S. government	98,846		(9,179)		457,889		(16,781)		556,735		(25,960)
Corporate debt	934,975		(78,979)		2,032,254		(47,245)		2,967,229		(126,224)
Agency RMBS	280,550		(35,333)		749,040		(26,657)		1,029,590		(61,990)
CMBS	410,213		(22,334)		260,411		(11,836)		670,624		(34,170)
Non-agency RMBS	69,418		(9,900)		8,302		(82)		77,720		(9,982)
ABS	147,281		(8,471)		295,897		(4,806)		443,178		(13,277)
Municipals	49,495		(4,198)		51,002		(2,398)		100,497		(6,596)
Total fixed maturities, available for sale	$	2,253,146	$	(185,909)	$	4,880,934	$	(125,426)	$	7,134,080	$	(311,335)

At June 30, 2025, 2,389 fixed maturities (2024: 3,994) were in an unrealized loss position of $140 million (2024: $311 million) of which $9 million (2024: $14 million) was related to securities below investment grade or not rated.

At June 30, 2025, 1,590 fixed maturities (2024: 2,108) had been in a continuous unrealized loss position for twelve months or greater and had a fair value of $1,548 million (2024: $2,253 million).

The unrealized losses of $140 million (2024: $311 million) were due to non-credit factors and were expected to be recovered as the related securities approach maturity.

At June 30, 2025, 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 June 30, 2025
Held to maturity
Corporate debt	$	128,906	$	—	$	128,906	$	1,307	$	(6,178)	$	124,035
ABS(1)	276,135		—		276,135		752		(132)		276,755
Total fixed maturities, held to maturity	$	405,041	$	—	$	405,041	$	2,059	$	(6,310)	$	400,790

At December 31, 2024
Held to maturity
Corporate debt	$	122,706	$	—	$	122,706	$	675	$	(7,764)	$	115,617
ABS(1)	320,694		—		320,694		560		(120)		321,134
Total fixed maturities, held to maturity	$	443,400	$	—	$	443,400	$	1,235	$	(7,884)	$	436,751

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

At June 30, 2025, fixed maturities, held to maturity of $405 million (2024: $443 million) were presented net of an allowance for expected credit losses of $nil (2024: $nil).

The Company's ABS, held to maturity consist of CLO debt tranched securities ("CLO Debt"). 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 June 30, 2025, 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 June 30, 2025, 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 had a net carrying value of $276 million (2024: $321 million).

Corporate debt classified as held to maturity with a net carrying value of $28 million (2024: $28 million) is due between 1 year and 3 years. Corporate debt classified as held to maturity with a net carrying value of $98 million (2024: $95 million) is due between 3 years and 10 years. Corporate debt classified as held to maturity with a net carrying value of $3 million (2024: $nil) is due after 10 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 June 30, 2025
Equity securities
Common stocks	$	3,129	$	99	$	(518)	$	2,710
Preferred stocks	11,832		356		(124)		12,064
Exchange-traded funds	229,523		108,452		(266)		337,709
Bond mutual funds	284,590		9,505		(27,303)		266,792
Total equity securities	$	529,074	$	118,412	$	(28,211)	$	619,275

At December 31, 2024
Equity securities
Common stocks	$	3,061	$	65	$	(488)	$	2,638
Preferred stocks	5,843		136		(112)		5,867
Exchange-traded funds	188,771		126,477		(1,206)		314,042
Bond mutual funds	323,068		540		(66,881)		256,727
Total equity securities	$	520,743	$	127,218	$	(68,687)	$	579,274

d) Mortgage Loans

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


	June 30, 2025				December 31, 2024
	Carrying value		% of Total		Carrying value		% of Total

Mortgage loans, held for investment:
Commercial	$	465,906	106	%	$	529,075	105	%
Allowance for expected credit losses	(27,335)		(6	%)	(23,378)		(5	%)


Total mortgage loans held for investment	$	438,571	100	%	$	505,697	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 quarterly.

The Company has a high quality commercial mortgage loan portfolio with a weighted average debt service coverage ratio of 1.7x (2024: 1.7x) and a weighted average loan-to-value ratio of 79% (2024: 78%).

At June 30, 2025, there was one commercial mortgage loan with past due amounts where the Company is assessing exit strategies. At June 30, 2024, there were no past due amounts associated with the commercial mortgage loans held by the Company.

On a quarterly basis, the Company's exposure to commercial mortgage loans in the office sector, that represents 49% (2024: 43%) of the total mortgage loan portfolio, is evaluated for credit losses based on inputs unique to this sector. This assessment utilizes historical credit loss experience adjusted to reflect current conditions and management forecasts. Further, collateral dependent commercial mortgage loans (e.g., when the borrower is experiencing financial difficulty, including when foreclosure is reasonably possible or probable) are evaluated individually for credit losses. The allowance for expected credit losses for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan's underlying collateral, less selling cost when foreclosure is probable.

Accordingly, any change in estimated credit losses are recognized as a change in the allowance for expected credit losses and is recorded in net investment gains (losses).

At June 30, 2025, the Company's mortgage loan portfolio had an allowance for expected credit losses of $27 million (2024: $23 million).

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 June 30, 2025

Multi-strategy funds	$	15,290	2	%	Quarterly	60-90 days


Direct lending funds	164,979		18	%	Quarterly(1)	90 days
Private equity funds	332,835		35	%	n/a	n/a
Real estate funds	291,173		31	%	Quarterly(2), Annually(3)	45-90 days

Other privately held investments	134,645		14	%	n/a	n/a

Total other investments	$	938,922	100	%

At December 31, 2024

Multi-strategy funds	$	24,919	3	%	Quarterly	60-90 days


Direct lending funds	171,048		18	%	Quarterly(1)	90 days
Private equity funds	320,690		35	%	n/a	n/a
Real estate funds	291,640		31	%	Quarterly(2), Annually(3)	45-90 days

Other privately held investments	121,981		13	%	n/a	n/a

Total other investments	$	930,278	100	%

n/a - not applicable

(1) Applies to one fund with a fair value of $2 million (2024: $3 million).

(2) Applies to one fund with a fair value of $45 million (2024: $51 million).

(3) Applies to one fund with a fair value of $24 million (2024: $21 million).

Two common redemption restrictions which may impact the Company's ability to redeem multi-strategy 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 the six months ended June 30, 2025 and 2024, neither of these restrictions impacted the Company's redemption requests. At June 30, 2025, there were no multi-strategy fund holdings (2024: nil) where the Company is still within the lockup period.

At June 30, 2025, the Company had $28 million (2024: $28 million) of unfunded commitments as a limited partner in multi-strategy 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 June 30, 2025, the Company had $257 million (2024: $170 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 three to twelve years and the General Partners of certain funds have the option to extend the term by up to three years.

At June 30, 2025, the Company had $209 million (2024: $215 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 six years.

At June 30, 2025, the Company had $120 million (2024: $91 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.

At June 30, 2025, the Company had $21 million (2024: $21 million) of unfunded commitments as a limited partner in three private company investment funds focusing on financial services technology companies with an emphasis on insurance technology companies ("private company investment funds"). Two of these funds have investment terms of five years and one fund has an investment term of ten years.

f) Equity Method Investments

During 2023, the Company paid $22 million to acquire 18% of the common equity of Monarch Point Re (ISAC) Ltd. and Monarch Point Re (ISA 2023) Ltd., a collateralized reinsurance company formed under the laws of Bermuda as an incorporated segregated accounts company under the Incorporated Segregated Accounts Companies Act 2019, as amended (the "ISAC Act"). During 2024, the Company paid $14 million to acquire 18% of the common equity of Monarch Point Re (ISA 2024) Ltd. During 2025, the Company paid $7 million to acquire 18% of the common equity of Monarch Point Re (ISA 2025) Ltd., (Monarch Point Re (ISAC) Ltd., Monarch Point Re (ISA 2023) Ltd., Monarch Point Re (ISA 2024) Ltd. and Monarch Point Re (ISA 2025) Ltd., individually or collectively "Monarch Point Re").

The Company retrocedes a diversified portfolio of casualty reinsurance business to Monarch Point Re and Stone Point Credit Adviser LLC, a wholly owned subsidiary of Stone Point Capital, LLC ("Stone Point" refer to Note 14 'Related Party Transactions') serves as its investment manager. As an investor, the Company expects to benefit from underwriting fees generated by Monarch Point Re and the income and capital appreciation Stone Point seeks to deliver through its investment management services.

Monarch Point Re is not a Variable Interest Entity ("VIE") that is required to be included in the Company's consolidated financial statements. The Company accounts for its ownership interest in Monarch Point Re under the equity method of accounting.

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"). Following share tender offers in 2024 and 2023, the Company's ownership interest in Harrington increased to 22% and 20%, respectively.

Through long-term service agreements, the Company serves as Harrington Re's reinsurance underwriting manager and Blackstone serves 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.

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 75% of the Company's other investments. The investments in limited partnerships include multi-strategy funds, direct lending funds, private equity funds and real estate funds that are variable interests issued by VIEs (refer to Note 3(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:


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024

Fixed maturities	$	149,861	$	154,023	$	296,572	$	293,419
Other investments	18,479		14,301		40,889		19,974
Equity securities	3,155		3,057		6,363		5,819
Mortgage loans	5,956		9,108		12,824		18,237
Cash and cash equivalents	16,649		13,733		50,028		27,395
Short-term investments	541		3,766		2,527		7,229
Gross investment income	194,641		197,988		409,203		372,073
Investment expenses	(7,344)		(7,013)		(14,194)		(13,715)
Net investment income	$	187,297	$	190,975	$	395,009	$	358,358

i) Net Investment Gains (Losses)

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


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024

Gross realized investment gains
Fixed maturities, short-term investments, and cash and cash equivalents	$	19,394	$	6,182	$	41,532	$	20,581
Equity securities	4,032		—		40,100		30,626
Gross realized investment gains	23,426		6,182		81,632		51,207
Gross realized investment losses
Fixed maturities, short-term investments, and cash and cash equivalents	(27,673)		(52,587)		(79,412)		(96,519)
Equity securities	(2,719)		—		(11,590)		(7,712)

Gross realized investment losses	(30,392)		(52,587)		(91,002)		(104,231)
(Increase) decrease in allowance for expected credit losses, fixed maturities, available for sale	(859)		(394)		(1,104)		6,128
(Increase) decrease in allowance for expected credit losses, mortgage loans	(1,473)		(12,569)		(3,958)		(14,428)
Impairment losses(1)	(400)		(156)		(2,326)		(164)

Change in fair value of investment derivatives(2)	(1,035)		228		(1,451)		1,023
Net unrealized gains (losses) on equity securities	54,201		5,817		31,671		(2,222)

Net investment gains (losses)	$	43,468	$	(53,479)	$	13,462	$	(62,687)

(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 5 '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:


	Three months ended June 30,				Six months ended June 30,
	2025		2024			2025		2024

Balance at beginning of period	$	4,183	$	4,237		$	3,938	$	10,759
Expected credit losses on securities where credit losses were not previously recognized	1,345		247			1,659		278
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	(325)		147			(297)		(1,406)
Impairments of securities which the Company intends to sell or more likely than not will be required to sell	—		—			—		—
Securities sold/redeemed/matured	(160)		—			(257)		(5,000)
Balance at end of period	$	5,043	$	4,631		$	5,043	$	4,631

The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on mortgage loans:


	Three months ended June 30,				Six months ended June 30,
	2025		2024			2025		2024

Balance at beginning of period	$	25,862	$	8,113		$	23,378	$	6,220
Expected credit losses on loans where credit losses were not previously recognized	1,019		11,287			1,019		13,196
Additions (reductions) for expected credit losses on loans where credit losses were previously recognized	454		1,281			2,938		1,265
Loans sold/redeemed/matured	—		—			—		—
Balance at end of period	$	27,335	$	20,681		$	27,335	$	20,681

j) Reverse Repurchase Agreements

At June 30, 2025, the Company held $34 million (2024: $543 million) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of cash and cash equivalents in the Company's consolidated balance sheets. The required collateral for these loans is either cash or U.S. Treasuries at a minimum rate of 102% of the loan principal. Upon maturity, the Company receives principal and interest income. The Company monitors the estimated fair value of the securities loaned and borrowed on a daily basis with additional collateral obtained as necessary throughout the duration of the transaction.