Leases

12 Months Ended

Dec. 31, 2024

The Company is party to various non-cancelable lease agreements, all of which are operating leases as of December 31, 2024. The majority of the Company’s leases relate to office space dedicated to the Company’s operations in various locations (primarily Hamilton, Bermuda, New York City, London, and Paris) with expiration dates ranging from 2025 to 2032. The Company subleases certain properties that are not used in its operations.

Accounting Policy

The Company determines if an arrangement is a lease at inception. For operating leases with an original term of more than 12 months, where the Company is the lessee, it recognizes a right-of-use (ROU) asset in “other assets” and a lease liability in “other liabilities” on the consolidated balance sheets. An ROU asset represents the Company’s right to use an underlying asset for the lease term, and a lease liability represents the Company’s obligation to make lease payments arising from the lease. At the inception of a lease, the total fixed payments under a lease agreement are discounted utilizing an incremental borrowing rate that represents the Company’s collateralized borrowing rate. The rate is determined based on the lease term as of the lease commencement date. Some of the Company’s leases include renewal options, which are not included in the lease terms unless the Company is reasonably certain it will exercise the option.

The Company elected the practical expedient to account for all lease components and their associated non-lease components (i.e., common area maintenance, real estate taxes, building insurance, etc.) as a single lease component and include all fixed payments in the measurement of ROU assets and lease liabilities. Operating lease expense is recognized on a straight-line basis over the lease term. Costs related to variable lease and non-lease components for the Company’s leases are expensed in the period incurred. Sublease income is earned on a straight-line basis over the term of the lease.

The Company assesses ROU assets for impairment when certain events occur or when there are changes in circumstances including potential alternative uses. If circumstances require an ROU asset to be tested for possible impairment and the carrying value of the ROU asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Any impairment is reported in “other operating expenses” in the consolidated statement of operations.

Lease Assets and Liabilities

ROU Assets and Lease Liabilities


	As of December 31,
	2024		2023
	(dollars in millions)
ROU assets	$	60	$	71
Lease liabilities	$	84	$	97
Weighted average discount rate	2.65%		2.60%
Weighted average remaining lease term (in years)	7.1		7.8

Lease Expense and Other Information


	Year Ended December 31,
	2024		2023		2022
	(in millions)
Operating lease costs (1)	$	14	$	20	$	16
Variable and short-term lease costs	2		2		3
Sublease income	(3)		(7)		(7)
Total lease costs	$	13	$	15	$	12
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows for operating leases	$	16	$	24	$	23

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(1) Includes an ROU asset impairment of $2 million in 2024 and $3 million in 2023.

Future Minimum Rental Payments

Operating Leases


	As of December 31, 2024
Year	(in millions)
2025	$	13
2026	13
2027	12
2028	12
2029	13
Thereafter	29
Total lease payments	92
Less: Imputed interest	8
Total lease liabilities	$	84

Leases