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Investments (Tables)
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Estimated Fair Values of Investments in Fixed Maturity Investments, Short-Term Investments and Equities, Trading Securities
The fair values of the underlying asset types of our short-term investments and fixed maturity investments, classified as trading and available-for-sale, and the fixed maturity investments included within our funds held - directly managed balance were as follows as of December 31, 2019 and 2018:
 
2019
 
Short-term investments, trading
 
Short-term investments, available-for-sale
 
Fixed maturities, trading
 
Fixed maturities, available-for-sale
 
Fixed maturities, funds held - directly managed
 
Total
U.S. government and agency
$
—

 
$
111,583

 
$
219,194

 
$
298,729

 
$
106,537

 
$
736,043

U.K. government
24,411

 
1,069

 
122,012

 
14,280

 
—

 
161,772

Other government
21,958

 
387

 
575,018

 
84,760

 
20,734

 
702,857

Corporate
5,121

 
13,915

 
4,007,386

 
1,067,256

 
603,389

 
5,697,067

Municipal
—

 
1,381

 
102,554

 
14,491

 
49,456

 
167,882

Residential mortgage-backed
—

 
—

 
258,412

 
127,219

 
86,205

 
471,836

Commercial mortgage-backed
—

 
—

 
571,129

 
98,557

 
230,343

 
900,029

Asset-backed
—

 
—

 
490,624

 
208,097

 
76,681

 
775,402

Total fixed maturity and short-term investments
$
51,490

 
$
128,335

 
$
6,346,329

 
$
1,913,389

 
$
1,173,345

 
$
9,612,888

 
2018
 
Short-term investments, trading
 
Fixed maturities, trading
 
Fixed maturities, available-for-sale
 
Fixed maturities, funds held - directly managed
 
Total
U.S. government and agency
$
45,885

 
$
389,735

 
$
573

 
$
74,052

 
$
510,245

U.K. government
2,275

 
298,356

 
—

 
—

 
300,631

Other government
19,064

 
679,525

 
73,185

 
22,036

 
793,810

Corporate
44,900

 
4,081,793

 
75,359

 
637,788

 
4,839,840

Municipal
—

 
73,856

 
2,480

 
53,929

 
130,265

Residential mortgage-backed
—

 
682,962

 
12

 
90,583

 
773,557

Commercial mortgage-backed
—

 
488,598

 
—

 
224,465

 
713,063

Asset-backed
1,992

 
553,968

 
—

 
80,521

 
636,481

Total fixed maturity and short-term investments
$
114,116

 
$
7,248,793

 
$
151,609

 
$
1,183,374

 
$
8,697,892
Summary of Amortized Cost and Estimated Fair Value of Fixed Maturity and Short-term Investments by Contractual Maturity
The contractual maturities of our short-term investments and fixed maturity investments, classified as trading and available-for-sale, and the fixed maturity investments included within our funds held - directly managed balance are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
As of December 31, 2019
 
Amortized
Cost
 
Fair Value
 
% of Total
Fair
Value
One year or less
 
$
537,944

 
$
536,156

 
5.6
%
More than one year through two years
 
801,473

 
808,071

 
8.4
%
More than two years through five years
 
2,175,547

 
2,212,834

 
23.0
%
More than five years through ten years
 
2,108,172

 
2,198,505

 
22.9
%
More than ten years
 
1,584,345

 
1,710,055

 
17.8
%
Residential mortgage-backed
 
466,932

 
471,836

 
4.9
%
Commercial mortgage-backed
 
882,603

 
900,029

 
9.4
%
Asset-backed
 
779,279

 
775,402

 
8.0
%
 
 
$
9,336,295

 
$
9,612,888

 
100.0
%
Credit Ratings Company's Fixed Maturity and Short-Term Investments Available-for-Sale
The following table sets forth the credit ratings of our short-term investments and fixed maturity investments, classified as trading and available-for-sale, and the fixed maturity investments included within our funds held - directly managed balance as of December 31, 2019:
 
 
Amortized
Cost
 
Fair Value
 
% of Total
 
AAA
Rated
 
AA Rated
 
A Rated
 
BBB
Rated
 
Non-
Investment
Grade
 
Not Rated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency
 
$
730,396

 
$
736,043

 
7.7
%
 
$
736,043

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

U.K. government
 
155,261

 
161,772

 
1.7
%
 
—

 
161,772

 
—

 
—

 
—

 
—

Other government
 
684,117

 
702,857

 
7.3
%
 
316,151

 
154,072

 
63,270

 
144,557

 
24,807

 
—

Corporate
 
5,479,839

 
5,697,067

 
59.2
%
 
149,108

 
619,707

 
2,911,867

 
1,703,328

 
311,167

 
1,890

Municipal
 
157,868

 
167,882

 
1.7
%
 
16,381

 
77,291

 
50,938

 
23,272

 
—

 
—

Residential mortgage-backed
 
466,932

 
471,836

 
4.9
%
 
381,502

 
47,489

 
2,295

 
1,882

 
34,055

 
4,613

Commercial mortgage-backed
 
882,603

 
900,029

 
9.4
%
 
632,461

 
89,347

 
95,508

 
66,573

 
6,224

 
9,916

Asset-backed
 
779,279

 
775,402

 
8.1
%
 
378,116

 
89,418

 
174,118

 
117,275

 
15,694

 
781

Total
 
$
9,336,295

 
$
9,612,888

 
100.0
%
 
$
2,609,762

 
$
1,239,096

 
$
3,297,996

 
$
2,056,887

 
$
391,947

 
$
17,200

% of total fair value
 
 
 
 
 
 
 
27.1
%
 
12.9
%
 
34.3
%
 
21.4
%
 
4.1
%
 
0.2
%
Amortized Cost and Estimated Fair Values of Company's Fixed Maturity and Short-Term Investments Classified as Available-for-Sale
The amortized cost and fair values of our fixed maturity investments classified as available-for-sale were as follows as of December 31, 2019 and 2018:
2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
Non-OTTI
 
Fair
Value
U.S. government and agency
 
$
410,842

 
$
77

 
$
(607
)
 
$
410,312

U.K. government
 
15,067

 
282

 
—

 
15,349

Other government
 
84,116

 
1,119

 
(88
)
 
85,147

Corporate
 
1,081,713

 
4,026

 
(4,568
)
 
1,081,171

Municipal
 
15,963

 
20

 
(111
)
 
15,872

Residential mortgage-backed
 
127,704

 
240

 
(725
)
 
127,219

Commercial mortgage-backed
 
98,928

 
38

 
(409
)
 
98,557

Asset-backed
 
208,121

 
169

 
(193
)
 
208,097

 
 
$
2,042,454

 
$
5,971

 
$
(6,701
)
 
$
2,041,724

2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
Non-OTTI
 
Fair
Value
U.S. government and agency
 
$
576

 
$
—

 
$
(3
)
 
$
573

Other government
 
72,811

 
1,219

 
(845
)
 
73,185

Corporate
 
75,535

 
1,006

 
(1,182
)
 
75,359

Municipal
 
2,499

 
—

 
(19
)
 
2,480

Residential mortgage-backed
 
12

 
—

 
—

 
12

 
 
$
151,433

 
$
2,225

 
$
(2,049
)
 
$
151,609


The following tables summarize our fixed maturity and short-term investments classified as available-for-sale in a gross unrealized loss position, as of December 31, 2019 and 2018:
 
 
 
12 Months or Greater
 
Less Than 12 Months
 
Total
2019
 
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
Fixed maturity investments, at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency
 
$
—

 
$
—

 
$
222,643

 
$
(607
)
 
$
222,643

 
$
(607
)
 
Other government
 
1,080

 
(23
)
 
37,796

 
(65
)
 
38,876

 
(88
)
 
Corporate
 
2,754

 
(306
)
 
461,772

 
(4,262
)
 
464,526

 
(4,568
)
 
Municipal
 
128

 
—

 
12,046

 
(111
)
 
12,174

 
(111
)
 
Residential mortgage-backed
 
—

 
—

 
65,992

 
(725
)
 
65,992

 
(725
)
 
Commercial mortgage-backed
 
—

 
—

 
79,606

 
(409
)
 
79,606

 
(409
)
 
Asset-backed
 
—

 
—

 
129,014

 
(193
)
 
129,014

 
(193
)
Total fixed maturity and short-term investments
 
$
3,962

 
$
(329
)
 
$
1,008,869

 
$
(6,372
)
 
$
1,012,831

 
$
(6,701
)
 
 
 
12 Months or Greater
 
Less Than 12 Months
 
Total
2018
 
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
Fixed maturity and short-term investments, at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency
 
$
573

 
$
(3
)
 
$
—

 
$
—

 
$
573

 
$
(3
)
 
Other government
 
7,351

 
(345
)
 
11,000

 
(500
)
 
18,351

 
(845
)
 
Corporate
 
11,888

 
(629
)
 
25,227

 
(553
)
 
37,115

 
(1,182
)
 
Municipal
 
1,783

 
(18
)
 
283

 
(1
)
 
2,066

 
(19
)
 
Residential mortgage-backed
 
12

 
—

 
—

 
—

 
12

 
—

Total fixed maturity and short-term investments
 
$
21,607

 
$
(995
)
 
$
36,510

 
$
(1,054
)
 
$
58,117

 
$
(2,049
)
Schedule Of Equity Securities
The following table summarizes our equity investments classified as trading as of December 31, 2019 and 2018:
 
2019
 
2018
Publicly traded equity investments in common and preferred stocks
$
327,875

 
$
138,415

Exchange-traded funds
133,047

 
—

Privately held equity investments in common and preferred stocks
268,799

 
228,710

 
$
729,721

 
$
367,125
Other Investments
The following table summarizes our other investments carried at fair value as of December 31, 2019 and 2018:
 
 
2019
 
2018
Hedge funds
 
$
1,121,904

 
$
852,584

Fixed income funds
 
481,039

 
403,858

Equity funds
 
410,149

 
333,681

Private equity funds
 
329,885

 
248,628

CLO equity funds
 
87,509

 
37,260

CLO equities
 
87,555

 
39,052

Private credit funds
 
—

 
33,381

Others
 
6,379

 
9,313

 
 
$
2,524,420

 
$
1,957,757


The table below details the estimated date by which proceeds would be received if we had provided notice of our intent to redeem or initiated a sales process as of December 31, 2019:
 
 
Less than 1 Year
 
1-2 years
 
2-3 years
 
More than 3 years
 
Not Eligible/ Restricted
 
Total
 
Redemption Frequency
Hedge funds
 
$
343,005

 
$
624,233

 
$
—

 
$
102,600

 
$
52,066

 
$
1,121,904

 
Monthly to Bi-annually
Fixed income funds
 
477,935

 
—

 
—

 
—

 
3,104

 
481,039

 
Daily to Quarterly
Equity funds
 
410,149

 
—

 
—

 
—

 
—

 
410,149

 
Daily to Quarterly
Private equity funds
 


 
—

 
—

 
—

 
329,885

 
329,885

 
N/A
CLO equity funds
 
60,735

 
—

 
26,774

 
—

 
—

 
87,509

 
Quarterly to Bi-annually
CLO equities
 
87,555

 
—

 
—

 
—

 
—

 
87,555

 
N/A
Other
 
34

 
—

 
—

 
—

 
6,345

 
6,379

 
N/A
 
 
$
1,379,413

 
$
624,233

 
$
26,774

 
$
102,600

 
$
391,400

 
$
2,524,420

 
 
Equity Method Investments
The table below shows our equity method investments as of December 31, 2019 and 2018:
 
2019
 
2018
 
Investment
 
Ownership %
 
Carrying Value
 
Investment
 
Ownership %
 
Carrying Value
Enhanzed Re
$
154,050

 
47.4
%
 
$
182,856

 
$
94,800

 
47.4
%
 
$
94,800

Citco
50,000

 
31.9
%
 
51,742

 
50,000

 
31.9
%
 
50,812

Monument
26,600

 
26.6
%
 
60,598

 
26,600

 
26.6
%
 
42,193

Clear Spring
11,210

 
20.0
%
 
$
10,645

 
11,210

 
20.0
%
 
10,070

Other
24,963

 
~30%

 
20,436

 
15,250

 
~30%

 
6,632

 
$
266,823

 
 
 
$
326,277

 
$
197,860

 
 
 
$
204,507
Funds Held, Directly Managed, Carrying Values of Assets The following table summarizes the components of the funds held - directly managed as of December 31, 2019 and 2018:
 
2019
 
2018
Fixed maturity investments, trading
$
1,173,345

 
$
1,183,374

Other assets
14,207

 
14,780

 
$
1,187,552

 
$
1,198,154
Funds Held, Directly Managed, Fair Value To Amortized Cost
The following table summarizes the fixed maturity investment components of funds held - directly managed as of December 31, 2019 and 2018:
 
2019
 
2018
 
Funds held - Directly Managed - Fair Value Option
 
Funds held - Directly Managed - Variable Return
 
Total
 
Funds held - Directly Managed - Fair Value Option
 
Funds held - Directly Managed - Variable Return
 
Total

Fixed maturity investments, at amortized cost
$
185,859

 
$
940,194

 
$
1,126,053

 
$
179,670

 
$
1,044,377

 
$
1,224,047

Net unrealized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
Change in fair value - fair value option accounting
5,438

 
—

 
5,438

 
(2,733
)
 
—

 
(2,733
)
Change in fair value - embedded derivative accounting
—

 
41,854

 
41,854

 
—

 
(37,940
)
 
(37,940
)
Fixed maturity investments within funds held - directly managed, at fair value
$
191,297

 
$
982,048

 
$
1,173,345

 
$
176,937

 
$
1,006,437

 
$
1,183,374
Investment Income
Major categories of net investment income for the years ended December 31, 2019, 2018 and 2017 are summarized as follows: 
 
 
2019
 
2018
 
2017
Fixed maturity investments
 
$
233,310

 
$
189,000

 
$
144,367

Short-term investments and cash and cash equivalents
 
16,607

 
12,117

 
9,314

Funds held
 
19,981

 
10,041

 
601

Funds held – directly managed
 
38,173

 
37,623

 
32,479

Investment income from fixed maturities and cash and cash equivalents
 
308,071

 
248,781

 
186,761

Equity investments
 
16,671

 
5,397

 
4,355

Other investments
 
11,792

 
19,703

 
14,337

Life settlements and other
 
—

 
6,511

 
14,370

Investment income from equities and other investments
 
28,463

 
31,611

 
33,062

Gross investment income
 
336,534

 
280,392

 
219,823

Investment expenses
 
(15,258
)
 
(9,721
)
 
(11,034
)
Net investment income
 
$
321,276

 
$
270,671

 
$
208,789
Realized Gain (Loss) on Investments
Components of net realized and unrealized gains (losses) for the years ended December 31, 2019, 2018 and 2017 were as follows:
 
 
2019
 
2018
 
2017
Net realized gains (losses) on sale:
 
 
 
 
 
 
Gross realized gains on fixed maturity securities, available-for-sale securities (1)
 
$
4,856

 
$
27

 
$
616

Gross realized losses on fixed maturity securities, available-for-sale securities (1)
 
(962
)
 
(90
)
 
(125
)
Net realized gains (losses) on fixed maturity securities, trading
 
91,313

 
(27,646
)
 
4,695

Net realized gains (losses) on fixed maturity securities in funds held - directly managed portfolios
 
1,495

 
(3,940
)
 
(4,219
)
Net realized gains (losses) on equity investments, trading
 
(374
)
 
4,016

 
701

Total net realized gains (losses) on sale
 
96,328

 
(27,633
)
 
1,668

Net unrealized gains (losses):
 
 
 
 
 
 
Fixed maturity securities, trading
 
349,975

 
(165,187
)
 
35,878

Fixed maturity securities in funds held - directly managed portfolios
 
88,053

 
(46,257
)
 
33,902

Equity investments, trading
 
55,359

 
(9,831
)
 
16,498

Other investments
 
441,636

 
(163,976
)
 
102,388

Total net unrealized gains (losses)
 
935,023

 
(385,251
)
 
188,666

Net realized and unrealized gains (losses)
 
$
1,031,351

 
$
(412,884
)
 
$
190,334


(1)The gross realized gains and losses on available-for-sale investments included in the table above resulted from sales of $310.4 million, $11.4 million and $40.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.
Unrealized Gain (Loss) on Investments
Components of net realized and unrealized gains (losses) for the years ended December 31, 2019, 2018 and 2017 were as follows:
 
 
2019
 
2018
 
2017
Net realized gains (losses) on sale:
 
 
 
 
 
 
Gross realized gains on fixed maturity securities, available-for-sale securities (1)
 
$
4,856

 
$
27

 
$
616

Gross realized losses on fixed maturity securities, available-for-sale securities (1)
 
(962
)
 
(90
)
 
(125
)
Net realized gains (losses) on fixed maturity securities, trading
 
91,313

 
(27,646
)
 
4,695

Net realized gains (losses) on fixed maturity securities in funds held - directly managed portfolios
 
1,495

 
(3,940
)
 
(4,219
)
Net realized gains (losses) on equity investments, trading
 
(374
)
 
4,016

 
701

Total net realized gains (losses) on sale
 
96,328

 
(27,633
)
 
1,668

Net unrealized gains (losses):
 
 
 
 
 
 
Fixed maturity securities, trading
 
349,975

 
(165,187
)
 
35,878

Fixed maturity securities in funds held - directly managed portfolios
 
88,053

 
(46,257
)
 
33,902

Equity investments, trading
 
55,359

 
(9,831
)
 
16,498

Other investments
 
441,636

 
(163,976
)
 
102,388

Total net unrealized gains (losses)
 
935,023

 
(385,251
)
 
188,666

Net realized and unrealized gains (losses)
 
$
1,031,351

 
$
(412,884
)
 
$
190,334
Schedule of Carrying Value of Restricted Investments The carrying value of our restricted assets, including restricted cash of $352.7 million and $380.5 million, as of December 31, 2019 and 2018, respectively, was as follows: 
 
 
2019
 
2018
Collateral in trust for third party agreements
 
$
4,104,093

 
$
4,336,752

Assets on deposit with regulatory authorities
 
445,626

 
579,048

Collateral for secured letter of credit facilities
 
133,238

 
127,841

Funds at Lloyd's (1)
 
639,316

 
354,589

 
 
$
5,322,273

 
$
5,398,230

(1) Our businesses include three Lloyd's syndicates. Lloyd's determines the required capital principally through the annual business plan of each syndicate. This capital is referred to as "Funds at Lloyd's" and will be drawn upon in the event that a syndicate has a loss that cannot be funded from other sources. We also utilize unsecured letters of credit for Funds at Lloyd's, as described in Note 15 - "Debt Obligations and Credit Facilities". Funds at Lloyd's increased primarily due to reinsurance to close ("RITC") transactions, during 2019.