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Investments
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Investments
8. Investments
The Company’s invested assets consist of investment securities and other long-term investments held for general investment purposes. The portfolio of investment securities includes debt securities, short-term investments, equity securities, and other-long term investments which are all classified as trading securities. Realized and unrealized investment gains and losses on trading securities are reported in pre-tax revenues.
Debt securities
The following tables provide the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency gains (losses), and fair value of the Company's debt securities as of December 31, 2021 and 2020:
2021
Cost or
amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Net foreign
currency
gains
(losses)		Fair value
Asset-backed securities$512.6 $0.9 $(0.4)$— $513.1 
Residential mortgage-backed securities306.5 — (4.6)— 301.9 
Commercial mortgage-backed securities148.4 0.6 (1.7)— 147.3 
Corporate debt securities605.5 0.6 (3.5)— 602.6 
U.S. government and government agency (1)388.1 0.1 (2.8)— 385.4 
Non-U.S. government and government agency 135.4 0.3 (2.6)(0.8)132.3 
U.S. states, municipalities and political subdivision0.2 — — — 0.2 
Preferred stocks2.6 0.2 — — 2.8 
Total debt securities $2,099.3 $2.7 $(15.6)$(0.8)$2,085.6 
(1)The Company had $nil short positions in long duration U.S. Treasuries as of December 31, 2021. These amounts are included in securities sold, not yet purchased in the consolidated balance sheets.
2020
Cost or
amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Net foreign
currency
gains
(losses)		Fair value
Asset-backed securities$1.2 $0.1 $— $— $1.3 
Residential mortgage-backed securities8.1 0.6 — — 8.7 
Bank debt0.3 0.1 — — 0.4 
Corporate debt securities29.4 8.4 (0.1)— 37.7 
U.S. government and government agency (1)52.4 1.7 (0.9)— 53.2 
Total debt securities$91.4 $10.9 $(1.0)$— $101.3 
(1)The Company had $12.0 million short positions in long duration U.S. Treasuries as of December 31, 2020. These amounts are included in securities sold, not yet purchased in the consolidated balance sheets.
The weighted average duration of the Company's debt securities as of December 31, 2021 was approximately 1.6 years, including short-term investments, and approximately 2.3 years excluding short-term investments (2020 - 10.5 years and 10.5 years, respectively).
The following table provides the cost or amortized cost and fair value of the Company's debt securities as of December 31, 2021 and 2020 by contractual maturity. Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties.
20212020
Cost or
amortized cost		Fair valueCost or
amortized cost		Fair value
Due in one year or less$145.6 $145.1 $50.0 $50.6 
Due after one year through five years870.4 862.4 2.8 3.0 
Due after five years through ten years69.6 68.6 — — 
Due after ten years43.6 44.4 29.4 37.7 
Mortgage-backed and asset-backed securities967.5 962.3 9.2 10.0 
Preferred stocks2.6 2.8 — — 
Total debt securities$2,099.3 $2,085.6 $91.4 $101.3 
The following table summarizes the ratings and fair value of debt securities held in the Company's investment portfolio as of December 31, 2021 and 2020:
20212020
AAA$696.4 $53.2 
AA884.1 — 
A278.5 9.1 
BBB153.1 37.7 
Other73.5 1.3 
Total debt securities (1)$2,085.6 $101.3 
(1)Credit ratings are assigned based on the following hierarchy: 1) Standard & Poor's ("S&P") and 2) Moody's Investors Service.
As of December 31, 2021, the above totals included $51.8 million of sub-prime securities. Of this total, $35.1 million was rated AAA, $16.1 million rated AA, and $0.6 million rated A. As of December 31, 2020, the above totals included $8.7 million of A rated sub-prime securities.
Equity securities and other long-term investments
The cost or amortized cost, gross unrealized investment gains and losses, net foreign currency gains, and fair values of the Company’s equity securities and other long-term investments as of December 31, 2021 and 2020, were as follows:
2021
Cost or
amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Net foreign
currency
gains		Fair value
Equity securities$4.5 $0.1 $(2.0)$0.2 $2.8 
Other long-term investments$443.0 $28.9 $(16.8)$1.0 $456.1 
2020
Cost or
amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Net foreign
currency
gains		Fair value
Other long-term investments$4.0 $— $— $— $4.0 
Equity securities at fair value consisted of the following as of December 31, 2021:
2021
Fixed income mutual funds$2.1 
Common stocks0.7 
Total equity securities$2.8 
Other long-term investments at fair value consisted of the following as of December 31, 2021 and 2020:
20212020
Hedge funds and private equity funds (1)
$195.7 $— 
Strategic Investments (2)
215.3 4.0 
Other investments (2)
45.1 — 
Total other long-term investments $456.1 $4.0 
(1)Includes $115.2 million of investments valued at NAV and $80.5 million of investments valued at Level 3.
(2)As of December 31, 2021, the Company had $13.8 million of unfunded commitments relating to these investments.
Hedge funds and private equity funds
The Company holds investments in hedge funds and private equity funds, which are included in other long-term investments. The following table summarizes investments in hedge funds and private equity interests by investment objective and sector as of December 31, 2021:
2021
Fair valueUnfunded
commitments
Hedge funds
Long/short multi-sector$19.8 $— 
Distressed mortgage credit24.6 — 
Private credit24.2 — 
Other1.7 — 
Total hedge funds70.3 — 
Private equity funds
Energy infrastructure & services48.4 19.0 
Multi-sector10.1 5.1 
Healthcare31.0 2.2 
Life settlement12.9 — 
Manufacturing/Industrial19.9 — 
Private equity secondaries0.5 0.4 
Other2.6 — 
Total private equity funds125.4 26.7 
Total hedge and private equity funds included in other long-term investments$195.7 $26.7 
(1)The above table excludes the Company’s investments in TP Enhanced Fund and TP Venture Fund. See “Investment in related party investment funds” below for additional information.
Redemption of investments in certain hedge funds is subject to restrictions including lock-up periods where no redemptions or withdrawals are allowed, restrictions on redemption frequency, and advance notice periods for redemptions. Amounts requested for redemptions remain subject to market fluctuations until the redemption effective date, which generally falls at the end of the defined redemption period.
The following summarizes the December 31, 2021 fair value of hedge funds subject to restrictions on redemption frequency and advance notice period requirements for investments in active hedge funds:
Notice Period
Redemption Frequency1-29 days
notice		30-59 days
notice		60-89 days
notice		90-119 days
notice		120+ days
notice		Total
Quarterly$— $0.1 $19.8 $24.6 $— $44.5 
Semi-annual— — 0.8 — — 0.8 
Annual— — — 0.8 24.2 25.0 
Total$— $0.1 $20.6 $25.4 $24.2 $70.3 
Certain of the hedge fund and private equity fund investments in which the Company is invested are no longer active and are in the process of disposing of their underlying investments. Distributions from such funds are remitted to investors as the fund's underlying investments are liquidated. As of December 31, 2021, $12.3 million in distributions were outstanding from these investments.
Investments in private equity and other investment funds may be subject to a “lock-up" or commitment period during which investors may not request a redemption prior to the expected termination date. Distributions prior to the expected termination date of the fund may be limited to dividends or proceeds arising from the liquidation of the fund's underlying investments. In addition, certain private equity funds provide an option to extend the lock-up or commitment periods at either the sole discretion of the fund manager or upon agreement between the fund and the investors.
As of December 31, 2021, investments in private equity funds were subject to lock-up periods as follows:
1 - 3 years3 – 5 years5 – 10 yearsTotal
Private equity funds – expected lock-up or commitment period remaining$47.5 $61.4 $16.5 $125.4 
Investment in related party investment funds
The following table provides the cost and fair value of the Company's investments in related party investment funds as of December 31, 2021 and 2020:
20212020
CostFair valueCostFair value
Third Point Enhanced LP$416.0 $878.2 $891.9 $1,055.6 
Third Point Venture Offshore Fund I LP25.9 31.4 — — 
Investment in related party investment funds, at fair value$441.9 $909.6 $891.9 $1,055.6 
Investment in Third Point Enhanced LP
On August 6, 2020, SiriusPoint and SiriusPoint Bermuda entered into the Third Amended and Restated Exempted Limited Partnership Agreement (“2020 LPA”) of TP Enhanced Fund which became effective on February 26, 2021, except for the amendment to the calculation of the loss recovery account which became effective on December 31, 2020. In accordance with the 2020 LPA, Third Point Advisors LLC (“TP GP”) serves as the general partner of TP Enhanced Fund.
The TP Enhanced Fund investment strategy, as implemented by Third Point LLC, is intended to achieve superior risk-adjusted returns by deploying capital in both long and short investments with favorable risk/reward characteristics across select asset classes, sectors and geographies. Third Point LLC identifies investment opportunities via a bottom-up, value-oriented approach to single security analysis supplemented by a top-down view of portfolio and risk management. Third Point LLC seeks dislocations in certain areas of the capital markets or in the pricing of particular securities and supplements single security analysis with an approach to portfolio construction that includes sizing each investment based on upside/downside calculations, all with a view towards appropriately positioning and managing overall exposures.
Under the 2020 LPA, the Company has the right to withdraw funds monthly from TP Enhanced Fund to meet capital adequacy requirements and to satisfy financing obligations. The Company may also withdraw its investment upon the occurrence of certain events specified in the 2020 LPA, including to meet capital adequacy requirements, to prevent a negative credit rating action, for risk management purposes or to satisfy financing obligations, subject to certain limitations on such withdrawals as specified in the 2020 LPA, and may withdraw its investment in full on the first quarter end date after the five-year anniversary of the closing date of the acquisition of Sirius Group (i.e. March 31, 2026) and each successive two-year anniversary of such date. The Company is also entitled to withdraw funds from the TP Enhanced Fund in order to satisfy its risk management guidelines, upon prior written notice to TP GP, in an amount not to exceed 20% of the sum of (x) the aggregate opening balances of our capital account and (y) the aggregate amount of capital contributions credited to our capital account.
During the fourth quarter of 2021, the Company redeemed $450.0 million from the TP Enhanced Fund, of which $200.0 million was reallocated to cash and fixed income investments and the remaining $250.0 million was reflected as a redemption receivable as of December 31, 2021.
As of December 31, 2021, the Company had no unfunded commitments related to TP Enhanced Fund.
Investment in Third Point Venture Offshore Fund I LP
On March 1, 2021, SiriusPoint Bermuda entered into the Amended and Restated Exempted Limited Partnership Agreement (“2021 Venture LPA”) of TP Venture Fund”) which became effective on March 1, 2021. In accordance with the 2021 Venture LPA, Third Point Venture GP LLC (“TP Venture GP”) serves as the general partner of TP Venture Fund.
The TP Venture Fund investment strategy, as implemented by Third Point LLC, is to generate attractive risk-adjusted returns through a concentrated portfolio of investments in privately-held companies, primarily in the expansion through late/pre-IPO stage. The TP Venture Fund may also invest in early stage companies. Due the nature of the fund, withdrawals are not permitted. Distributions prior to the expected termination date of the fund include, but are not limited to, dividends or proceeds arising from the liquidation of the fund's underlying investments.
As of December 31, 2021, the Company had $12.7 million of unfunded commitments related to TP Venture Fund. As of December 31, 2021, the Company holds interests of approximately 16.8% of the net asset value of TP Venture Fund.
10. Investments in unconsolidated entities
The Company’s investments in unconsolidated entities are included within other long-term investments and consist of investments in common equity securities or similar instruments, which give the Company the ability to exert significant influence over the investee's operating and financial policies ("equity method eligible entities"). Such investments may be accounted for under either the equity method or, alternatively, the Company may elect to account for them under the fair value option.
The following table presents the components of other long-term investments as of December 31, 2021 and December 31, 2020:
December 31,
2021		December 31, 2020
Equity method eligible entities, at fair value (1) (3)
$258.1 $— 
Other unconsolidated investments, at fair value (2)
198.0 4.0 
Total other long-term investments
$456.1 $4.0 
(1)There were no investments accounted for using the equity method as of December 31, 2021 and December 31, 2020.
(2)Includes other long-term investments that are not equity method eligible.
(3)The above table excludes the Company’s investments in TP Enhanced Fund and TP Venture Fund which are equity method eligible but are carried outside of other long-term investments. See Notes 8 and 12 for additional information on these funds.
The Company has elected the fair value option to account for its equity method eligible investments in order to be consistent with the remainder of its investments portfolio which is accounted for at fair value. The following table presents the Company’s significant equity method investee entities under fair value option in which it holds 20 percent or more (5 percent or more for limited partnerships and limited liability companies) of the ownership interest as of December 31, 2021:
December 31, 2021
InvesteeFair valueOwnership interestInstrument held
BE Reinsurance Limited$15.2 24.9 %Common shares
BioVentures Investors (Offshore) IV LP16.6 73.0 %Units
Vyrd Holdings LLC23.0 45.0 %Units
Diamond LS I LP7.1 15.3 %Units
Gateway Fund LP4.0 18.1 %Units
Monarch Alternative Capital, LP5.7 12.8 %Units
New Energy Capital Infrastructure Credit Fund LP20.1 18.3 %Units
New Energy Capital Infrastructure Offshore Credit Fund LP13.4 12.2 %Units
Great Bay LLC1.0 11.1 %Units
Parameter Climate Inc.3.7 49.0 %Preferred shares
Tuckerman Capital V LP11.3 42.1 %Units
Tuckerman Capital V Co-Investment I LP$8.6 47.3 %Units
(1)The above table excludes the Company’s investments in TP Enhanced Fund and TP Venture Fund. See Notes 8 and 12 for additional information.