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Investments
 12 Months Ended
Dec. 31, 2016
Investments [Abstract]  
Investments
4. Investments
(a) Net Realized and Unrealized Investment Gains (Losses)
The components of the net realized and unrealized investment gains (losses) for the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands of U.S. dollars):
 
 
 
2016
 
2015
 
2014
Net realized investment gains on fixed maturities and short-term investments
 
$
96,994

 
$
66,296

 
$
120,734

Net realized investment gains on equities
 
157

 
137,609

 
98,733

Net realized investment gains (losses) on other invested assets
 
5,365

 
(33,317
)
 
(20,686
)
Net realized investment gains on funds held–directly managed
 
1,355

 
536

 
2,012

Net realized investment gains
 
103,871

 
171,124

 
200,793

Change in net unrealized investment (losses) gains on fixed maturities and short-term investments
 
(90,334
)
 
(276,776
)
 
228,781

Change in net unrealized investment (losses) gains on equities
 
(14,850
)
 
(187,561
)
 
2,605

Change in unrealized investment gains (losses) on other invested assets
 
25,488

 
844

 
(58,180
)
Change in net unrealized investment (losses) gains on funds held–directly managed
 
(676
)
 
(6,163
)
 
1,421

Net other realized and unrealized investment gains (losses)
 
2,767

 
1,053

 
(3,624
)
Change in net unrealized investment (losses) gains
 
(77,605
)
 
(468,603
)
 
171,003

Net realized and unrealized investment gains (losses)
 
$
26,266

 
$
(297,479
)
 
$
371,796


(b) Net Investment Income
The components of net investment income for the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands of U.S. dollars):
 
 
 
2016
 
2015
 
2014
Fixed maturities
 
$
395,831

 
$
425,541

 
$
443,414

Short-term investments and cash and cash equivalents
 
1,915

 
854

 
868

Equities
 
4,382

 
30,739

 
40,326

Funds held and other
 
34,161

 
27,406

 
33,192

Funds held–directly managed
 
9,993

 
11,676

 
13,841

Investment expenses
 
(35,418
)
 
(46,432
)
 
(51,945
)
Net investment income
 
$
410,864

 
$
449,784

 
$
479,696


Other than the funds held–directly managed account, the Company generally earns investment income on funds held by reinsured companies based upon a predetermined interest rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g., LIBOR). Interest rates ranged from 0.0% to 5.4% for the year ended December 31, 2016, from 0.1% to 8.0% for the year ended December 31, 2015 and from 2.1% to 5.4% for the year ended December 31, 2014. See Note 5 for additional information on the funds held–directly managed account.
(c) Pledged and Restricted Assets
At December 31, 2016 and 2015, approximately $157 million and $165 million, respectively, of cash and cash equivalents and approximately $2,241 million and $2,168 million, respectively, of securities were deposited, pledged or held in escrow accounts in favor of ceding companies and other counterparties or government authorities to comply with reinsurance contract provisions and insurance laws.
(d) Net Payable for Securities Purchased
Included within Accounts payable, accrued expenses and other in the Consolidated Balance Sheets at December 31, 2016 and 2015 were amounts of gross receivable balances for securities sold and gross payable balances for securities purchased as follows (in thousands of U.S. dollars):
 
 
 
2016
 
2015
Receivable for securities sold
 
$
52,189

 
$
34,497

Payable for securities purchased
 
(648,813
)
 
(219,707
)
Net payable for securities purchased
 
$
(596,624
)
 
$
(185,210
)

(e) Variable Interest Entities
The Company holds variable interests in VIEs including certain limited liability companies or partnerships, trusts, fixed maturity investments and asset-backed securities. The holdings in these VIEs are reported within fixed maturities and other invested assets in the Company’s Consolidated Balance Sheets. The Company’s involvement in these entities is, for the most part, passive in nature. The Company’s maximum exposure to loss with respect to these investments is limited to the amounts invested in and advanced to the VIEs, and any unfunded commitments. The Company’s non-consolidated VIEs include variable interests in catastrophe bonds within fixed maturity investments and certain other invested assets.