INVESTMENTS

Fixed Maturity Investments Trading

The following table summarizes the fair value of fixed maturity investments trading:




	June 30, 2018		December 31, 2017
U.S. treasuries	$	2,968,855	$	3,168,763
Agencies	55,199		47,646
Municipal	6,164		509,802
Non-U.S. government (Sovereign debt)	298,811		287,660
Non-U.S. government-backed corporate	185,640		163,651
Corporate	2,280,080		2,063,459
Agency mortgage-backed	762,077		500,456
Non-agency mortgage-backed	300,311		300,331
Commercial mortgage-backed	248,590		202,062
Asset-backed	315,051		182,725
Total fixed maturity investments trading	$	7,420,778	$	7,426,555

Contractual maturities of fixed maturity investments trading are described in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.




June 30, 2018	Amortized Cost		Fair Value
Due in less than one year	$	385,371	$	383,353
Due after one through five years	4,482,713		4,421,536
Due after five through ten years	917,280		904,070
Due after ten years	88,229		85,790
Mortgage-backed	1,310,933		1,310,978
Asset-backed	315,471		315,051
Total	$	7,499,997	$	7,420,778

Equity Investments Trading

The following table summarizes the fair value of equity investments trading:




	June 30, 2018		December 31, 2017
Financials	$	293,779	$	253,543
Communications and technology	55,100		49,526
Industrial, utilities and energy	33,097		34,325
Consumer	24,678		24,779
Healthcare	21,960		21,364
Basic materials	4,190		4,717
Total	$	432,804	$	388,254

Pledged Investments

At June 30, 2018, $4.9 billion of cash and investments at fair value were on deposit with, or in trust accounts for the benefit of, various counterparties, including with respect to the Company’s letter of credit facilities (December 31, 2017 - $4.4 billion). Of this amount, $1.7 billion is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities (December 31, 2017 - $1.7 billion).

Reverse Repurchase Agreements

At June 30, 2018, the Company held $91.8 million (December 31, 2017 - $30.0 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 short term investments on the Company’s consolidated balance sheets. The required collateral for these loans typically includes high-quality, readily marketable instruments at a minimum amount of 102% of the loan principal. Upon maturity, the Company receives principal and interest income.

Net Investment Income

The components of net investment income are as follows:




	Three months ended						Six months ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Fixed maturity investments	$	50,416		$	44,356		$	96,059		$	87,775
Short term investments	7,633			2,981			12,937			4,705
Equity investments	1,490			889			2,188			1,700
Other investments
Private equity investments	3,860			6,611			3,426			14,413
Other	10,658			2,899			18,681			6,971
Cash and cash equivalents	1,039			295			1,604			484
	75,096			58,031			134,895			116,048
Investment expenses	(3,740		)	(3,868		)	(7,063		)	(7,560		)
Net investment income	$	71,356		$	54,163		$	127,832		$	108,488

Net Realized and Unrealized (Losses) Gains on Investments

Net realized and unrealized (losses) gains on investments are as follows:




	Three months ended						Six months ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Gross realized gains	$	5,133		$	15,249		$	9,716		$	26,710
Gross realized losses	(26,519		)	(7,243		)	(52,372		)	(23,776		)
Net realized (losses) gains on fixed maturity investments	(21,386		)	8,006			(42,656		)	2,934
Net unrealized (losses) gains on fixed maturity investments trading	(9,420		)	18,760			(64,792		)	43,395
Net realized and unrealized gains (losses) on investments-related derivatives	1,038			(268		)	(3,326		)	(324		)
Net realized gains on equity investments trading sold during the period	348			15,146			582			36,061
Net unrealized gains on equity investments trading still held at reporting date	11,519			16,469			10,147			19,420
Net realized and unrealized gains on equity investments trading	11,867			31,615			10,729			55,481
Net realized and unrealized (losses) gains on investments	$	(17,901	)	$	58,113		$	(100,045	)	$	101,486