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Investment Information (Tables)
12 Months Ended
Dec. 31, 2019
Disclosure Investment Information [Abstract]  
Summary of fair value and cost or amortized cost of available for sale securities
The following table summarizes the fair value and cost or amortized cost of the Company’s securities classified as available for sale:
 
Estimated
Fair
Value
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Cost or Amortized
Cost
 
OTTI Unrealized Losses (2)
December 31, 2019
 
 
 
 
 
 
 
 
 
Fixed maturities (1):
 
 
 
 
 
 
 
 
 
Corporate bonds
$
6,406,591

 
$
191,889

 
$
(12,793
)
 
$
6,227,495

 
$

Mortgage backed securities
562,309

 
9,669

 
(931
)
 
553,571

 
(6
)
Municipal bonds
881,926

 
24,628

 
(2,213
)
 
859,511

 

Commercial mortgage backed securities
733,108

 
14,951

 
(2,330
)
 
720,487

 

U.S. government and government agencies
4,916,592

 
36,600

 
(10,134
)
 
4,890,126

 

Non-U.S. government securities
2,078,757

 
48,549

 
(20,330
)
 
2,050,538

 

Asset backed securities
1,683,753

 
24,017

 
(4,724
)
 
1,664,460

 

Total
17,263,036

 
350,303

 
(53,455
)
 
16,966,188

 
(6
)
Short-term investments
956,546

 
811

 
(1,548
)
 
957,283

 

Total
$
18,219,582

 
$
351,114

 
$
(55,003
)
 
$
17,923,471

 
$
(6
)
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Fixed maturities (1):
 
 
 
 
 
 
 
 
 
Corporate bonds
$
5,537,548

 
$
14,476

 
$
(105,428
)
 
$
5,628,500

 
$
(69
)
Mortgage backed securities
541,193

 
3,991

 
(3,216
)
 
540,418

 
(6
)
Municipal bonds
1,013,395

 
5,380

 
(11,891
)
 
1,019,906

 

Commercial mortgage backed securities
729,442

 
2,650

 
(10,751
)
 
737,543

 

U.S. government and government agencies
3,758,698

 
27,189

 
(8,474
)
 
3,739,983

 

Non-U.S. government securities
1,771,338

 
14,477

 
(50,948
)
 
1,807,809

 

Asset backed securities
1,600,896

 
8,060

 
(14,798
)
 
1,607,634

 

Total
14,952,510

 
76,223

 
(205,506
)
 
15,081,793

 
(75
)
Short-term investments
955,880

 
36

 
(394
)
 
956,238

 

Total
$
15,908,390

 
$
76,259

 
$
(205,900
)
 
$
16,038,031

 
$
(75
)
(1)
In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities pledged. For purposes of this table, the Company has excluded the collateral received under securities lending, at fair value and included the securities pledged under securities lending, at fair value. See “—Securities Lending Agreements.”
(2)
Represents the total OTTI recognized in accumulated other comprehensive income (“AOCI”). It does not include the change in fair value subsequent to the impairment measurement date. At December 31, 2019 and 2018, the net unrealized gain related to securities for which a non-credit OTTI was recognized in AOCI was nil.


Summary of available for sale securities in a continual unrealized loss position
The following table summarizes, for all available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:
 
Less than 12 Months
 
12 Months or More
 
Total
 
Estimated Fair
Value
 
Gross Unrealized Losses
 
Estimated Fair
Value
 
Gross Unrealized Losses
 
Estimated Fair
Value
 
Gross Unrealized Losses
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities (1):
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
$
675,131

 
$
(12,350
)
 
$
37,671

 
$
(443
)
 
$
712,802

 
$
(12,793
)
Mortgage backed securities
102,887

 
(927
)
 
203

 
(4
)
 
103,090

 
(931
)
Municipal bonds
220,296

 
(2,213
)
 

 

 
220,296

 
(2,213
)
Commercial mortgage backed securities
147,290

 
(2,302
)
 
2,683

 
(28
)
 
149,973

 
(2,330
)
U.S. government and government agencies
1,373,127

 
(10,089
)
 
32,058

 
(45
)
 
1,405,185

 
(10,134
)
Non-U.S. government securities
1,224,243

 
(20,163
)
 
37,610

 
(167
)
 
1,261,853

 
(20,330
)
Asset backed securities
441,522

 
(3,334
)
 
48,313

 
(1,390
)
 
489,835

 
(4,724
)
Total
4,184,496

 
(51,378
)
 
158,538

 
(2,077
)
 
4,343,034

 
(53,455
)
Short-term investments
95,777

 
(1,548
)
 

 

 
95,777

 
(1,548
)
Total
$
4,280,273

 
$
(52,926
)
 
$
158,538

 
$
(2,077
)
 
$
4,438,811

 
$
(55,003
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities (1):
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
$
2,983,195

 
$
(68,910
)
 
$
1,234,865

 
$
(36,518
)
 
$
4,218,060

 
$
(105,428
)
Mortgage backed securities
84,296

 
(695
)
 
109,009

 
(2,521
)
 
193,305

 
(3,216
)
Municipal bonds
233,081

 
(2,074
)
 
408,155

 
(9,817
)
 
641,236

 
(11,891
)
Commercial mortgage backed securities
223,341

 
(2,831
)
 
193,956

 
(7,920
)
 
417,297

 
(10,751
)
U.S. government and government agencies
635,049

 
(1,354
)
 
391,102

 
(7,120
)
 
1,026,151

 
(8,474
)
Non-U.S. government securities
1,028,340

 
(35,524
)
 
389,671

 
(15,424
)
 
1,418,011

 
(50,948
)
Asset backed securities
533,592

 
(8,832
)
 
368,095

 
(5,966
)
 
901,687

 
(14,798
)
Total
5,720,894

 
(120,220
)
 
3,094,853

 
(85,286
)
 
8,815,747

 
(205,506
)
Short-term investments
122,878

 
(394
)
 

 

 
122,878

 
(394
)
Total
$
5,843,772

 
$
(120,614
)
 
$
3,094,853

 
$
(85,286
)
 
$
8,938,625

 
$
(205,900
)
(1)
In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities pledged. See “—Securities Lending Agreements.”

Contractual maturities of the Company's fixed maturities and fixed maturities pledged under securities lending arrangements
 
 
December 31, 2019
 
December 31, 2018
Maturity
 
Estimated Fair Value
 
Amortized Cost
 
Estimated Fair Value
 
Amortized Cost
Due in one year or less
 
$
428,659

 
$
423,617

 
$
276,682

 
$
279,135

Due after one year through five years
 
10,126,403

 
9,996,206

 
8,666,297

 
8,738,944

Due after five years through 10 years
 
3,317,535

 
3,219,567

 
2,919,232

 
2,951,582

Due after 10 years
 
411,269

 
388,280

 
218,768

 
226,537

 
 
14,283,866

 
14,027,670

 
12,080,979

 
12,196,198

Mortgage backed securities
 
562,309

 
553,571

 
541,193

 
540,418

Commercial mortgage backed securities
 
733,108

 
720,487

 
729,442

 
737,543

Asset backed securities
 
1,683,753

 
1,664,460

 
1,600,896

 
1,607,634

Total (1)
 
$
17,263,036

 
$
16,966,188

 
$
14,952,510

 
$
15,081,793


(1)
In securities lending transactions, the Company receives collateral in excess of the fair value of the fixed maturities pledged. For purposes of this table, the Company has excluded the collateral received and reinvested and included the fixed maturities pledged. See “—Securities Lending Agreements.”
Summary of securities lending transactions accounted for as secured borrowings, with significant investment categories
The Company’s securities lending transactions were accounted for as secured borrowings with significant investment categories as follows:
 
 
Remaining Contractual Maturity of the Agreements
 
 
Overnight and Continuous
 
Less than 30 Days
 
30-90 Days
 
90 Days or More
 
Total
December 31, 2019
 
 
 
 
 
 
 
 
 
 
U.S. government and government agencies
 
$
240,332

 
$

 
$
115,973

 
$

 
$
356,305

Corporate bonds
 
2,570

 

 

 

 
2,570

Equity securities
 
29,491

 

 

 

 
29,491

Total
 
$
272,393

 
$

 
$
115,973

 
$

 
$
388,366

Gross amount of recognized liabilities for securities lending in offsetting disclosure in Note 10
 

Amounts related to securities lending not included in offsetting disclosure in Note 10
 
$
388,366

December 31, 2018
 
 
 
 
 
 
 
 
 
 
U.S. government and government agencies
 
$
219,276

 
$

 
$
32,583

 
$

 
$
251,859

Corporate bonds
 
7,129

 

 

 

 
7,129

Equity securities
 
15,137

 

 

 

 
15,137

Total
 
$
241,542

 
$

 
$
32,583

 
$

 
$
274,125

Gross amount of recognized liabilities for securities lending in offsetting disclosure in Note 10
 

Amounts related to securities lending not included in offsetting disclosure in Note 10
 
$
274,125



Summary of other investments, including available for sale and fair value option components
The following table summarizes the Company’s other investments, which are included in investments accounted for using the fair value option, by strategy:

December 31,

2019

2018
Term loan investments
1,326,018


1,282,287

Lending
602,841


524,112

Credit related funds
123,020


202,123

Energy
97,402


117,509

Investment grade fixed income
151,594


101,902

Infrastructure
61,786


45,371

Private equity
49,376


24,383

Real estate
17,279


14,252

Total
$
2,429,316


$
2,311,939


Summary information for investments accounted for using the equity method
The following table summarizes the Company’s investments accounted for using the equity method, by strategy:

December 31,

2019
 
2018
Credit related funds
$
428,437

 
$
429,402

Equities
293,686

 
375,273

Real estate
246,851

 
232,647

Lending
202,690

 
125,041

Private equity
144,983

 
114,019

Infrastructure
235,033

 
113,748

Energy
108,716

 
103,661

Total
$
1,660,396

 
$
1,493,791

In applying the equity method, investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). Such investments are generally recorded on a one to three month lag based on the availability of reports from the investment funds.
A summary of financial information for the Company’s investment funds accounted for using the equity method is as follows:
 
December 31,
 
2019
 
2018
Invested assets
$
26,383,370

 
$
28,299,386

Total assets
28,039,181

 
29,833,681

Total liabilities
3,595,695

 
3,406,612

Net assets
$
24,443,486

 
$
26,427,069

 
Year Ended December 31,
 
2019
 
2018
 
2017
Total revenues
$
164,669

 
$
4,565,354

 
$
3,867,874

Total expenses
528,762

 
1,135,602

 
782,773

Net income (loss)
$
(364,093
)
 
$
3,429,752

 
$
3,085,101


Summary of assets and liabilities accounted for using the fair value option
The following table summarizes the Company’s assets which are accounted for using the fair value option:
 
December 31,
 
2019
 
2018
Fixed maturities
$
754,452

 
$
1,245,562

Other investments
2,429,316

 
2,311,939

Short-term investments
377,014

 
322,177

Equity securities
102,695

 
103,893

Investments accounted for using the fair value option
$
3,663,477

 
$
3,983,571


Summary of investments in limited partnership interests where the Company has a variable interest
The following table summarizes investments in limited partnership interests where the Company has a variable interest by balance sheet item:
 
December 31,
 
2019
 
2018
Investments accounted for using the equity method (1)
$
1,660,396

 
$
1,493,791

Investments accounted for using the fair value option (2)
188,283

 
162,398

Total
$
1,848,679

 
$
1,656,189

(1)
Aggregate unfunded commitments were $1.36 billion at December 31, 2019, compared to $1.22 billion at December 31, 2018.
(2)
Aggregate unfunded commitments were $41.7 million at December 31, 2019, compared to $117.5 million at December 31, 2018.
Components of net investment income
The components of net investment income were derived from the following sources:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Fixed maturities
$
505,399

 
$
470,912

 
$
385,919

Term loans
98,949

 
87,926

 
86,017

Equity securities
15,857

 
13,154

 
11,752

Short-term investments
15,820

 
18,793

 
10,964

Other (1)
80,618

 
64,942

 
68,249

Gross investment income
716,643

 
655,727

 
562,901

Investment expenses
(88,905
)
 
(92,094
)
 
(92,029
)
Net investment income
$
627,738

 
$
563,633

 
$
470,872


(1)
Includes income distributions from investment funds and other items.

Summary of net realized gains (losses)
Net realized gains (losses) were as follows, excluding the other-than-temporary impairment provisions:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Available for sale securities:
 
 
 
 
 
Gross gains on investment sales
$
235,655

 
$
69,299

 
$
286,415

Gross losses on investment sales
(104,612
)
 
(223,123
)
 
(203,873
)
Change in fair value of assets and liabilities accounted for using the fair value option:
 
 
 
 
 
Fixed maturities
41,910

 
(90,898
)
 
29,451

Other investments
(35,734
)
 
(90,778
)
 
51,124

Equity securities
15,869

 
(5,984
)
 
18,707

Short-term investments
3,801

 
(461
)
 
272

Equity securities, at fair value (1):
 
 
 
 
 
Net realized gains (losses) on securities sold
11,313

 
(40,117
)
 

Net unrealized gains (losses) on equity securities still held at reporting date
97,768

 
(22,828
)
 

Derivative instruments (2)
119,741

 
15,636

 
(7,356
)
Other (3)
(19,348
)
 
(16,090
)
 
(25,599
)
Net realized gains (losses)
$
366,363

 
$
(405,344
)
 
$
149,141


(1)
Effective January 1, 2018, changes in fair value on equity securities are recorded through net income.
(2)
See Note 10 for information on the Company’s derivative instruments.
(3)
Includes the re-measurement of contingent consideration liability amounts.

Summary of OTTI recognized in earnings by asset class
The following table details the net impairment losses recognized in earnings by asset class:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Fixed maturities:
 
 
 
 
 
Mortgage backed securities
$
(915
)
 
$
(437
)
 
$
(1,488
)
Corporate bonds
(1,256
)
 
(1,232
)
 
(2,884
)
Non-U.S. government securities

 
(290
)
 
(376
)
Asset backed securities
(994
)
 
(811
)
 

U.S. government and government agencies

 

 
(426
)
Municipal bonds

 

 
(375
)
Total
(3,165
)
 
(2,770
)
 
(5,549
)
Short-term investments

 
(59
)
 

Equity securities

 

 
(1,422
)
Other investments

 

 
(167
)
Net impairment losses recognized in earnings
$
(3,165
)
 
$
(2,829
)
 
$
(7,138
)

Rollforward of the amount related to credit losses recognized in earnings for which a portion was recognized in AOCI
The following table provides a roll forward of the amount related to credit losses recognized in earnings for which a portion of an OTTI was recognized in accumulated other comprehensive income:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Balance at start of year
$
637

 
$
767

 
$
13,138

Credit loss impairments recognized on securities not previously impaired

 

 
31

Credit loss impairments recognized on securities previously impaired

 

 
210

Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security

 

 

Reductions for securities sold during the period
(291
)
 
(130
)
 
(12,612
)
Balance at end of year
$
346

 
$
637

 
$
767


Summary of restricted assets
The following table details the value of the Company’s restricted assets:
 
December 31,
 
2019
 
2018
Assets used for collateral or guarantees:
 
 
 
Affiliated transactions
$
4,526,761

 
$
4,623,483

Third party agreements
2,278,248

 
2,181,682

Deposits with U.S. regulatory authorities
797,371

 
689,114

Deposits with non-U.S. regulatory authorities
119,238

 
59,624

Total restricted assets
$
7,721,618

 
$
7,553,903


Reconciliation of cash and restricted cash
The following table details reconciliation of cash and restricted cash within the Consolidated Balance Sheets:
 
December 31,
 
2019
 
2018
 
2017
Cash
$
726,230

 
$
646,556

 
$
606,199

Restricted cash (included in ‘other assets’)
177,468

 
78,087

 
121,085

Cash and restricted cash
$
903,698

 
$
724,643

 
$
727,284