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Investment Information
 12 Months Ended
Dec. 31, 2021
Disclosure Investment Information [Abstract]  
Investment Information
Available For Sale Investments
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 GainsGross Unrealized LossesAllowance for Expected Credit Losses (2)Cost or
Amortized
Cost
December 31, 2021
Fixed maturities:
Corporate bonds$6,553,333 $104,170 $(69,194)$(2,037)$6,520,394 
Mortgage backed securities408,477 2,825 (5,410)(48)411,110 
Municipal bonds404,666 18,724 (1,409)(2)387,353 
Commercial mortgage backed securities1,046,484 1,740 (3,117)(6)1,047,867 
U.S. government and government agencies4,772,764 10,076 (45,967)— 4,808,655 
Non-U.S. government securities2,120,294 54,048 (34,749)(82)2,101,077 
Asset backed securities2,692,091 6,540 (11,108)(708)2,697,367 
Total17,998,109 198,123 (170,954)(2,883)17,973,823 
Short-term investments1,734,716 568 (590)— 1,734,738 
Total$19,732,825 $198,691 $(171,544)$(2,883)$19,708,561 
December 31, 2020
Fixed maturities (1):
Corporate bonds$7,856,571 $414,247 $(34,388)$(896)$7,477,608 
Mortgage backed securities630,001 8,939 (5,028)(278)626,368 
Municipal bonds494,522 27,291 (3,835)(11)471,077 
Commercial mortgage backed securities389,900 8,722 (2,954)(122)384,254 
U.S. government and government agencies5,557,077 22,612 (12,611)— 5,547,076 
Non-U.S. government securities2,433,733 153,891 (8,060)— 2,287,902 
Asset backed securities1,634,804 19,225 (10,715)(1,090)1,627,384 
Total18,996,608 654,927 (77,591)(2,397)18,421,669 
Short-term investments1,924,922 2,693 (2,063)— 1,924,292 
Total$20,921,530 $657,620 $(79,654)$(2,397)$20,345,961 
(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.” In 2021, the Company terminated its securities lending program and no longer enters into securities lending agreements with financial institutions.
(2) Effective January 1, 2020, the Company adopted ASU 2016-13 and as a result any credit impairment losses on the Company’s available-for-sale investments are recorded as an allowance, subject to reversal.
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 Months12 Months or MoreTotal
Estimated Fair
Value		Gross Unrealized LossesEstimated Fair
Value		Gross Unrealized LossesEstimated Fair
Value		Gross Unrealized Losses
December 31, 2021
Fixed maturities:
Corporate bonds$3,639,582 $(63,938)$98,867 $(5,256)$3,738,449 $(69,194)
Mortgage backed securities222,176 (3,545)46,809 (1,865)268,985 (5,410)
Municipal bonds26,665 (385)16,361 (1,024)43,026 (1,409)
Commercial mortgage backed securities675,603 (2,805)5,908 (312)681,511 (3,117)
U.S. government and government agencies4,211,621 (44,180)33,373 (1,787)4,244,994 (45,967)
Non-U.S. government securities1,511,301 (31,983)62,957 (2,766)1,574,258 (34,749)
Asset backed securities1,667,002 (9,853)33,082 (1,255)1,700,084 (11,108)
Total11,953,950 (156,689)297,357 (14,265)12,251,307 (170,954)
Short-term investments284,733 (590)— — 284,733 (590)
Total$12,238,683 $(157,279)$297,357 $(14,265)$12,536,040 $(171,544)
December 31, 2020
Fixed maturities (1):
Corporate bonds$747,442 $(33,086)$3,934 $(1,302)$751,376 $(34,388)
Mortgage backed securities284,619 (4,788)3,637 (240)288,256 (5,028)
Municipal bonds67,937 (3,835)— — 67,937 (3,835)
Commercial mortgage backed securities126,624 (2,916)2,655 (38)129,279 (2,954)
U.S. government and government agencies1,285,907 (12,611)— — 1,285,907 (12,611)
Non-U.S. government securities543,844 (7,658)2,441 (402)546,285 (8,060)
Asset backed securities634,470 (9,110)57,737 (1,605)692,207 (10,715)
Total3,690,843 (74,004)70,404 (3,587)3,761,247 (77,591)
Short-term investments97,920 (2,063)— — 97,920 (2,063)
Total$3,788,763 $(76,067)$70,404 $(3,587)$3,859,167 $(79,654)
(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.” In 2021, the Company terminated its securities lending program and no longer enters into securities lending agreements with financial institutions.

At December 31, 2021, on a lot level basis, approximately 4,700 security lots out of a total of approximately 10,240 security lots were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity portfolio was $1.1 million. The Company believes that such securities were temporarily impaired at December 31, 2021. At December 31, 2020, on a lot level basis, approximately 2,320 security lots out of a total of approximately 11,180 security lots were in an unrealized loss position and the largest single unrealized loss from a single lot in the Company’s fixed maturity portfolio was $0.9 million.
The contractual maturities of the Company’s fixed maturities and fixed maturities pledged under securities lending agreements are shown in the following table. Expected maturities, which are management’s best estimates, will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
December 31, 2021December 31, 2020
Maturity
Estimated Fair Value
Amortized Cost
Estimated Fair Value
Amortized Cost
Due in one year or less$300,889 $299,772 $348,200 $339,951 
Due after one year through five years8,355,255 8,339,387 10,629,959 10,340,819 
Due after five years through 10 years4,689,155 4,684,393 4,881,564 4,654,754 
Due after 10 years505,758 493,927 482,180 448,139 
13,851,057 13,817,479 16,341,903 15,783,663 
Mortgage backed securities408,477 411,110 630,001 626,368 
Commercial mortgage backed securities1,046,484 1,047,867 389,900 384,254 
Asset backed securities2,692,091 2,697,367 1,634,804 1,627,384 
Total (1)$17,998,109 $17,973,823 $18,996,608 $18,421,669 
(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.” In 2021, the Company terminated its securities lending program and no longer enters into securities lending agreements with financial institutions.
Securities Lending Agreements
In 2021, the Company terminated its securities lending program and no longer enters into securities lending agreements with financial institutions to enhance investment income. Prior to the termination of this program, the Company loaned certain of its securities to third parties, primarily major brokerage firms, for short periods of time through a lending agent. The Company maintained legal control over the securities it lent (shown as ‘Securities pledged under securities lending, at fair value’ on the Company’s balance sheet), retained the earnings and cash flows associated with the loaned securities and received a fee from the borrower for the temporary use of the securities. An indemnification agreement with the lending agent protected the Company in the event a borrower became insolvent or failed to return any of the securities on loan from the Company.
The Company receives collateral (shown as ‘Collateral received under securities lending, at fair value’ on the Company’s balance sheet) in the form of cash or U.S. government and government agency securities. At December 31, 2021, the Company had no cash collateral or security collateral due to the termination of the program. At December 31, 2020, the fair value of the cash collateral received on securities lending was nil and the fair value of security collateral received was $301.1 million. 
The carrying value of collateral held under the Company’s securities lending transactions by significant investment category and remaining contractual maturity of the underlying agreements was as follows at December 31, 2020 (no balances at December 31, 2021 due to the termination of the program):
Remaining Contractual Maturity of the Agreements
Overnight and ContinuousLess than 30 Days30-90 Days90 Days or MoreTotal
December 31, 2020
U.S. government and government agencies$142,317 $— $139,290 $— $281,607 
Corporate bonds3,021 — — — 3,021 
Equity securities16,461 — — — 16,461 
Total$161,799 $— $139,290 $— $301,089 
Gross amount of recognized liabilities for securities lending in offsetting disclosure in Note 11
— 
Amounts related to securities lending not included in offsetting disclosure in Note 11
$301,089 
Equity Securities, at Fair Value
At December 31, 2021, the Company held $1.8 billion of equity securities, at fair value, compared to $1.4 billion at December 31, 2020.
Net Investment Income
The components of net investment income were derived from the following sources:
Year Ended December 31,
202120202019
Fixed maturities$330,061 $412,481 $505,399 
Term loans34,843 84,149 98,949 
Equity securities42,396 28,958 15,857 
Short-term investments6,928 10,840 15,820 
Other (1)62,895 72,395 80,618 
Gross investment income477,123 608,823 716,643 
Investment expenses(88,005)(89,215)(88,905)
Net investment income$389,118 $519,608 $627,738 
(1)    Includes income distributions from investment funds and other items

Net Realized Gains (Losses)

Net realized gains (losses) were as follows:
Year Ended December 31,
202120202019
Available for sale securities:
Gross gains on investment sales$313,886 $595,941 $235,655 
Gross losses on investment sales(156,791)(117,282)(104,612)
Change in fair value of assets and liabilities accounted for using the fair value option:
Fixed maturities7,953 15,881 41,910 
Other investments116,781 13,656 (35,734)
Equity securities13,028 14,629 15,869 
Short-term investments601 2,279 3,801 
Equity securities, at fair value :
Net realized gains (losses) on securities sold122,606 26,849 11,313 
Net unrealized gains (losses) on equity securities still held at reporting date48,746 102,394 97,768 
Allowance for credit losses:
Investments related(2,100)(3,597)— 
Underwriting related1,062 (10,007)— 
Net impairment losses— (533)(3,165)
Derivative instruments (1)(32,390)179,675 119,741 
Other (2)(53,537)3,575 (19,348)
Net realized gains (losses)$379,845 $823,460 $363,198 

(1)    See Note 11 for information on the Company’s derivative instruments.
(2)    2021 periods reflected $33.1 million of losses related to the Company’s
deconsolidation of Somers.

Other Investments
The following table summarizes the Company’s other investments and other investable assets:
December 31,
20212020
Fixed maturities$416,698 $843,354 
Other investments1,432,553 2,331,885 
Short-term investments97,806 557,008 
Equity securities26,493 92,549 
Investments accounted for using the fair value option1,973,550 3,824,796 
Other investable assets (1)— 500,000 
Total other investments$1,973,550 $4,324,796 
(1) Participation interests in a receivable of a reverse repurchase agreement.
The following table summarizes the Company’s other investments, as detailed in the previous table, by strategy:

December 31,

2021

2020
Lending536,345 572,636 
Term loan investments484,950 1,231,731 
Investment grade fixed income147,810 138,646 
Private equity91,126 48,750 
Energy81,692 65,813 
Credit related funds70,278 90,780 
Infrastructure20,352 165,516 
Real estate— 18,013 
Total
$1,432,553 $2,331,885 
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,

20212020
Credit related funds$1,022,334 $740,060 
Private equity436,042 235,289 
Real estate396,395 258,518 
Equities395,090 343,058 
Lending376,649 179,629 
Infrastructure230,070 175,882 
Energy119,141 115,453 
Fixed income101,890 — 
Total
$3,077,611 $2,047,889 
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.
Equity in Net Income (Loss) of Investments Accounted For Using the Equity Method
The Company recorded equity in net income related to investments accounted for using the equity method of $366.4 million for 2021, compared to $146.7 million for 2020 and $123.7 million for 2019. 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 market value of the underlying securities in the funds).
A summary of financial information for the Company’s investment funds and operating affiliates accounted for using the equity method is as follows:
December 31,
20212020
Invested assets$58,508,009 $44,131,377 
Total assets69,648,905 49,078,464 
Total liabilities17,944,325 6,054,189 
Net assets$51,704,580 $43,024,275 
Year Ended December 31,
202120202019
Total revenues$11,785,949 $5,762,098 $164,669 
Total expenses3,238,606 1,656,029 528,762 
Net income (loss)$8,547,343 $4,106,069 $(364,093)
Certain of the Company’s other investments and investments accounted for using the equity method are in investment funds for which the Company has the option to redeem at agreed upon values as described in each investment fund’s subscription agreement. Depending on the terms of the various subscription agreements, investments in investment funds may be redeemed daily, monthly, quarterly or on other terms. Two common redemption restrictions which may impact the Company’s ability to redeem these investment funds are gates and lockups. A gate is a suspension of redemptions which may be implemented by the general partner or investment manager of the fund in order to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a predetermined percentage of the investment fund's net assets which may otherwise hinder the general partner or investment manager's ability to liquidate holdings in an orderly fashion in order to generate the cash necessary to fund extraordinarily large redemption payouts. A lockup period is the initial amount of time an investor is contractually required to hold the security before having the ability to redeem. If the investment funds are eligible to be redeemed, the time to redeem such fund can take weeks or months following the notification.
Limited Partnership Interests
In the normal course of its activities, the Company invests in limited partnerships as part of its overall investment strategy. Such amounts are included in ‘investments accounted for using the equity method’ and ‘investments accounted for using the fair value option.’ The Company determined that these limited partnership interests represented variable interests in the funds because the general partner did not have a significant interest in the funds. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company’s consolidated balance sheet and any unfunded commitment.
The following table summarizes investments in limited partnership interests where the Company has a variable interest by balance sheet item:
December 31,
20212020
Investments accounted for using the equity method (1)$3,077,611 $2,047,889 
Investments accounted for using the fair value option (2)170,595 184,720 
Total$3,248,206 $2,232,609 
(1)     Aggregate unfunded commitments were $2.6 billion at December 31, 2021, compared to $1.8 billion at December 31, 2020.
(2)    Aggregate unfunded commitments were $18.8 million at December 31, 2021, compared to $35.6 million at December 31, 2020.

Investments in Operating Affiliates
Investments in which the Company has significant influence over the operating and financial policies are classified as ‘investments in operating affiliates’ on the Company’s balance sheets and are accounted for under the equity method. Such investments primarily include the Company’s investment in Coface SA (“Coface”), Greysbridge and Premia. Investments in Coface and Premia are generally recorded on a three month lag, while the Company’s investment in Greysbridge is not recorded on a lag.
In 2021, the Company completed the share purchase agreement with Natixis to purchase 29.5% of the common equity of Coface, a France-based leader in the global trade credit insurance market. The consideration paid was €9.95 per share, or an aggregate €453 million (approximately $546 million) including related fees. Income (loss) from operating affiliates reflected a one-time gain of $74.5 million realized from the acquisition. As a result of equity method accounting rules, approximately $36 million of additional gain was deferred and will generally be recognized over the next five years. As of December 31, 2021, the Company owned approximately 29.86% of the issued shares of Coface,
or 30.10% excluding treasury shares, with a carrying value of $630.5 million.
In July 2021, the Company announced the completion of the previously disclosed acquisition of Somers by Greysbridge for a cash purchase price of $35.00 per common share. Effective July 1, 2021, Somers is wholly owned by Greysbridge, and Greysbridge is owned 40% by the Company, 30% by certain investment funds managed by Kelso and 30% by certain investment funds managed by Warburg. At December 31, 2021 the Company’s carrying value in Greysbridge was $375.7 million, which reflected the Company’s aggregate purchase price of $278.9 million along with income (loss) from operating affiliates, which included a
one-time gain of $95.7 million recognized from the acquisition. In addition, the ‘net realized gains (losses)’ line on the Company’s consolidated statements of income included a $33.1 million loss as a result of deconsolidation of Somers in the Company’s financial statements following the close of the transaction. See note 12.

The Company recorded income from operating affiliates of $264.7 million for 2021, compared to income of $16.8 million for 2020 and $2.2 million for 2019. The income from operating affiliates for the 2021 period, primarily related to the Company’s recent investments in Coface and Greysbridge.

Allowance for Expected Credit Losses
The following table provides a roll forward of the allowance for expected credit losses of the Company’s securities classified as available for sale:
Year Ended December 31, 2021Structured Securities (1)Municipal
Bonds		Corporate
Bonds		Total
Balance at beginning of period$1,490 $11 $896 $2,397 
Additions for current-period provision for expected credit losses602 — 2,858 3,460 
Additions (reductions) for previously recognized expected credit losses(847)(9)(320)(1,176)
Reductions due to disposals (3)(443)— (1,355)(1,798)
Balance at end of period$802 $2 $2,079 $2,883 
Year Ended December 31, 2020
Balance at beginning of period$— $— $— $— 
Cumulative effect of accounting change (2)517 — 117 634 
Additions for current-period provision for expected credit losses2,942 67 7,644 10,653 
Additions (reductions) for previously recognized expected credit losses (1,398)6 (5,638)(7,030)
Reductions due to disposals(571)(62)(1,227)(1,860)
Balance at end of period$1,490 $11 $896 $2,397 
(1)    Includes asset backed securities, mortgage backed securities and commercial mortgage backed securities.
(2)    Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)”.
(3)    Reduction for the 2021 periods primarily related to the Company’s deconsolidation of Somers.
Restricted Assets
The Company is required to maintain assets on deposit, which primarily consist of fixed maturities, with various regulatory authorities to support its underwriting operations. The Company’s subsidiaries maintain assets in trust accounts as collateral for transactions with affiliated companies and also have investments in segregated portfolios primarily to provide collateral or guarantees for letters of credit to third parties
The following table details the value of the Company’s restricted assets:
December 31,
20212020
Assets used for collateral or guarantees:
Affiliated transactions$4,223,955 $4,643,334 
Third party agreements2,721,160 3,083,324 
Deposits with U.S. regulatory authorities798,100 827,552 
Deposits with non-U.S. regulatory authorities506,517 179,099 
Total restricted assets (1)$8,249,732 $8,733,309 
(1) 2020 balances included $1.036 billion related to Somers. See note 12.
Reconciliation of Cash and Restricted Cash
The following table details reconciliation of cash and restricted cash within the Consolidated Balance Sheets:
December 31,
202120202019
Cash$858,668 $906,448 $726,230 
Restricted cash (included in ‘other assets’)456,103 384,096 177,468 
Cash and restricted cash$1,314,771 $1,290,544 $903,698