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Investment Information
 9 Months Ended
Sep. 30, 2024
Disclosure Investment Information [Abstract]  
Investment
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
Gains		Gross
Unrealized
Losses		Allowance for Expected Credit Losses Cost or
Amortized
Cost
September 30, 2024
Fixed maturities:
Corporate bonds$13,996 $339 $(294)$(12)$13,963 
U.S. government and government agencies5,863 53 (48)— 5,858 
Asset backed securities2,989 27 (27)(5)2,994 
Non-U.S. government securities2,853 75 (84)(1)2,863 
Commercial mortgage backed securities1,146 8 (17)(1)1,156 
Residential mortgage backed securities1,313 14 (50)— 1,349 
Municipal bonds274 2 (11)— 283 
Total28,434 518 (531)(19)28,466 
Short-term investments3,341 6 (2)— 3,337 
Total$31,775 $524 $(533)$(19)$31,803 
December 31, 2023
Fixed maturities:
Corporate bonds$10,855 $157 $(464)$(20)$11,182 
U.S. government and government agencies5,814 63 (86)— 5,837 
Asset backed securities2,250 11 (55)(5)2,299 
Non-U.S. government securities2,062 33 (100)(1)2,130 
Commercial mortgage backed securities1,213 3 (34)(2)1,246 
Residential mortgage backed securities1,103 7 (66)— 1,162 
Municipal bonds256 1 (20)— 275 
Total23,553 275 (825)(28)24,131 
Short-term investments2,063 1 (2)— 2,064 
Total$25,616 $276 $(827)$(28)$26,195 
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
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses
September 30, 2024
Fixed maturities:
Corporate bonds$1,903 $(76)$3,316 $(218)$5,219 $(294)
U.S. government and government agencies1,815 (10)571 (38)2,386 (48)
Non-U.S. government securities614 (8)743 (76)1,357 (84)
Residential mortgage backed securities213 (2)485 (48)698 (50)
Asset backed securities199 (3)442 (24)641 (27)
Commercial mortgage backed securities176 (1)644 (16)820 (17)
Municipal bonds1 — 185 (11)186 (11)
Total4,921 (100)6,386 (431)11,307 (531)
Short-term investments362 (2)— — 362 (2)
Total$5,283 $(102)$6,386 $(431)$11,669 $(533)
December 31, 2023
Fixed maturities:
Corporate bonds$1,559 $(45)$4,959 $(419)$6,518 $(464)
U.S. government and government agencies1,066 (10)941 (76)2,007 (86)
Non-U.S. government securities365 (4)897 (96)1,262 (100)
Residential mortgage backed securities221 (3)522 (63)743 (66)
Asset backed securities234 (1)1,112 (54)1,346 (55)
Commercial mortgage backed securities100 (1)909 (33)1,009 (34)
Municipal bonds20 (1)215 (19)235 (20)
Total3,565 (65)9,555 (760)13,120 (825)
Short-term investments302 (2)— — 302 (2)
Total$3,867 $(67)$9,555 $(760)$13,422 $(827)
At September 30, 2024, on a lot level basis, approximately 6,710 security lots out of a total of approximately 19,840 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 $4 million. At December 31, 2023, on a lot level basis, approximately 7,100 security lots out of a total of approximately 15,720 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 $6 million.
The contractual maturities of the Company’s fixed maturities 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.
September 30, 2024December 31, 2023
MaturityEstimated
Fair
Value		Amortized
Cost		Estimated
Fair
Value		Amortized
Cost
Due in one year or less$430 $445 $480 $499 
Due after one year through five years15,533 15,457 12,924 13,101 
Due after five years through 10 years6,572 6,595 5,249 5,450 
Due after 10 years451 470 334 374 
 22,986 22,967 18,987 19,424 
Residential mortgage backed securities1,313 1,349 1,103 1,162 
Commercial mortgage backed securities1,146 1,156 1,213 1,246 
Asset backed securities2,989 2,994 2,250 2,299 
Total$28,434 $28,466 $23,553 $24,131 
Equity Securities, at Fair Value
At September 30, 2024, the Company held $1.6 billion of equity securities, at fair value, compared to $1.2 billion at December 31, 2023. Such holdings include publicly traded common stocks, primarily in the consumer cyclical and non-cyclical, technology, communication and financial sectors, and exchange-traded funds in fixed income, equity and other sectors.
Other Investments, at Fair Value
The following table summarizes the Company’s other investments:
September 30,
2024		December 31,
2023
Other investments$2,096 $1,777 
Fixed maturities 1,097 683 
Short term investments61 21 
Equity securities7 7 
Total$3,261 $2,488 
The following table summarizes the Company’s other investments, as detailed in the previous table, by strategy:
September 30,
2024		December 31,
2023
Investment grade fixed income$957 $754 
Term loan investments499 272 
Lending299 427 
Private equity212 182 
Credit related funds111 124 
Energy18 18 
Total$2,096 $1,777 
Net Investment Income
The components of net investment income were derived from the following sources:
September 30,
 20242023
Three Months Ended
Fixed maturities$340 $243 
Short term investments38 19 
Equity securities9 5 
Other (1)35 22 
Gross investment income422 289 
Investment expenses(23)(20)
Net investment income$399 $269 
Nine Months Ended
Fixed maturities$926 $645 
Short term investments102 48 
Equity securities27 15 
Other (1)103 60 
Gross investment income1,158 768 
Investment expenses(68)(58)
Net investment income$1,090 $710 
(1)    Amounts include dividends and other distributions on investment funds, term loan investments, funds held balances, cash balances and other items.

Net Realized Gains (Losses)
Net realized gains (losses), which include changes in the allowance for credit losses on financial assets and net impairment losses recognized in earnings were as follows:
September 30,
 20242023
Three Months Ended
Available for sale securities:  
Gross gains on investment sales$104 $12 
Gross losses on investment sales(50)(116)
Change in fair value of assets and liabilities accounted for using the fair value option:
Fixed maturities25 (16)
Other investments(120)3 
Equity securities, at fair value:
Net realized gains (losses) on sales during the period15 14 
Net unrealized gains (losses) on equity securities still held at reporting date58 (46)
Allowance for credit losses:
Investments related6 — 
Underwriting related2 (1)
Derivative instruments (1)125 (102)
Other 4 4 
Net realized gains (losses)$169 $(248)
Nine Months Ended
Available for sale securities:
Gross gains on investment sales$167 $51 
Gross losses on investment sales(205)(396)
Change in fair value of assets and liabilities accounted for using the fair value option:
Fixed maturities23 (12)
Other investments(150)17 
Equity securities— 1 
Equity securities, at fair value:
Net realized gains (losses) on sales during the period31 50 
Net unrealized gains (losses) on equity securities still held at reporting date147 17 
Allowance for credit losses:
Investments related4 (23)
Underwriting related— (2)
Derivative instruments (1)116 (61)
Other (2)225 4 
Net realized gains (losses)$358 $(354)
(1)    See note 10 for information on the Company’s derivative instruments.
(2)    Amounts include benefits from the sale of Castel Underwriting Agencies Limited and the acquisition of RMIC.
Investments Accounted For Using the Equity Method
The following table summarizes the Company’s investments accounted for using the equity method, by strategy:
September 30,
2024		December 31,
2023
Private equity$1,737 $1,175 
Credit related funds1,366 1,258 
Real estate721 666 
Lending474 597 
Fixed income377 277 
Infrastructure323 320 
Equities177 178 
Energy69 95 
Total$5,244 $4,566 
Certain of the Company’s other investments 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 has determined that it is not required to consolidate these investments because it is not the primary beneficiary of 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 line item:
September 30,
2024		December 31,
2023
Investments accounted for using the equity method (1)$5,244 $4,566 
Investments accounted for using the fair value option (2)83 114 
Total$5,327 $4,680 
(1)    Aggregate unfunded commitments were $4.3 billion at September 30, 2024, compared with $3.4 billion at December 31, 2023.
(2)    Aggregate unfunded commitments were $21 million at September 30, 2024, compared to $32 million at December 31, 2023.
Equity in Net Income (Loss) of Investment Funds Accounted for Using the Equity Method
Income from investment funds accounted for using the equity method for the 2024 third quarter was $171 million, compared to $59 million for the 2023 third quarter and an income of $437 million for the nine months ended September 30, 2024, compared to income of $176 million for the nine months ended September 30, 2023. 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). Such investments are generally recorded on a one to three month lag based on the availability of reports from the investment funds.
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 Holdings Ltd., (“Greysbridge”) and Premia Holdings Ltd. Investments in Coface and Premia Holdings Ltd. are generally recorded on a three month lag, while the Company’s investment in Greysbridge is not recorded on a lag.
As of September 30, 2024, the Company owned approximately 29.9% of the issued shares of Coface, or 30% excluding treasury shares, with a carrying value of $596 million, compared to $570 million at December 31, 2023.
As of September 30, 2024, the Company owned 40% of Greysbridge with a carrying value of $521 million, compared to $430 million at December 31, 2023.
Income from operating affiliates for the 2024 third quarter was $36 million, compared to $54 million for the 2023 third quarter and income of $136 million for the nine months ended September 30, 2024, compared to income of $115 million for nine months ended September 30, 2023
See note 16 for information on Company’s transactions with related parties.

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:
Structured Securities (1)Corporate
Bonds		Non-U.S.
Government
Securities		Total
Three Months Ended September 30, 2024
Balance at beginning of period$10 $16 $1 $27 
Additions (reductions) for previously recognized expected credit losses (3)(3)— (6)
Reductions due to disposals(1)(1)— (2)
Balance at end of period$6 $12 $1 $19 
Three Months Ended September 30, 2023
Balance at beginning of period$8 $50 $3 $61 
Additions for current-period provision for expected credit losses2 4 — 6 
Additions (reductions) for previously recognized expected credit losses — (3)— (3)
Reductions due to disposals(2)(4)(1)(7)
Balance at end of period$8 $47 $2 $57 
Nine Months Ended September 30, 2024
Balance at beginning of year$7 $20 $1 $28 
Additions (reductions) for previously recognized expected credit losses— (4)— (4)
Reductions due to disposals(1)(4)— (5)
Balance at end of period$6 $12 $1 $19 
Nine Months Ended September 30, 2023
Balance at beginning of year$9 $30 $2 $41 
Additions for current-period provision for expected credit losses2 5 — 7 
Additions (reductions) for previously recognized expected credit losses(1)18 1 18 
Reductions due to disposals(2)(6)(1)(9)
Balance at end of period$8 $47 $2 $57 
(1)    Includes asset backed securities, residential mortgage backed securities and commercial mortgage backed securities.
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. See note 18, “Commitments and Contingencies,” of the notes to consolidated financial statements in the Company’s 2023 Form 10-K.
The following table details the value of the Company’s restricted assets:
September 30,
2024		December 31,
2023
Assets used for collateral or guarantees:  
Affiliated transactions$5,306 $4,854 
Third party agreements (1)5,679 2,869 
Deposits with U.S. regulatory authorities883 833 
Other (2)1,453 1,376 
Total restricted assets$13,321 $9,932 
(1)    2024 period includes amounts related to the MCE Acquisition.
(2)    Primarily includes Funds at Lloyds, deposits with non-U.S. regulatory authorities and other restricted assets.
Reconciliation of Cash and Restricted Cash
The following table details reconciliation of cash and restricted cash within the Consolidated Balance Sheets:
September 30,
2024		December 31,
2023
Cash$1,025 $917 
Restricted cash (included in ‘other assets’)687 581 
Cash and restricted cash$1,712 $1,498