v3.25.2
Investments
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments
6. Investments
The Company’s invested assets consist of investment securities and other long-term investments held for general investment purposes. The portfolio of investment securities includes debt securities available for sale, debt securities held for trading, short-term investments, and other long-term investments. Realized investment gains and losses on debt securities are reported in pre-tax revenues. Unrealized investment gains and losses on debt securities are reported based on classification. Trading securities flow through pre-tax revenues, whereas securities classified as available for sale (“AFS”) flow through other comprehensive income.
For debt securities classified as AFS for which a decline in the fair value between the amortized cost is due to credit-related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding impact to the consolidated statements of income. The allowance is limited to the difference between amortized cost and fair value. A credit loss impairment assessment is performed on securities using both quantitative and qualitative factors. Qualitative factors include significant declines in fair value below amortized cost. Additionally, a qualitative assessment is also performed over debt securities to evaluate potential credit losses. Examples of qualitative indicators include issuer credit downgrades as well as changes to credit spreads.
Declines in fair value related to a debt security that do not relate to a credit loss are recorded as a component of accumulated other comprehensive income.
Debt securities
The following tables provide the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency gains (losses), and fair value of the Company's debt securities as of June 30, 2025 and December 31, 2024:
June 30, 2025
Cost or
amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Net foreign
currency
gains (losses)		Fair value
Debt securities, available for sale
Asset-backed securities$980.9 $7.0 $(3.5)$— $984.4 
Residential mortgage-backed securities914.3 13.0 (10.4)— 916.9 
Commercial mortgage-backed securities175.2 2.8 (0.4)— 177.6 
Corporate debt securities1,683.7 23.9 (4.3)(2.0)1,701.3 
U.S. government and government agency927.2 9.8 (0.8)— 936.2 
Non-U.S. government and government agency18.7 0.2 — 0.6 19.5 
Total debt securities, available for sale (1)
$4,700.0 $56.7 $(19.4)$(1.4)$4,735.9 
Debt securities, trading
Asset-backed securities$10.4 $— $(0.7)$— $9.7 
Residential mortgage-backed securities53.4 0.1 (6.5)— 47.0 
Commercial mortgage-backed securities41.7 0.4 (3.5)— 38.6 
Corporate debt securities15.3 — (11.8)— 3.5 
U.S. government and government agency 4.3 — (0.2)— 4.1 
Total debt securities, trading$125.1 $0.5 $(22.7)$— $102.9 
December 31, 2024
Cost or
amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Net foreign
currency
losses		Fair value
Debt securities, available for sale
Asset-backed securities$1,142.7 $11.2 $(4.2)$— $1,149.7 
Residential mortgage-backed securities985.8 8.3 (20.3)— 973.8 
Commercial mortgage-backed securities224.2 1.4 (1.1)— 224.5 
Corporate debt securities1,905.2 9.1 (10.4)(4.0)1,899.9 
U.S. government and government agency 861.0 2.2 (4.2)— 859.0 
Non-U.S. government and government agency24.9 0.1 — (0.9)24.1 
Total debt securities, available for sale (1)
$5,143.8 $32.3 $(40.2)$(4.9)$5,131.0 
Debt securities, trading
Asset-backed securities$54.7 $— $(1.6)$— $53.1 
Residential mortgage-backed securities56.4 — (7.7)— 48.7 
Commercial mortgage-backed securities56.8 0.5 (5.5)— 51.8 
Corporate debt securities15.1 0.1 (10.6)— 4.6 
U.S. government and government agency 4.3 — (0.3)— 4.0 
Total debt securities, trading$187.3 $0.6 $(25.7)$— $162.2 
(1)As of June 30, 2025, the Company did not record an allowance for credit losses on the AFS portfolio (December 31, 2024 - $1.1 million).
As of June 30, 2025, 373 unique debt securities classified as AFS were in a gross unrealized loss position for greater than 12 months (December 31, 2024 - 518 unique debt securities). Refer to the tables below for the Company’s breakdown of AFS debt securities in a gross unrealized loss position as of June 30, 2025 and December 31, 2024.
June 30, 2025
12 Months or LessGreater than 12 MonthsTotal
Fair valueGross unrealized lossesFair valueGross unrealized lossesFair valueGross unrealized losses
Debt securities, available for sale
Asset-backed securities$241.0 $(2.1)$6.5 $(1.4)$247.5 $(3.5)
Residential mortgage-backed securities283.3 (4.4)125.6 (5.9)408.9 (10.3)
Commercial mortgage-backed securities22.1 (0.1)2.7 (0.3)24.8 (0.4)
Corporate debt securities223.5 (4.0)45.8 (0.4)269.3 (4.4)
U.S. government and government agency146.5 (0.4)38.3 (0.4)184.8 (0.8)
Non-U.S. government and government agency7.1 — — — 7.1 — 
Total debt securities, available for sale
$923.5 $(11.0)$218.9 $(8.4)$1,142.4 $(19.4)
December 31, 2024
12 Months or LessGreater than 12 MonthsTotal
Fair valueGross unrealized lossesFair valueGross unrealized lossesFair valueGross unrealized losses
Debt securities, available for sale
Asset-backed securities$180.4 $(1.8)$23.8 $(2.4)$204.2 $(4.2)
Residential mortgage-backed securities437.4 (7.9)223.9 (12.4)661.3 (20.3)
Commercial mortgage-backed securities67.4 (0.7)7.5 (0.4)74.9 (1.1)
Corporate debt securities738.5 (10.0)46.8 (0.4)785.3 (10.4)
U.S. government and government agency247.2 (3.0)62.7 (1.2)309.9 (4.2)
Total debt securities, available for sale
$1,670.9 $(23.4)$364.7 $(16.8)$2,035.6 $(40.2)
The weighted average duration of the Company's debt securities, net of short positions in U.S. treasuries, as of June 30, 2025 was approximately 3.0 years, including short-term investments (December 31, 2024 - approximately 3.1 years).
The following table provides the cost or amortized cost and fair value of the Company's debt securities bifurcated into debt securities held for trading and AFS as of June 30, 2025 and December 31, 2024 by contractual maturity. Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties.
June 30, 2025December 31, 2024
Debt securities, AFSDebt securities, tradingDebt securities, AFSDebt securities, trading
Cost or
amortized cost		Fair valueCost or
amortized cost		Fair valueCost or
amortized cost		Fair valueCost or
amortized cost		Fair value
Due in one year or less$452.2 $452.2 $1.5 $1.4 $449.3 $448.2 $0.5 $0.5 
Due after one year through five years1,598.4 1,620.6 5.4 5.1 1,648.0 1,646.7 6.7 6.3 
Due after five years through ten years463.7 471.7 — — 589.5 586.2 0.3 0.3 
Due after ten years115.4 112.5 12.7 1.3 104.3 101.9 11.9 1.6 
Mortgage-backed and asset-backed securities2,070.3 2,078.9 105.5 95.1 2,352.7 2,348.0 167.9 153.5 
Total debt securities$4,700.0 $4,735.9 $125.1 $102.9 $5,143.8 $5,131.0 $187.3 $162.2 
The following table summarizes the ratings and fair value of debt securities held in the Company's investment portfolio as of June 30, 2025 and December 31, 2024. Credit ratings are assigned based on ratings provided by nationally recognized statistical rating organizations.
June 30, 2025December 31, 2024
Debt securities, AFSDebt securities, tradingDebt securities, AFSDebt securities, trading
AAA$665.3 $29.0 $808.5 $74.0 
AA2,144.7 32.2 2,227.9 54.0 
A1,032.5 15.3 1,375.0 6.9 
BBB726.6 24.0 659.2 24.2 
Other166.8 2.4 60.4 3.1 
Total debt securities$4,735.9 $102.9 $5,131.0 $162.2 
As of June 30, 2025, the above totals included $112.9 million of sub-prime securities. Of this total, $80.0 million were rated AAA, $13.8 million were rated AA, $15.4 million were rated BBB and $3.7 million are unrated. As of December 31, 2024, the above totals included $161.2 million of sub-prime securities. Of this total, $94.9 million were rated AAA, $31.8 million were rated AA, $8.2 million were rated A, $24.9 million were rated BBB and $1.4 million were unrated.
Other long-term investments
The cost or amortized cost, gross unrealized investment gains and losses, net foreign currency gains, and fair values of the Company’s other long-term investments as of June 30, 2025 and December 31, 2024 were as follows:
Cost or
amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Net foreign
currency
gains		Fair value
June 30, 2025
Other long-term investments$436.2 $33.4 $(151.4)$1.9 $320.1 
December 31, 2024
Other long-term investments$438.2 $37.5 $(162.7)$3.5 $316.5 
The Company holds investments in hedge funds and private equity funds, which are included in other long-term investments. The following table presents the carrying value of other long-term investments as of June 30, 2025 and December 31, 2024:
June 30,
2025		December 31, 2024
Hedge funds and private equity funds (1) (2)
$191.0 $186.0 
Strategic investments (2)
101.5 105.0 
Other investments (2)
27.6 25.5 
Total other long-term investments$320.1 $316.5 
(1)Includes $188.5 million of investments carried at NAV (December 31, 2024 - $182.8 million) and no investments classified as Level 3 (December 31, 2024 - no investments classified as Level 3) within the fair value hierarchy.
(2)As of June 30, 2025, the Company had $42.1 million of unfunded commitments relating to these investments (December 31, 2024 - $36.1 million).
The Company’s other long-term investments may be accounted for under either the equity method (“equity method investments”) or the fair value option (“equity method eligible unconsolidated entities”). The following table presents the components of other long-term investments as of June 30, 2025 and December 31, 2024:
June 30,
2025		December 31, 2024
Equity method eligible unconsolidated entities, using the fair value option$66.3 $66.6 
Equity method investments29.8 26.1 
Other unconsolidated investments, at fair value (1)
185.0 185.2 
Other unconsolidated investments, at cost (2)
39.0 38.6 
Total other long-term investments$320.1 $316.5 
(1)Includes other long-term investments that are not equity method eligible and are measured at fair value.
(2)The Company has elected to apply the cost adjusted for market observable events impairment measurement alternative to investments that do not meet the criteria to be accounted for under the equity method, in which the investment is measured at cost and remeasured to fair value when impaired or upon observable transaction prices.