v3.25.4
DERIVATIVE INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Derivative Instruments [Abstract]  
Schedule of Location on Consolidated Balance Sheets and Fair Value of Principal Derivative Instruments
The tables below show the gross and net amounts of recognized derivative assets and liabilities at fair value for the Company’s derivative instruments:
Derivative Assets
At December 31, 2025
Gross Amounts Recognized
Gross Amounts Offset in the Balance Sheet
 Net Amounts Presented in the Balance Sheet (1)
Collateral Received
Net Amount
Derivative instruments not designated as hedges
Interest rate futures
$7,400 $— $7,400 $— $7,400 
Interest rate swaps
37 — 37 — 37 
Foreign currency forward contracts (2)
10,592 — 10,592 — 10,592 
Foreign currency forward contracts (3)
8 — 8 — 8 
Credit default swaps
310 — 310 — 310 
Total$18,347 $— $18,347 $— $18,347 
Derivative Liabilities
At December 31, 2025
Gross Amounts Recognized
Gross Amounts Offset in the Balance Sheet
 Net Amounts Presented in the Balance Sheet
Collateral Pledged
Net Amount
Derivative instruments not designated as hedges
Interest rate futures
$8,236 $— $8,236 $7,940 $296 
Foreign currency forward contracts (2)
5,519 — 5,519 5,425 94 
Foreign currency forward contracts (3)
3,097 — 3,097 1,201 1,896 
Credit default swaps
627 — 627 627 — 
Equity futures
9,861 — 9,861 9,861 — 
Commodity futures
12,380 — 12,380 — 12,380 
Total derivative instruments not designated as hedges
39,720 — 39,720 25,054 14,666 
Derivative instruments designated as hedges
Foreign currency forward contracts (4)
1,480 — 1,480 — 1,480 
Total$41,200 $— $41,200 $25,054 $16,146 
(1)Net derivative assets and liabilities are included within other assets and other liabilities, respectively, in the consolidated balance sheets.
(2)Contracts used to manage foreign currency risks in underwriting and non-investment operations.
(3)Contracts used to manage foreign currency risks in investment operations.
(4)Contracts designated as hedges of net investments in a foreign operation.
Derivative Assets
At December 31, 2024
Gross Amounts Recognized
Gross Amounts Offset in the Balance Sheet
 Net Amounts Presented in the Balance Sheet (1)
Collateral Received
Net Amount
Derivative instruments not designated as hedges
Interest rate futures
$4,198 $— $4,198 $— $4,198 
Foreign currency forward contracts (2)
16,275 — 16,275 — 16,275 
Foreign currency forward contracts (3)
4,085 — 4,085 — 4,085 
Commodity futures5,933 — 5,933 — 5,933 
Commodity options483 — 483 — 483 
Total derivative instruments not designated as hedges30,974 — 30,974 — 30,974 
Derivative instruments designated as hedges
Foreign currency forward contracts (4)
3,564 — 3,564 — 3,564 
Total
$34,538 $— $34,538 $— $34,538 
Derivative Liabilities
At December 31, 2024
Gross Amounts Recognized
Gross Amounts Offset in the Balance Sheet
 Net Amounts Presented in the Balance Sheet (1)
Collateral Received
Net Amount
Derivative instruments not designated as hedges
Interest rate futures
$6,178 $— $6,178 $5,408 $770 
Foreign currency forward contracts (2)
53,160 — 53,160 5,632 47,528 
Foreign currency forward contracts (3)
13,171 — 13,171 — 13,171 
Credit default swaps
1,675 — 1,675 1,675 — 
Equity futures1,694 — 1,694 — 1,694 
Total
$75,878 $— $75,878 $12,715 $63,163 
(1)Net derivative assets and liabilities are included within other assets and other liabilities, respectively, in the consolidated balance sheets.
(2)Contracts used to manage foreign currency risks in underwriting and non-investment operations.
(3)Contracts used to manage foreign currency risks in investment operations.
(4)Contracts designated as hedges of net investments in a foreign operation.
The table below shows the notional exposure by underlying risk of the Company’s recognized derivative contracts:
At December 31,20252024
Notional Long Exposure
Notional Short Exposure
Notional Long Exposure
Notional Short Exposure
Derivative instruments not designated as hedges
Interest rate risk
Interest rate futures
$7,575,688 $4,179,575 $7,144,308 $3,061,769 
Interest rate swaps (1)
— 29,600 — — 
Foreign currency risk
Foreign currency forward contracts - underwriting and non-investment operations
1,102,740 412,005 1,035,036 508,847 
Foreign currency forward contracts - investment operations
159,267 186,854 344,967 106,970 
Credit risk
Credit default swaps (2)
39,500 847,864 — 1,350,509 
Equity price risk
Equity futures1,729,226 — 437,168 — 
Commodity price risk
Commodity futures
1,189,027 — 684,283 — 
Commodity options (3)
— — 483 — 
Derivative instruments designated as hedges
Foreign currency risk
Foreign currency forward contracts - net investments in foreign operations
— 64,142 — 60,969 
(1)Notional long exposure amounts are positions receiving a fixed rate and notional short exposure amounts are positions paying a fixed rate.
(2)Notional long exposure amounts are positions which assume credit risk and notional short exposure amounts are positions to protect the investment portfolio against increasing credit risk.
(3)Notional exposure for commodity options are based on the fair value of the underlying commodities as if the options were exercised at the reporting date.
Schedule of Gain (Loss) Recognized in Consolidated Statements of Operations Related to Principal Derivative Instruments
The location and amount of the gain (loss) recognized in the Company’s consolidated statements of operations and consolidated statements of changes in shareholders’ equity related to its derivative instruments are shown in the following table:
Amount of Gain (Loss) Recognized on
Derivatives
Year ended December 31,202520242023
Derivative instruments not designated as hedges
Net realized and unrealized gains (losses) on investments (1)
Interest rate futures$67,183 $(81,400)$3,877 
Credit default swaps17,031 (54,757)(70,924)
Interest rate swaps(71)— — 
Total fixed maturity investment-related derivatives
84,143 (136,157)(67,047)
Equity futures138,896 3,379 (1,928)
Warrants— (1,046)— 
Total equity investment-related derivatives
138,896 2,333 (1,928)
Commodity futures418,097 81,062 5,256 
Commodity options(2,602)(4,517)(4,553)
Total commodity-related derivatives
415,495 76,545 703 
Total net realized and unrealized gains (losses) on investments (1)
638,534 (57,279)(68,272)
Net foreign exchange gains (losses)
Foreign currency forward contracts (2)
37,795 (27,918)(877)
Foreign currency forward contracts (3)
(14,822)(32,687)(11,761)
Total net foreign exchange gains (losses)22,973 (60,605)(12,638)
Total derivative instruments not designated as hedges
661,507 (117,884)(80,910)
Derivative instruments designated as hedges
Accumulated other comprehensive income (loss)
Foreign currency forward contracts (4)
(4,385)6,194 205 
Total$657,122 $(111,690)$(80,705)
(1)Amount of gain (loss) is included in net realized and unrealized gains (losses) on investment-related derivatives. See “Note 5. Investments” for additional information.
(2)Contracts used to manage foreign currency risks in underwriting and non-investment operations.
(3)Contracts used to manage foreign currency risks in investment operations.
(4)Contracts designated as hedges of net investments in a foreign operation. Amount of gain (loss) is included in foreign currency translation adjustments, net of tax.