| Financial Assets Measured on Recurring Basis |
The following tables present the level within the fair value hierarchy at which the Company’s financial assets and liabilities are measured on a recurring basis as at December 31, 2025 and December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at December 31, 2025 | | | | Level 1 | | Level 2 | | Level 3 | | NAV as Practical Expedient | | Total | | | | | | | | | | | | | | | ($ in millions) | | Fixed income securities, available for sale | | | | | | | | | | | | U.S. government | | $ | 1,222.0 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,222.0 | | | U.S. agency | | — | | | 2.0 | | | — | | | — | | | 2.0 | | | Municipal | | — | | | 92.3 | | | — | | | — | | | 92.3 | | | Corporate | | — | | | 1,997.6 | | | — | | | — | | | 1,997.6 | | | Non-U.S. government-backed corporate | | — | | | 66.3 | | | — | | | — | | | 66.3 | | | Non-U.S. government | | 296.3 | | | 105.3 | | | — | | | — | | | 401.6 | | | Asset-backed | | — | | | 501.0 | | | — | | | — | | | 501.0 | | Agency commercial mortgage-backed | | — | | | 9.5 | | | — | | | — | | | 9.5 | | Agency residential mortgage-backed | | — | | | 721.1 | | | — | | | — | | | 721.1 | | | Total fixed income securities, available for sale | | 1,518.3 | | | 3,495.1 | | | — | | | — | | | 5,013.4 | | | Short-term investments, available for sale | | 42.5 | | | 2.9 | | | — | | | — | | | 45.4 | | | Privately-held investments, available for sale | | — | | | — | | | 50.5 | | | — | | | 50.5 | | | Fixed income securities, trading | | | | | | | | | | | | U.S. government | | 263.9 | | | — | | | — | | | — | | | 263.9 | | | Municipal | | — | | | 4.7 | | | — | | | — | | | 4.7 | | | Corporate | | — | | | 141.2 | | | — | | | — | | | 141.2 | | | | | | | | | | | | | | High yield loans | | — | | | 100.0 | | | — | | | — | | | 100.0 | | | Non-U.S. government | | 25.1 | | | 12.5 | | | — | | | — | | | 37.6 | | | Asset-backed | | — | | | 460.7 | | | — | | | — | | | 460.7 | | | | | | | | | | | | | | Agency mortgage-backed | | — | | | 32.1 | | | — | | | — | | | 32.1 | | | Total fixed income securities, trading | | 289.0 | | | 751.2 | | | — | | | — | | | 1,040.2 | | | | | | | | | | | | | | | | | | | | | | | | | Privately-held investments, trading | | — | | | — | | | 121.8 | | | — | | | 121.8 | | | Equity securities | | 8.1 | | | — | | | — | | | — | | | 8.1 | | | Other investments | | — | | | — | | | — | | | 279.6 | | | 279.6 | | | | | | | | | | | | | | Other financial assets and liabilities | | | | | | | | | | | | Derivative assets — foreign exchange contracts | | — | | | 5.0 | | | — | | | — | | | 5.0 | | | Derivative liabilities — foreign exchange contracts | | — | | | (12.1) | | | — | | | — | | | (12.1) | | | | | | | | | | | | | | Total | | $ | 1,857.9 | | | $ | 4,242.1 | | | $ | 172.3 | | | 279.6 | | | $ | 6,551.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2024 | | | | Level 1 | | Level 2 | | Level 3 | | NAV as Practical Expedient | | Total | | | | | | | | | | | | | | | ($ in millions) | | Fixed income securities, available for sale | | | | | | | | | | | | U.S. government | | $ | 1,480.6 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,480.6 | | | U.S. agency | | — | | | 7.2 | | | — | | | — | | | 7.2 | | | Municipal | | — | | | 82.3 | | | — | | | — | | | 82.3 | | | Corporate | | — | | | 1,986.4 | | | — | | | — | | | 1,986.4 | | | Non-U.S. government-backed corporate | | — | | | 131.3 | | | — | | | — | | | 131.3 | | | Non-U.S. government | | 195.1 | | | 51.7 | | | — | | | — | | | 246.8 | | | Asset-backed | | — | | | 234.5 | | | — | | | — | | | 234.5 | | | Agency commercial mortgage-backed | | — | | | 4.4 | | | — | | | — | | | 4.4 | | | Agency residential mortgage-backed | | — | | | 518.7 | | | — | | | — | | | 518.7 | | | Total fixed income securities, available for sale | | 1,675.7 | | | 3,016.5 | | | — | | | — | | | 4,692.2 | | | Short-term investments, available for sale | | 260.2 | | | 1.7 | | | — | | | — | | | 261.9 | | | Privately-held investments, available for sale | | — | | | — | | | 24.2 | | | — | | | 24.2 | | | Fixed income securities, trading | | | | | | | | | | | | U.S. government | | 261.3 | | | — | | | — | | | — | | | 261.3 | | | Municipal | | — | | | 1.6 | | | — | | | — | | | 1.6 | | | Corporate | | — | | | 151.1 | | | — | | | — | | | 151.1 | | | Non-U.S. government-backed corporate | | — | | | 2.8 | | | — | | | — | | | 2.8 | | | High yield loans | | — | | | 102.4 | | | — | | | — | | | 102.4 | | | Non-U.S. government | | 9.6 | | | 14.8 | | | — | | | — | | | 24.4 | | | Asset-backed | | — | | | 625.2 | | | — | | | — | | | 625.2 | | | Agency mortgage-backed | | — | | | 31.1 | | | — | | | — | | | 31.1 | | | Total fixed income securities, trading | | 270.9 | | | 929.0 | | | — | | | — | | | 1,199.9 | | | Short-term investments, trading | | 1.0 | | | — | | | — | | | — | | | 1.0 | | | Catastrophe bonds, trading | | — | | | 1.0 | | | — | | | — | | | 1.0 | | | Privately-held investments, trading | | — | | | — | | | 286.8 | | | — | | | 286.8 | | | Other investments | | — | | | — | | | — | | | 267.2 | | | 267.2 | | | | | | | | | | | | | | Other financial assets and liabilities | | | | | | | | | | | | Derivative assets — foreign exchange contracts | | — | | | 17.0 | | | — | | | — | | | 17.0 | | | Derivative liabilities — foreign exchange contracts | | — | | | (45.9) | | | — | | | — | | | (45.9) | | Derivative liabilities — loss portfolio transfer (1) | | — | | | — | | | (3.6) | | | — | | | (3.6) | | | Total | | $ | 2,207.8 | | | $ | 3,919.3 | | | $ | 307.4 | | | $ | 267.2 | | | $ | 6,701.7 | |
______________ (1) The loss portfolio transfer contract included a funds withheld arrangement that provided variable interest expense based on Aspen’s investment performance. As a result, the funds withheld arrangement was considered an embedded derivative and accounted for as an option-based derivative.
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| Fair Value, Measured on a Recurring Basis, Gain (Loss) Included in Earnings |
The following table presents a reconciliation of the beginning and ending balances for all assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the twelve months ended December 31, 2025 and December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Twelve Months Ended December 31, 2025 | | Balance at beginning of year | | Purchases and issuances | | Transfers in | | Transfers (out) | | Reclassifications | | Settlements and sales | | Increase/(decrease) in fair value included in net income (1) / OCI (2) | | Balance at end of year | | Change in unrealized gains (losses) relating to assets held at end of year (1) (2) | | Assets | | | | | | | | | | | | | | | | | | | Privately-held investments, available for sale | | | | | | | | | | | | | | | | | | | Asset-backed securities | | $ | 24.2 | | | $ | 14.7 | | | $ | — | | | $ | (10.6) | | | $ | — | | | $ | (14.8) | | | $ | 2.8 | | | $ | 16.3 | | | $ | 0.6 | | | Global corporate securities | | — | | | 33.8 | | | — | | | — | | | — | | | — | | | 0.4 | | | 34.2 | | | 0.4 | | Privately-held investments, trading | | | | | | | | | | | | | | | | | | | | Commercial mortgage loans | | $ | 79.7 | | | $ | 0.1 | | | $ | — | | | $ | — | | | $ | — | | | $ | (56.3) | | | $ | 1.9 | | | $ | 25.4 | | | $ | (0.3) | | Middle market loans and other private debt | | 61.0 | | | 21.7 | | | — | | | — | | | — | | | (49.4) | | | (4.4) | | | 28.9 | | | (2.7) | | | Asset-backed securities | | 127.6 | | | 56.1 | | | — | | | (2.0) | | | — | | | (116.9) | | | 2.7 | | | 67.5 | | | 3.4 | | | Global corporate securities | | 18.5 | | | — | | | — | | | — | | | — | | | (18.6) | | | 0.1 | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | Total Level 3 assets | | $ | 311.0 | | | $ | 126.4 | | | $ | — | | | $ | (12.6) | | | $ | — | | | $ | (256.0) | | | $ | 3.5 | | | $ | 172.3 | | | $ | 1.4 | | | | | | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | | Derivative liabilities — loss portfolio transfer | | $ | (3.6) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 0.7 | | | $ | 2.9 | | | $ | — | | | $ | — | | | Total Level 3 liabilities | | $ | (3.6) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 0.7 | | | $ | 2.9 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Twelve Months Ended December 31, 2024 | | | | | | | | | | | | | | | | | | | | Assets | | | | | | | | | | | | | | | | | | | Privately-held investments, available for sale | | | | | | | | | | | | | | | | | | | Asset-backed securities | | $ | 14.9 | | | $ | 10.0 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (0.7) | | | $ | 24.2 | | | $ | 0.2 | | Privately-held investments, trading | | | | | | | | | | | | | | | | | | | | Commercial mortgage loans | | $ | 274.9 | | | $ | 0.5 | | | $ | — | | | $ | — | | | $ | — | | | $ | (184.4) | | | $ | (11.3) | | | $ | 79.7 | | | $ | — | | Middle market loans and other private debt | | 84.8 | | | 0.4 | | | — | | | — | | | 10.9 | | | (35.5) | | | 0.4 | | | 61.0 | | | — | | | Asset-backed securities | | 82.9 | | | 56.1 | | | — | | | — | | | — | | | (12.4) | | | 1.0 | | | 127.6 | | | 1.1 | | | Global corporate securities | | 14.4 | | | 4.4 | | | — | | | — | | | — | | | (0.3) | | | — | | | 18.5 | | | — | | | | | | | | | | | | | | | | | | | | | | Short-term investments | | 18.0 | | — | | | — | | | — | | | (10.9) | | | (7.1) | | | — | | | — | | | — | | | Total Level 3 assets | | 489.9 | | $ | 71.4 | | | $ | — | | | $ | — | | | $ | — | | | $ | (239.7) | | | $ | (10.6) | | | $ | 311.0 | | | $ | 1.3 | | | | | | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | | Derivative liabilities — loss portfolio transfer | | $ | (16.5) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 12.9 | | | $ | (3.6) | | | $ | 12.9 | | | Total Level 3 liabilities | | $ | (16.5) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 12.9 | | | $ | (3.6) | | | $ | 12.9 | |
______________ (1) Increases/(decreases) in the fair value of privately-held investments, trading are included in realized and unrealized investment losses in the consolidated statements of operations and other comprehensive income. Increases/(decreases) in the fair value of derivative liabilities - loss portfolio transfer are included within change in fair value of derivatives in the consolidated statements of operations and other comprehensive income. (2) Increases/(decreases) in the fair value of privately-held investments, available for sale are included in other comprehensive income (“OCI”).
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| Fair Value Inputs, and Valuation Techniques |
The following table summarizes the quantitative inputs and assumptions used for financial assets categorized within Level 3 under the fair value hierarchy as at December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2025 | | Fair Value
Level 3 | | Valuation Techniques | |
Unobservable Inputs | | Ranges | | Weighted Average | | ($ in millions) | | | | | | | | | | | Privately-held investments, available for sale | | | | | | | | | | | | | | Asset-backed securities | | $ | 16.3 | | | Discounted cash flow | | Discount rate | | 4.1% | — | 4.1% | | 4.1% | | Global corporate securities | | 34.2 | | | Matrix Pricing | | WAL spread (bps) | | (13.0) | — | 8.1 | | (2.9) | | | | Capital size spread (bps) | | 25.0 | — | 25.0 | | 25.0 | | | | | | | | | | | | | | | Privately-held investments, trading | | | | | | | | | | | | | | Commercial mortgage loans | | 25.4 | | | Discounted cash flow | | Discount rate | | 3.9% | — | 12.0% | | 4.8% | | Middle market loans and other private debt | | 24.1 | | | Discounted cash flow | | Discount rate | | 7.0% | — | 11.1% | | 8.1% | | Middle market loans and other private debt | | 4.8 | | | Recovery Approach | | TEV/EBITDA | | 6.8x | — | 6.8x | | 6.8x | | Asset-backed securities | | 67.5 | | | Discounted cash flow | | Discount rate | | 6.0% | — | 7.0% | | 6.1% | | | | | | | | | | | | | | | Total | | $ | 172.3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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