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DERIVATIVE INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
Summary of Derivative Instruments [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
The Company may enter into derivative instruments to manage its foreign currency exposure, obtain exposure to a particular financial market, or for trading and to assume or hedge risk. The Company’s derivative instruments are primarily exchange traded futures, centrally cleared credit default swaps or over-the-counter foreign currency forward contracts. The over-the-counter derivatives are generally traded under International Swaps and Derivatives Association master agreements, which establish the terms of the transactions entered into with the Company’s derivative counterparties. In the event a party becomes insolvent or otherwise defaults on its obligations, a master agreement generally permits the non-defaulting party to accelerate and terminate all outstanding transactions and net the transactions’ marked-to-market values so that a single sum in a single currency will be owed by, or owed to, the non-defaulting party. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. Where the Company has entered into master netting agreements with counterparties, or the Company has the legal and contractual right to offset positions, the derivative positions are generally netted by counterparty and are reported accordingly in other assets and other liabilities.
The Company is not aware of the existence of any credit-risk related contingent features that it believes would be triggered in its derivative instruments that are in a net liability position at June 30, 2026.
Derivative Assets and Liabilities
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 June 30, 2026Gross Amounts RecognizedGross Amounts Offset in the Balance Sheet
 Net Amounts Presented in the Balance Sheet (1)
Collateral ReceivedNet Amount
Derivative instruments not designated as hedges
Interest rate futures$7,744 $— $7,744 $— $7,744 
Interest rate swaps207 — 207 — 207 
Foreign currency forward contracts (2)
7,645 — 7,645 — 7,645 
Foreign currency forward contracts (3)
2,057 — 2,057 — 2,057 
Credit default swaps184 — 184 — 184 
Equity futures12,065 — 12,065 — 12,065 
Total derivative instruments not designated as hedges29,902 — 29,902 — 29,902 
Derivative instruments designated as hedges
Foreign currency forward contracts (3)
1,382 — 1,382 — 1,382 
Total$31,284 $— $31,284 $— $31,284 
Derivative Liabilities
At June 30, 2026Gross Amounts RecognizedGross Amounts Offset in the Balance Sheet
 Net Amounts Presented in the Balance Sheet (1)
Collateral PledgedNet Amount
Derivative instruments not designated as hedges
Interest rate futures$9,227 $— $9,227 $7,898 $1,329 
Foreign currency forward contracts (2)
22,886 — 22,886 3,350 19,536 
Foreign currency forward contracts (3)
1,321 — 1,321 — 1,321 
Credit default swaps627 — 627 627 — 
Commodity futures55 — 55 — 55 
Total derivative instruments not designated as hedges34,116 — 34,116 11,875 22,241 
Derivative instruments designated as hedges
Foreign currency forward contracts (4)
151 — 151 — 151 
Total$34,267 $— $34,267 $11,875 $22,392 
(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, 2025
Gross Amounts Recognized
Gross Amounts Offset in the Balance Sheet
 Net Amounts Presented in the Balance Sheet (1)
Collateral ReceivedNet Amount
Derivative instruments not designated as hedges
Interest rate futures$7,400 $— $7,400 $— $7,400 
Interest rate swaps37 — 37 — 37 
Foreign currency forward contracts (2)
10,592 — 10,592 — 10,592 
Foreign currency forward contracts (3)
8 — 8 — 8 
Credit default swaps310 — 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 (1)
Collateral PledgedNet 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 swaps627 — 627 627 — 
Equity futures9,861 — 9,861 9,861 — 
Commodity futures12,380 — 12,380 — 12,380 
Total derivative instruments not designated as hedges39,720 — 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 Notional Exposure
The table below shows the notional exposure by underlying risk of the Company’s recognized derivative contracts:
At June 30, 2026At December 31, 2025
Notional Long ExposureNotional Short ExposureNotional Long ExposureNotional Short Exposure
Derivative instruments not designated as hedges
Interest rate risk
Interest rate futures$6,589,337 $2,575,495 $7,575,688 $4,179,575 
Interest rate swaps (1)
13,030 36,200 — 29,600 
Foreign currency risk
Foreign currency forward contracts (2)
967,747 292,202 1,102,740 412,005 
Foreign currency forward contracts (3)
152,815 207,197 159,267 186,854 
Credit risk
Credit default swaps (4)
46,845 1,453,875 39,500 847,864 
Equity price risk
Equity futures1,643,364 — 1,729,226 — 
Commodity price risk
Commodity futures553,678 — 1,189,027 — 
Derivative instruments designated as hedges
Foreign currency risk
Foreign currency forward contracts (5)
— 65,289 — 64,142 
(1)Notional long exposure amounts are positions receiving a fixed rate and notional short exposure amounts are positions paying a fixed rate.
(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)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.
(5)Contracts designated as hedges of net investments in a foreign operation.
Amount of Gain (Loss) Recognized on 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:
Three months endedSix months ended
June 30,
2026		June 30,
2025		June 30,
2026		June 30,
2025
Derivative instruments not designated as hedges
Net realized and unrealized gains (losses) on investments (1)
Interest rate futures$3,375 $37,692 $(37,836)$103,895 
Credit default swaps738 17,239 11,174 27,638 
Interest rate swaps66 — 17 — 
Total fixed maturity investment-related derivatives4,179 54,931 (26,645)131,533 
Equity futures203,195 87,247 122,851 34,700 
Total equity investment-related derivatives203,195 87,247 122,851 34,700 
Commodity futures(79,131)35,372 (13,821)153,446 
Commodity options— (2,119)— (2,602)
Total commodity-related derivatives(79,131)33,253 (13,821)150,844 
Total net realized and unrealized gains (losses) on investments (1)
128,243 175,431 82,385 317,077 
Net foreign exchange gains (losses)
Foreign currency forward contracts (2)
(6,958)35,673 (20,804)44,934 
Foreign currency forward contracts (3)
(1,357)(1,788)1,391 (2,875)
Total net foreign exchange gains (losses)(8,315)33,885 (19,413)42,059 
Total derivative instruments not designated as hedges119,928 209,316 62,972 359,136 
Derivative instruments designated as hedges
Accumulated other comprehensive income (loss)
Foreign currency forward contracts (4)
(688)(3,012)(2,230)(3,377)
Total$119,240 $206,304 $60,742 $355,759 
(1)Amount of gain (loss) is included in net realized and unrealized gains (losses) on investment-related derivatives. Refer to “Note 3. 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.
Derivative Instruments Not Designated as Hedges
Interest Rate Derivatives
The Company uses interest rate futures within its portfolio of fixed maturity investments to manage its exposure to interest rate risk, which may result in increasing or decreasing its exposure to this risk.
Interest Rate Futures
The fair value of interest rate futures is determined using exchange traded prices. The Company’s exposure is primarily in U.S. treasury, Secured Overnight Financing Rate (“SOFR”) and non-U.S. government bond futures contracts.
Interest Rate Swaps
The fair value of interest rate swaps is determined using the relevant exchange traded price where available or a discounted cash flow model based on the terms of the contract and inputs, including, where applicable, observable yield curves.
Foreign Currency Derivatives
The Company’s functional currency is the U.S. dollar. The Company writes a portion of its business in currencies other than U.S. dollars and may, from time to time, experience foreign exchange gains and losses in the Company’s consolidated financial statements. The impact of changes in exchange rates on the Company’s assets and liabilities denominated in currencies other than the U.S. dollar, excluding non-monetary assets and liabilities, are recognized in the Company’s consolidated statements of operations.
Underwriting and Non-Investment Operations Related Foreign Currency Contracts
The Company’s foreign currency policy with regard to its underwriting operations is generally to enter into foreign currency forward and option contracts for notional values that approximate the foreign currency liabilities, including claims and claim expense reserves and reinsurance balances payable, net of any cash, investments and receivables held in the respective foreign currency. The Company’s use of foreign currency forward and option contracts is intended to minimize the effect of fluctuating foreign currencies on the value of non-U.S. dollar denominated assets and liabilities associated with its underwriting and non-investment operations. The Company may determine not to match a portion of its projected underwriting and non-investments related assets or liabilities with underlying foreign currency exposure with investments in the same currencies, which would increase its exposure to foreign currency fluctuations and potentially increase the impact and volatility of foreign exchange gains and losses on its results of operations. The fair value of the Company’s underwriting and non-investment operations related foreign currency contracts is determined using indicative pricing obtained from counterparties or broker quotes.
Investment Operations Related Foreign Currency Forward Contracts
The Company’s investment operations are exposed to currency fluctuations through its investments in non-U.S. dollar fixed maturity investments, short term investments and other investments. From time to time, the Company may employ foreign currency forward contracts in its investment portfolio to either assume foreign currency risk or to economically hedge its exposure to currency fluctuations from these investments. The fair value of the Company’s investment portfolio related foreign currency forward contracts is determined using an interpolated rate based on closing forward market rates.
Credit Derivatives
The Company’s exposure to credit risk is primarily due to its fixed maturity investments, short term investments, premiums receivable and reinsurance recoverable. From time to time, the Company may purchase credit derivatives to manage its exposures in the insurance industry, and to assist in managing the credit risk associated with ceded reinsurance. The Company also employs credit derivatives in its investment portfolio to either assume credit risk or manage its credit exposure.
Credit Default Swaps
The fair value of the Company’s credit default swaps is determined using industry valuation models, broker bid indications or internal pricing valuation techniques. The fair value of these credit default swaps can change based on a variety of factors including changes in credit spreads, default rates and recovery rates, the correlation of credit risk between the referenced credit and the counterparty, and market rate inputs such as interest rates.
Equity Derivatives
Equity Futures
From time to time, the Company uses equity derivatives in its investment portfolio to either assume equity risk or hedge its equity exposure. The fair value of the Company’s equity futures is determined using market-based prices from pricing vendors.
Commodity Derivatives
The Company uses commodity derivatives within its investments portfolio to assume or hedge risk. Commodity derivatives expose the Company to potentially unfavorable price changes to the underlying commodities.
Commodity Futures
The fair value of the Company’s commodity futures is determined using market-based prices from pricing vendors. The Company’s exposure is primarily in gold futures contracts.
Commodity Options
The fair value of these derivatives is determined using market-based prices from pricing vendors.
Derivative Instruments Designated as Hedges of Net Investments in Foreign Operations
Foreign Currency Derivatives
Hedges of Net Investments in Foreign Operations
One of the Company’s subsidiaries currently uses a non-U.S. dollar functional currency. The Company, from time to time, enters into foreign exchange forwards to hedge non-U.S. dollar functional currencies, on an after-tax basis, from changes in the exchange rate between the U.S. dollar and these currencies.
As of June 30, 2026 and December 31, 2025, this included the Australian dollar net investment in a foreign operation. These foreign exchange forward contracts were formally designated as hedges of its investment in subsidiaries with non-U.S. dollar functional currencies and there was no ineffectiveness in these transactions. The weighted average U.S. dollar equivalent of foreign denominated net assets (liabilities) that were hedged during the three and six months ended June 30, 2026 was $65.7 million and $63.0 million (June 30, 2025 - $60.9 million and $59.5 million).