v3.26.1
Investment Information
 6 Months Ended
Jun. 30, 2026
Disclosure Investment Information [Abstract]  
Investment information
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
June 30, 2026
Fixed maturities:
Corporate bonds$14,231 $102 $(198)$(6)$14,333 
U.S. government and government agencies8,060 8 (64)— 8,116 
Asset backed securities3,677 6 (26)(9)3,706 
Non-U.S. government securities2,876 26 (77)(1)2,928 
Residential mortgage backed securities2,643 11 (38)— 2,670 
Commercial mortgage backed securities1,549 5 (7)— 1,551 
Municipal bonds119 — (4)— 123 
Total33,155 158 (414)(16)33,427 
Short-term investments3,298 1 (1)— 3,298 
Total$36,453 $159 $(415)$(16)$36,725 
December 31, 2025
Fixed maturities:
Corporate bonds$14,058 $265 $(142)$(10)$13,945 
U.S. government and government agencies7,445 23 (21)— 7,443 
Asset backed securities3,574 20 (15)(8)3,577 
Non-U.S. government securities3,270 53 (81)(1)3,299 
Residential mortgage backed securities2,705 34 (21)— 2,692 
Commercial mortgage backed securities1,212 11 (5)(1)1,207 
Municipal bonds162 — (4)— 166 
Total32,426 406 (289)(20)32,329 
Short-term investments2,625 2 (1)— 2,624 
Total$35,051 $408 $(290)$(20)$34,953 
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
June 30, 2026
Fixed maturities:
Corporate bonds$8,333 $(116)$1,205 $(82)$9,538 $(198)
U.S. government and government agencies6,483 (57)128 (7)6,611 (64)
Non-U.S. government securities1,976 (32)489 (45)2,465 (77)
Asset backed securities1,839 (15)316 (11)2,155 (26)
Residential mortgage backed securities1,414 (19)144 (19)1,558 (38)
Commercial mortgage backed securities591 (2)40 (5)631 (7)
Municipal bonds— — 119 (4)119 (4)
Total20,636 (241)2,441 (173)23,077 (414)
Short-term investments1,106 (1)— — 1,106 (1)
Total$21,742 $(242)$2,441 $(173)$24,183 $(415)
December 31, 2025
Fixed maturities:
Corporate bonds$2,972 $(64)$1,364 $(78)$4,336 $(142)
U.S. government and government agencies3,092 (15)274 (6)3,366 (21)
Non-U.S. government securities2,087 (35)432 (46)2,519 (81)
Asset backed securities806 (2)332 (13)1,138 (15)
Residential mortgage backed securities312 (3)178 (18)490 (21)
Commercial mortgage backed securities239 (1)48 (4)287 (5)
Municipal bonds6 — 137 (4)143 (4)
Total9,514 (120)2,765 (169)12,279 (289)
Short-term investments614 (1)— — 614 (1)
Total$10,128 $(121)$2,765 $(169)$12,893 $(290)
At June 30, 2026, on a lot level basis, approximately 13,090 security lots out of a total of approximately 26,340 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, 2025, on a lot level basis, approximately 7,240 security lots out of a total of approximately 25,330 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.
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.
June 30, 2026December 31, 2025
MaturityEstimated
Fair
Value		Amortized
Cost		Estimated
Fair
Value		Amortized
Cost
Due in one year or less$692 $693 $370 $366 
Due after one year through five years16,827 16,940 17,053 16,989 
Due after five years through 10 years7,231 7,315 6,893 6,877 
Due after 10 years536 552 619 621 
25,286 25,500 24,935 24,853 
Residential mortgage backed securities2,643 2,670 2,705 2,692 
Commercial mortgage backed securities1,549 1,551 1,212 1,207 
Asset backed securities3,677 3,706 3,574 3,577 
Total$33,155 $33,427 $32,426 $32,329 
Equity Securities, at Fair Value
At June 30, 2026, the Company held $2.3 billion of equity securities, at fair value, compared to $1.9 billion at December 31, 2025. 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:
June 30,
2026		December 31,
2025
Other investments$2,144 $1,957 
Fixed maturities 1,175 1,110 
Short term investments57 64 
Equity securities5 5 
Total$3,381 $3,136 
The following table summarizes the Company’s other investments, as detailed in the previous table, by strategy:
June 30,
2026		December 31,
2025
Investment grade fixed income$1,364 $1,225 
Private equity249 250 
Lending245 220 
Term loan investments175 173 
Credit related funds94 87 
Equities15 — 
Energy2 2 
Total$2,144 $1,957 
Net Investment Income
The components of net investment income were derived from the following sources:
June 30,
20262025
Three Months Ended
Fixed maturities$386 $360 
Short term investments26 24 
Equity securities (dividends)9 10 
Other (1)21 35 
Gross investment income442 429 
Investment expenses(25)(24)
Net investment income$417 $405 
Six Months Ended
Fixed maturities$770 $702 
Short term investments50 50 
Equity securities (dividends)17 21 
Other (1)42 63 
Gross investment income879 836 
Investment expenses(54)(53)
Net investment income$825 $783 
(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:
June 30,
20262025
Three Months Ended
Available for sale securities:
Gross gains on investment sales$35 $69 
Gross losses on investment sales(83)(56)
Change in fair value of assets and liabilities accounted for using the fair value option:
Fixed maturities9 20 
Other investments6 (11)
Short-term investments— 3 
Equity securities, at fair value:
Net realized gains (losses) on sales during the period24 7 
Net unrealized gains (losses) on equity securities still held at reporting date217 129 
Allowance for credit losses:
Investments related(4)(8)
Underwriting related(3)(2)
Derivative instruments (1)(76)163 
Other (2)(142)(85)
Net realized gains (losses)$(17)$229 
Six Months Ended
Available for sale securities:
Gross gains on investment sales$115 $120 
Gross losses on investment sales(146)(169)
Change in fair value of assets and liabilities accounted for using the fair value option:
Fixed maturities(18)22 
Other investments14 2 
Short-term investments— 3 
Equity securities, at fair value:
Net realized gains (losses) on sales during the period44 54 
Net unrealized gains (losses) on equity securities still held at reporting date116 34 
Allowance for credit losses:
Investments related1 (8)
Underwriting related3 (1)
Derivative instruments (1)(94)262 
Other (2)(139)(87)
Net realized gains (losses)$(104)$232 
(1) See note 10 for information on the Company’s derivative instruments.
(2) Amounts in the 2026 periods primarily reflect a litigation-related loss contingency recorded pursuant to ASC 450, while amounts recorded in the 2025 periods primarily relate to losses arising from the sale of certain alternative investments accounted for under the equity method.
Investments Accounted For Using the Equity Method
The following table summarizes the Company’s investments accounted for using the equity method, by strategy:
June 30,
2026		December 31,
2025
Private equity$2,485 $2,397 
Credit related funds1,643 1,616 
Real estate818 767 
Lending649 558 
Fixed income534 501 
Infrastructure349 346 
Equities324 231 
Energy50 37 
Total$6,852 $6,453 
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 that may impact the Company’s ability to redeem these investment funds are gates and lockups. A gate is a suspension of redemptions that 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 and 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:
June 30,
2026		December 31,
2025
Investments accounted for using the equity method (1)$6,852 $6,453 
Investments accounted for using the fair value option (2)16 — 
Total$6,868 $6,453 
(1)    Aggregate unfunded commitments were $4.1 billion at June 30, 2026, compared to $3.6 billion at December 31, 2025.
(2)    Aggregate unfunded commitments were $245 million at June 30, 2026, compared to $65 million at December 31, 2025.
Equity in Net Income (Loss) of Investments Accounted for Using the Equity Method
Income from investment funds accounted for using the equity method for the 2026 second quarter was $196 million, compared to $162 million for the 2025 second quarter and an income of $356 million for the six months ended June 30, 2026, compared to income of $215 million for the six months ended June 30, 2025. 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 June 30, 2026, the Company owned approximately 29.9% of the issued shares of Coface, or 30% excluding treasury shares, with a carrying value of $664 million, compared to $707 million at December 31, 2025.
As of June 30, 2026, the Company owned 31.75% of Greysbridge with a carrying value of $554 million, compared to a 30% ownership interest with a carrying value of $486 million at December 31, 2025. The increase in share ownership is a result of the settlement of certain put options during the second quarter of 2026.
Income from operating affiliates for the 2026 second quarter was $46 million, compared to $40 million for the 2025 second quarter and income of $82 million for the six months ended June 30, 2026, compared to income of $57 million for six months ended June 30, 2025.
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 June 30, 2026
Balance at beginning of period$6 $6 $1 $13 
Additions for current-period provision for expected credit losses— — — — 
Additions (reductions) for previously recognized expected credit losses 3 1 — 4 
Reductions due to disposals— (1)— (1)
Balance at end of period$9 $6 $1 $16 
Three Months Ended June 30, 2025
Balance at beginning of period$8 $12 $1 $21 
Additions for current-period provision for expected credit losses— 2 — 2 
Additions (reductions) for previously recognized expected credit losses 2 4 1 7 
Reductions due to disposals— (2)— (2)
Balance at end of period$10 $16 $2 $28 
Six Months Ended June 30, 2026
Balance at beginning of year$9 $10 $1 $20 
Additions for current-period provision for expected credit losses1 1 — 2 
Additions (reductions) for previously recognized expected credit losses(1)(2)— (3)
Reductions due to disposals— (3)— (3)
Balance at end of period$9 $6 $1 $16 
Six Months Ended June 30, 2025
Balance at beginning of year$9 $12 $1 $22 
Additions for current-period provision for expected credit losses3 2 — 5 
Additions (reductions) for previously recognized expected credit losses(2)5 1 4 
Reductions due to disposals— (3)— (3)
Balance at end of period$10 $16 $2 $28 
(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 2025 Form 10-K.
The following table details the value of the Company’s restricted assets:
June 30,
2026		December 31,
2025
Assets used for collateral or guarantees:
Affiliated transactions$5,584 $5,323 
Third party agreements6,437 6,784 
Deposits with U.S. regulatory authorities939 948 
Other (1)1,678 1,898 
Total restricted assets$14,638 $14,953 
(1)    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:
June 30,
2026		December 31,
2025
Cash$1,109 $993 
Restricted cash (included in ‘other assets’)897 1,074 
Cash and restricted cash$2,006 $2,067