| Investments |
7. 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 (loss). 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 (loss). Debt securities The following tables provide the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency gains, and fair value of the Company's debt securities as of September 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | 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 | $ | 782.2 | | | $ | 1.3 | | | $ | (13.5) | | | $ | — | | | | | $ | 770.0 | | | Residential mortgage-backed securities | 1,110.9 | | | 0.3 | | | (44.6) | | | — | | | | | 1,066.6 | | | Commercial mortgage-backed securities | 253.4 | | | 0.2 | | | (6.1) | | | — | | | | | 247.5 | | | | | | | | | | | | | | | Corporate debt securities | 2,453.9 | | | 1.5 | | | (76.5) | | | 1.2 | | | | | 2,380.1 | | | U.S. government and government agency | 903.8 | | | — | | | (23.3) | | | 0.3 | | | | | 880.8 | | | Non-U.S. government and government agency | 19.7 | | | — | | | (0.3) | | | 0.4 | | | | | 19.8 | | | | | | | | | | | | | | | | | | | | | | | | | | Total debt securities, available for sale (1) | $ | 5,523.9 | | | $ | 3.3 | | | $ | (164.3) | | | $ | 1.9 | | | | | $ | 5,364.8 | | | Debt securities, trading | | | | | | | | | | | | | Asset-backed securities | $ | 7.7 | | | $ | — | | | $ | (2.7) | | | $ | — | | | | | $ | 5.0 | | | Residential mortgage-backed securities | 30.7 | | | — | | | (5.8) | | | — | | | | | 24.9 | | | Commercial mortgage-backed securities | 23.0 | | | — | | | (3.5) | | | — | | | | | 19.5 | | | | | | | | | | | | | | | Corporate debt securities | 16.2 | | | 0.1 | | | (13.4) | | | — | | | | | 2.9 | | | U.S. government and government agency | 3.0 | | | — | | | — | | | — | | | | | 3.0 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total debt securities, trading | $ | 80.6 | | | $ | 0.1 | | | $ | (25.4) | | | $ | — | | | | | $ | 55.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 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 | $ | 917.1 | | | $ | 7.3 | | | $ | (3.3) | | | $ | — | | | $ | 921.1 | | | Residential mortgage-backed securities | 950.1 | | | 17.7 | | | (4.7) | | | — | | | 963.1 | | | Commercial mortgage-backed securities | 231.3 | | | 3.1 | | | (2.5) | | | — | | | 231.9 | | | | | | | | | | | | | Corporate debt securities | 2,170.8 | | | 32.3 | | | (2.4) | | | (2.5) | | | 2,198.2 | | | U.S. government and government agency | 830.5 | | | 5.6 | | | (0.4) | | | — | | | 835.7 | | | Non-U.S. government and government agency | 18.5 | | | 0.2 | | | — | | | (0.1) | | | 18.6 | | | | | | | | | | | | | | | | | | | | | | Total debt securities, available for sale (1) | $ | 5,118.3 | | | $ | 66.2 | | | $ | (13.3) | | | $ | (2.6) | | | $ | 5,168.6 | | | Debt securities, trading | | | | | | | | | | | Asset-backed securities | $ | 8.3 | | | $ | — | | | $ | (2.4) | | | $ | — | | | $ | 5.9 | | | Residential mortgage-backed securities | 50.7 | | | 0.1 | | | (5.8) | | | — | | | 45.0 | | | Commercial mortgage-backed securities | 34.6 | | | 0.4 | | | (3.1) | | | — | | | 31.9 | | | | | | | | | | | | | Corporate debt securities | 17.1 | | | — | | | (13.4) | | | — | | | 3.7 | | | U.S. government and government agency | 3.9 | | | — | | | (0.1) | | | — | | | 3.8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total debt securities, trading | $ | 114.6 | | | $ | 0.5 | | | $ | (24.8) | | | $ | — | | | $ | 90.3 | |
(1)As of September 30, 2026 and December 31, 2025, the Company did not record an allowance for credit losses on the AFS portfolio. As of September 30, 2026, 422 unique debt securities classified as AFS were in a gross unrealized loss position for greater than 12 months (December 31, 2025 - 379 unique debt securities). AFS debt securities in an unrealized loss position at September 30, 2026 and December 31, 2025 comprised primarily investment grade securities for which fair value declined below amortized cost, principally due to rising interest rates since the date of purchase. Refer to the tables below for the Company’s breakdown of AFS debt securities in a gross unrealized loss position as of September 30, 2026 and December 31, 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | 12 Months or Less | | Greater than 12 Months | | Total | | Fair value | | Gross unrealized losses | | Fair value | | Gross unrealized losses | | Fair value | | | | Gross unrealized losses | | Debt securities, available for sale | | | | | | | | | | | | | | | Asset-backed securities | $ | 368.2 | | | $ | (8.1) | | | $ | 39.5 | | | $ | (5.4) | | | $ | 407.7 | | | | | $ | (13.5) | | | Residential mortgage-backed securities | 848.2 | | | (29.3) | | | 172.8 | | | (15.3) | | | 1,021.0 | | | | | (44.6) | | | Commercial mortgage-backed securities | 200.9 | | | (5.8) | | | 2.6 | | | (0.3) | | | 203.5 | | | | | (6.1) | | | Corporate debt securities | 2,052.4 | | | (67.5) | | | 159.5 | | | (9.0) | | | 2,211.9 | | | | | (76.5) | | | U.S. government and government agency | 782.9 | | | (20.2) | | | 60.4 | | | (3.1) | | | 843.3 | | | | | (23.3) | | | Non-U.S. government and government agency | 11.0 | | | (0.3) | | | — | | | — | | | 11.0 | | | | | (0.3) | | Total debt securities, available for sale | $ | 4,263.6 | | | $ | (131.2) | | | $ | 434.8 | | | $ | (33.1) | | | $ | 4,698.4 | | | | | $ | (164.3) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | 12 Months or Less | | Greater than 12 Months | | Total | | Fair value | | Gross unrealized losses | | Fair value | | Gross unrealized losses | | Fair value | | | | Gross unrealized losses | | Debt securities, available for sale | | | | | | | | | | | | | | | Asset-backed securities | $ | 184.5 | | | $ | (1.5) | | | $ | 20.6 | | | $ | (1.8) | | | $ | 205.1 | | | | | $ | (3.3) | | | Residential mortgage-backed securities | 84.5 | | | (0.5) | | | 190.5 | | | (4.2) | | | 275.0 | | | | | (4.7) | | | Commercial mortgage-backed securities | 46.2 | | | (1.2) | | | 9.0 | | | (1.3) | | | 55.2 | | | | | (2.5) | | | Corporate debt securities | 309.4 | | | (1.8) | | | 54.5 | | | (0.6) | | | 363.9 | | | | | (2.4) | | | U.S. government and government agency | 107.9 | | | (0.1) | | | 42.2 | | | (0.2) | | | 150.1 | | | | | (0.3) | | | Non-U.S. government and government agency | 7.1 | | | — | | | — | | | — | | | 7.1 | | | | | — | | Total debt securities, available for sale | $ | 739.6 | | | $ | (5.1) | | | $ | 316.8 | | | $ | (8.1) | | | $ | 1,056.4 | | | | | $ | (13.2) | |
The weighted average duration of the Company's debt securities, net of short positions in U.S. treasuries, as of September 30, 2026 was approximately 3.4 years, including short-term investments (December 31, 2025 - approximately 3.2 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 September 30, 2026 and December 31, 2025 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | | Debt securities, AFS | | Debt securities, trading | | Debt securities, AFS | | Debt securities, trading | | | | Cost or
amortized cost | | Fair value | | Cost or
amortized cost | | Fair value | | Cost or
amortized cost | | Fair value | | Cost or
amortized cost | | Fair value | | | | Due in one year or less | $ | 214.7 | | | $ | 214.5 | | | $ | 3.1 | | | $ | 3.0 | | | $ | 202.6 | | | $ | 203.9 | | | $ | 4.1 | | | $ | 3.9 | | | | | Due after one year through five years | 2,279.0 | | | 2,223.2 | | | 1.6 | | | 1.6 | | | 1,954.5 | | | 1,974.7 | | | 2.4 | | | 2.3 | | | | | Due after five years through ten years | 849.9 | | | 810.1 | | | — | | | — | | | 713.7 | | | 723.6 | | | — | | | — | | | | | Due after ten years | 33.8 | | | 32.8 | | | 14.5 | | | 1.3 | | | 149.1 | | | 150.4 | | | 14.5 | | | 1.2 | | | | | Mortgage-backed and asset-backed securities | 2,146.5 | | | 2,084.2 | | | 61.4 | | | 49.4 | | | 2,098.4 | | | 2,116.0 | | | 93.6 | | | 82.9 | | | | | Total debt securities | $ | 5,523.9 | | | $ | 5,364.8 | | | $ | 80.6 | | | $ | 55.3 | | | $ | 5,118.3 | | | $ | 5,168.6 | | | $ | 114.6 | | | $ | 90.3 | | | |
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 September 30, 2026 and December 31, 2025 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cost or
amortized
cost | | Gross
unrealized
gains | | Gross
unrealized
losses | | Net foreign
currency
gains | | Fair value | | September 30, 2026 | | | | | | | | | | | | | | | | | | | | | | | Other long-term investments | | $ | 398.1 | | | $ | 30.1 | | | $ | (154.0) | | | $ | 2.3 | | | $ | 276.5 | | | December 31, 2025 | | | | | | | | | | | | | | | | | | | | | | | Other long-term investments | | $ | 421.9 | | | $ | 35.1 | | | $ | (143.3) | | | $ | 1.4 | | | $ | 315.1 | |
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 September 30, 2026 and December 31, 2025: | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | Equity method eligible unconsolidated entities, using the fair value option | $ | 66.0 | | | $ | 66.3 | | | Equity method investments | 46.0 | | | 33.1 | | Other unconsolidated investments, at fair value (1) | 150.1 | | | 179.5 | | Other unconsolidated investments, at cost (2) | 14.4 | | | 36.2 | | Total other long-term investments (3) | $ | 276.5 | | | $ | 315.1 | |
(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. (3)As of September 30, 2026, the Company had $30.0 million of unfunded commitments relating to these investments (December 31, 2025 - $58.5 million). Net investment income Net investment income for the three and nine months ended September 30, 2026 and 2025 consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | September 30, 2026 | | September 30, 2025 | | September 30, 2026 | | September 30, 2025 | | Debt securities, available for sale | $ | 65.1 | | | $ | 63.2 | | | $ | 190.0 | | | $ | 186.1 | | | Debt securities, trading | 0.8 | | | 2.0 | | | 3.0 | | | 6.3 | | | Short-term investments | 0.1 | | | 0.4 | | | 0.6 | | | 1.4 | | | Other long-term investments | 0.2 | | | 0.4 | | | 4.0 | | | 4.8 | | | Cash, cash equivalents and other | 3.8 | | | 5.4 | | | 15.1 | | | 21.2 | | | Gross investment income | 70.0 | | | 71.4 | | | 212.7 | | | 219.8 | | | Investment expenses | (4.1) | | | (4.9) | | | (14.9) | | | (13.9) | | | Net investment income | $ | 65.9 | | | $ | 66.5 | | | $ | 197.8 | | | $ | 205.9 | |
Net investment gains (losses) Net investment gains (losses) for the three and nine months ended September 30, 2026 and 2025 consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | September 30, 2026 | | September 30, 2025 | | September 30, 2026 | | September 30, 2025 | | Debt securities, available for sale | | | | | | | | | Gross realized gains | $ | 2.2 | | | $ | 10.3 | | | $ | 17.4 | | | $ | 20.4 | | | Gross realized losses | (12.1) | | | (1.2) | | | (18.5) | | | (15.7) | | | Net realized gains (losses) on Debt securities, available for sale | (9.9) | | | 9.1 | | | (1.1) | | | 4.7 | | | Debt securities, trading | | | | | | | | | Net realized gains (losses) | (0.1) | | | 0.1 | | | (1.4) | | | (1.7) | | | Net unrealized gains (losses) | (2.0) | | | 1.4 | | | (2.2) | | | 5.2 | | | Other long-term investments | | | | | | | | | Net realized gains (losses) | 23.8 | | | (4.9) | | | 82.7 | | | (7.2) | | | Net unrealized gains (losses) | (8.7) | | | 0.4 | | | (56.5) | | | 4.1 | | Other (1) | 0.2 | | | 0.1 | | | 1.1 | | | 1.5 | | | Total net investment gains (losses) | $ | 3.3 | | | $ | 6.2 | | | $ | 22.6 | | | $ | 6.6 | |
(1)Includes short-term investments, cash and cash equivalents, and derivatives.
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