Total minimum future lease payments

  
As of December 31, 2021 and 2020, the lease liability was $60.5 million and $77.7 million, respectively, included in accounts payable and other liabilities in the consolidated balance sheets. As of December 31, 2021 and 2020, the right-of-use asset was $47.7 million and $67.0 million, respectively, included in other assets in the consolidated balance sheets. For the years ended December 31, 2021, 2020 and 2019 the operating lease cost recognized for leases with terms in excess of 12 months was $23.1 million, $23.8 million and $22.1 million respectively, and related cash outflows reducing the lease liability were $23.8 million, $22.7 million and $21.3 million, respectively. At December 31, 2021, the weighted average remaining lease term and discount rate was 6.0 years and 4.3%, respectively. At December 31, 2020, the weighted average remaining lease term and discount rate was 6.0 years and 4.0%, respectively. For the years ended December 31, 2021, 2020 and 2019 the short-term lease cost recognized for leases with terms of 12 months or less was $2.9 million, $3.4 million and $4.2 million, respectively. At December 31, 2021, the lease liability by maturity is as follows:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| 2022 | $ | 17.4  |  |
| 2023 | 13.8  |  |
| 2024 | 10.6  |  |
| 2025 | 6.5  |  |
| 2026 | 5.0  |  |
| Thereafter | 16.1  |  |
| Total future lease payments | 69.4  |  |
| Less: Imputed interest | (8.9) |  |
| Total lease liability | $ | 60.5  |  |

Letters of CreditIn the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which the Company is the reinsurer. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $7.2 million and $7.6 million of letters of credit outstanding as of December 31, 2021 and 2020, respectively. Legal and Regulatory MattersThe Company is involved in a variety of litigation and legal and regulatory proceedings relating to its current and past business operations and, from time to time, it may become involved in other such actions. The Company continues to defend itself vigorously in these proceedings. The Company has participated and may participate in settlements on terms that the Company considers reasonable.The Company has established an accrued liability for certain legal and regulatory proceedings. The possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and uncertain. Consequently, no estimate can be made of any possible loss or range of loss in excess of the accrual. Although the Company cannot predict the outcome of any pending legal or regulatory proceeding, or the potential losses, fines, penalties or equitable relief, if any, that may result, it is possible that such outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, on the basis of currently available information, management does not believe that the pending matters are likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition. F-79
