Commitment to Invest in Certain Investment Funds

  
(20)    Commitments, Litigation and Contingent Liabilities In the ordinary course of business, the Company is subject to disputes, litigation and arbitration arising from its insurance and reinsurance businesses. These matters are generally related to insurance and reinsurance claims and are considered in the establishment of loss and loss expense reserves. In addition, the Company may also become involved in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in handling of insurance claims. The Company expects its ultimate liability with respect to such matters will not be material to its financial condition. However, adverse outcomes on such matters are possible, from time to time, and could be material to the Company’s results of operations in any particular financial reporting period.    At December 31, 2021, the Company had commitments to invest up to $621 million and $139 million in certain investment funds and real estate construction projects, respectively.  
  
(21) Leases    Lessees are required to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months on the balance sheet. All leases disclosed within this note are classified as operating leases. Recognized right-of-use asset and lease liability are reported within other assets and other liabilities, respectively, in the consolidated balance sheet. Lease expense is reported in other operating costs and expenses in the consolidated statement of income and accounted for on a straight-line basis over the lease term.    To determine the discount rate used to calculate present value of future minimum lease payments, the Company uses its incremental borrowing rate during the lease commencement period in line with the respective lease duration. In certain cases, the Company has the option to renew the lease. Lease renewal future payments are included in the present value of the future minimum lease payments when the Company determines it is reasonably certain to renew.     The main leases entered into by the Company are for office space used by the Company’s operating units across the world. Additionally, the Company, to a lesser extent, has equipment leases mainly for office equipment. Further information relating to operating lease expense and other operating lease information is as follows:

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|   |  |  | For the Year Ended December 31, |
|  |
| (In thousands) | 2021 |  | 2020 |
| Leases: |  |  |  |  |  |
| Lease cost |  |  | $ | 44,051  |  |  | $ | 44,291  |  |
| Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows |  |  | $ | 45,592  |  |  | $ | 45,348  |  |
| Right-of-use assets obtained in exchange for new lease liabilities |  |  | $ | 38,929  |  |  | $ | 8,870  |  |

  


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|  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of December 31, |
| ($ in thousands) | 2021 |  | 2020 |
| Right-of-use assets | $ | 172,180  |  |  | $ | 164,476  |  |
| Lease liabilities | $ | 208,729  |  |  | $ | 203,643  |  |
| Weighted-average remaining lease term | 7.2 years |  | 6.8 years |
| Weighted-average discount rate | 4.83  | % |  | 5.94  | % |

      
  
  
  
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