The following is a discussion and analysis of our results of operations for the years ended December 31, 2015, 2014 and 2013 and financial condition as of December 31, 2015 and 2014. The following discussion should be read in conjunction with the audited consolidated financial statements and accompanying notes, which appear elsewhere in this filing.
The reinsurance industry has experienced significant consolidation in the last several years, fueled by many traditional participants with excess capital looking to strengthen their positions in their core markets and boost their investment returns in a low interest rate environment. We believe further consolidation will likely continue but do not believe that consolidation will result in a significant reduction in total capital within the industry. Rather, we expect the industry consolidation to create concentrations of capital in fewer, larger participants, and that with a reduction in the number of competitors in the industry, pricing may partially stabilize. Further, while some opportunities may become available on an attractive basis to only the largest reinsurance companies in the industry, we believe that the consolidation trend may create new opportunities for us if more capacity becomes available as a result of the industry consolidating.
Financial contracts which include total return swaps, credit default swaps, options, futures and other derivative instruments are recorded at their fair value with any unrealized gains and losses included in net investment income in the consolidated statements of income. Fair values on total return swaps are based on the underlying security’s fair value which is obtained from closing prices on a recognized exchange (for equity or commodity swaps), or from market makers or broker quotes. Fair values for credit default swaps trading in an active market are based on market maker or broker quotes taking into account credit spreads on identical contracts. Our exchange traded option contracts are recorded at fair value based on quoted prices in active markets. For over the counter ("OTC") options and exchange traded options where a quoted price in an active market is not available, we obtain multiple market maker quotes to determine the fair values. Fair values for other derivative instruments are determined based on multiple broker or market maker quotes taking into account the liquidity and the availability of an active market for the derivative.
expiration during 2015, and partly due to a lower share on other Florida homeowners' contracts in effect during the current period compared to the same period in 2014.
For the year ended December 31, 2015, our investing activities provided cash of $177.7 million (2014: $142.0 million, 2013: $74.0 million), primarily as a result of borrowings from prime brokers under term margin agreements to provide collateral for trust accounts and letters of credit issued. The cash provided from investing activities for the years ended December 31, 2014 and 2013 was driven primarily by the trading of long and short securities in the investment portfolio. Cash provided by investing activities is net of withdrawals from the joint venture by DME during the year ended December 31, 2015 of nil (2014: $9.5 million, 2013: $10.8 million). We used $17.7 million in financing activities relating to the repurchase of Class A ordinary shares during the year ended December 31, 2015 (2014: nil, 2013: nil).
As of December 31, 2015, we had four letter of credit facilities with an aggregate capacity of $720.0 million (2014: $760.0 million) with various financial institutions. See Note 14 of the accompanying consolidated financial statements for details on each of these facilities. As of December 31, 2015, an aggregate amount of $245.6 million (2014: $273.7 million) in letters of credit was issued under these facilities. Under these facilities, we provide collateral that may consist of equity securities or cash and cash equivalents. At December 31, 2015, total equity securities and cash and cash equivalents with a fair value in the aggregate of $324.3 million (2014: $302.6 million) were pledged as security against the letters of credit issued. The decrease in letters of credit issued as of December 31, 2015 compared to 2014 was a result of canceling some of the issued letters of credit for certain cedents and establishing regulatory trust arrangements in the amount of $78.6 million as of December 31, 2015.