A sensor bearing assembly having a rolling element bearing and at least one sensor is provided. The rolling element bearing includes an inner ring, an outer ring, and rolling elements arranged between the inner ring and the outer ring. The at least one sensor is arranged to convert one or more physical magnitudes to electrical sensor signals. The sensor is attached directly or indirectly to the rolling element bearing. The assembly further comprises a converter unit. The converter unit is arranged to convert the electrical sensor signals to output signals, the output signals are different to in type, form and/or amplitude in relation to the electrical sensor signals. The converter unit is also disposed in a separate enclosure that does not share the same enclosure with the sensor.