28 unchanged sentences
We also use common industry metrics, such as duration and convexity, to measure the relative sensitivity of asset and liability values to changes in interest rates.
−Removed: In computing the duration of liabilities, we consider all policyholder guarantees
−Removed: and how indeterminate policy elements such as interest credits or dividends are set.
+Added: In computing the duration of liabilities, we consider all policyholder guarantees and how indeterminate policy elements such as interest credits or dividends are set.
Each asset portfolio has a duration target based on the liability duration and the investment objectives of that portfolio.
80 unchanged sentences
Sensitivity Summary
−Removed: Sensitivity to rising interest rates increased by $988 million, or 13%, to $8.7 billion at December 31, 2020 from $7.7 billion at December 31, 2019, primarily as a result of an increase in our fixed maturity securities portfolio and the impact of lower interest rates on the estimated fair value of these securities, in line with management expectations.
−Removed: Sensitivity to a 10% rise in equity prices increased by $182 million, or 21%, to $1.0 billion at December 31, 2020 from $864 million at December 31, 2019.
+Added: Sensitivity to a 100 basis point rise in interest rates increased by $208 million, or 2%, to $8.9 billion at December 31, 2021 from $8.7 billion at December 31, 2020.
+Added: Sensitivity to a 10% rise in equity prices increased by $15 million, or 1%, to $1.1 billion at December 31, 2021 from $1.0 billion at December 31, 2020.
As previously mentioned, we economically hedge substantially all of our foreign currency exposure such that sensitivity to changes in foreign currencies is minimal.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.