6 unchanged sentences
The following table summarizes net unrealized gains and losses as of the dates indicated.
−Removed: December 31, 2019
−Removed: December 31, 2018
−Removed: (In thousands)
−Removed: Net Unrealized Gains
−Removed: Net Unrealized Gains
−Removed: Total fixed maturities
+Added: December 31, 2020 December 31, 2019
+Added: (In thousands) Amortized
+Added: Value Net Unrealized Gains Amortized
+Added: Value Net Unrealized Gains
+Added: Total fixed maturity securities $ 1,321,487 1,489,383 167,896 1,293,853 1,377,959 84,106
Total equity securities $ 19,529 22,102 2,573 15,055 16,033 978
3 unchanged sentences
Treasury rates.
−Removed: Our fixed maturities investments include bonds issued by U.S.
+Added: Our fixed maturity security investments include bonds issued by U.S.
Government-sponsored enterprises, U.S.
−Removed: Government bonds, securities issued by government agencies, state and municipal bonds, corporate bonds and other asset-backed securities.
−Removed: 38.9% of the fixed maturities at market value at December 31, 2019 were classified as state and political subdivisions, which are primarily municipal holdings.
+Added: treasury bonds, securities issued by government agencies, state and municipal bonds, corporate bonds and other asset-backed securities.
+Added: 27.5% of the fixed maturity securities at market value at December 31, 2020 were classified as state and political subdivisions, which are primarily municipal holdings.
These holdings are diversified over several states with 21.4% of our state and municipal securities concentrated in Texas.
4 unchanged sentences
ten-year Treasury yield.
−Removed: December 31, 2019 | 10-K 57
−Removed: CITIZENS, INC.
To manage interest risk, we perform periodic projections of asset and liability cash flows to evaluate the potential sensitivity of our investments and liabilities.
−Removed: We assess interest rate sensitivity on an annual basis with respect to our fixed maturities investments using hypothetical test scenarios that assume either upward or downward shifts in the prevailing interest rates.
+Added: We assess interest rate sensitivity on an annual basis with respect to our fixed maturity security investments using hypothetical test scenarios that assume either upward or downward shifts in the prevailing interest rates.
The Company performed an analysis of fair value changes using assumed 100 basis point shifts in interest rates, noting that the fair value of our fixed maturity investment portfolio of $1.5 billion would decrease by approximately $142.9 million to a fair value of $1.3 billion upon a 100 basis point increase.
3 unchanged sentences
Assumed fair value $ 1,641,227 1,489,383 1,346,483 1,228,908 1,126,496
+Added: December 31, 2020 | 10-K 65
+Added: CITIZENS, INC.
While the test scenarios are for illustrative purposes only and do not reflect our expectations regarding future interest rates or the performance of fixed-income markets, it is a near-term change that illustrates the potential impact of such events.
−Removed: Due to the composition of our book of insurance business, we believe it is unlikely we would encounter large surrender activity due to an interest rate increase that would force us to dispose of our fixed maturities at a loss.
+Added: Due to the composition of our book of insurance business, we believe it is unlikely we would encounter large surrender activity due to an interest rate increase that would force us to dispose of our fixed maturity securities at a loss.
Our fixed maturity portfolio is exposed to call risk as a significant portion of the current holdings are callable.
A decreasing interest rate environment can result in increased call activity as experienced over the past several years, and an increasing rate environment will likely result in securities being paid at their stated maturity.
−Removed: There are no fixed maturities or other investments that we classify as trading instruments.
−Removed: All of fixed maturities were classified as available-for-sale based upon fair value at December 31, 2019 .
+Added: There are no fixed maturity securities or other investments that we classify as trading instruments.
+Added: All fixed maturity securities were classified as available-for-sale based upon fair value at December 31, 2020.
At December 31, 2020 and 2019, we had no investments in derivative instruments or subprime loans.
3 unchanged sentences
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.