20 unchanged sentences
26.1% of the fixed maturity securities at market value at December 31, 2021 were classified as state and political subdivisions, which are primarily municipal holdings.
−Removed: These holdings are diversified over several states with 21.4% of our state and municipal securities concentrated in Texas.
+Added: These holdings are diversified over several states with 34.5% of our state and municipal securities concentrated in Texas and California.
Changes in interest rates typically have a sizable effect on the fair value of our debt and equities securities.
The interest rate of the ten-year U.S.
−Removed: Treasury bond decreased to 0.93% at December 31, 2020, from 1.92% at December 31, 2019.
+Added: Treasury bond increased to 1.52% at December 31, 2021, from 0.93% at December 31, 2020.
Net unrealized gains on fixed maturity securities totaled $126.9 million at December 31, 2021, compared to $167.9 million at December 31, 2020, based upon bond interest rates in relation to the U.S.
2 unchanged sentences
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.
−Removed: 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.
+Added: 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 $0.1 billion to a fair value of $1.4 billion upon a 100 basis point increase.
The following table shows the effects on the fair values of our fixed maturity investments based upon these scenarios.
2 unchanged sentences
Assumed fair value $ 1,642,973 1,470,617 1,351,490 1,234,374 1,132,442
+Added: 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
December 31, 2021 | 10-K 60
CITIZENS, INC.
−Removed: 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.
+Added: impact of such events.
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.
8 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.