7 unchanged sentences
• political risk.
+Added: Return to table of contents
Equity Price Risk
−Removed: As of June 30, 2020, our investments consisted primarily of an investment in SILP.
+Added: As of September 30, 2020, our investments consisted primarily of an investment in SILP.
Among SILP’s holdings are equity securities, the carrying values of which are based primarily on quoted market prices.
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This risk is partly mitigated by the presence of both long and short equity securities as part of our investment strategy.
−Removed: As of June 30, 2020, a 10% decline in the price of each of the underlying listed equity securities and equity-based derivative instruments would result in a loss of $7.0 million, or 1.5%, of our Investment Portfolio.
+Added: As of September 30, 2020, a 10% decline in the price of each of the underlying listed equity securities and equity-based derivative instruments would result in a loss of $6.4 million, or 1.4%, of our Investment Portfolio.
Computations of the prospective effects of hypothetical equity price changes are based on numerous assumptions, including the maintenance of the existing level and composition of investment securities and should not be relied on as indicative of future results.
2 unchanged sentences
SILP’s investments periodically include long or short investments in commodities or in derivatives directly impacted by fluctuations in the prices of commodities.
−Removed: As of June 30, 2020, SILP’s investments included unhedged exposure to changes in gold prices, through physical gold holdings and derivative instruments with underlying exposure to changes in the price of natural gas.
−Removed: Return to table of contents
−Removed: The following table summarizes the net impact that a 10% increase and decrease in commodity prices would have on the value of our Investment Portfolio as of June 30, 2020.
+Added: As of September 30, 2020, SILP’s investments included unhedged exposure to changes in gold prices, through physical gold holdings and derivative instruments with underlying exposure to changes in the price of natural gas.
+Added: The following table summarizes the net impact that a 10% increase and decrease in commodity prices would have on the value of our Investment Portfolio as of September 30, 2020.
The below table excludes the indirect effect that changes in commodity prices might have on equity securities in our Investment Portfolio.
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While we do not seek to precisely match our liabilities under reinsurance policies that are payable in foreign currencies with investments denominated in such currencies, we continually monitor our exposure to potential foreign currency losses and may use foreign currency cash and cash equivalents or forward foreign currency exchange contracts in an effort to mitigate against adverse foreign currency movements.
−Removed: As of June 30, 2020, our net exposure to GBP denominated balances was £9.8 million.
−Removed: As of June 30, 2020, a 10% decrease in the U.S.
+Added: As of September 30, 2020, our net exposure to GBP denominated balances was £7.7 million.
+Added: As of September 30, 2020, a 10% decrease in the U.S.
dollar against the GBP (all else constant) would result in an estimated $1.0 million foreign exchange gain.
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We may also be exposed to foreign currency risk through SILP’s underlying cash, forwards, options and investments in securities denominated in foreign currencies.
−Removed: As of June 30, 2020, some of our currency exposure resulting from foreign denominated securities (longs and shorts) was reduced by offsetting cash balances denominated in the corresponding foreign currencies.
−Removed: As of June 30, 2020, a 10% increase or decrease in the value of the U.S.
+Added: As of September 30, 2020, some of our currency exposure resulting from foreign denominated securities (longs and shorts) was reduced by offsetting cash balances denominated in the corresponding foreign currencies.
+Added: As of September 30, 2020, a 10% increase or decrease in the value of the U.S.
dollar against foreign currencies would have no meaningful impact on the value of our Investment Portfolio.
+Added: Return to table of contents
Interest Rate Risk
4 unchanged sentences
Additionally, some of the derivative investments may also be sensitive to interest rates and their value may indirectly fluctuate with changes in interest rates.
−Removed: As of June 30, 2020, a 100 basis points increase or decrease in interest rates would have no meaningful impact on the value of our Investment Portfolio.
+Added: As of September 30, 2020, a 100 basis points increase or decrease in interest rates would have no meaningful impact on the value of our Investment Portfolio.
We, along with DME Advisors, monitor the net exposure to interest rate risk and generally do not expect changes in interest rates to have a materially adverse impact on our operations.
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We obtain collateral in the form of funds withheld, trusts and letters of credit from our counterparties to mitigate this credit risk.
−Removed: Return to table of contents
−Removed: monitor our net exposure to each counterparty relative to the financial strength of our counterparties and assess the collectibility of these balances on a regular basis.
+Added: We monitor our net exposure to each counterparty relative to the financial strength of our counterparties and assess the collectibility of these balances on a regular basis.
See Note 2 of the accompanying condensed consolidated financial statements for further details on allowance for credit loss on reinsurance assets and notes receivable.
10 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.