9 unchanged sentences
Equity Price Risk
−Removed: At June 30, 2021, our investments consisted primarily of an investment in SILP.
+Added: At September 30, 2021, 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.
1 unchanged sentence
This risk is partly mitigated by the presence of both long and short equity securities as part of our investment strategy.
−Removed: At June 30, 2021, a 10% decline in the price of each of the underlying listed equity securities and equity-based derivative instruments would result in a $7.5 million loss to our Investment Portfolio.
+Added: At September 30, 2021, a 10% decline in the price of each of the underlying listed equity securities and equity-based derivative instruments would result in a $6.9 million loss to our Investment Portfolio.
Computations of the prospective effects of hypothetical equity price changes are based on numerous assumptions, including the maintenance of the current composition of SILP’s portfolio.
3 unchanged sentences
SILP’s investments periodically include long or short investments in commodities or derivatives directly impacted by fluctuations in the prices of commodities.
−Removed: At June 30, 2021, SILP’s investments incorporate unhedged exposure to changes in gold, silver, and crude oil prices.
−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 at June 30, 2021.
+Added: At September 30, 2021, SILP’s investments incorporate unhedged exposure to changes in gold, silver, and crude oil prices.
+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 at September 30, 2021.
The below table excludes the indirect effect that changes in commodity prices might have on equity securities in our Investment Portfolio.
11 unchanged sentences
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 to mitigate against adverse foreign currency movements.
−Removed: At June 30, 2021, our exposure to GBP denominated net asset balance was £25.7 million.
−Removed: At June 30, 2021, a 10% decrease in the U.S.
+Added: At September 30, 2021, our exposure to GBP denominated net reinsurance asset balance was £1.8 million.
+Added: At September 30, 2021, a 10% decrease in the U.S.
dollar against the GBP (all else constant) would result in an estimated $0.2 million foreign exchange gain.
Alternatively, a 10% increase in the U.S dollar against the GBP would result in an estimated $0.2 million foreign exchange loss.
−Removed: Similarly, at June 30, 2021, our net exposure to Euro-denominated liability balances was €1.5 million.
−Removed: At June 30, 2021, a 10% decrease in the U.S.
+Added: Similarly, at September 30, 2021, our net exposure to Euro-denominated reinsurance liability balances was €4.8 million.
+Added: At September 30, 2021, a 10% decrease in the U.S.
dollar against the Euro (all else constant) would result in an estimated $0.5 million foreign exchange loss.
1 unchanged sentence
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: At June 30, 2021, a majority 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: At June 30, 2021, a 10% increase or decrease in the value of the U.S.
+Added: At September 30, 2021, most of our currency exposures resulting from foreign denominated securities (longs and shorts) were reduced by offsetting cash balances denominated in the corresponding foreign currencies.
+Added: At September 30, 2021, 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.
5 unchanged sentences
Similarly, falling interest rates generally lead to increases in the fair value of fixed-income securities.
−Removed: 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: At June 30, 2021, SILP’s investments included interest rate options expiring in September 2021 which were exposed to movements in the 3-month LIBOR interest rates (“LIBOR”).
−Removed: If the LIBOR interest rates decreased by 15 basis points to 0%, the value of our Investment Portfolio would decrease by $2.9 million.
−Removed: If the LIBOR interest rates increased by 100 basis points, it would have no meaningful impact on the value of our Investment Portfolio.
+Added: Additionally, some derivative investments may be sensitive to interest rates, and their value may indirectly fluctuate with changes in interest rates.
+Added: As of September 30, 2021, 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.
15 unchanged sentences
Risk Factors - We could face unanticipated losses from political instability which could have a material adverse effect on our financial condition and results of operations” included in our Form 10-K for the fiscal year ended December 31, 2020.
−Removed: Return to table of contents
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.