9 unchanged sentences
Equity Price Risk
−Removed: At June 30, 2022, our investments consisted primarily of an investment in SILP.
+Added: At September 30, 2022, 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, 2022, a 10% decline in the price of each of the underlying listed equity securities and equity-based derivative instruments would result in a $3.4 million loss to our Investment Portfolio.
+Added: At September 30, 2022, a 10% decline in the price of each of the underlying listed equity securities and equity-based derivative instruments would result in a $2.2 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, 2022, SILP’s investments incorporate unhedged exposure to changes in gold, silver, uranium 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, 2022.
+Added: At September 30, 2022, SILP’s investments incorporate unhedged exposure to changes in gold, silver, uranium 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, 2022.
The below table excludes the indirect effect that changes in commodity prices might have on equity securities in our Investment Portfolio.
14 unchanged sentences
Our condensed consolidated statements of operations may report a foreign exchange gain or loss associated with this exposure when reported by the cedents.
−Removed: However, as we monitor our foreign currency denominated assets and liabilities on an “underlying exposure” basis, exposure to underlying U.S.
−Removed: dollar balances does not represent a material foreign currency risk.
−Removed: At June 30, 2022, our underlying exposure to GBP denominated net reinsurance asset balance was £14.0 million.
−Removed: At June 30, 2022, a 10% decrease in the U.S.
+Added: Additionally, we may report foreign exchange gains or losses due to the mismatch between the currency exchange rates applied to foreign-denominated (i) monetary balances and (ii) non-monetary balances under U.S.
+Added: See Note 2 of the accompanying condensed consolidated financial statements for further information regarding our accounting treatment of foreign currency transactions.
+Added: We monitor our foreign currency-denominated assets and liabilities on an “underlying exposure” basis without distinguishing between monetary and non-monetary balances.
+Added: Return to table of contents
+Added: At September 30, 2022, our underlying exposure to GBP denominated net reinsurance asset balance was £5.9 million.
+Added: At September 30, 2022, a 10% decrease in the U.S.
dollar against the GBP (all else constant) would result in an estimated $0.7 million foreign exchange gain.
Alternatively, a 10% increase in the U.S dollar against the GBP would result in an estimated $0.7 million foreign exchange loss.
−Removed: Similarly, at June 30, 2022, our net underlying exposure to Euro-denominated reinsurance liability balances was €5.8 million.
−Removed: At June 30, 2022, a 10% decrease in the U.S.
+Added: Similarly, at September 30, 2022, our net underlying exposure to Euro-denominated reinsurance liability balances was €11.6 million.
+Added: At September 30, 2022, a 10% decrease in the U.S.
dollar against the Euro (all else constant) would result in an estimated $1.1 million foreign exchange loss.
Alternatively, a 10% increase in the U.S dollar against the Euro would result in an estimated $1.1 million foreign exchange gain.
−Removed: Return to table of contents
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, 2022, most of SILP’s currency exposures resulting from foreign denominated securities (longs and shorts) were reduced by offsetting cash balances denominated in the corresponding foreign currencies.
−Removed: At June 30, 2022, a 10% increase or decrease in the value of the U.S.
+Added: At September 30, 2022, most of SILP’s 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, 2022, 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.
6 unchanged sentences
These syndicates invest a portion of the premiums withheld in fixed-income and variable-yield securities, which expose us to interest rate risk.
−Removed: At June 30, 2022, a 100 basis points increase or decrease in interest rates would result in an estimated $1.3 million loss or gain, respectively, which would be recorded in our condensed consolidated statements of operations under the captions “Other income (expense).”
+Added: At September 30, 2022, a 100 basis points increase or decrease in interest rates would result in an estimated $1.6 million loss or gain, respectively, which would be recorded in our condensed consolidated statements of operations under the captions “Other income (expense).”
+Added: Our restricted cash and cash equivalents earn interest at rates that generally follow the movements of the short-term U.S.
+Added: Treasury rates.
+Added: At September 30, 2022, a 100 basis points increase or decrease in U.S.
+Added: Federal Funds Rate would result in approximately $4.8 million, increase or decrease, respectively, in our interest income on an annualized basis.
Our investment in SILP includes interest-rate sensitive securities, such as corporate and sovereign debt instruments and interest rate options.
−Removed: At June 30, 2022, a 100 basis points increase or decrease in interest rates would result in a $0.2 million loss or a $0.9 million loss, respectively, to our Investment Portfolio.
+Added: At September 30, 2022, a 100 basis points increase or decrease in interest rates would result in a $1.1 million gain or a $1.7 million loss, respectively, to 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.
7 unchanged sentences
While we have no direct control over SILP, DME Advisors regularly monitors the concentration of credit risk with each counterparty and, if appropriate, transfers cash or securities between counterparties or requests collateral to diversify and mitigate this credit risk.
+Added: Return to table of contents
Political Risk
6 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, 2021.
−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.