13 unchanged sentences
Generally, market prices of common equity securities are subject to fluctuation, which could cause the amount to be realized upon closing a position to differ significantly from its current reported value.
−Removed: This risk is partly mitigated by the presence of both long and short equity securities as part of our investment strategy.
+Added: This risk is partly mitigated by the presence of both long and short equity securities as part of Solasglas’ investment strategy.
At December 31, 2025, a 10% decline in the price of each of the underlying listed equity securities and equity-based derivative instruments would result in a $18.5 million (2024:
4 unchanged sentences
At December 31, 2025, Solasglas’ investments incorporate unhedged exposure to changes in gold, uranium, and crude oil prices.
−Removed: The following table summarizes the net impact that a 10% movement in commodity prices would have on the fair value of Solasglas’ investment portfolio.
+Added: The following table summarizes the net impact that a 10% adverse movement in commodity prices would have on the fair value of Solasglas’ investment portfolio at December 31, 2025.
The below table excludes the indirect effect that changes in commodity prices might have on equity securities in the Solasglas’ investment portfolio.
−Removed: 10% increase in commodity prices 10% decrease in commodity prices
At December 31,
−Removed: ($ in millions)
Gold $ (9,074) $ (5,874)
−Removed: Uranium 0.4 (0.4)
−Removed: Total $ 9.2 $ (7.0)
−Removed: 10% increase in commodity prices 10% decrease in commodity prices
−Removed: At December 31, 2023
−Removed: ($ in millions)
−Removed: Gold $ 3.8 $ (3.8)
+Added: Copper (1,770) (706)
Uranium (574) (427)
−Removed: Crude oil 1.6 (1.5)
Total $ (11,418) $ (7,007)
−Removed: Return to table of contents
Foreign Currency Risk
3 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.
+Added: Return to table of contents
Certain cedents, particularly the Lloyd’s syndicates, report to us in foreign currencies even though some or all of the underlying exposure is denominated in U.S.
3 unchanged sentences
We monitor our foreign currency-denominated assets and liabilities on an “underlying exposure” basis without distinguishing between monetary and non-monetary balances.
−Removed: The following table summarizes the net impact of a hypothetical 10% currency rate movement relating to our primary foreign denominated reinsurance net assets or liabilities (including balances held at Lloyd's):
+Added: The following table table presents a sensitivity analysis of our total net foreign currency exposures presented in USD equivalent:
+Added: GBP EUR Other Total
At December 31, 2025
−Removed: Net Asset (Liability) Exposure 10% increase in currency rate 10% decrease in currency rate
−Removed: GBP £ 33,117 $ (4,143) $ 4,143
−Removed: Euro € (22,814) 2,361 (2,361)
−Removed: Total foreign exchange gain (loss)
−Removed: $ (1,782) $ 1,782
+Added: Reinsurance assets (liabilities) $ 70,299 $ (27,226) $ 1,196 $ 44,269
+Added: Cash and cash equivalents 8,068 2,761 3,955 14,784
+Added: Net foreign currency exposure $ 78,367 $ (24,465) $ 5,151 $ 59,053
+Added: Pre-tax impact of hypothetical 10% increase in USD $ (7,837) $ 2,447 $ (515) $ (5,905)
At December 31, 2024
−Removed: Net Asset (Liability) Exposure 10% increase in currency rate 10% decrease in currency rate
−Removed: GBP £ 25,337 $ (3,228) $ 3,228
−Removed: Euro € (13,975) 1,543 (1,543)
−Removed: Total foreign exchange gain (loss)
−Removed: $ (1,685) $ 1,685
+Added: Reinsurance assets (liabilities) $ 36,677 $ (23,624) $ (3,191) $ 9,862
+Added: Cash and cash equivalents 17,149 1,315 824 19,288
+Added: Net foreign currency exposure $ 53,826 $ (22,309) $ (2,367) $ 29,150
+Added: Pre-tax impact of hypothetical 10% increase in USD $ (5,383) $ 2,231 $ 237 $ (2,915)
Investment in Solasglas
1 unchanged sentence
At December 31, 2025, most of Solasglas’ currency exposures resulting from foreign-denominated securities (longs and shorts) were reduced by offsetting cash balances denominated in the corresponding foreign currencies.
−Removed: At December 31, 2024 and 2023, a 10% increase or decrease in the value of the U.S.
−Removed: dollar against foreign currencies would have no meaningful impact on our investment in Solasglas.
+Added: At December 31, 2025, a 10% increase in the value of the U.S.
+Added: dollar against foreign currencies (mostly Euro) would result in a $3.2 million unrealized loss on our investment in Solasglas (2024 - negligible).
Interest Rate Risk
The primary market risk exposure for any debt instrument is interest rate risk, including credit spreads.
−Removed: Return to table of contents
−Removed: Most of our interest rate risk relates to interest rate derivatives held in Solasglas, and their value may fluctuate with changes in interest rates.
+Added: Investment in Solasglas
Our investment in Solasglas includes interest-rate sensitive securities, such as corporate and sovereign debt instruments and interest rate derivatives.
−Removed: At December 31, 2024, a 100 basis points (increase or decrease) in interest rates would have no meaningful impact on our investment in Solasglas.
−Removed: Additionally, we use interest rate swaps to hedge 50% of the interest rate risk relating to the the outstanding Term Loans.
−Removed: At December 31, 2024, a 100 basis points (increase or decrease) in interest rates would have no meaningful impact on these interest rate swaps.
+Added: At December 31, 2025, a 100 basis points increase in interest rates would result in a $20.5 million unrealized loss on our investment in Solasglas (2024:
+Added: The significant increase compared to 2024 was due to Solasglas’s long position in three-month Secured Overnight Financing Rate (“SOFR”) futures.
+Added: Return to table of contents
+Added: Fixed Maturities
+Added: The following table presents the estimated pre-tax impact on the fair value of fixed maturities due to an increase in the U.S.
+Added: yield curve of 100 basis points and an additional 100 basis points credit spread widening for corporate debt, ABS, non-agency RMBS, and municipal bond securities.
+Added: Potential adverse change in fair value
+Added: Fair value Increase in interest rate by 100 basis points Widening of credit spreads by 100 basis points Total
+Added: At December 31, 2025
+Added: government and agencies $ 17,979 $ (436) $ (436)
+Added: Agency RMBS 18,258 (485) (485)
+Added: Securities exposed to credit spreads:
+Added: Corporate bonds 9,769 (297) (306) (603)
+Added: ABS 5,565 (53) (102) (155)
+Added: Non-agency RMBS 600 (30) (29) (59)
+Added: Municipal bonds 857 (30) (30) (60)
+Added: Total fixed maturity portfolio $ 53,028 $ (1,331) $ (467) $ (1,798)
+Added: government agencies and agency RMBS have a limited range of spread widening.
+Added: Accordingly, 100 basis points of spread widening for these securities is highly improbable under normal market conditions.
+Added: The interest rate risk exposure relating to the Liquidity fund is minimal due to the short duration nature of the underlying fixed maturity securities.
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.
4 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.