ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our investment portfolios at March 31, 2021 included fixed-maturity and equity securities, the purposes of which are not for speculation.
+Added: Our investment portfolios at June 30, 2021 included fixed-maturity and equity securities, the purposes of which are not for speculation.
Our main objective is to maximize after-tax investment income and maintain sufficient liquidity to meet our obligations while minimizing market risk, which is the potential economic loss from adverse fluctuations in securities prices.
12 unchanged sentences
We manage the risk by analyzing anticipated movement in interest rates and considering our future capital needs.
−Removed: The following table illustrates the impact of hypothetical changes in interest rates to the fair value of our fixed-maturity securities at March 31, 2021 (amounts in thousands):
+Added: The following table illustrates the impact of hypothetical changes in interest rates to the fair value of our fixed-maturity securities at June 30, 2021 (amounts in thousands):
Hypothetical Change in Interest Rates
8 unchanged sentences
While we emphasize credit quality in our investment selection process, significant downturns in the markets or general economy may impact the credit quality of our portfolio.
−Removed: The following table presents the composition of our fixed-maturity securities, by rating, at March 3 1 , 202 1 (amounts in thousands):
+Added: The following table presents the composition of our fixed-maturity securities, by rating, at June 30 , 202 1 (amounts in thousands):
Comparable Rating
2 unchanged sentences
Equity Price Risk
−Removed: Our equity investment portfolio at March 31, 2021 included common stocks, perpetual preferred stocks, mutual funds and exchange traded funds.
+Added: Our equity investment portfolio at June 30, 2021 included common stocks, perpetual preferred stocks, mutual funds and exchange traded funds.
We may incur losses due to adverse changes in equity security prices.
We manage the risk primarily through industry and issuer diversification and asset mix.
−Removed: The following table illustrates the composition of our equity securities at March 31, 2021 (amounts in thousands):
+Added: The following table illustrates the composition of our equity securities at June 30, 2021 (amounts in thousands):
Stocks by sector:
2 unchanged sentences
Foreign Currency Exchange Risk
−Removed: At March 31, 2021, we did not have any material exposure to foreign currency related risk.
+Added: At June 30, 2021, we did not have any material exposure to foreign currency related risk.
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.