1 unchanged sentence
Qualitative and Quantitative Disclosures About Market Risk
−Removed: We believe the Company’s exposure to market related risk arises primarily from:
−Removed: interest rate risk, credit spread risk, foreign currency risk and inflation.
+Added: We believe the Company’s exposure to market related risk arises primarily from interest rate risk, credit spread risk, foreign currency risk and inflation.
We performed a sensitivity analysis to estimate the effects that market risk exposures could have on the future earnings, fair values or cash flows at December 31, 2024 and 2023.
10 unchanged sentences
While this matching of duration reduces the economic impact of interest rate changes on the Company, changes in interest rates do impact our shareholders’ equity because our liabilities are carried at their nominal value, and are not adjusted for changes in interest rates.
−Removed: The following tables summarize the aggregate hypothetical increase (decrease) in the fair value of the Company’s fixed maturity and short-term investments trading portfolio from an immediate parallel shift in the treasury yield curve, assuming credit spreads remain constant, and reflecting the use of an immediate time horizon, since this presents the worst-case scenario:
−Removed: (Expressed in thousands of U.S.
−Removed: Dollars) Interest Rate Shift in Basis Points
+Added: The following tables summarize the aggregate hypothetical increase (decrease) in the fair value of the Company’s fixed maturity trading portfolio and short-term investments from an immediate parallel shift in the treasury yield curve, assuming credit spreads remain constant, and reflecting the use of an immediate time horizon, since this presents the worst-case scenario:
+Added: ($ in thousands) Interest Rate Shift in Basis Points
December 31, 2024 -100 -50 Base 50 100
3 unchanged sentences
Net increase (decrease) in fair value $86,062 $42,716 $— $(43,136) $(85,783)
−Removed: (Expressed in thousands of U.S.
−Removed: Dollars) Interest Rate Shift in Basis Points
+Added: ($ in thousands) Interest Rate Shift in Basis Points
December 31, 2023 -100 -50 Base 50 100
6 unchanged sentences
As credit spreads widen, the fair value of our fixed maturity and short-term investments trading portfolio decreases, and vice versa.
−Removed: The following tables summarize the aggregate hypothetical increase (decrease) in the fair value of the Company’s fixed maturity investments and short-term investments trading portfolio from an immediate parallel shift in credit spreads, assuming the treasury yield curve remains constant, reflecting the use of an immediate time horizon since this presents the worst-case scenario:
−Removed: (Expressed in thousands of U.S.
−Removed: Dollars) Credit Spread Shift in Basis Points
+Added: The following tables summarize the aggregate hypothetical increase (decrease) in the fair value of the Company’s fixed maturity trading portfolio and short-term investments from an immediate parallel shift in credit spreads, assuming the treasury yield curve remains constant, reflecting the use of an immediate time horizon since this presents the worst-case scenario:
+Added: ($ in thousands) Credit Spread Shift in Basis Points
December 31, 2024 -100 -50 Base 50 100
3 unchanged sentences
Net increase (decrease) in fair value $55,872 $27,831 $— $(28,654) $(57,206)
−Removed: (Expressed in thousands of U.S.
−Removed: Dollars) Credit Spread Shift in Basis Points
+Added: ($ in thousands) Credit Spread Shift in Basis Points
December 31, 2023 -100 -50 Base 50 100
4 unchanged sentences
Investment in Two Sigma Funds
−Removed: We hold investments in the following Two Sigma Funds:
+Added: At December 31, 2024, we hold investments in the following Two Sigma Funds:
FTV, STV and ESTV.
4 unchanged sentences
Assuming a hypothetical 10% and 30% increase or decrease in the value of our investments in Two Sigma Funds as of December 31, 2024, the carrying value of these investments would have increased or decreased by approximately $93.9 million and $281.8 million, pre-tax, respectively.
+Added: Assuming the same hypothetical 10% and 30% increase or decrease as of December 31, 2023, the carrying value of our investments in Two Sigma Funds would have increased or decreased by approximately $85.1 million and $255.4 million, pre-tax, respectively.
Foreign Currency Risk
9 unchanged sentences
Dollar foreign currency underwriting related assets and liabilities with investments and cash in the same currencies to manage our exposure to foreign currency fluctuations and reduce the volatility of foreign exchange gains and losses on our results of operations.
−Removed: See Note 2(1) Foreign Exchange in the audited consolidated financial statements for additional information.
+Added: See Note 2(k) Foreign Exchange in the accompanying audited consolidated financial statements for additional information.
The following table summarizes the estimated effects that a hypothetical 10% movement in the value of the U.S.
Dollar against select foreign currencies would have had on the carrying value of our net assets:
−Removed: December 31, 2023
−Removed: (Expressed in millions of U.S.
−Removed: Dollars) -10% +10%
+Added: ($ in millions) -10% +10% -10% +10%
GBP $ (2.0) $ 2.0 $ 3.5 $ (3.5)
5 unchanged sentences
Historically, inflation has not had a material effect on the Company’s consolidated results of operations.
−Removed: However, global economic inflation has recently increased and there is a risk that it will remain elevated for an extended period.
−Removed: Inflation is subject to many macroeconomic factors beyond our control, including global banking policy, political risks, supply chain issues, and the continuing impact of the COVID-19 pandemic.
−Removed: An inflationary economy may result in higher claims and claims expenses, negatively impact the performance of our fixed income security investment portfolio, or increase our operating expenses, among other unfavorable effects.
+Added: However, over the last several years, global economic inflation has increased, and there is a risk that it will remain elevated for an extended period.
+Added: Inflation is subject to many macroeconomic factors beyond our control, including global banking policy, political risks and supply chain issues.
+Added: An inflationary economy may result in higher losses and loss adjustment expenses, negatively impact the performance of our fixed income security investment portfolio, or increase our operating expenses, among other unfavorable effects.
The ultimate effects of an inflationary or deflationary period are subject to high uncertainty and cannot be accurately estimated until the actual costs are known.
6 unchanged sentences
At December 31, 2024, there were no recently issued accounting pronouncements that have not yet been adopted that management expects would have a material impact on the Company’s results of operations, financial condition or liquidity.
−Removed: See Note 2(s), Recent Accounting Pronouncements in the audited consolidated financial statements.
+Added: See Note 2(r), Recent Accounting Pronouncements in the accompanying audited consolidated financial statements.
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.