9 unchanged sentences
Interest rate risk also represents a market risk factor affecting our consolidated financial position due to our significant investment portfolio, consisting primarily of fixed maturity securities of investment-grade quality with a weighted average S&P credit rating of AA- at December 31, 2022.
−Removed: Our net unrealized position decreased $457 million from a net unrealized gain position of $514 million at December 31, 2020 to a net unrealized gain position of $57 million at December 31, 2021.
−Removed: At December 31, 2021, we had gross unrealized losses of $161 million on our investment portfolio primarily due to an increase in market interest rates since the time the securities were purchased.
+Added: Our net unrealized position decreased $1.7 billion from a net unrealized gain position of $57 million at December 31, 2021 to a net unrealized loss position of $1.7 billion at December 31, 2022.
+Added: At December 31, 2022, we had gross unrealized losses of $1.7 billion on our investment portfolio primarily due to an increase in market interest rates since the time the securities were purchased.
We did not record any material credit allowances for debt securities that were in an unrealized loss position during 2022 and 2021.
6 unchanged sentences
Based on the duration including cash equivalents, a 1% increase in interest rates would generally decrease the December 31, 2022 fair value of our securities by approximately $603 million.
−Removed: We have also evaluated the impact on our investment income and interest expense resulting from a hypothetical change in interest rates of 100, 200, and 300 basis points over the next twelve-month period, as reflected in the
−Removed: following table.
+Added: We have also evaluated the impact on our investment income and interest expense resulting from a hypothetical change in interest rates of 100, 200, and 300 basis points over the next twelve-month period, as reflected in the following table.
The evaluation was based on our investment portfolio and our outstanding indebtedness at December 31, 2022 and 2021.
2 unchanged sentences
This evaluation measures parallel shifts in interest rates and may not account for certain unpredictable events that may affect interest income, including unexpected changes of cash flows into and out of the portfolio, changes in the asset allocation, including shifts between taxable and tax-exempt securities, spread changes specific to various investment categories and the mix of short-term versus long-term debt.
−Removed: In the past ten years, changes in 10 year US treasury rates during the year have not exceeded 300 basis points, have changed between 200 and 300 basis points 0, have changed between 100 and 200 basis points 4, and have changed by less than 100 basis points 6.
+Added: In the past ten years, changes in 10 year US treasury rates during the year have not exceeded 300 basis points, have changed between 200 and 300 basis points once, have changed between 100 and 200 basis points four times, and have changed by less than 100 basis points five times.
Increase (decrease) in
15 unchanged sentences
Pretax $ (39) $ (22) $ (8) $ 36 $ 72 $ 108
−Removed: (a) As of December 31, 2021 and 2020, some of our investments had interest rates below 1% and 2%, respectively, so the assumed hypothetical change in pretax earnings does not reflect the full 1% and 2%, respectively, point reduction.
+Added: (a) As of December 31, 2022, none of our investments had interest rates below 1%.
+Added: As of December 31, 2021, some of our investments had interest rates below 1% , so the assumed hypothetical change in pretax earnings does not reflect the full 1% point reduction.
(b) The interest rate under our senior notes, which represent 90% of total debt, is fixed, unaffected by changes in interest rates.
−Removed: We had $2.5 billion of variable rate term loans at December 31, 2021, used to fund the August 2021 KAH acquisition.
−Removed: There were no term loans at December 31, 2020.
+Added: We had $500 million and $2.5 billion of variable rate term loans at December 31, 2022 and December 31, 2021, respectively, used to fund the August 2021 KAH acquisition.
There were no borrowings outstanding under the credit agreement at December 31, 2022 or December 31, 2021.
There was $595 million and $955 million outstanding under our commercial paper program at December 31, 2022 and 2021, respectively.
−Removed: As of December 31, 2021 and 2020, our interest rate under our commercial paper program was less than 1% so the assumed hypothetical change in pretax earnings does not reflect the full 1% point reduction.
+Added: As of December 31, 2022, our interest rate under our commercial paper program was not less than 1%.
+Added: As of December 31, 2021, our interest rate under our commercial paper program was less than 1% so the assumed hypothetical change in pretax earnings does not reflect the full 1% point reduction.
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.