5 unchanged sentences
We have exposure to credit risk as a holder of fixed-maturity investments.
−Removed: Our risk management strategy and investment policy are to primarily invest in debt instruments of high credit quality issuers and to limit the amount of credit exposure with respect to particular ratings categories and any one issuer.
−Removed: At December 31, 2020, our fixed-maturity portfolio, including cash equivalents, had an average rating of "AA-," with approximately 81.6% of securities in that portfolio rated "A" or better by at least one nationally recognized rating organization.
+Added: Our risk management strategy and investment policy are designed to primarily invest in debt instruments of high credit quality issuers and to limit the amount of credit exposure with respect to particular ratings categories and any one issuer.
+Added: At December 31, 2021, our fixed-maturity portfolio, including cash equivalents, had an average rating of "AA-." Additionally, at December 31, 2021, approximately 81.5% of our fixed-maturity portfolio, excluding cash equivalents, was rated "A-" or better by at least one nationally recognized rating organization.
Our policy is to invest in investment grade securities and to minimize investments in fixed maturities that are unrated or rated below investment grade.
9 unchanged sentences
Interest rate risk is the risk that we will incur economic losses due to adverse changes in interest rates.
−Removed: The primary market risk to the investment portfolio is interest rate risk associated with investments in fixed-maturity securities and nonredeemable preferred stock.
+Added: The primary market risk to the investment portfolio is interest rate risk associated with investments in fixed-maturity securities and non-redeemable preferred stock.
Fluctuations in interest rates have a direct effect on the market valuation of these securities.
−Removed: When market interest rates rise, the fair value of our fixed-maturity securities and nonredeemable preferred stock decreases.
−Removed: Conversely, as interest rates fall, the fair value of our fixed-maturity securities and nonredeemable preferred stock increases.
+Added: When market interest rates rise, the fair value of our fixed-maturity securities and non-redeemable preferred stock decreases.
+Added: Conversely, as interest rates fall, the fair value of our fixed-maturity securities and non-redeemable preferred stock increases.
We manage this interest rate risk by investing in securities with varied maturity dates and by managing the duration of our investment portfolio to the duration of our reserves.
2 unchanged sentences
The effective weighted-average duration of the portfolio, including cash equivalents, was 4.3 years as of December 31, 2021.
−Removed: We had fixed-maturity securities and nonredeemable preferred stock with a fair value of $1.1 billion at December 31, 2020 and $753.4 million at December 31, 2019 that were subject to interest rate risk.
−Removed: The table below illustrates the sensitivity of the fair value of our fixed-maturity securities and nonredeemable preferred stock to selected hypothetical changes in interest rates as of December 31, 2020 and 2019.
+Added: We had fixed-maturity securities and non-redeemable preferred stock with a fair value of $1.4 billion at December 31, 2021 and $1.1 billion at December 31, 2020 that were subject to interest rate risk.
+Added: The table below illustrates the sensitivity of the fair value of our fixed-maturity securities and non-redeemable preferred stock to selected hypothetical changes in interest rates as of December 31, 2021 and 2020.
December 31, 2021 December 31, 2020
24 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.