120 unchanged sentences
However, assessing the risk of loss and damage and the range of approaches to address the adverse effects of climate change, including impacts related to extreme weather events and slow onset events, remains a challenge and may materially adversely impact our business, financial condition and results of operations.
−Removed: Risks Related to Market Conditions
+Added: Risks Related to Market Conditions and our Business Operations
Adverse economic factors, including recession, inflation, periods of high unemployment or lower economic activity could result in the sale of fewer policies than expected or an increase in frequency or severity of claims and premium defaults or both, which, in turn, could affect our growth and profitability.
44 unchanged sentences
We distribute the majority of our products through a select group of brokers.
−Removed: Of our 2021 gross written premiums, 56.3%, or $430.3 million, were distributed through five of our approximately 159 brokers, two of which accounted for 33.5%, or $255.7 million, of our 2021 gross written premiums.
+Added: Of our 2022 gross written premiums, 58.5%, or $644.6 million, were distributed through five of our approximately 179 brokers, three of which accounted for 45.4%, or $500.0 million, of our 2022 gross written premiums.
Our relationship with any of these brokers may be discontinued at any time.
140 unchanged sentences
Our results of operations depend, in part, on the performance of our investment portfolio.
−Removed: We seek to hold a high-quality, diversified portfolio of investments that is managed by professional investment advisory management firms in accordance with our investment policy and routinely reviewed by our Investment Committee.
+Added: We seek to hold a high-quality, diversified portfolio of investments that is largely managed by professional investment advisory management firms in accordance with our investment policy and routinely reviewed by our Investment Committee.
However, our investments are subject to general economic conditions and market risks as well as risks inherent to particular securities.
Our primary market risk exposures are to changes in interest rates and equity prices.
−Removed: See "Management's Discussion and Analysis of Financial Condition and Results of Operation — Quantitative and Qualitative Disclosures About Market Risk." In recent years, interest rates have been at or near historic lows.
−Removed: The protracted low interest rate environment continues to place pressure on our net investment income, particularly as it relates to fixed-maturity securities and short-term investments, which, in turn, may adversely affect our operating results.
−Removed: Future increases in interest rates could cause the values of our fixed-maturity securities portfolios to decline, with the magnitude of the decline depending on the duration of securities included in our portfolio and the amount by which interest rates increase.
+Added: See "Management's Discussion and Analysis of Financial Condition and Results of Operation — Quantitative and Qualitative Disclosures About Market Risk." A protracted low interest rate environment would place pressure on our net investment income, particularly as it relates to fixed-maturity securities and short-term investments, which, in turn, may adversely affect our operating results.
+Added: Increases in interest rates could cause the values of our fixed-maturity securities portfolios to decline, thereby negatively impacting our book value.
+Added: The magnitude of the decline depends on the duration of securities included in our portfolio and the amount by which interest rates increase.
Some fixed-maturity securities have call or prepayment options, which create possible reinvestment risk in declining rate environments.
2 unchanged sentences
Downgrades in the credit ratings of fixed maturities also have a significant negative effect on the market valuation of such securities.
−Removed: Such factors could reduce our net investment income and result in realized investment losses.
Our investment portfolio is subject to increased valuation uncertainties when investment markets are illiquid.
−Removed: The valuation of investments is more
−Removed: subjective when markets are illiquid, thereby increasing the risk that the estimated fair value (i.e., the carrying amount) of the securities we hold in our portfolio does not reflect prices at which actual transactions would occur.
+Added: The valuation of investments is more subjective when markets are illiquid, thereby increasing the risk that the estimated fair
+Added: value (i.e., the carrying amount) of the securities we hold in our portfolio does not reflect prices at which actual transactions would occur.
We also invest in marketable equity securities.
21 unchanged sentences
Sales could result in significant realized losses depending on the conditions of the general market, interest rates and credit issues with individual securities.
+Added: Our credit agreements contain financial and other covenants, the breach of any of which could result in acceleration of payment of amounts due under our borrowings.
+Added: As of December 31, 2022, we had outstanding borrowings of $195.7 million, net of debt issuance costs, in the aggregate under our two bank credit agreements.
+Added: The agreements contain certain financial covenants that require us to maintain consolidated net worth in excess of a specified minimum amount, a leverage ratio as of the end of any fiscal quarter not in excess of 0.35 to 1, and minimum liquidity requirements if the maximum aggregate amount of dividends available to pay to us from Kinsale Insurance is below $50.0 million.
+Added: The agreements contain other covenants which, among other things, require ongoing compliance with applicable insurance regulations and require our regulated insurance subsidiary to maintain a rating from A.M.
+Added: Best not lower than an A-.
+Added: A breach of any of these covenants could result in acceleration of
+Added: our obligations to repay our outstanding indebtedness under such agreements if we are unable to obtain a waiver or amendment from our lenders, and otherwise could impair our ability to borrow funds or result in higher borrowing costs.
We may require additional capital in the future, which may not be available or may only be available on unfavorable terms.
5 unchanged sentences
In any case, such securities may have rights, preferences and privileges that are senior to those of the shares of common stock currently outstanding.
−Removed: If we cannot obtain adequate capital on favorable
−Removed: terms or at all, we may not have sufficient funds to implement our operating plans and our business, financial condition or results of operations could be materially adversely affected.
+Added: If we cannot obtain adequate capital on favorable terms or at all, we may not have sufficient funds to implement our operating plans and our business, financial condition or results of operations could be materially adversely affected.
Risks Related to Regulation
25 unchanged sentences
Any additional regulations established as a result of the Dodd-Frank Act could increase our costs of compliance or lead to disciplinary action.
−Removed: In addition, legislation has been introduced from
−Removed: time to time that, if enacted, could result in the federal government assuming a more direct role in the regulation of the insurance industry, including federal licensing in addition to or in lieu of state licensing and requiring reinsurance for natural catastrophes.
+Added: In addition, legislation has been introduced from time to time that, if enacted, could result in the federal government assuming a more direct role in the regulation of the insurance industry, including federal licensing in addition to or in lieu of state licensing and requiring reinsurance for natural catastrophes.
We are unable to predict whether any legislation will be enacted or any regulations will be adopted, or the effect any such developments could have on our business, financial condition or results of operations.
3 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.