23 unchanged sentences
This typically occurs when rates fall below the interest rate of the debt.
−Removed: The carrying value of our investment portfolio as of December 31, 2019 and 2018 was $1,141 million and $911 million , respectively, of which 100% was invested in fixed maturity securities.
+Added: The carrying value of our investment portfolio as of December 31, 2020 and 2019 was $1.8 billion and $1.1 billion, respectively, of which 100% was invested in fixed maturity securities.
The primary market risk to our investment portfolio is interest rate risk associated with investments in fixed maturity securities.
2 unchanged sentences
Excluding cash, our fixed income portfolio duration was 4.98 years, which means that an instantaneous parallel shift (movement up or down) in the yield curve of 100 basis points would result in a change of 4.98% in fair value of our fixed income portfolio.
−Removed: We are also subject to market risk related to our 2018 Term Loan and the ILN Transactions.
−Removed: As discussed in Item 8, " Financial Statements - Notes to Consolidated Financial Statements - Note 5, Debt, " the 2018 Term Loan bears interest at a variable rate and, as a result, increases in market interest rates would generally result in increased interest expense on our outstanding principal.
+Added: We are also subject to market risk related to the ILN Transactions.
The risk premium amounts under the ILN Transactions are calculated by multiplying the outstanding reinsurance coverage amount at the beginning of any payment period by a coupon rate, which is the sum of 1-month LIBOR and a risk margin, and then subtracting actual investment income earned on the trust balance during that payment period.
2 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.