11 unchanged sentences
Such restructuring may cause investments to be liquidated when market conditions are adverse.
−Removed: Additionally, the changes in Eurodollar based interest rates affect the interest expense related to the Company's debt.
+Added: Additionally, the changes in SOFR based interest rates affect the interest expense related to the Company's debt.
• Changes to the term structure of interest rates .
3 unchanged sentences
Deterioration in the quality of investments, identified through changes to our own or third-party ( e.g.
−Removed: , rating agency) assessments, will reduce the value and potentially the liquidity of investments.
+Added: , rating agency or investment advisors) assessments, will reduce the value and potentially the liquidity of investments.
• Concentration Risk .
3 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, 2022 and 2021 was $2.1 billion, of which 100% was invested in fixed maturity securities.
+Added: The carrying value of our investment portfolio as of December 31, 2023 and 2022 was $2.4 billion and $2.1 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.
4 unchanged sentences
As discussed in Item 8, " Financial Statements - Notes to Consolidated Financial Statements - Note 5, Debt " the 2021 Revolving Credit Facility 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 drawn balance.
−Removed: 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 one-month LIBOR or SOFR, as applicable, and a risk margin, and then subtracting actual investment income earned on the trust balance during that payment period.
−Removed: An increase in one-month LIBOR or SOFR, as applicable, would generally increase the risk premium payments, while an increase to money market rates, which directly affect investment income earned on the trust balance, would generally decrease them.
+Added: 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 one-month SOFR, as applicable, and a risk margin, and then subtracting actual investment income earned on the trust balance during that payment period.
+Added: An increase in one-month SOFR, as applicable, would generally increase the risk premium payments, while an increase to money market rates, which directly affect investment income earned on the trust balance, would generally decrease them.
Although we expect the two rates to move in tandem, to the extent they do not, it could increase or decrease the risk premium payments that otherwise would be due.
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.