Quantitative and Qualitative Disclosures About Market Risk
−Removed: We are exposed to certain credit and interest rate risks as part of our ongoing business operations.
+Added: We are exposed to certain interest and credit rate risks as part of our ongoing business operations.
Interest Rate Risk
−Removed: Our variable-rate debt obligations incur interest at floating rates based on changes in the London Inter-Bank Offered Rate, or LIBOR.
−Removed: A 1% increase in LIBOR would not have significantly impacted interest expense during 2020.
+Added: We are exposed to interest rate risk on our investment portfolio.
+Added: Our fixed maturity investments include U.S.
+Added: Treasury securities, municipal securities, corporate debt securities, residential mortgage-backed securities, and commercial mortgage-backed securities, most of which are exposed to changes in prevailing interest rates.
+Added: We monitor this exposure through periodic reviews of investment portfolio by our management.
+Added: We are also exposed to the impact of interest rate changes through our term loan facility that closed in January 2022 and incurs interest at floating rates based on changes in the Secured Overnight Financing Rate, or SOFR.
+Added: We did not have any long-term debt outstanding at December 31, 2021.
We are exposed to credit risk on our investment portfolio and our reinsurance contracts.
We manage the exposure to credit risk in our U.S.
−Removed: Treasury securities, municipal securities, corporate debt securities, residential
−Removed: mortgage-backed securities, commercial mortgage-backed securities, and other debt obligations portfolio by investing in high quality securities and diversifying our holdings.
+Added: Treasury securities, municipal securities, corporate debt securities, residential mortgage-backed securities, and commercial mortgage-backed securities by investing in high quality securities and diversifying our holdings.
We manage the exposure to credit risk in our reinsurance contracts by obtaining reinsurance from a diverse group of reinsurers and monitoring concentration as well as financial strength ratings of the reinsurers to minimize counterparty credit risk.
4 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.