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We are exposed to interest rate risk on our investment portfolio.
−Removed: Interest rate risk is the risk that we will incur losses due to adverse changes in interest rates relative to the interest rate characteristics of interest bearing assets and liabilities.
−Removed: Our fixed maturity investments include U.S.
−Removed: Treasury securities, municipal securities, corporate debt securities, and asset-backed securities, most of which are exposed to changes in prevailing interest rates and which may experience moderate fluctuations in fair value resulting from changes in interest rates.
+Added: Interest rate risk represents the potential for losses resulting from adverse changes in market interest rates affecting our interest-bearing assets and liabilities.
+Added: Our fixed maturity investments include United States Treasury and agency securities, municipal securities, corporate debt securities, and asset-backed securities, most of which are sensitive to changes in prevailing interest rates and may experience moderate fluctuations in fair value as a result.
The fair market value of a portfolio of debt securities increases or decreases inversely with changes in market interest rates, while net investment income realized from future investments in debt securities increases or decreases along with interest rates.
−Removed: We monitor this exposure through periodic reviews of investment portfolio by our management.
−Removed: We are also exposed to interest rate risk through our Amended Term Loan facility which incurs interest at floating rates based on changes in the SOFR.
−Removed: Rising interest rates could have an adverse impact on the cost of debt and results in less cash available to utilize in our operations, and could have a material adverse effect on our business and financial condition.
−Removed: A 1% fluctuation in SOFR would not have significantly impacted interest expense during 2024.
+Added: We monitor this exposure through periodic reviews of investment portfolio conducted by management.
+Added: We are also exposed to interest rate risk through our Amended Term Loan, which bears interest at floating rates based on changes in the SOFR.
+Added: Rising interest rates could increase our cost of debt, reduce cash available for operations, and have a material adverse effect on our business and financial condition.
+Added: As of December 31, 2025, a 100-basis-point increase or decrease in SOFR would not have a significant impact on our interest expense during 2026.
We are exposed to credit risk on our investment portfolio, reinsurance contracts, and premiums receivable.
1 unchanged sentence
We monitor our investment portfolio to ensure that credit risk does not exceed prudent levels.
−Removed: We manage the exposure to credit risk in our U.S.
−Removed: Treasury securities, municipal securities, corporate debt securities, and asset-backed securities portfolio by investing in high credit quality, investment grade securities and diversifying our holdings.
+Added: We manage the exposure to credit risk in our United States Treasury and agency securities, municipal securities, corporate debt securities, and asset-backed securities portfolio by investing in high credit quality, investment grade 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.
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.