12 unchanged sentences
The Pandemic began significantly impacting the U.S.
−Removed: and global financial markets and economies during the quarter ended March 31, 2020.
−Removed: Circumstances relating to the Pandemic are unprecedented in scope, are changing rapidly, and are complex and uncertain.
+Added: and global financial markets and economies during March 2020.
+Added: Circumstances relating to the Pandemic are unprecedented in scope, continue to evolve, and are complex and uncertain.
+Added: We are continually monitoring and assessing the impact of the Pandemic due to such uncertainty and cannot estimate the full extent of its future impact on our business, financial condition or results of operations.
A prolonged economic downturn or recession could impact the ability of our insureds to remain solvent, affect their ability to pay premiums or renew their existing insurance policies, or result in customers reducing or eliminating coverages.
1 unchanged sentence
Significant agent disruption could also lead consumers to choose our competitors that offer direct-to-consumer or other solutions.
−Removed: These changes may materially and adversely affect our ability to profitably grow our business, particularly if these conditions exist for a significant amount of time.
−Removed: As a result of the Pandemic and related economic conditions, our investment portfolio has become volatile, impairments have increased and yields on our fixed income investments have declined.
+Added: These changes may materially and adversely affect our ability to profitably grow our business or maintain our current premium levels, particularly if these conditions exist for a significant amount of time.
+Added: Decreases in premiums from current levels could result in higher expense ratios.
+Added: Additionally, it may be more difficult or more costly to obtain reinsurance for certain types of coverages or at retention levels appropriate for our business mix.
+Added: As a result of the Pandemic and related economic conditions, our investment portfolio has become volatile, impairments are higher than experienced in recent years and yields on our fixed income investments have declined.
The severity and length of the Pandemic may continue to have a negative impact on our investment portfolio and investment income, liquidity and capital position, which impact could be material.
4 unchanged sentences
We also outsource a variety of functions to third parties, including certain of our administrative operations.
−Removed: As a result, we rely upon the successful implementation and execution of the business continuity planning of such entities in the current environment.
−Removed: While we closely monitor the business continuity activities of these third parties, successful implementation and execution of their business continuity strategies are largely outside our control.
+Added: As a result, we rely upon the successful ongoing execution of the business continuity plans of such entities in the current environment.
+Added: While we closely monitor the business continuity activities of these third parties, successful ongoing execution of their business continuity strategies are largely outside our control.
If one or more of the third parties to whom we outsource certain critical business activities experience operational impacts, some of which could be significant, from the spread of COVID-19 and governmental reactions thereto, or claim that they cannot perform due to a force majeure, it could adversely impact our business, results of operations or financial condition.
3 unchanged sentences
On the Federal level, there is also uncertainty around legislation to address insurance coverages for pandemics prospectively.
−Removed: State regulators may also continue to impose premium refund orders similar to those issued to date that call for premium refunds or credits across multiple lines of business, including Commercial Lines, mandate rate reductions for lines such as personal automobile and commercial automobile coverages due to a decrease in claims frequency as a result of less driving during the Pandemic, or mandate presumptions of compensability in workers’ compensation coverages.
+Added: State regulators may also continue to impose premium refund orders similar to those issued to date that call for premium refunds or credits across multiple lines of business, including both our Commercial and Personal Lines , mandate rate reductions for lines such as personal automobile and commercial automobile coverages due to a decrease in claims frequency as a result of less driving during the Pandemic, or mandate presumptions of compensability in workers’ compensation coverages.
The uncertainties related to these various legislative and regulatory matters, and the potential that other such uncertainties will arise in reaction to the Pandemic, could adversely impact our ability to sustain adequate returns in certain lines of business or in some cases operate lines profitably.
+Added: Instances of civil unrest and riots may continue to negatively impact our business.
+Added: Due to ongoing economic, political and social conditions, the Company may continue to experience losses associated with insureds’ property damage arising from instances of civil unrest and riots, as occurred in the second quarter of 2020 in certain metropolitan areas where the Company has concentrations of business.
Additional factors that could cause actual results to differ include, but are not limited to, the following:
6 unchanged sentences
changes in regulation, legislation, economic, market and political conditions, particularly with respect to rates, payment flexibility, and regions where we have geographical concentrations;
−Removed: volatile and unpredictable developments, including severe weather and other natural physical events, catastrophes, pandemics and terrorist actions, and the uncertainty in estimating the resulting losses;
+Added: volatile and unpredictable developments, including severe weather and other natural physical events, catastrophes, pandemics, civil unrest, and terrorist actions, and the uncertainty in estimating the resulting losses;
changes in weather patterns, whether as a result of global climate change, or otherwise, causing a higher level of losses from weather events to persist;
−Removed: the availability of sufficient information to accurately estimate a loss at a point in time and the limitations and assumptions used to model property and casualty losses in general;
+Added: limitations on the physical ability to adjust claims or the availability of sufficient information to accurately estimate a loss at a point in time and the limitations and assumptions used to model property and casualty losses in general;
risks and uncertainties with respect to our ability to collect all amounts due from reinsurers and to maintain current levels of reinsurance in the future at commercially reasonable rates, or at all;
2 unchanged sentences
an increase in mandatory assessments by state guaranty funds;
−Removed: risks and uncertainties associated with the Michigan legislation taking effect on July 2, 2020 that will reform the existing requirements that all personal and commercial automobile polices issued in the state include no-fault personal injury protection coverage without a cap on maximum benefits allowed and the resulting increase in litigation challenging or associated with this reform;
+Added: risks and uncertainties associated with the Michigan legislation that took effect on July 2, 2020 and reformed the existing requirements that all personal and commercial automobile polices issued in the state include no-fault personal injury protection coverage without a cap on maximum benefits allowed and the resulting increase in litigation challenging or associated with this reform;
actions by our competitors, many of which are larger or have greater financial resources than we do;
17 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.