14 unchanged sentences
As of December 31, 2020, we had $120.3 million of general purpose floating rate debt with a weighted average rate of 7.8%.
−Removed: A 100 basis point change in interest rates would increase interest expense by $0.5 million and decrease interest rate expense by $0.2 million (including the effect of applicable floors) on an annualized basis.
+Added: A 100 basis point change in interest rates would increase interest expense by $1.2 million and decrease interest rate expense by $0.0 million (including the effect of applicable minimum interest rates) on an annualized basis.
As of December 31, 2019, we had $68.2 million of general purpose floating rate debt with a weighted average rate of 7.2%.
−Removed: A 100 basis point change in interest rates would increase interest expense by $0.7 million and decrease interest rate expense by $0.7 million (including the effect of applicable floors) on an annualized basis.
−Removed: We also invest in bonds, loans or other interest bearing instruments.
+Added: A 100 basis point change in interest rates would increase interest expense by $0.5 million and decrease interest rate expense by $0.2 million (including the effect of applicable minimum interest rates) on an annualized basis.
+Added: Our consolidated results include investments in bonds, loans or other interest bearing instruments.
The fair values of such investments fluctuate in response to changes in market interest rates.
7 unchanged sentences
The estimated effects of a hypothetical increase in interest rates of 100 bps would result in a decrease to the fair value of the portfolio by $8.2 million.
−Removed: In 2019, we reduced exposure to levered credit through the sale of corporate loans, and exited almost all of our investments in non-performing loans.
−Removed: We are exposed to credit risk related to the following loan investments held within the insurance business:
−Removed: ($ in millions)
−Removed: As of December 31,
−Removed: Investments in Loans
−Removed: Corporate loans
−Removed: Non-performing loans
−Removed: Our insurance business also has exposure to credit risk in the form of fixed income securities which are primarily invested in high-grade government, municipal and corporate debt securities.
−Removed: We are exposed to credit risk related to the following debt investments held within the insurance business:
−Removed: ($ in millions)
−Removed: As of December 31,
−Removed: Investments in debt securities (1)
+Added: We are exposed to credit risk in the form of available for sale securities, investments in loans, and other investments as follows:
+Added: ($ in thousands) As of December 31,
+Added: Available for sale securities, at fair value (1)
+Added: Obligations of state and political subdivisions
+Added: $ 44,350 $ 46,338
Corporate securities 94,941 51,231
Asset backed securities 36,192 44,018
+Added: Certificates of deposit
Obligations of foreign governments 3,992 1,119
+Added: Loans, at fair value (2)
+Added: Corporate loans 7,795 9,787
+Added: Non-performing loans — 387
Other investments (3)
−Removed: (1) The Company also holds interests in U.S.
+Added: Corporate bonds, at fair value 105,777 20,705
+Added: Debentures 17,703 15,423
+Added: Other 802 6,956
+Added: Total $ 312,907 $ 196,860
+Added: (1) The Company also holds investments in U.S.
Treasury securities and obligations of U.S.
−Removed: government authorities and agencies, and state and political subdivisions of $237.9 million and $139.2 million as of December 31, 2019 and 2018, respectively.
−Removed: Credit risk related to other credit related investments within the portfolio is the exposure to the adverse changes in the creditworthiness of individual investment holdings, issuers, groups of issuers, industries, and countries.
−Removed: A widening of credit spreads by 100 bps for debt securities (excluding other investments) would result in a decrease of $5.3 million to the fair value of the portfolio as of December 31, 2019.
−Removed: As of December 31, 2019 and 2018, 69% and 93%, respectively, of the debt securities had investment grade ratings.
+Added: government authorities and agencies of $196.3 million and $191.6 million as of December 31, 2020 and 2019, respectively.
+Added: These investments do not represent a credit risk and are excluded.
+Added: (2) The Company also holds investments in mortgage loans held for sale of $82.9 million and $95.7 million as of December 31, 2020 and 2019, respectively.
+Added: These investments do not represent a credit risk and are excluded.
+Added: (3) The Company also holds other investments of $95.4 million and $94.4 million as of December 31, 2020 and 2019, respectively, primarily comprised of vessels.
+Added: These investments do not represent a credit risk and are excluded.
+Added: Credit risk within the Company’s investments represents the exposure to the adverse changes in the creditworthiness of individual investment holdings, issuers, groups of issuers, industries, and countries.
+Added: As of December 31, 2020 and 2019, 62% and 72%, respectively, of the investments subject to credit risk had investment grade ratings.
+Added: A widening of credit spreads by 100 bps for the investments subject to credit risk would result in a decrease of $5.9 million and $5.0 million to the fair value of the portfolio as of December 31, 2020 and 2019, respectively.
In addition, our mortgage business also underwrites mortgage loans for the purpose of selling them into the secondary market.
2 unchanged sentences
We are primarily exposed to market risk related to the following investments:
−Removed: ($ in millions)
−Removed: As of December 31, 2019
−Removed: As of December 31, 2018
−Removed: Tiptree Insurance
−Removed: Tiptree Capital
−Removed: Tiptree Insurance
−Removed: Tiptree Capital
+Added: ($ in thousands) As of December 31, 2020 As of December 31, 2019
+Added: Insurance Tiptree Capital - Other Total Insurance Tiptree Capital - Other Total
+Added: $ 5,370 $ 25,708 $ 31,078 $ 19,376 $ 92,562 $ 111,938
Fixed income exchange traded fund 63,875 — 63,875 25,039 — 25,039
2 unchanged sentences
A 10% increase or decrease in the fair value of such investments would result in $12.3 million and $15.5 million of unrealized gains and losses as of December 31, 2020 and 2019, respectively.
−Removed: As of December 31, 2019 and 2018, we owned 16.6 million shares of common stock, or approximately 31%, of Invesque, a real estate investment company that specializes in health care real estate and senior living property investment throughout North America.
+Added: As of December 31, 2020 and 2019, we owned 17.0 million and 16.6 million shares of common stock, respectively, or approximately 31%, of Invesque, a real estate investment company that specializes in health care real estate and senior living property investment throughout North America.
The value of our Invesque shares is reported at fair market value on a quarterly basis and fluctuates.
−Removed: Invesque has historically paid monthly dividends but there can be no assurance that Invesque will continue to pay dividends in the same frequency or amount.
−Removed: A loss in the fair market value of our Invesque shares or a reduction or discontinuation in the dividends
−Removed: paid on our Invesque shares could have a material adverse effect on our financial condition and results of operations.
−Removed: The Company’s investment in Invesque was subject to certain contractual and functional sale restrictions.
−Removed: As of December 31, 2018 , the fair value of the Invesque shares was based on the market price adjusted for the impact of these restrictions.
−Removed: As of December 31, 2019 , these restrictions are no longer applicable.
+Added: Invesque historically paid monthly dividends until April 2020, when dividends were
+Added: discontinued.
+Added: A loss in the fair market value of our Invesque shares or a reduction or discontinuation in the dividends paid on our Invesque shares could have a material adverse effect on our financial condition and results of operations.
+Added: Until August 2019, the Company’s investment in Invesque was subject to certain contractual and functional sale restrictions.
+Added: As of December 31, 2020 and 2019, the fair value of the Invesque shares was based on the market price.
See “Risk Factors — Risks Related to our Business - Our investment in Invesque shares is subject to market volatility and the risk that Invesque changes its dividend policy”.
3 unchanged sentences
We generally manage our counterparty risk to derivative counterparties by entering into contracts with counterparties of high credit quality.
−Removed: Reinsurance receivables were $539.8 million and $420.4 million as of December 31, 2019 and 2018, respectively.
−Removed: Of those amounts, $334 million and $270 million relates to contracts where we hold collateral or receive letters of credit in excess of the receivables balance.
+Added: Total reinsurance receivables were $728.0 million and $539.8 million as of December 31, 2020 and 2019, respectively.
+Added: Of those amounts, $442.2 million and $309.0 million, respectively, related to contracts with third-party captives in which we hold collateral or receive letters of credit in excess of the reinsurance receivables.
The remainder is held with high quality reinsurers, substantially all of which have a rating of A or better by A.M.
5 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.