2 unchanged sentences
We are exposed to interest rate risk related to borrowings in various businesses.
−Removed: These risks result primarily from changes in LIBOR rates and the spread over LIBOR rates related to the credit risks of our businesses.
+Added: These risks result primarily from changes in SOFR rates and the spread over SOFR rates related to the credit risks of our businesses.
For fixed rate debt, interest rate fluctuations generally affect the fair value of our liabilities, but do not impact our earnings.
8 unchanged sentences
For floating rate risk of other asset based financing such as borrowings to finance acquisitions of real estate, we generally hedge our exposure to the variability of the benchmark index with an interest rate swap.
−Removed: As of December 31, 2021, we had $114.1 million of general purpose floating rate debt with a weighted average rate of 7.75%.
−Removed: A 100 basis point change in interest rates would increase interest expense by $0.2 million and decrease interest expense by an insignificant amount (including the effect of applicable minimum interest rates) on an annualized basis.
+Added: As of December 31, 2022, Tiptree’s holding company had no general purpose floating rate debt as it was repaid in June 2022.
As of December 31, 2021, we had $114.1 million of general purpose floating rate debt with a weighted average rate of 7.75%.
5 unchanged sentences
Additionally, fair values of interest rate sensitive instruments may be affected by the creditworthiness of the issuer, prepayment options, relative values of alternative investments, the liquidity of the instrument and other general market conditions.
−Removed: As of December 31, 2021, we had $658.8 million invested in interest bearing instruments, which represents 72% of the total investment portfolio.
+Added: As of December 31, 2022, we had $706.4 million invested in interest bearing instruments, which represents 61% of the total investment portfolio (including cash and cash equivalents).
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 $24.8 million.
24 unchanged sentences
These investments do not represent a credit risk and are excluded.
−Removed: (3) The Company also holds other investments of $88.7 million and $95.4 million as of December 31, 2021 and 2020, respectively, primarily comprised of vessels.
+Added: (3) The Company also holds other investments of $6.9 million and $88.7 million as of December 31, 2022 and 2021, respectively, primarily comprised of vessels and other investments.
These investments do not represent a credit risk and are excluded.
20 unchanged sentences
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”.
+Added: Foreign Currency Exchange Rate Ris k
+Added: We have foreign currency exchange rate risk associated with certain assets and liabilities related to our foreign operations.
+Added: At December 31, 2022 and 2021, 93% of our invested assets were denominated in United States (U.S.) Dollars.
+Added: At December 31, 2022 and 2021, 93% and 94%, respectively, of our combined unpaid premiums and deferred revenue were denominated in U.S.
+Added: At that date, the largest foreign currency denominated balance was a fixed income exchange traded fund in British Pound Sterling reported within equity securities.
Counterparty Risk
7 unchanged sentences
Allianz Global Corporate & Specialty SE (A.M.
−Removed: A+ rated), Canada Life International Reinsurance (Bermuda) Corporation (A.M.
−Removed: A+ rated), and Canada Life Assurance Company (A.M.
−Removed: The related receivables of these reinsurers are collateralized by assets on hand, assets held in trust accounts and letters of credit.
+Added: A+ rated), Canada Life Assurance Company (A.M.
+Added: A+ rated), and Canada Life International Reinsurance (Bermuda) Corporation (A.M.
+Added: A majority of the related receivables from these reinsurers are collateralized by assets on hand and letters of credit;
+Added: receivable balances from authorized reinsurers do not require collateral.
+Added: Allianz Global Corporate & Specialty SE and Canada Life Assurance Company are authorized reinsurers in the states in which Fortegra’s U.S.
+Added: based insurance entities are domiciled.
+Added: The Company monitors authorization status and A.M.
+Added: Best ratings of its reinsurers periodically.
As of December 31, 2022, the Company does not believe there is a risk of loss due to the concentration of credit risk in the reinsurance program given the collateralization.
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.