Aetna 2011 Annual Report Download - page 117

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Annual Report- Page 111
The anticipated run-off of the discontinued products reserve balance at December 31, 2011 (assuming that assets are
held until maturity and that the reserve run-off is proportional to the liability run-off) is as follows:
(Millions)
2012
2013
2014
2015
2016
Thereafter
$ 47.9
47.0
46.0
44.9
43.6
666.9
Assets and liabilities supporting discontinued products at 2011 and 2010 were as follows: (1)
(Millions)
Assets:
Debt and equity securities available for sale
Mortgage loans
Other investments
Total investments
Other assets
Collateral received under securities loan agreements
Current and deferred income taxes
Receivable from continuing products (2)
Total assets
Liabilities:
Future policy benefits
Policyholders' funds
Reserve for anticipated future losses on discontinued products
Collateral payable under securities loan agreements
Other liabilities (3)
Total liabilities
2011
$ 2,589.7
437.1
619.2
3,646.0
130.0
—
15.7
523.2
$ 4,314.9
$ 3,005.8
8.2
896.3
—
404.6
$ 4,314.9
2010
$ 2,611.9
498.8
601.6
3,712.3
90.4
35.1
20.7
492.4
$ 4,350.9
$ 3,162.2
10.2
884.8
35.1
258.6
$ 4,350.9
(1) Assets supporting the discontinued products are distinguished from assets supporting continuing products.
(2) The receivable from continuing products is eliminated in consolidation.
(3) Net unrealized capital gains on the available-for-sale debt securities are included in other liabilities and are not reflected in consolidated
shareholders’ equity.
The discontinued products investment portfolio has changed since inception. Mortgage loans have decreased from
$5.4 billion (37% of the investment portfolio) at December 31, 1993 to $437 million (12% of the investment
portfolio) at December 31, 2011. This was a result of maturities, prepayments and the securitization and sale of
commercial mortgages. Also, real estate decreased from $500 million (4% of the investment portfolio) at December
31, 1993 to $67 million (2% of the investment portfolio) at December 31, 2011, primarily as a result of sales. The
resulting proceeds were primarily reinvested in debt and equity securities. Over time, the then-existing mortgage
loan and real estate portfolios and the reinvested proceeds have resulted in greater investment returns than we
originally assumed in 1993.