Aetna 2013 Annual Report Download - page 21

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Annual Report- Page 15
In 2013, our discontinued products reflected net realized capital gains, primarily attributable to gains from the sale
of other investments and from the sale of debt and equity securities. In 2012, our discontinued products reflected
net realized capital gains, primarily attributable to gains from the sale of debt securities partially offset by losses
from other investments. In 2011, our discontinued products reflected net realized capital gains, primarily
attributable to gains from the sale of debt securities partially offset by losses from derivative transactions. In
addition, during 2012 and 2011, our discontinued products also reflected operating losses.
We review the adequacy of the discontinued products reserve quarterly and, as a result, the reserve at December 31,
2013 reflects our best estimate of anticipated future losses. We evaluated these results against expectations of future
cash flows assumed in estimating this reserve and do not believe an adjustment to this reserve was required at
December 31, 2013, 2012 or 2011.
INVESTMENTS
At December 31, 2013 and 2012 our investment portfolio consisted of the following:
(Millions) 2013 2012
Debt and equity securities available for sale $ 19,730.4 $ 18,827.8
Mortgage loans 1,549.6 1,643.6
Other investments 1,718.8 1,448.7
Total investments $ 22,998.8 $ 21,920.1
Investment risks associated with our experience-rated and discontinued products generally do not impact our
operating results. Our investment portfolio supported the following products at December 31, 2013 and 2012:
(Millions) 2013 2012
Experience-rated products $ 1,458.1 $ 1,660.3
Discontinued products 3,443.5 3,675.5
Remaining products 18,097.2 16,584.3
Total investments $ 22,998.8 $ 21,920.1
The risks associated with investments supporting experience-rated pension and annuity products in our Large Case
Pensions business are assumed by the contract holders and not by us (subject to, among other things, certain
minimum guarantees). Assets supporting experience-rated products may be subject to contract holder or participant
withdrawals. Experience-rated contract holder and participant-directed withdrawals for the last three years were as
follows:
(Millions) 2013 2012 2011
Scheduled contract maturities and benefit payments (1) $ 237.1 $ 236.2 $ 245.1
Contract holder withdrawals other than scheduled contract
maturities and benefit payments 35.4 4.7 31.1
Participant-directed withdrawals (2) 4.0 2.3 3.9
(1) Includes payments made upon contract maturity and other amounts distributed in accordance with contract schedules.
(2) Approximately $556.9 million, $569.1 million and $549.3 million at December 31, 2013, 2012 and 2011, respectively, of experience-
rated pension contracts allowed for unscheduled contract holder withdrawals, subject to timing restrictions and formula-based market
value adjustments. Further, approximately $77.9 million, $84.8 million and $94.4 million at December 31, 2013, 2012 and 2011,
respectively, of experience-rated pension contracts supported by our general account assets could be withdrawn or transferred to other
plan investment options at the direction of plan participants, without market value adjustment, subject to plan, contractual and income
tax provisions.