Aetna 2014 Annual Report Download - page 113
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Annual Report- Page 107
The carrying value and estimated fair value classified by level of fair value hierarchy for certain of our financial
instruments at December 31, 2014 and 2013 were as follows:
Carrying
Value
Estimated Fair Value
(Millions) Level 1 Level 2 Level 3 Total
December 31, 2014
Assets:
Mortgage loans $ 1,562.2 $ — $ — $ 1,621.4 $ 1,621.4
Bank loans 231.2 — 217.6 9.4 227.0
Equity securities (1) 34.9 N/A N/A N/A N/A
Liabilities:
Investment contract liabilities:
With a fixed maturity 16.6 — — 16.6 16.6
Without a fixed maturity 557.5 — — 551.5 551.5
Long-term debt 8,081.3 — 8,764.8 — 8,764.8
Carrying
Value
Estimated Fair Value
(Millions) Level 1 Level 2 Level 3 Total
December 31, 2013
Assets:
Mortgage loans $ 1,549.6 $ — $ — $ 1,584.8 $ 1,584.8
Bank loans 181.7 — 171.5 9.8 181.3
Liabilities:
Investment contract liabilities:
With a fixed maturity 8.9 — — 8.9 8.9
Without a fixed maturity 572.3 — — 553.2 553.2
Long-term debt 8,252.6 — 8,670.6 — 8,670.6
(1) It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies.
Separate Accounts Measured at Fair Value in our Balance Sheets
Separate Accounts assets in our Large Case Pensions business represent funds maintained to meet specific
objectives of contract holders. Since contract holders bear the investment risk of these assets, a corresponding
Separate Accounts liability has been established equal to the assets. These assets and liabilities are carried at fair
value. Net investment income and capital gains and losses accrue directly to such contract holders. The assets of
each account are legally segregated and are not subject to claims arising from our other businesses. Deposits,
withdrawals, net investment income and realized and unrealized capital gains and losses on Separate Accounts
assets are not reflected in our statements of income, shareholders’ equity or cash flows.
Separate Accounts assets include debt and equity securities and derivative instruments. The valuation
methodologies used for these assets are similar to the methodologies described beginning on page 103. Separate
Accounts assets also include investments in common/collective trusts that are carried at fair value. Common/
collective trusts invest in other investment funds otherwise known as the underlying funds. The Separate Accounts’
interests in the common/collective trust funds are based on the fair values of the investments of the underlying
funds and therefore are classified in Level 2. The assets in the underlying funds primarily consist of equity
securities. Investments in common/collective trust funds are valued at their respective net asset value per share/unit
on the valuation date.