Aetna 2015 Annual Report Download - page 110

Annual Report- Page 104
At December 31, 2015 and 2014, we held investments of $690 million and $778 million, respectively, related to the
2012 conversion of an existing group annuity contract from a participating to a non-participating contract. These
investments are included in the total investments of our Large Case Pensions segment supporting non-experience-
rated products. Although these investments are not accounted for as Separate Accounts assets, they are legally
segregated and are not subject to claims that arise out of our business and only support our future policy benefits
obligations under that group annuity contract. Refer to Notes 2 and 20 beginning on pages 88 and 143, respectively,
for additional information.
Debt and Equity Securities
Debt and equity securities available for sale at December 31, 2015 and 2014 were as follows:
(Millions) Amortized Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
December 31, 2015
Debt securities:
U.S. government securities $ 1,803.5 $ 68.8 $ (.6) $ 1,871.7
States, municipalities and political subdivisions 4,889.5 244.3 (9.3) 5,124.5
U.S. corporate securities 7,981.5 339.5 (146.6) 8,174.4
Foreign securities 2,910.2 148.3 (61.4) 2,997.1
Residential mortgage-backed securities 914.6 16.6 (6.3) 924.9
Commercial mortgage-backed securities 1,262.4 17.2 (9.0) (1) 1,270.6
Other asset-backed securities 910.4 3.1 (19.2) (1) 894.3
Redeemable preferred securities 33.0 11.5 — 44.5
Total debt securities 20,705.1 849.3 (252.4) 21,302.0
Equity securities 22.8 4.1 (5.9) 21.0
Total debt and equity securities (2) $ 20,727.9 $ 853.4 $ (258.3) $ 21,323.0
December 31, 2014
Debt securities:
U.S. government securities $ 1,301.2 $ 96.3 $ (.6) $ 1,396.9
States, municipalities and political subdivisions 4,540.0 277.2 (7.8) 4,809.4
U.S. corporate securities 8,033.2 606.8 (33.6) 8,606.4
Foreign securities 3,343.6 267.0 (18.3) 3,592.3
Residential mortgage-backed securities 902.7 28.9 (3.9) 927.7
Commercial mortgage-backed securities 1,324.6 52.8 (1.6) (1) 1,375.8
Other asset-backed securities 644.7 5.8 (6.5) (1) 644.0
Redeemable preferred securities 56.8 12.5 — 69.3
Total debt securities 20,146.8 1,347.3 (72.3) 21,421.8
Equity securities 23.3 .4 (3.8) 19.9
Total debt and equity securities (2) $ 20,170.1 $ 1,347.7 $ (76.1) $ 21,441.7
(1) At December 31, 2015 and 2014, we held securities for which we previously recognized $5.4 million and $18.6 million, respectively, of
non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at
December 31, 2015 and 2014 of $1.9 million and $3.6 million, respectively.
(2) Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to
Note 21 beginning on page 146 for additional information on our accounting for discontinued products). At December 31, 2015, debt
and equity securities with a fair value of approximately $3.0 billion, gross unrealized capital gains of $208.7 million and gross
unrealized capital losses of $68.0 million and, at December 31, 2014, debt and equity securities with a fair value of approximately $3.6
billion, gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 million were included in total debt
and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on
these securities are not reflected in accumulated other comprehensive income.