Allstate 2011 Annual Report Download - page 151

Our aggregate limited partnership exposure represented 3.8% and 2.8% of total invested assets as of December 31,
2010 and 2009, respectively.
The following table shows the results from our limited partnership interests by fund type and accounting
classification for the years ended December 31.
2010 2009
($ in millions)
Total Impairment Total Impairment
Cost EMA income write-downs (1) Cost EMA income write-downs (1)
Private equity/debt funds $ 40 $ 76 $ 116 $ (9) $ 16 $ (61) $ (45) $ (79)
Real estate funds 2 (34) (32) (35) 1 (181) (180) (223)
Hedge funds — 47 47 (2) — 101 101 (6)
Tax credit funds (2) — (2) — — — — —
Total $ 40 $ 89 $ 129 $ (46) $ 17 $ (141) $ (124) $ (308)
(1) Impairment write-downs related to Cost limited partnerships were $45 million and $297 million in 2010 and 2009, respectively. Impairment write-
downs related to EMA limited partnerships were $1 million and $11 million in 2010 and 2009, respectively.
Limited partnership interests, excluding impairment write-downs, produced income of $129 million in 2010
compared to losses of $124 million in 2009. Income on EMA limited partnerships is recognized on a delay due to the
availability of the related financial statements. The recognition of income on hedge funds is primarily on a one-month
delay and the income recognition on private equity/debt funds, real estate funds and tax credit funds are generally on a
three-month delay. Income on Cost limited partnerships is recognized only upon receipt of amounts distributed by the
partnerships.
Short-term investments Our short-term investment portfolio was $3.28 billion and $3.06 billion as of
December 31, 2010 and 2009, respectively.
Other investments Our other investments as of December 31, 2010 primarily comprise $1.14 billion of policy
loans, $439 million of certain derivatives and $363 million of bank loans. Policy loans are carried at the unpaid principal
balances. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. For further detail
on our use of derivatives, see the Net Realized Capital Gains and Losses section of the MD&A and Note 6 of the
consolidated financial statements.
Unrealized net capital gains totaled $1.39 billion as of December 31, 2010 compared to unrealized net capital
losses of $2.32 billion as of December 31, 2009. The improvement since December 31, 2009 for fixed income securities
was primarily a result of declining risk-free interest rates and tightening of credit spreads in certain sectors. The
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MD&A