Berkshire Hathaway 2007 Annual Report Download - page 36

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35
(3) Loans and receivables
Loans and receivables of insurance and other businesses are comprised of the following (in millions).
2007 2006
Insurance premiums receivable...................................................................................... $ 4,215 $ 4,418
Reinsurance recoverables............................................................................................... 3,171 2,961
Trade and other receivables ........................................................................................... 6,179 5,884
Allowances for uncollectible accounts .......................................................................... (408) (382)
$13,157 $12,881
Loans and finance receivables of finance and financial products businesses are comprised of the following (in millions).
2007 2006
Consumer installment loans and finance receivables .................................................... $11,506 $10,325
Commercial loans and finance receivables.................................................................... 1,003 1,336
Allowances for uncollectible loans................................................................................ (150) (163)
$12,359 $11,498
Allowances for uncollectible loans primarily relate to consumer installment loans. Provisions for consumer loan losses were
$176 million in 2007 and $210 million in 2006. Loan charge-offs were $197 million in 2007 and $243 million in 2006. Consumer
loan amounts are net of acquisition discounts of $452 million at December 31, 2007 and $484 million at December 31, 2006.
(4) Investments in fixed maturity securities
Investments in securities with fixed maturities as of December 31, 2007 and 2006 are shown below (in millions).
A
mortized Unrealized Unrealized Fai
r
Cost Gains
L
osses *
V
alue
2007
Insurance and other:
U.S. Treasury, U.S. government corporations and agencies ........... $ 3,487 $ 59 $ — $ 3,546
States, municipalities and political subdivisions ............................. 2,120 107 (3) 2,224
Foreign governments ....................................................................... 9,529 76 (47) 9,558
Corporate bonds and redeemable preferred stocks.......................... 8,400 1,187 (48) 9,539
Mortgage-backed securities ............................................................. 3,597 62 (11) 3,648
$27,133 $1,491 $ (109) $28,515
Finance and financial products:
Corporate bonds............................................................................... $ 420 $ 63 $ — $ 483
Mortgage-backed securities ............................................................. 938 52 — 990
$ 1,358 $ 115 $ — $ 1,473
Mortgage-backed securities, held-to-maturity................................. $ 1,583 $ 176 $ (1) $ 1,758
A
mortized Unrealized Unrealized Fai
r
Cost Gains
L
osses * Value
20
0
6
Insurance and other:
U.S. Treasury, U.S. government corporations and agencies ........... $ 4,962 $ 12 $ (14) $ 4,960
States, municipalities and political subdivisions ............................. 2,967 71 (15) 3,023
Foreign governments ....................................................................... 8,444 51 (79) 8,416
Corporate bonds and redeemable preferred stocks.......................... 5,468 1,467 (17) 6,918
Mortgage-backed securities ............................................................. 1,955 35 (7) 1,983
$23,796 $1,636 $ (132) $25,300
Finance and financial products:
Corporate bonds............................................................................... $ 305 $ 70 $ — $ 375
Mortgage-backed securities ............................................................. 1,134 32 (4) 1,162
$ 1,439 $ 102 $ (4) $ 1,537
Mortgage-backed securities, held-to-maturity................................. $ 1,475 $ 153 $ (1) $ 1,627
* Includes gross unrealized losses of $60 million at December 31, 2007 and $69 million at December 31, 2006 related to securities
that have been in an unrealized loss position for 12 months or more.