Berkshire Hathaway 2011 Annual Report Download - page 40

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Notes to Consolidated Financial Statements (Continued)
(3) Investments in fixed maturity securities
Investments in securities with fixed maturities as of December 31, 2011 and 2010 are summarized by type below
(in millions).
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
December 31, 2011
U.S. Treasury, U.S. government corporations and agencies ................... $ 2,894 $ 41 $ — $ 2,935
States, municipalities and political subdivisions ............................ 2,862 208 — 3,070
Foreign governments ................................................. 10,608 283 (48) 10,843
Corporate bonds ..................................................... 11,120 1,483 (155) 12,448
Mortgage-backed securities ............................................ 2,564 343 (15) 2,892
$30,048 $2,358 $(218) $32,188
December 31, 2010
U.S. Treasury, U.S. government corporations and agencies ................... $ 2,151 $ 48 $ (2) $ 2,197
States, municipalities and political subdivisions ............................ 3,356 225 — 3,581
Foreign governments ................................................. 11,721 242 (51) 11,912
Corporate bonds ..................................................... 11,773 2,304 (23) 14,054
Mortgage-backed securities ............................................ 2,838 312 (11) 3,139
$31,839 $3,131 $ (87) $34,883
Investments in fixed maturity securities are reflected in our Consolidated Balance Sheets as follows (in millions).
December 31,
2011 2010
Insurance and other ............................................................ $31,222 $33,803
Finance and financial products ................................................... 966 1,080
$32,188 $34,883
Investments in foreign government securities include securities issued by national and provincial government entities as
well as instruments that are unconditionally guaranteed by such entities. As of December 31, 2011, approximately 95% of
foreign government holdings were rated AA or higher by at least one of the major rating agencies. Investments in obligations
issued or guaranteed by Germany, the United Kingdom, Canada, Australia and The Netherlands represent approximately 80% of
the investments in foreign government obligations.
Fixed maturity investments that were in a continuous unrealized loss position for more than 12 months had unrealized
losses of $20 million as of December 31, 2011 and $24 million as of December 31, 2010.
The amortized cost and estimated fair value of securities with fixed maturities at December 31, 2011 are summarized
below by contractual maturity dates. Actual maturities will differ from contractual maturities because issuers of certain of the
securities retain early call or prepayment rights. Amounts are in millions.
Due in one
year or less
Due after one
year through
five years
Due after five
years through
ten years
Due after
ten years
Mortgage-backed
securities Total
Amortized cost ........................... $6,969 $13,890 $4,192 $2,433 $2,564 $30,048
Fair value ............................... 7,063 14,487 4,823 2,923 2,892 32,188
38