Humana 2015 Annual Report Download - page 113

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
105
Residential mortgage back securities comprised approximately 98% of our agency mortgage-backed securities at
December 31, 2015 and 99% at December 31, 2014.
The recoverability of our non-agency residential and commercial mortgage-backed securities is supported by
factors such as seniority, underlying collateral characteristics and credit enhancements. These residential and
commercial mortgage-backed securities at December 31, 2015 primarily were composed of senior tranches having high
credit support, with over 99% of the collateral consisting of prime loans. The weighted average credit rating of all
commercial mortgage-backed securities was AA+ at December 31, 2015.
The percentage of corporate securities associated with the financial services industry was 25% at December 31,
2015 and 21% at December 31, 2014.
Our unrealized loss from all securities was generated from approximately 690 positions out of a total of
approximately 2,000 positions at December 31, 2015. All issuers of securities we own that were trading at an unrealized
loss at December 31, 2015 remain current on all contractual payments. After taking into account these and other factors
previously described, we believe these unrealized losses primarily were caused by an increase in market interest rates
in the current markets than when the securities were purchased. At December 31, 2015, we did not intend to sell the
securities with an unrealized loss position in accumulated other comprehensive income, and it is not likely that we will
be required to sell these securities before recovery of their amortized cost basis. As a result, we believe that the securities
with an unrealized loss were not other-than-temporarily impaired at December 31, 2015.
The detail of realized gains (losses) related to investment securities and included within investment income was
as follows for the years ended December 31, 2015, 2014, and 2013:
2015 2014 2013
(in millions)
Gross realized gains $ 179 $ 29 $ 33
Gross realized losses (33) (9)(11)
Net realized capital gains $ 146 $ 20 $ 22
There were no material other-than-temporary impairments in 2015, 2014, or 2013.
The contractual maturities of debt securities available for sale at December 31, 2015, regardless of their balance
sheet classification, are shown below. Expected maturities may differ from contractual maturities because borrowers
may have the right to call or prepay obligations with or without call or prepayment penalties.
Amortized
Cost
Fair
Value
(in millions)
Due within one year $ 438 $ 439
Due after one year through five years 1,829 1,871
Due after five years through ten years 1,244 1,264
Due after ten years 2,304 2,384
Mortgage and asset-backed securities 3,203 3,152
Total debt securities $ 9,018 $ 9,110