Progressive 2012 Annual Report Download - page 11

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2. INVESTMENTS
The following tables present the composition of our investment portfolio by major security type, consistent with our internal
classification of how we manage, monitor, and measure the portfolio:
($ in millions) Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Net
Realized
Gains
(Losses)1
Fair
Value
%of
Total
Fair
Value
December 31, 2012
Fixed maturities:
U.S. government obligations $ 2,806.4 $ 90.1 $ 0 $ 0 $ 2,896.5 17.6%
State and local government obligations 1,914.4 50.6 (.6) 0 1,964.4 11.9
Corporate debt securities 2,982.9 124.7 (1.0) 6.4 3,113.0 18.9
Residential mortgage-backed securities 413.4 24.0 (9.2) 0 428.2 2.6
Commercial mortgage-backed securities 1,963.9 84.9 (.1) 0 2,048.7 12.4
Other asset-backed securities 936.0 12.9 (.1) (.2) 948.6 5.8
Redeemable preferred stocks 356.9 30.5 (12.7) 0 374.7 2.3
Total fixed maturities 11,373.9 417.7 (23.7) 6.2 11,774.1 71.5
Equity securities:
Nonredeemable preferred stocks 404.0 404.6 0 3.8 812.4 4.9
Common equities 1,370.3 539.0 (10.3) 0 1,899.0 11.5
Short-term investments:
Other short-term investments 1,990.0 0 0 0 1,990.0 12.1
Total portfolio2,3 $15,138.2 $1,361.3 $ (34.0) $10.0 $16,475.5 100.0%
($ in millions) Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Net
Realized
Gains
(Losses)1
Fair
Value
%of
Total
Fair
Value
December 31, 2011
Fixed maturities:
U.S. government obligations $ 2,842.7 $ 120.3 $ 0 $ 0 $ 2,963.0 18.6%
State and local government obligations 1,938.6 64.1 (.6) 0 2,002.1 12.5
Corporate debt securities 2,801.5 94.3 (6.5) 6.9 2,896.2 18.1
Residential mortgage-backed securities 452.9 9.3 (35.3) 0 426.9 2.7
Commercial mortgage-backed securities 1,829.8 52.3 (5.5) 0 1,876.6 11.8
Other asset-backed securities 1,210.9 11.3 (1.3) (.3) 1,220.6 7.6
Redeemable preferred stocks 379.3 18.6 (24.0) 0 373.9 2.3
Total fixed maturities 11,455.7 370.2 (73.2) 6.6 11,759.3 73.6
Equity securities:
Nonredeemable preferred stocks 473.7 342.6 (3.7) (6.3) 806.3 5.1
Common equities 1,431.0 440.0 (25.4) 0 1,845.6 11.6
Short-term investments:
Other short-term investments 1,551.8 0 0 0 1,551.8 9.7
Total portfolio2,3 $14,912.2 $1,152.8 $(102.3) $ .3 $15,963.0 100.0%
1Represents net holding period gains (losses) on certain hybrid securities (discussed below).
2At December 31, 2012 and 2011, we had $90.9 million and $46.9 million, respectively, of net unsettled security transactions included in other
assets.
3The total fair value of the portfolio includes $1.4 billion and $2.0 billion at December 31, 2012 and 2011, respectively, of securities held in a
consolidated, non-insurance subsidiary of the holding company, net of any unsettled security transactions.
Our other short-term investments include commercial paper, reverse repurchase transactions, and other investments that
are expected to mature within one year. At December 31, 2012 and 2011, we had $21.9 million and $10.0 million,
respectively, in treasury bills issued by the Australian government, included in other short-term investments.
App.-A-11