Prudential 2002 Annual Report Download - page 106
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Notes to Consolidated Financial Statements
6. INVESTMENTS (continued)
2001
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in millions)
Fixed maturities held to maturity
U.S. Treasury securities and obligations of U.S. government
corporations and agencies ................................... $ 2 $ — $ — $ 2
Obligations of U.S. states and their political subdivisions ............ 1 — — 1
Foreign government bonds .................................... 106 8 — 114
Corporate securities ......................................... 265 15 2 278
Total fixed maturities held to maturity ........................ $ 374 $ 23 $ 2 $ 395
The amortized cost and estimated fair value of fixed maturities by contractual maturities at December 31,
2002, is as follows:
Available for Sale Held to Maturity
Amortized
Cost
Estimated
Fair Value
Amortized
Cost
Estimated
Fair Value
(in millions) (in millions)
Due in one year or less ....................................... $ 5,663 $ 5,742 $ 24 $ 24
Due after one year through five years ............................ 32,930 34,230 122 129
Due after five years through ten years ............................ 35,692 37,972 54 55
Due after ten years ........................................... 36,003 39,653 180 178
Mortgage-backed securities .................................... 7,581 7,866 2,232 2,287
Total.................................................. $117,869 $125,463 $2,612 $2,673
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay
obligations.
Proceeds from the repayment of held to maturity fixed maturities during 2002, 2001 and 2000 were $418
million, $139 million and $3,266 million, respectively. Gross gains of $0 million, $0 million and $8 million were
realized on prepayment of held to maturity fixed maturities during 2002, 2001 and 2000, respectively.
Proceeds from the sale of available for sale fixed maturities during 2002, 2001 and 2000 were $47,341
million, $84,629 million and $93,653 million, respectively. Proceeds from the maturity of available for sale fixed
maturities during 2002, 2001 and 2000 were $13,188 million, $13,521 million and $6,318 million, respectively.
Gross gains of $1,276 million, $1,270 million and $909 million, and gross losses of $1,301 million, $1,136
million and $1,408 million were realized on sales and prepayments of available for sale fixed maturities during
2002, 2001 and 2000, respectively.
Write-downs for impairments for fixed maturities were $687 million, $777 million and $540 million, and for
equity securities were $309 million, $238 million and $34 million for the years ended December 31, 2002, 2001
and 2000, respectively.
Due to the adoption of SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” on
January 1, 2001, the aggregate amortized cost of “held to maturity” securities transferred to the “available for
sale” portfolio was $11,937 million. Unrealized investment gains of $94 million, net of tax, were recorded in
“Accumulated other comprehensive income (loss)” at the time of the transfer in 2001.
Prudential Financial 2002 Annual Report 105