Prudential 2002 Annual Report Download - page 109
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Please find page 109 of the 2002 Prudential annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
6. INVESTMENTS (continued)
“Other long-term investments” includes investments in real estate, which is held through direct ownership, of
$1,217 million and $1,072 million at December 31, 2002 and 2001, respectively. “Other long-term investments”
also includes investments in the Company’s separate accounts of $396 million and $975 million, and other
miscellaneous investments of $2,065 million and $1,661 million at December 31, 2002 and 2001, respectively.
Net Investment Income
Net investment income for the years ended December 31, was from the following sources:
2002 2001 2000
(in millions)
Fixed maturities available for sale ............................................. $ 6,454 $ 6,826 $ 5,938
Fixed maturities held to maturity .............................................. 80 12 1,028
Trading account assets ...................................................... 135 294 734
Equity securities available for sale ............................................. 73 45 67
Commercial loans .......................................................... 1,438 1,432 1,370
Policy loans .............................................................. 529 522 478
Securities purchased under agreements to resell .................................. 8 11 28
Broker-dealer related receivables .............................................. 258 495 1,199
Short-term investments and cash equivalents ..................................... 314 465 683
Other investment income .................................................... 284 424 484
Gross investment income .................................................... 9,573 10,526 12,009
Less investment expenses .................................................... (741) (1,388) (2,530)
Net investment income ...................................................... $ 8,832 $ 9,138 $ 9,479
Based on the carrying value, assets categorized as “non-income producing” at December 31, 2002 included
in fixed maturities, commercial loans and other long-term investments totaled $19 million, $16 million and $43
million, respectively.
Realized Investment Gains (Losses), Net
Realized investment gains (losses), net, for the years ended December 31, were from the following sources:
2002 2001 2000
(in millions)
Fixed maturities .............................................................. $ (712) $(639) $(1,066)
Equity securities available for sale ............................................... (335) (245) 450
Commercial loans ............................................................ 35 1 (5)
Investment real estate ......................................................... (7) 40 49
Joint ventures and limited partnerships ............................................ 23 — 124
Derivatives .................................................................. (400) 160 187
Other ...................................................................... 38 12 (5)
Realized investment losses, net .................................................. $(1,358) $(671) $ (266)
Growing and Protecting Your Wealth108