Prudential 2002 Annual Report Download - page 79
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Please find page 79 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.As of December 31, 2002 and 2001, general account balances for variable life insurance products other than
single-payment life were $2.0 billion and $1.9 billion, respectively. As of December 31, 2002 and 2001,
Prudential Insurance and its insurance subsidiaries had cash and short-term investments of approximately $9.798
billion and $9.496 billion, respectively, and fixed maturity investments classified as “available for sale” with fair
values of $92.8 billion and $79.2 billion at those dates, respectively.
Gibraltar Life Insurance Company, Ltd.
As of December 31, 2002 and 2001, Gibraltar Life, which we acquired in April 2001, had $5.741 billion and
$5.881 billion of general account annuity reserves and deposit liabilities that are subject to discretionary
withdrawal at their contract value, less a surrender charge of 5% or more. Gibraltar Life’s assets and liabilities
were substantially restructured under a reorganization concurrent with our acquisition, which included the
imposition of special surrender penalties on existing policies according to the following schedule (for each year
ending September 30):
2002 2003 2004 2005 2006 2007 2008 2009
15% 14% 12% 10% 8% 6% 4% 2%
As of December 31, 2002 and 2001, Gibraltar Life had cash and short-term investments of approximately
$1.172 billion and $5.768 billion, respectively, and fixed maturity investments classified as “available for sale”
with fair values of $20.8 billion and $17.6 billion at those dates, respectively.
Prudential Securities Group Liquidity
Prudential Securities Group Inc. maintains a highly liquid balance sheet with substantially all of its assets
consisting of securities purchased under agreements to resell, short-term collateralized receivables from clients
and broker-dealers arising from securities transactions, marketable securities, securities borrowed and cash
equivalents. Prudential Securities Group’s assets totaled $20.3 billion and $22.8 billion as of December 31, 2002
and 2001, respectively. Prudential Securities Group’s total capitalization, including equity, subordinated debt and
long-term debt, was $3.6 billion and $3.3 billion as of December 31, 2002 and 2001, respectively. In October
2000, we announced that we would terminate our institutional fixed income activities that constituted the major
portion of the debt capital markets operations of Prudential Securities Group. As of December 31, 2002,
Prudential Securities Group had remaining assets amounting to approximately $900 million related to its
institutional fixed income activities, as compared to $1.2 billion as of December 31, 2001.
Non-Insurance Contractual Obligations
The following table presents our contractual cash flow commitments on short-term and long-term debt,
equity security units and operating leases as of December 31, 2002. See Notes 12, 13 and 22 to the Consolidated
Financial Statements for additional information on our short-term and long-term debt, equity security units and
operating leases. This table does not reflect our obligations under our insurance, annuity and guaranteed products
contracts.
Payment Due by Period
Total 2003
2004
and
2005
2006
and
2007
2008
and
After
(in millions)
Short-term and long-term debt ................................................. $ 8,226 $3,469 $ 537 $ 326 $3,894
Equity security units ......................................................... 690 — — 690 —
Operating leases ............................................................ 1,687 281 464 348 594
Total ................................................................. $10,603 $3,750 $1,001 $1,364 $4,488
In connection with our consumer banking business, commitments for home equity lines of credit and other
lines of credit include agreements to lend up to specified limits to customers. It is anticipated that commitment
Growing and Protecting Your Wealth78