Prudential 2011 Annual Report Download - page 185

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
The table below presents net unrealized gains (losses) on investments by asset class at December 31:
2011 2010 2009
(in millions)
Fixed maturity securities on which an OTTI loss has been recognized ............................... $(1,003) $ (849) $(1,229)
Fixed maturity securities, available-for-sale—all other ........................................... 15,227 8,078 2,203
Equity securities, available-for-sale .......................................................... 613 1,272 789
Derivatives designated as cash flow hedges(1) ................................................. (86) (262) (317)
Other investments(2) ..................................................................... (6) 173 210
Net unrealized gains (losses) on investments ............................................... $14,745 $8,412 $ 1,656
(1) See Note 21 for more information on cash flow hedges.
(2) Includes $107 million of net unrealized losses on held-to-maturity securities that were transferred from available-for-sale in 2011. Also includes net
unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets.”
Duration of Gross Unrealized Loss Positions for Fixed Maturities
The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that
individual fixed maturity securities have been in a continuous unrealized loss position, at December 31:
2011
Less than twelve months Twelve months or more Total
Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses
(in millions)
Fixed maturities(1)
U.S. Treasury securities and obligations of U.S.
government authorities and agencies .............. $ 870 $ 8 $ 130 $ 10 $ 1,000 $ 18
Obligations of U.S. states and their political
subdivisions ................................. 7 0 46 2 53 2
Foreign government bonds ........................ 4,017 182 306 27 4,323 209
Corporate securities ............................. 21,419 1,144 9,691 1,969 31,110 3,113
Commercial mortgage-backed securities ............. 917 61 362 47 1,279 108
Asset-backed securities .......................... 2,746 40 4,134 1,785 6,880 1,825
Residential mortgage-backed securities .............. 422 19 378 60 800 79
Total ......................................... $30,398 $1,454 $15,047 $3,900 $45,445 $5,354
(1) Includes $706 million of fair value and $98 million of gross unrealized losses at December 31, 2011 on securities classified as held-to-maturity, a
portion of which are not reflected in accumulated other comprehensive income.
Prudential Financial, Inc. 2011 Annual Report 183