Prudential 2011 Annual Report Download - page 200

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
12. CLOSED BLOCK (continued)
Closed Block Liabilities and Assets designated to the Closed Block at December 31, as well as maximum future earnings to be
recognized from Closed Block Liabilities and Closed Block Assets, are as follows:
2011 2010
(in millions)
Closed Block Liabilities
Future policy benefits ......................................................................... $51,424 $51,632
Policyholders’ dividends payable ................................................................ 902 909
Policyholders’ dividend obligation ............................................................... 4,609 2,243
Policyholders’ account balances ................................................................. 5,484 5,536
Other Closed Block liabilities ................................................................... 4,030 4,637
Total Closed Block Liabilities ............................................................... 66,449 64,957
Closed Block Assets
Fixed maturities, available-for-sale, at fair value ..................................................... 42,024 41,044
Other trading account assets, at fair value .......................................................... 269 150
Equity securities, available-for-sale, at fair value .................................................... 3,122 3,545
Commercial mortgage and other loans ............................................................ 8,322 7,827
Policy loans ................................................................................. 5,296 5,377
Other long-term investments .................................................................... 2,080 1,662
Short-term investments ........................................................................ 485 1,119
Total investments ......................................................................... 61,598 60,724
Cash and cash equivalents ...................................................................... 1,006 345
Accrued investment income ..................................................................... 571 600
Other Closed Block assets ...................................................................... 284 275
Total Closed Block Assets .................................................................. 63,459 61,944
Excess of reported Closed Block Liabilities over Closed Block Assets ....................................... 2,990 3,013
Portion of above representing accumulated other comprehensive income:
Net unrealized investment gains (losses) ....................................................... 3,836 2,092
Allocated to policyholder dividend obligation ................................................... (3,847) (2,117)
Future earnings to be recognized from Closed Block Assets and Closed Block Liabilities ........................ $ 2,979 $ 2,988
Information regarding the policyholder dividend obligation is as follows:
2011 2010
(in millions)
Balance, January 1 ................................................................................ $2,243 $ 0
Impact from earnings allocable to policyholder dividend obligation ..................................... 636 126
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation .............. 1,730 2,117
Balance, December 31 ............................................................................. $4,609 $2,243
Closed Block revenues and benefits and expenses for the years ended December 31, were as follows:
2011 2010 2009
(in millions)
Revenues
Premiums ........................................................................... $2,918 $3,007 $ 3,250
Net investment income ................................................................. 2,976 2,994 2,907
Realized investment gains (losses), net .................................................... 855 804 (1,219)
Other income ........................................................................ 38 38 102
Total Closed Block revenues ........................................................ 6,787 6,843 5,040
Benefits and Expenses
Policyholders’ benefits ................................................................. 3,482 3,512 3,762
Interest credited to policyholders’ account balances .......................................... 139 140 141
Dividends to policyholders ............................................................. 2,571 2,071 1,222
General and administrative expenses ...................................................... 519 540 568
Total Closed Block benefits and expenses .............................................. 6,711 6,263 5,693
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes and discontinued
operations ............................................................................. 76 580 (653)
Income tax expense (benefit) ................................................................ 67 (38) (63)
Closed Block revenues, net of Closed Block benefits and expenses and income taxes, before discontinued
operations ............................................................................. 9 618 (590)
Income from discontinued operations, net of taxes ............................................... 0 1 0
Closed Block revenues, net of Closed Block benefits and expenses, income taxes and discontinued
operations ............................................................................. $ 9 $ 619 $ (590)
198 Prudential Financial, Inc. 2011 Annual Report