Prudential 2011 Annual Report Download - page 69

Closed Block Business as of December 31, 2011
Level 1 Level 2 Level 3(1) Netting(2) Total
(in millions)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies ......... $ 0 $ 5,514 $ 23 $ $ 5,537
Obligations of U.S. states and their political subdivisions ............................... 0 778 0 778
Foreign government bonds ....................................................... 0 561 12 573
Corporate securities ............................................................. 0 29,321 434 29,755
Asset-backed securities .......................................................... 0 3,511 661 4,172
Commercial mortgage-backed securities ............................................ 0 3,715 0 3,715
Residential mortgage-backed securities ............................................. 0 1,984 2 1,986
Subtotal .................................................................. 0 45,384 1,132 46,516
Trading account assets supporting insurance liabilities ................................. 0 0 0 0
Other trading account assets:
U.S. Treasury securities and obligations of U.S. government authorities and agencies ......... 0 0 0 0
Obligations of U.S. states and their political subdivisions ............................... 0 0 0 0
Foreign government bonds ....................................................... 0 0 0 0
Corporate securities ............................................................. 0 119 0 119
Asset-backed securities .......................................................... 0 70 0 70
Commercial mortgage-backed securities ............................................ 0 0 0 0
Residential mortgage-backed securities ............................................. 0 0 0 0
Equity securities ............................................................... 5 0 123 128
All other(3) ................................................................... 0 0 0 0
Subtotal .................................................................. 5 189 123 317
Equity securities, available-for-sale ................................................ 3,095 0 27 3,122
Commercial mortgage and other loans .............................................. 0 0 0 0
Other long-term investments ...................................................... 1 184 0 185
Short-term investments .......................................................... 471 57 0 528
Cash equivalents ............................................................... 72 965 0 1,037
Other assets ................................................................... 0 111 0 111
Subtotal excluding separate account assets ....................................... 3,644 46,890 1,282 51,816
Separate account assets(4) ........................................................ 0 0 0 0
Total assets ............................................................... $3,644 $46,890 $1,282 $ $51,816
Future policy benefits ........................................................... $ 0 $ 0 $ 0 $ $ 0
Other liabilities ................................................................ 0 0 0 0
Total liabilities ............................................................. $ 0 $ 0 $ 0 $ $ 0
(1) The amount of Level 3 assets taken as a percentage of total assets measured at fair value on a recurring basis totaled 5% and 2% for Financial Services
Businesses and Closed Block Business, respectively. Excluding separate account assets for which the risk is borne by the policyholder, the amount of
Level 3 assets taken as a percentage of total assets measured at fair value on a recurring basis totaled 3% for our Financial Services Businesses. The
amount of Level 3 liabilities was immaterial to our balance sheet.
(2) “Netting” amounts represent cash collateral and the impact of offsetting asset and liability positions held with the same counterparty.
(3) Primarily represents derivative assets.
(4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are
borne by the customers, except to the extent of minimum guarantees made by us with respect to certain accounts. Separate account assets classified as
Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are
reported at contract value and not fair value in our Consolidated Statement of Financial Position.
Prudential Financial, Inc. 2011 Annual Report 67