Prudential 2015 Annual Report Download - page 139

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
Net Unrealized Gains (Losses) on Investments by Asset Class
The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated:
2015 2014 2013
(in millions)
Fixed maturity securities on which an OTTI loss has been recognized ........................................... $ 234 $ 349 $ 110
Fixed maturity securities, available-for-sale—all other ....................................................... 24,673 33,625 18,029
Equity securities, available-for-sale ...................................................................... 2,427 2,940 2,907
Derivatives designated as cash flow hedges(1) .............................................................. 1,165 206 (446)
Other investments(2) .................................................................................. (25) (7) 4
Net unrealized gains (losses) on investments ........................................................... $28,474 $37,113 $20,604
(1) See Note 21 for more information on cash flow hedges.
(2) As of December 31, 2015, there were $0 million of net unrealized losses on held-to-maturity securities that were previously transferred from available-
for-sale. Includes net unrealized losses on certain joint ventures that are strategic in nature and are included in “Other assets,” and losses on notes
associated with payables under a netting agreement.
Duration of Gross Unrealized Loss Positions for Fixed Maturities and Equity Securities
The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that
individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, at December 31 for the years
indicated:
2015
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 .................................. $ 3,068 $ 19 $ 0 $ 0 $ 3,068 $ 19
Obligations of U.S. states and their political subdivisions .......... 1,391 40 7 1 1,398 41
Foreign government bonds .................................. 1,925 82 411 65 2,336 147
U.S. corporate public securities .............................. 24,642 1,396 3,455 559 28,097 1,955
U.S. corporate private securities ............................. 6,996 266 802 93 7,798 359
Foreign corporate public securities ........................... 5,985 288 1,584 333 7,569 621
Foreign corporate private securities ........................... 6,199 340 3,917 654 10,116 994
Commercial mortgage-backed securities ....................... 3,888 63 473 7 4,361 70
Asset-backed securities .................................... 4,342 33 3,138 88 7,480 121
Residential mortgage-backed securities ........................ 558 4 119 2 677 6
Total ............................................... $58,994 $2,531 $13,906 $1,802 $72,900 $4,333
Equity securities, available-for-sale ......................... $ 1,862 $ 142 $ 11 $ 1 $ 1,873 $ 143
(1) Includes $0 million of fair value and $0 million of gross unrealized losses at December 31, 2015, on securities classified as held-to-maturity, a portion
of which is not reflected in AOCI.
Prudential Financial, Inc. 2015 Annual Report 137