Prudential 2015 Annual Report Download - page 67

The following tables set forth the composition of the investments of our general account apportioned between PFI excluding the
Closed Block division and the Closed Block division as of the dates indicated.
December 31, 2015
PFI excluding
Closed Block
Division
Closed Block
Division Total
($ in millions)
Fixed maturities:
Public, available-for-sale, at fair value .................................................. $216,628 63.1% $23,505 $240,133
Public, held-to-maturity, at amortized cost ............................................... 1,834 0.5 0 1,834
Private, available-for-sale, at fair value .................................................. 35,767 10.4 14,290 50,057
Private, held-to-maturity, at amortized cost ............................................... 474 0.1 0 474
Trading account assets supporting insurance liabilities, at fair value ............................... 20,522 6.0 0 20,522
Other trading account assets, at fair value .................................................... 1,561 0.5 288 1,849
Equity securities, available-for-sale, at fair value .............................................. 6,537 1.9 2,726 9,263
Commercial mortgage and other loans, at book value .......................................... 40,486 11.8 9,771 50,257
Policy loans, at outstanding balance ........................................................ 6,867 2.0 4,790 11,657
Other long-term investments(1) ............................................................ 6,549 1.9 2,921 9,470
Short-term investments .................................................................. 6,250 1.8 1,467 7,717
Total general account investments ...................................................... 343,475 100.0% 59,758 403,233
Invested assets of other entities and operations(2) ............................................. 13,959 0 13,959
Total investments ................................................................... $357,434 $59,758 $417,192
December 31, 2014
PFI excluding
Closed Block
Division
Closed Block
Division Total
($ in millions)
Fixed maturities:
Public, available-for-sale, at fair value .................................................. $220,539 64.4% $28,626 $249,165
Public, held-to-maturity, at amortized cost ............................................... 2,000 0.6 0 2,000
Private, available-for-sale, at fair value .................................................. 34,738 10.1 15,039 49,777
Private, held-to-maturity, at amortized cost ............................................... 575 0.2 0 575
Trading account assets supporting insurance liabilities, at fair value ............................... 20,263 5.9 0 20,263
Other trading account assets, at fair value .................................................... 1,456 0.5 350 1,806
Equity securities, available-for-sale, at fair value .............................................. 6,331 1.8 3,522 9,853
Commercial mortgage and other loans, at book value .......................................... 36,538 10.7 9,475 46,013
Policy loans, at outstanding balance ........................................................ 6,798 2.0 4,914 11,712
Other long-term investments(1) ............................................................ 7,169 2.1 2,766 9,935
Short-term investments .................................................................. 5,874 1.7 2,037 7,911
Total general account investments ...................................................... 342,281 100.0% 66,729 409,010
Invested assets of other entities and operations(2) ............................................. 10,976 0 10,976
Total investments ................................................................... $353,257 $66,729 $419,986
(1) Other long-term investments consist of real estate and non-real estate-related investments in joint ventures and partnerships, investment real estate held
through direct ownership and other miscellaneous investments. For additional information regarding these investments, see “—Other Long-Term
Investments” below.
(2) Includes invested assets of our asset management and derivative operations. Excludes assets of our asset management operations that are managed for
third- parties and those assets classified as “Separate account assets” on our balance sheet. For additional information regarding these investments, see
“—Invested Assets of Other Entities and Operations” below.
The increase in general account investments attributable to PFI excluding the Closed Block division in 2015 was primarily due to the
reinvestment of net investment income and the transfer of assets from the former Closed Block Business partially offset by the translation
impact of the Australian dollar and yen weakening against the U.S. dollar, a net decrease in fair value driven by an increase in interest rates
in the U.S. and credit spread widening, and net business outflows. The general account investments attributable to the Closed Block
division decreased in 2015, primarily due to the transfer of assets related to the former Closed Block Business and a net decrease in fair
value driven by an increase in interest rates in the U.S. and credit spread widening. For information regarding the methodology used in
determining the fair value of our fixed maturities, see Note 20 to the Consolidated Financial Statements.
As of both December 31, 2015 and 2014, 41% of our general account investments attributable to PFI excluding the Closed Block
division related to our Japanese insurance operations.
Although the majority of the Japanese general account is invested in yen-denominated investments, our Japanese insurance operations
also hold significant investments denominated in U.S. and Australian dollars, including those that support liabilities denominated in these
currencies. As a result of continued growth in these portfolios, we have implemented a new reporting structure in Gibraltar Life that
disaggregates the U.S. and Australian dollar-denominated businesses into separate divisions, each with its own functional currency that
aligns with the underlying products and investments. The new structure was effective for financial reporting beginning in the first quarter
of 2015. For additional information, see “—Results of Operations by Segment—International Insurance Division,” above.
Prudential Financial, Inc. 2015 Annual Report 65