Prudential 2015 Annual Report Download - page 71

The increase in net investment income yield on the Japanese insurance portfolio for 2014, compared to 2013, was primarily
attributable to a higher allocation into U.S. dollar-denominated securities and higher income from non-coupon investments.
Both the U.S. dollar-denominated and Australian dollar-denominated fixed maturities that are not hedged to yen through third-party
derivative contracts provide a yield that is substantially higher than the yield on comparable yen-denominated fixed maturities. The average
amortized cost of U.S. dollar-denominated fixed maturities that are not hedged to yen through third-party derivative contracts was
approximately $35.0 billion and $33.9 billion, for the years ended December 31, 2015 and 2014, respectively. The majority of U.S. dollar-
denominated fixed maturities support liabilities that are denominated in U.S. dollars. The average amortized cost of Australian dollar-
denominated fixed maturities that are not hedged to yen through third-party derivative contracts was approximately $9.3 billion and $8.9
billion, for the years ended December 31, 2015 and 2014, respectively. The Australian dollar-denominated fixed maturities support
liabilities that are denominated in Australian dollars.
For additional information regarding U.S. and Australian dollar investments held in our Japanese insurance operations see, “—Results
of Operations by Segment—International Insurance Division.”
General Account Investments of PFI excluding Closed Block Division
In the following sections, we provide details about our investment portfolio, excluding investments held in the Closed Block division.
We believe the details of the composition of our investment portfolio excluding the Closed Block division are most relevant to an
understanding of our operations that are pertinent to investors in Prudential Financial because substantially all Closed Block division assets
support obligations and liabilities relating to the Closed Block policies only. See Note 12 to the Consolidated Financial Statements for
further information on the Closed Block.
Fixed Maturity Securities
Fixed Maturity Securities by Contractual Maturity Date
The following table sets forth the breakdown of the amortized cost of our fixed maturity securities portfolio by contractual maturity as
of December 31, 2015.
December 31, 2015
Amortized
Cost % of Total
($ in millions)
Corporate & government securities:
Maturing in 2016 ........................................................................................ $ 7,589 3.3%
Maturing in 2017 ........................................................................................ 8,884 3.9
Maturing in 2018 ........................................................................................ 9,944 4.3
Maturing in 2019 ........................................................................................ 9,577 4.1
Maturing in 2020 ........................................................................................ 11,993 5.2
Maturing in 2021 ........................................................................................ 11,054 4.8
Maturing in 2022 ........................................................................................ 10,046 4.3
Maturing in 2023 ........................................................................................ 9,306 4.0
Maturing in 2024 ........................................................................................ 9,652 4.2
Maturing in 2025 ........................................................................................ 8,438 3.6
Maturing in 2026 ........................................................................................ 5,346 2.3
Maturing in 2027 and beyond .............................................................................. 110,417 47.7
Total corporate & government securities .............................................................. 212,246 91.7
Asset-backed securities ................................................................................... 6,873 3.0
Commercial mortgage-backed securities ...................................................................... 7,300 3.2
Residential mortgage-backed securities ....................................................................... 4,861 2.1
Total fixed maturities ............................................................................. $231,280 100.0%
Prudential Financial, Inc. 2015 Annual Report 69