Travelers 2003 Annual Report Download - page 116

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114
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. INVESTMENTS, Continued
Net Realized and Unrealized Investment Gains (Losses)
Net realized investment gains (losses) for the periods were as follows:
(for the year ended December 31, in millions) 2003 2002 2001
Net realized investment gains (losses)
Fixed maturities $ 69.1 $ 167.5 $ 331.0
Equity securities 6.6 (4.1) (8.1)
Other (37.7) (16.7) (.4)
Net realized investment gains $ 38.0 $ 146.7 $ 322.5
Changes in net unrealized gains (losses) on investment securities that are included as a separate component of
accumulated other changes in equity from nonowner sources were as follows:
(at and for the year ended December 31, in millions) 2003 2002 2001
Change in net unrealized investments gains (losses)
Fixed maturities $ 441.8 $ 735.6 $ (279.0)
Equity securities 70.7 (14.0) 47.0
512.5 721.6 (232.0)
Related taxes 183.0 249.4 (81.1)
Minority interest (.8) 3.2 -
Change in net unrealized gains (losses) on investment securities 328.7 475.4 (150.9)
Balance, beginning of year 731.6 256.2 407.1
Balance, end of year $ 1,060.3 $ 731.6 $ 256.2
5. INTANGIBLE ASSETS
During the third quarter of 2003, Travelers purchased the renewal rights to Royal & SunAlliance USA Inc.’s
commercial lines national accounts, middle market and marine businesses, and standard and preferred personal
lines businesses. Also in the third quarter of 2003, Travelers purchased renewal rights to the majority of Atlantic
Mutual’s commercial lines inland marine and ocean cargo businesses written by Atlantic Mutual’s Marine
Division. The minimum purchase price for both transactions, which has been paid, was $48.0 million. The final
purchase price, currently estimated to be $84.5 million, is dependent on the level of business renewed by
Travelers. Travelers recorded customer-related intangible assets of $79.5 million and a marketing-related
intangible asset of $5.0 million related to these transactions. These intangible assets are estimated to have useful
lives of 5 years.