Travelers 2006 Annual Report Download - page 116

104
For the year ended December 31, 2006, the Company recognized thefollowing other-than-temporary
impairments:
•$7 million in the fixed maturities portfolio, consisting of $6 million resulting from the potential to
sell various holdings prior to a recovery in market value, and $1 million related to credit risk
associated with various issuers’ deteriorated financial position.
•$4 million in the equity portfolio when it became apparent that the cost basis of those securities
would not be recovered over the expected holding period.
•$33 million in the venture capital portfolio on 16 holdings. Four of the holdings were impaired due
to new financings on unfavorable terms.Six holdings experienced fundamental economic
deterioration (characterized by less than expected revenues or a fundamental change inproduct).
Four of the holdings were impaired due to the impending sale, liquidation or shutdown of the
entity. Two of the holdings were public securities whose cost basis was not anticipated to be
recovered over the expected holding period.
•$4 million in its real estate and other investments (excluding venture capital). The loss recorded was
theresult of one mortgage loan refinancing at less favorable terms.
For the year ended December 31, 2005, the Company recognized thefollowing other-than-temporary
impairments:
•$11 million in the fixed maturities portfolio related to various issuers due to credit risk associated
with the issuer’s deteriorated financial position.
•$80 million in the venture capital portfolio on 22 holdings. Two of the holdings were impaired due
to new financings on unfavorable terms. Fifteen holdings experienced fundamental economic
deterioration (characterized by less thanexpected revenues or a fundamental change inproduct).
Three of the holdings were impaired due to the impending sale, liquidation or shutdown of the
entity. Two of the holdings were public securities whose cost basis was not anticipated to be
recovered over the expected holdingperiod.
•$18 million in its real estate and other investments (excluding venture capital). The losses recorded
were the result of an equity partnership and a private stock holding which both experienced
fundamental deterioration in their financial position.
For the year ended December 31, 2004, the Company recognized thefollowing other-than-temporary
impairments:
•$25 million in the fixed maturities portfoliorelated to various issuers due to credit risk associated
with the issuer’s deteriorated financial position.
•$5 million in the equity portfolio when it became apparent that the cost basis of those securities
would not be recovered over the expected holding period.
•$40 million in its venture capital portfolio on 16 holdings. Three of the holdings were impaireddue
to new financings on unfavorable terms.Five holdings experienced fundamental economic
deterioration (characterized by less than expected revenues or a fundamental change inproduct).
Eight of the holdings were impaired due to the impending sale, liquidation orshutdown of the
entity.
•$10 million in its real estate and other investments (excluding venture capital). The losses recorded
were the result of falling rental rates and occupancies in three of the Company’s real estate
investment holdings.