Travelers 2006 Annual Report Download - page 190

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
178
3. INVESTMENTS (Continued)
The following securities are not consolidated:
•Mandatorily redeemable preferred securities of trusts holding solely the subordinated debentures of
the Company - These securities were issued by four separate trusts that were established for the sole
purpose of issuing the securities to investors, and are fully guaranteed by the Company. The
subordinated debt that the Company issued to these trusts is included in the “Debt” section of
liabilities on the Company’s consolidated balance sheet. That debt had a carrying value of
$399 million and $1.03 billion at December 31, 2006 and 2005, respectively. During 2006, the
Company redeemed the $593 million, 7.60% subordinated debentures issued to St. Paul Capital
Trust I, which in turn redeemed its preferred securities.
Unrealized Investment Losses
The following tables summarize, for all investments in an unrealized loss position at December 31,
2006 and 2005, the aggregate fair value andgross unrealized loss by length of time thosesecurities have
been continuously in an unrealized loss position.
Less than 12 months 12 months or longer Total
(at December 31, 2006, in millions)
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fixed maturities
Mortgage-backed securities,
collateralized mortgageobligations
and pass through securities. ........ $ 1,245 $11$ 4,125 $ 117$ 5,370 $128
U.S. Treasury securities and
obligations of U.S. Government
and government agencies and
authorities....................... 1,014 2964 29 1,978 31
Obligations of states, municipalities
and political subdivisions.......... 4,468 16 4,077648,545 80
Debt securities issued by foreign
governments..................... 861 6406 41,267 10
All other corporate bonds............ 3,690 36 6,325211 10,015 247
Redeemable preferred stock......... 1 — 51 6 1
Total fixed maturities............. 11,279 71 15,902 42627,181 497
Equity securities
Common stock..................... 3 — 1— 4 —
Nonredeemable preferred stock...... 50 1534 103 5
Total equity securities............. 53 1544 107 5
Venture capital..................... — — 14 114 1
Total............................$11,332 $ 72 $ 15,970 $ 431$27,302 $503