Travelers 2007 Annual Report Download - page 186

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. INVESTMENTS
Fixed Maturities
The amortized cost and fair value of investments in fixed maturities classified as available for sale
were as follows:
Gross Unrealized
Amortized Fair
(at December 31, 2007, in millions) Cost Gains Losses Value
U.S. Treasury securities and obligations of U.S. Government and
government agencies and authorities .................... $ 2,092 $ 58 $ — $ 2,150
Obligations of states, municipalities and political subdivisions . . . 38,111 751 40 38,822
Debt securities issued by foreign governments ............... 1,629 11 5 1,635
Mortgage-backed securities, collateralized mortgage obligations
and pass-through securities ........................... 7,108 73 65 7,116
All other corporate bonds ............................. 15,120 169 194 15,095
Redeemable preferred stock ........................... 92 12 2 102
Total ........................................... $64,152 $1,074 $306 $64,920
(at December 31, 2006, in millions)
U.S. Treasury securities and obligations of U.S. Government and
government agencies and authorities .................... $ 2,736 $ 13 $ 31 $ 2,718
Obligations of states, municipalities and political subdivisions . . . 35,326 661 80 35,907
Debt securities issued by foreign governments ............... 1,550 12 10 1,552
Mortgage-backed securities, collateralized mortgage obligations
and pass-through securities ........................... 7,665 52 128 7,589
All other corporate bonds ............................. 14,866 165 247 14,784
Redeemable preferred stock ........................... 101 16 1 116
Total ........................................... $62,244 $ 919 $497 $62,666
The amortized cost and fair value of fixed maturities by contractual maturity follow. Actual
maturities will differ from contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
Amortized Fair
(at December 31, 2007, in millions) Cost Value
Due in one year or less .............................. $ 3,288 $ 3,292
Due after 1 year through 5 years ....................... 15,745 15,962
Due after 5 years through 10 years ...................... 17,558 17,777
Due after 10 years .................................. 20,453 20,773
57,044 57,804
Mortgage-backed securities ........................... 7,108 7,116
Total .......................................... $64,152 $64,920
The Company makes investments in collateralized mortgage obligations (CMOs) that typically have
high credit quality, offer good liquidity and are expected to provide an advantage in yield compared to
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