Travelers 2008 Annual Report Download - page 196

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, 2008, in millions) Cost Gains Losses Value
U.S. Treasury securities and obligations of U.S. Government and
government agencies and authorities ................... $ 1,681 $ 160 $ — $ 1,841
Obligations of states, municipalities and political subdivisions . . . 38,598 920 456 39,062
Debt securities issued by foreign governments .............. 1,453 67 1 1,519
Mortgage-backed securities, collateralized mortgage obligations
and pass-through securities .......................... 6,266 157 364 6,059
All other corporate bonds ............................ 13,498 121 882 12,737
Redeemable preferred stock ........................... 73 1 17 57
Total .......................................... $61,569 $1,426 $1,720 $61,275
(at December 31, 2007, in millions)
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
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, 2008, in millions) Cost Value
Due in one year or less .............................. $ 2,982 $ 3,009
Due after 1 year through 5 years ....................... 16,285 16,568
Due after 5 years through 10 years ...................... 17,476 17,602
Due after 10 years .................................. 18,560 18,037
55,303 55,216
Mortgage-backed securities ........................... 6,266 6,059
Total .......................................... $61,569 $61,275
At December 31, 2008 and 2007, the Company held commercial mortgage-backed securities
(CMBS, including FHA project loans) of $766 million and $935 million, respectively, which are
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