Travelers 2009 Annual Report Download - page 203

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. INVESTMENTS (Continued)
Less than 12 months 12 months or longer Total
Gross Gross Gross
Fair Unrealized Fair Unrealized Fair Unrealized
(at December 31, 2008, in millions) Value Losses Value Losses Value Losses
Fixed maturities
U.S. Treasury securities and obligations
of U.S. Government and government
agencies and authorities . . . . . . . . . . $ — $ — $ — $ — $ — $ —
Obligations of states, municipalities and
political subdivisions . . . . . . . . . . . . . 11,508 340 1,812 116 13,320 456
Debt securities issued by foreign
governments................... 7 1 — — 7 1
Mortgage-backed securities,
collateralized mortgage obligations
and pass-through securities . . . . . . . . 1,660 310 551 54 2,211 364
All other corporate bonds . . . . . . . . . . . 5,734 510 2,112 372 7,846 882
Redeemable preferred stock . . . . . . . . . 24 11 19 6 43 17
Total fixed maturities . . . . . . . . . . . . 18,933 1,172 4,494 548 23,427 1,720
Equity securities
Common stock . . . . . . . . . . . . . . . . . . . 93 25 12 6 105 31
Non-redeemable preferred stock . . . . . . 83 28 69 32 152 60
Total equity securities . . . . . . . . . . . . 176 53 81 38 257 91
Total . . . . . . . . . . . . . . . . . . . . . . . . $19,109 $1,225 $4,575 $586 $23,684 $1,811
The following table summarizes for all fixed maturities and equity securities available for sale and
for equity securities reported at fair value for which fair value is less than 80% of amortized cost at
December 31, 2009, the gross unrealized investment loss by length of time those securities have
continuously been in an unrealized loss position of greater than 20% of amortized cost:
Period For Which Fair Value Is Less Than 80% of Amortized Cost
Greater Than Greater Than
3 Months, 6 Months,
Less Than Less Than Less Than Greater Than
(in millions) 3 Months 6 Months 12 Months 12 Months Total
Fixed maturities:
Mortgage-backed securities . . . . . . . . . . . $11 $ 4 $24 $55 $ 94
Other .......................... 22 93245
Total fixed maturities . . . . . . . . . . . . . . 13 6 33 87 139
Equity securities .................... 65——11
Total............................. $19 $11 $33 $87 $150
These unrealized losses at December 31, 2009 represented less than 1% of the combined fixed
maturity and equity security portfolios on a pretax basis and less than 1% of shareholders’ equity on an
after-tax basis.
191