Travelers 2009 Annual Report Download - page 204

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. INVESTMENTS (Continued)
Impairment Charges
Impairment charges included in net realized investment gains (losses) in the consolidated
statement of income were as follows:
(for the year ended December 31, in millions) 2009 2008 2007
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government and government
agencies and authorities........................................ $— $— $—
Obligations of states, municipalities and political subdivisions . . . . . . . . . . . . . . —1—
Debt securities issued by foreign governments . . . . . . . . . . . . . . . . . . . . . . . . . ———
Mortgage-backed securities, collateralized mortgage obligations and
pass-through securities......................................... 81 36 —
All other corporate bonds........................................ 88 283 37
Redeemable preferred stock ...................................... —4—
Total fixed maturities.......................................... 169 324 37
Equity securities
Common stock................................................ 15 34 7
Non-redeemable preferred stock ................................... 64 40 —
Total equity securities ......................................... 79 74 7
Other investments ............................................... 10 22 26
Total...................................................... $258 $420 $70
The following tables present a roll-forward of the credit component of other-than-temporary
impairments (OTTI) on fixed maturities recognized in the consolidated statement of income for which
a portion of the other-than-temporary impairment was recognized in accumulated other changes in
equity from nonowner sources for the period April 1, 2009 through December 31, 2009:
Additions for Additions for
OTTI Securities OTTI Securities Adjustments to
April 1, 2009 Where No Where Credit Reductions Book Value of December 31, 2009
Cumulative Credit Losses Losses Have Due to Credit- Cumulative OTTI
OTTI Credit Were Been Sales/Defaults Impaired Credit Losses
Losses Recognized Recognized of Credit- Securities due Recognized for
April 1, 2009 through December 31, 2009(1) Recognized for Prior to Prior to Impaired to Changes in Securities
(in millions) Securities Held April 1, 2009 April 1, 2009 Securities Cash Flows Still Held
Fixed maturities
Mortgage-backed securities, collateralized
mortgage obligations and pass-through
securities.................... $13 $17 $13 $ — $3 $ 46
All other corporate bonds . . . . . . . . . . . 82 9 14 (14) 2 93
Total fixed maturities . . . . . . . . . . . . . $95 $26 $27 $(14) $5 $139
(1) The credit component of OTTI on fixed maturities is reported separately effective April 1, 2009, the date that the Company adopted the
updated guidance for OTTI. See note 1.
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