Travelers 2009 Annual Report Download - page 248

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
Fair Value Hierarchy—Pension Plans
The following table presents the level within the fair value hierarchy at which the financial assets
of the Company’s pension plans are measured on a recurring basis at December 31, 2009.
(at December 31, 2009, in millions) Total Level 1 Level 2 Level 3
Invested assets:
Fixed maturities
U.S. Treasury securities and obligations of U.S.
Government and government agencies and
authorities ........................... $42$42$— $—
Debt securities issued by foreign governments . . . 8— 8—
Mortgage-backed securities, collateralized
mortgage obligations and pass-through
securities ............................ 46—46—
All other corporate bonds . . . . . . . . . . . . . . . . . . 65—65—
Total fixed maturities . . . . . . . . . . . . . . . . . . 161 42 119 —
Equity securities(1) ...................... 1,513 860 653 —
Other investments(2) ..................... 17——17
Cash and short-term securities .............. 567 284 283 —
Total.............................. $2,258 $1,186 $1,055 $17
(1) Equity securities consist of a combination of equity security mutual funds and separately
managed equity assets. Mutual funds are invested in low cost equity index funds that
track large and small company indices in both growth and value styles. The separately
managed equity assets are managed by various unaffiliated investment advisors who focus
on various equity investment styles.
(2) Other investments include a hedge fund and two private equity funds. The hedge fund is
a ‘‘fund of funds’’ that is multi-strategy. One private equity fund is focused on financial
companies, and the other is focused on real estate-related investments. One group
annuity contract is also included in other investments.
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