Travelers 2010 Annual Report Download - page 202

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. FAIR VALUE MEASUREMENTS (Continued)
option pricing model with observable market inputs. Since these warrants were not market traded and
information concerning market participants was not available, the Company included their fair value
estimate of $94 million in Level 3—other investments. The Company sold these warrants in the fourth
quarter of 2010.
Fair Value Hierarchy
The following tables present the level within the fair value hierarchy at which the Company’s
financial assets and financial liabilities are measured on a recurring basis at December 31, 2010 and
2009.
(at December 31, 2010, 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 . $ 2,008 $1,991 $ 17 $ —
Obligations of states, municipalities and political
subdivisions ............................... 39,535 — 39,433 102
Debt securities issued by foreign governments ........ 2,202 — 2,202 —
Mortgage-backed securities, collateralized mortgage
obligations and pass-through securities ............ 4,164 — 4,163 1
All other corporate bonds ....................... 14,876 — 14,749 127
Redeemable preferred stock ..................... 35 34 1 —
Total fixed maturities ........................ 62,820 2,025 60,565 230
Equity securities
Common stock ............................... 304 281 23 —
Non-redeemable preferred stock .................. 215 131 84 —
Total equity securities ........................ 519 412 107 —
Other investments ............................ 99 42 — 57
Total .................................... $63,438 $2,479 $60,672 $287
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