Travelers 2011 Annual Report Download - page 196

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. INVESTMENTS (Continued)
Proceeds from sales of fixed maturities classified as available for sale were $1.16 billion,
$3.71 billion and $2.81 billion in 2011, 2010 and 2009, respectively. Gross gains of $63 million,
$106 million and $119 million and gross losses of $10 million, $11 million and $19 million were realized
on sales in 2011, 2010 and 2009, respectively.
At December 31, 2011 and 2010, the Company’s insurance subsidiaries had $4.70 billion and
$4.51 billion, respectively, of securities on deposit at financial institutions in certain states pursuant to
the respective states’ insurance regulatory requirements. Funds deposited with third parties to be used
as collateral to secure various liabilities on behalf of insureds, cedants and other creditors had a fair
value of $90 million and $86 million at December 31, 2011 and 2010, respectively. Other investments
pledged as collateral securing outstanding letters of credit had a fair value of $59 million and
$88 million at December 31, 2011 and 2010, respectively.
Equity Securities
The cost and fair value of investments in equity securities were as follows:
Gross
Unrealized Fair
(at December 31, 2011, in millions) Cost Gains Losses Value
Common stock ........................................... $311 $120 $3 $428
Non-redeemable preferred stock .............................. 103 29 1 131
Total ................................................. $414 $149 $4 $559
Gross
Unrealized Fair
(at December 31, 2010, in millions) Cost Gains Losses Value
Common stock ........................................... $198 $106 $— $304
Non-redeemable preferred stock .............................. 174 46 5 215
Total ................................................. $372 $152 $ 5 $519
Proceeds from sales of equity securities were $135 million, $201 million and $65 million in 2011,
2010 and 2009, respectively. Gross gains of $48 million, $128 million and $13 million and gross realized
losses of $2 million, less than $1 million and $2 million were realized on those sales in 2011, 2010 and
2009, respectively. In 2010, proceeds from the sales of equity securities and gross gains realized on
those sales included $115 million and $102 million, respectively, from the sale of substantially all of the
Company’s remaining common stock holdings in Verisk Analytics, Inc. (Verisk), a portion of which was
classified as an equity security at the time of sale.
In 2010 and 2009, the Company also sold portions of its investment in Verisk that were classified
as an ‘‘other investment’’ at the time of sale due to transfer restrictions that were scheduled to expire
after one year. Proceeds from those sales of Verisk shares in 2010 and 2009 totaled $115 million and
$184 million, respectively. Gross gains realized on those sales were $103 million and $159 million,
respectively.
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