Travelers 2011 Annual Report Download - page 200

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. INVESTMENTS (Continued)
These unrealized losses at December 31, 2011 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.
Impairment Charges
Impairment charges included in net realized investment gains in the consolidated statement of
income were as follows:
(for the year ended December 31, in millions) 2011 2010 2009
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government
agencies and authorities ........................................ $— $— $ —
Obligations of states, municipalities and political subdivisions ............... ———
Debt securities issued by foreign governments .......................... ———
Mortgage-backed securities, collateralized mortgage obligations and pass-through
securities ................................................... 13 481
All other corporate bonds ......................................... 5988
Redeemable preferred stock ....................................... ———
Total fixed maturities .......................................... 18 13 169
Equity securities
Common stock ................................................. 6215
Non-redeemable preferred stock .................................... —164
Total equity securities .......................................... 6379
Other investments ................................................ 110 10
Total ...................................................... $25 $26 $258
In the second quarter of 2009, the Company adopted updated accounting guidance that changed
the reporting of other-than-temporary impairments (OTTI). As a result, the credit component of OTTI
on fixed maturities was reported separately effective April 1, 2009, the date of adoption.
The following tables present a roll-forward of the credit component of OTTI on fixed maturities
recognized in the consolidated statement of income for which a portion of the OTTI was recognized in
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