Travelers 2012 Annual Report Download - page 201

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. INVESTMENTS (Continued)
These unrealized losses at December 31, 2012 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) 2012 2011 2010
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 .................................................... 413 4
All other corporate bonds ......................................... 459
Redeemable preferred stock ........................................ ———
Total fixed maturities ........................................... 818 13
Equity securities
Common stock ................................................. 362
Non-redeemable preferred stock .................................... 1—1
Total equity securities ........................................... 463
Other investments ................................................ 3110
Total ....................................................... $15 $25 $26
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
other comprehensive income for the years ended December 31, 2012 and 2011:
Cumulative Additions for Additions for Adjustments to
OTTI Credit OTTI Securities OTTI Securities Reductions Book Value Cumulative OTTI
Losses Where No Where Credit Due to of Credit- Credit Losses
Recognized for Credit Losses Losses Have Sales/Defaults Impaired Recognized for
Securities Held, Were Been of Credit- Securities due Securities Still
Year ended December 31, 2012 Beginning of Previously Previously Impaired to Changes in Held, End of
(in millions) Period Recognized Recognized Securities Cash Flows Period
Fixed maturities
Mortgage-backed securities, collateralized
mortgage obligations and pass-through
securities .................... $ 58 $— $4 $(1) $2 $ 63
All other corporate bonds ........... 94 — 4 — 4 102
Total fixed maturities ............. $152 $— $8 $(1) $6 $165
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