Travelers 2013 Annual Report Download - page 249

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
Fair Value Hierarchy—Pension Plans
The following tables present 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, 2013 and 2012.
(at December 31, 2013, in millions) Total Level 1 Level 2 Level 3
Invested assets:
Fixed maturities
Obligations of states, municipalities and political
subdivisions ......................... $18$— $18 $—
Debt securities issued by foreign governments . . 14 — 14 —
Mortgage-backed securities, collateralized
mortgage obligations and pass-through
securities ........................... 11 — 11 —
All other corporate bonds ................ 447 — 447 —
Total fixed maturities ................. 490 — 490 —
Mutual funds
Equity mutual funds .................... 1,355 1,355 — —
Bond mutual funds ..................... 446 446 — —
Total mutual funds .................... 1,801 1,801 — —
Equity securities ......................... 571 570 1 —
Other investments(1) ..................... 4——4
Cash and short-term securities
U.S. Treasury securities .................. 122 122 — —
Money market mutual funds ............... 19 19 — —
Other ............................... 196 31 165 —
Total cash and short-term securities ...... 337 172 165 —
Total ........................... $3,203 $2,543 $656 $ 4
(1) The fair value estimates of the two private equity funds comprising these investments are
determined by an external fund manager based on recent filings, operating results,
balance sheet stability, growth and other business and market sector fundamentals. Due
to the significant unobservable inputs in these valuations, the total fair value estimates are
disclosed in Level 3.
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