Travelers 2014 Annual Report Download - page 196

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. INVESTMENTS (Continued)
These unrealized losses at December 31, 2014 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:
The following tables present the cumulative amount of and the changes during the reporting period in the credit losses of other
- than -
temporary impairments (OTTI) on fixed maturities recognized in the consolidated statement of income for which a portion of the OTTI was
recognized in other comprehensive income:
195
(for the year ended December 31, in millions)
2014
2013
2012
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
1
2
4
All other corporate bonds
15
3
4
Redeemable preferred stock
—
—
—
Total fixed maturities
16
5
8
Equity securities
Public common stock
9
5
3
Non - redeemable preferred stock
—
—
1
Total equity securities
9
5
4
Other investments
1
5
3
Total
$
26
$
15
$
15
Year ended December 31, 2014
(in millions)
Cumulative
OTTI Credit
Losses
Recognized
for
Securities
Held,
Beginning of
Period
Additions for
OTTI
Securities
Where No
Credit Losses
Were
Previously
Recognized
Additions for
OTTI
Securities
Where Credit
Losses Have
Been
Previously
Recognized
Reductions
Due to
Sales/Defaults
of Credit
-
Impaired
Securities
Adjustments
to
Book Value
of Credit
-
Impaired
Securities due
to Changes in
Cash Flows
Cumulative
OTTI
Credit Losses
Recognized for
Securities Still
Held, End of
Period
Fixed maturities
Mortgage - backed securities,
collateralized mortgage
obligations and pass - through
securities
$
53
$
—
$
1
$
(5
)
$
(9
)
$
40
All other corporate bonds
65
—
3
(6
)
(3
)
59
Total fixed maturities
$
118
$
—
$
4
$
(11
)
$
(12
)
$
99