United Healthcare 2010 Annual Report Download - page 73

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3. Investments
A summary of short-term and long-term investments is as follows:
(in millions)
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
December 31, 2010
Debt securities — available-for-sale:
U.S. government and agency obligations ................. $ 2,214 $ 28 $ (8) $ 2,234
State and municipal obligations ......................... 6,007 183 (42) 6,148
Corporate obligations ................................. 5,111 210 (11) 5,310
U.S. agency mortgage-backed securities .................. 1,851 58 (6) 1,903
Non-U.S. agency mortgage-backed securities .............. 439 26 0 465
Total debt securities — available-for-sale ..................... 15,622 505 (67) 16,060
Equity securities — available-for-sale ........................ 508 22 (14) 516
Debt securities — held-to-maturity:
U.S. government and agency obligations ................. 167 5 0 172
State and municipal obligations ......................... 15 0 0 15
Corporate obligations ................................. 21 0 0 21
Total debt securities — held-to-maturity ...................... 203 5 0 208
Total investments ........................................ $16,333 $532 $(81) $16,784
December 31, 2009
Debt securities — available-for-sale:
U.S. government and agency obligations ................. $ 1,566 $ 12 $(11) $ 1,567
State and municipal obligations ......................... 6,080 248 (11) 6,317
Corporate obligations ................................. 3,278 149 (6) 3,421
U.S. agency mortgage-backed securities .................. 1,870 64 (3) 1,931
Non-U.S. agency mortgage-backed securities .............. 535 8 (5) 538
Total debt securities — available-for-sale ..................... 13,329 481 (36) 13,774
Equity securities — available-for-sale ........................ 579 12 (14) 577
Debt securities — held-to-maturity:
U.S. government and agency obligations ................. 158 4 0 162
State and municipal obligations ......................... 17 0 0 17
Corporate obligations ................................. 24 0 0 24
Total debt securities — held-to-maturity ...................... 199 4 0 203
Total investments ........................................ $14,107 $497 $(50) $14,554
Included in the Company’s investment portfolio were securities collateralized by sub-prime home equity lines of
credit with fair values of $6 million and $9 million as of December 31, 2010 and 2009, respectively. Also
included were Alt-A securities with fair values of $15 million and $19 million as of December 31, 2010 and
2009, respectively.
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