Aetna 2006 Annual Report Download - page 64

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The maturity dates for debt securities in an unrealized loss position at December 31, 2006 were as follows:
Fair Unrealized Fair Unrealized Fair Unrealized
(Millions) Value Losses Value Losses Value Losses
Due to mature:
Less than one year 16.2$ .2$ 228.8$ .9$ 245.0$ 1.1$
One year through five years 161.7 5.2 1,393.4 16.2 1,555.1 21.4
After five years through ten years 504.8 11.6 1,128.3 19.0 1,633.1 30.6
Greater than ten years 670.1 23.5 1,586.7 44.0 2,256.8 67.5
Mortgage-backed securities 59.7 1.6 713.8 16.3 773.5 17.9
Total 1,412.5$ 42.1$ 5,051.0$ 96.4$ 6,463.5$ 138.5$
Supporting discontinued Supporting remaining
and experience-rated products products Total
Summarized below are our debt and equity securities with unrealized losses at December 31, 2006 and 2005,
along with the related fair value, aggregated by the length of time the investments have been in an unrealized loss
position:
Fair Unrealized Fair Unrealized Fair Unrealized
(Millions) Value Losses Value Losses Value Losses
2006
Debt securities:
U.S. government securities 721.5$ 5.2$ 269.8$ 5.2$ 991.3$ 10.4$
State, municipalities and political subdivisions 329.8 2.4 321.6 6.3 651.4 8.7
U.S. corporate securities 1,127.7 13.6 1,219.1 45.4 2,346.8 59.0
Foreign securities 278.0 4.5 376.0 15.6 654.0 20.1
Mortgage-backed and other asset-backed securities 406.5 2.6 1,246.9 34.3 1,653.4 36.9
Redeemable preferred securities 166.6 3.4 - - 166.6 3.4
Total debt securities 3,030.1 31.7 3,433.4 106.8 6,463.5 138.5
Equity securities 2.6 .1 1.0 - 3.6 .1
Total debt and equity securities 3,032.7$ 31.8$ 3,434.4$ 106.8$ 6,467.1$ 138.6$
2005
Debt securities:
U.S. government securities 506.6$ 5.2$ 326.4$ 7.0$ 833.0$ 12.2$
State, municipalities and political subdivisions 623.1 5.8 76.8 1.9 699.9 7.7
U.S. corporate securities 1,805.0 43.1 226.0 7.4 2,031.0 50.5
Foreign securities 569.0 13.0 84.4 2.1 653.4 15.1
Mortgage-backed and other asset-backed securities 1,149.0 21.8 593.7 22.1 1,742.7 43.9
Total debt securities 4,652.7 88.9 1,307.3 40.5 5,960.0 129.4
Equity securities 4.1 .2 - - 4.1 .2
Total debt and equity securities 4,656.8$ 89.1$ 1,307.3$ 40.5$ 5,964.1$ 129.6$
Less than 12 months Greater than 12 months
(1)
Total
(1) At December 31, 2006 and 2005, debt and equity securities in an unrealized loss position for greater than twelve months of
$33.6 million and $7.2 million, respectively, and related fair value of $814.1 million and $185.9 million, respectively, related to
discontinued and experience-rated products.
Unrealized losses at December 31, 2006 and 2005 were generally caused by current interest rates that were
higher than the stated interest rates. In accordance with our accounting policy, we record an other-than-
temporary impairment unless we determine that sufficient market recovery can occur within a reasonable period
of time and that we have the intent and ability to hold the investment until market recovery, which may be until
maturity. In determining our ability to hold a security until full recovery of value, we consider the forecasted
recovery period, expected investment returns relative to other funding sources, our projected cash flow and
capital requirements and other factors. We have the ability and intent to hold the securities in the table above
until their cost can be recovered, which we expect will occur at maturity, if not sooner. Therefore, no other-
than-temporary impairment was determined to have occurred on these investments.
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