Aetna 2006 Annual Report Download - page 66

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9. Capital Gains and Losses on Investments and Other Activities
As discussed in Note 2 beginning on page 48, only realized capital gains and losses on investments supporting
Group Insurance and Health Care liabilities and Large Case Pensions products (other than experience-rated and
discontinued products) are reflected in our results of operations. The components of such net realized capital
gains (losses) in 2006, 2005 and 2004, on investments were as follows:
(Millions) 2006 2005 2004
Debt securities 17.3$ 15.8$ 57.0$
Equity securities 3.8 .8 13.0
Derivatives 7.8 (2.9) .2
Real estate 4.7 15.2 1.3
Other (1.4) 3.4 (.7)
Pretax net realized capital gains 32.2$ 32.3$ 70.8$
Net realized capital gains related to experience-rated contract holders of $15 million, $5 million and $13 million
in 2006, 2005 and 2004, respectively, were deducted from net realized capital gains and an offsetting amount was
reflected in policyholders’ funds. Net realized capital gains related to discontinued products of $39 million, $22
million and $38 million in 2006, 2005 and 2004, respectively, were deducted from net realized capital gains and
an offsetting amount was reflected in the reserve for anticipated future losses on discontinued products (refer to
Note 20 beginning on page 84).
Excluding experience-rated contract holders and discontinued products, proceeds from the sale of debt securities
and the related gross realized capital gains and losses in 2006, 2005 and 2004 were as follows:
(Millions) 2006 2005 2004
Proceeds on sales 10,057.6$ 10,324.9$ 9,269.4$
Gross realized capital gains 88.0 66.5 101.5
Gross realized capital losses 70.9 53.8 44.0
Page 64