Aetna 2009 Annual Report Download - page 64

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8. Investments
Total investments at December 31, 2009 and 2008 were as follows:
(Millions) Current Long-term Total Current Long-term Total
Debt and equity securities available for sale 2,834.8$ 14,324.9$ 17,159.7$ 633.8$ 13,359.5$ 13,993.3$
Mortgage loans 86.1 1,507.9 1,594.0 70.4 1,609.5 1,679.9
Other investments 1.8 1,218.3 1,220.1 1.8 1,194.4 1,196.2
Total investments 2,922.7$ 17,051.1$ 19,973.8$ 706.0$ 16,163.4$ 16,869.4$
2009 2008
Debt and equity securities available for sale at December 31, 2009 and 2008 were as follows:
Gross Gross
Amortized Unrealized Unrealized Fair
(Millions) Cost Gains Losses Value
December 31, 2009
Debt securities:
U.S. government securities 1,801.3$ 50.7$ (5.2)$ 1,846.8$
States, municipalities and political subdivisions 2,022.2 80.7 (27.5) 2,075.4
U.S. corporate securities 6,741.9 497.1 (54.4) 7,184.6
Foreign securities 2,554.5 210.9 (20.9) 2,744.5
Residential mortgage-backed securities 1,375.8 49.4 (5.0)
(1)
1,420.2
Commercial mortgage-backed securities 1,109.8 37.6 (104.0)
(1)
1,043.4
Other asset-backed securities 419.6 25.0 (8.2)
(1)
436.4
Redeemable preferred securities 381.9 27.8 (41.0) 368.7
Total debt securities 16,407.0 979.2 (266.2) 17,120.0
Equity securities 35.3 7.9 (3.5) 39.7
Total debt and equity securities
(2)
16,442.3$ 987.1$ (269.7)$ 17,159.7$
December 31, 2008
Debt securities:
U.S. government securities 890.7$ 115.3$ (.4)$ 1,005.6$
States, municipalities and political subdivisions 1,942.8 23.3 (72.5) 1,893.6
U.S. corporate securities 6,343.8 228.2 (416.5) 6,155.5
Foreign securities 2,134.0 103.0 (124.9) 2,112.1
Residential mortgage-backed securities 1,210.2 39.3 (.4) 1,249.1
Commercial mortgage-backed securities 1,086.4 15.3 (239.3) 862.4
Other asset-backed securities 441.3 1.5 (59.3) 383.5
Redeemable preferred securities 400.4 6.6 (107.0) 300.0
Total debt securities 14,449.6 532.5 (1,020.3) 13,961.8
Equity securities 43.4 .2 (12.1) 31.5
Total debt and equity securities
(2)
14,493.0$ 532.7$ (1,032.4)$ 13,993.3$
w
(1) When we record a credit-related OTTI on a security, we recognize a loss in earnings equal to the difference between the security’ s amortized cost
and the present value of its cash flows. If we do not intend to sell the security, the difference between the fair value and the present value of cash
flows of the security is considered a non-credit-related impairment, which is reflected in other comprehensive loss rather than earnings. At
December 31, 2009, we held securities for which we recognized a credit-related impairment in the past. Effective April 1, 2009 and for periods
through December 31, 2009, we recognized $61.7 million of non-credit-related impairments in other comprehensive loss (as of December 31, 2009,
these securities had a net unrealized capital loss of $17.2 million).
(2) Investment risks associated with our experience-rated and discontinued products generally do not impact our results of operations (refer to Note 20
beginning on page 82 for additional information on our accounting for discontinued products). At December 31, 2009, investments with a fair value
of $4.0 billion, gross unrealized gains of $285.6 million and gross unrealized losses of $78.2 million and, at December 31, 2008, investments with a
fair value of $3.7 billion, gross unrealized gains of $211.3 million and gross unrealized losses of $334.7 million were included in total debt and
equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities
are not reflected in accumulated other comprehensive loss.
Annual Report – Page 58