Aetna 2009 Annual Report Download - page 65

The fair value of debt securities at December 31, 2009 is shown below by contractual maturity. Actual maturities
may differ from contractual maturities because securities may be restructured, called or prepaid.
Fair
(Millions) Value
Due to mature:
Less than one year 692.6$
One year through five years 3,405.5
After five years through ten years 4,987.4
Greater than ten years 5,134.5
Residential mortgage-backed securities 1,420.2
Commercial mortgage-backed securities 1,043.4
Other asset-backed securities 436.4
Total 17,120.0$
Unrealized Capital Losses and Net Realized Capital Gains (Losses)
When a debt or equity security is in an unrealized capital loss position, we monitor the duration and severity of the loss
to determine if sufficient market recovery can occur within a reasonable period of time. As described in Note 2
beginning on page 48, effective April 1, 2009, we recognize an OTTI when we intend to sell a security that is in an
unrealized loss position or if we determine a credit-related loss has occurred. Prior to April 1, 2009, we would
recognize an OTTI on a security in an unrealized loss position if we did not have the intention and ability to hold the
security until it recovered its value.
Summarized below are the debt and equity securities we held at December 31, 2009 and 2008 that were in an
unrealized capital loss position, aggregated by the length of time the investments have been in that position:
Fair Unrealized Fair Unrealized Fair Unrealized
(Millions) Value Losses Value Losses Value Losses
December 31, 2009
Debt securities:
U.S. government securities 1,062.5$ 4.8$ 19.3$ .4$ 1,081.8$ 5.2$
States, municipalities and political subdivisions 292.2 10.6 216.7 16.9 508.9 27.5
U.S. corporate securities 730.2 16.8 681.4 37.6 1,411.6 54.4
Foreign securities 418.1 9.0 110.4 11.9 528.5 20.9
Residential mortgage-backed securites 383.0 4.7 8.2 .3 391.2 5.0
Commercial mortgage-backed securities 129.7 3.1 401.6 100.9 531.3 104.0
Other asset-backed securities 46.6 7.5 16.7 .7 63.3 8.2
Redeemable preferred securities 49.1 8.8 198.5 32.2 247.6 41.0
Total debt securities 3,111.4 65.3 1,652.8 200.9 4,764.2 266.2
Equity securities 3.9 1.6 18.8 1.9 22.7 3.5
Total debt and equity securities
(1)
3,115.3$ 66.9$ 1,671.6$ 202.8$ 4,786.9$ 269.7$
December 31, 2008
Debt securities:
U.S. government securities 4.0$ -$ 24.4$ .4$ 28.4$ .4$
States, municipalities and political subdivisions 786.9 42.9 175.6 29.6 962.5 72.5
U.S. corporate securities 2,010.4 167.9 1,238.6 248.6 3,249.0 416.5
Foreign securities 777.7 73.5 178.6 51.4 956.3 124.9
Residential mortgage-backed securites 9.0 - 24.3 .4 33.3 .4
Commercial mortgage-backed securities 336.3 59.9 403.6 179.4 739.9 239.3
Other asset-backed securities 271.3 34.8 76.2 24.5 347.5 59.3
Redeemable preferred securities 125.3 32.5 139.7 74.5 265.0 107.0
Total debt securities 4,320.9 411.5 2,261.0 608.8 6,581.9 1,020.3
Equity securities 24.5 9.5 .8 2.6 25.3 12.1
Total debt and equity securities
(1)
4,345.4$ 421.0$ 2,261.8$ 611.4$ 6,607.2$ 1,032.4$
Less than 12 months Greater than 12 months Total (1)
(1) At December 31, 2009 and 2008, debt and equity securities in an unrealized loss position of $78.2 million and $334.7 million, respectively, and
with related fair value of $1.0 billion and $1.8 billion, respectively, related to discontinued and experience-rated products.
Annual Report – Page 59