Aetna 2009 Annual Report Download - page 89

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The anticipated run-off of the discontinued products reserve balance at December 31, 2009 (assuming that assets are
held until maturity and that the reserve run-off is proportional to the liability run-off) is as follows:
(Millions)
2010 38.7$
2011 38.4
2012 37.9
2013 37.2
2014 36.4
Thereafter 600.6
Assets and liabilities supporting discontinued products at December 31, 2009 and 2008 were as follows: (1)
(Millions) 2009 2008
Assets:
Debt and equity securities available-for-sale 2,507.7$ 2,382.4$
Mortgage loans 543.9 585.8
Other investments 630.2 666.9
Total investments 3,681.8 3,635.1
Other assets 118.6 133.4
Collateral received under securities loan agreements 33.4 150.7
Current and deferred income taxes 51.5 82.2
Receivable from continuing products (2) 463.4 436.0
Total assets 4,348.7$ 4,437.4$
Liabilities:
Future policy benefits 3,301.0$ 3,446.4$
Policyholders' funds 12.1 16.7
Reserve for anticipated future losses on discontinued products 789.2 790.4
Collateral payable under securities loan agreements 33.4 150.7
Other liabilities (3) 213.0 33.2
Total liabilities 4,348.7$ 4,437.4$
(1) Assets supporting the discontinued products are distinguished from assets supporting continuing products.
(2) The receivable from continuing products is eliminated in consolidation.
(3) Net unrealized capital gains and losses on debt securities available for sale are included in other liabilities and are not reflected in
consolidated shareholders’ equity.
The discontinued products investment portfolio has changed since inception. Mortgage loans have decreased from
$5.4 billion (37% of the investment portfolio) at December 31, 1993 to $544 million (15% of the investment portfolio)
at December 31, 2009. This was a result of maturities, prepayments and the securitization and sale of commercial
mortgages. Also, real estate decreased from $.5 billion (4% of the investment portfolio) at December 31, 1993 to $62
million (2% of the investment portfolio) at December 31, 2009, primarily as a result of sales. The resulting proceeds
were primarily reinvested in debt and equity securities. Over time, the then existing mortgage loan and real estate
portfolios and the reinvested proceeds have resulted in greater investment returns than we originally assumed in 1993.
At December 31, 2009, the expected run-off of the SPA and GIC liabilities, including future interest, were as follows:
(Millions)
2010 450.6$
2011 435.0
2012 418.6
2013 406.5
2014 383.5
Thereafter 5,156.5
Annual Report – Page 83