Allstate 2008 Annual Report Download - page 215

Management’s Discussion and Analysis
of Financial Condition and Results of Operations–(Continued)
The following table presents fair value as a percent of amortized cost for Level 3 investments at
December 31, 2008.
Fair value Fair value
as a as a
percentage of percentage of
Fair value par value amortized cost
($ in millions)
Fixed income securities:
Corporate $ 486 70.4% 91.2%
Corporate privately placed
securities 9,709 81.9 91.1
Municipal 793 76.3 79.5
Municipal—ARS 1,670 90.5 90.5
ABS RMBS 2,067 56.2 65.1
Alt-A 582 53.0 74.6
Other CDO 778 34.1 41.1
Other ABS 526 66.2 78.3
ABS CDO 6 4.4 60.0
CRE CDO 27 13.4 108.0
CMBS 430 33.2 35.8
Preferred stock 2 100.0 100.0
MBS 333 68.5 70.0
ABS—Credit card, auto and
student loans 410 81.3 83.8
Total fixed income
securities 17,819 68.8 78.3
Equity securities:
U.S. equities 37 N/A 105.7
International equities 29 N/A 90.6
Other 8 N/A 100.0
Total equity securities 74 N/A 98.7
Other investments:
Free-standing derivatives 13 N/A N/A
Total other investments 13 N/A N/A
Sub-total recurring
Level 3 investments 17,906 69.1 78.4
Non-recurring basis 301 N/A 100.0
Total Level 3
investments $18,207 70.2 78.7
Non-recurring investments include certain mortgage loans, limited partnership interests and other
investments remeasured at fair value due to our change in intent write-downs and other-than-temporary
impairments at December 31, 2008.
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MD&A