Cigna 2011 Annual Report Download - page 121

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99CIGNA CORPORATION2011 Form10K
PART II
ITEM 8 Financial Statements and Supplementary Data
NOTE 11 Investments
A. Fixed Maturities and Equity Securities
Securities in the following table are included in xed maturities and equity securities on the Company’s Consolidated Balance Sheets. ese
securities are carried at fair value with changes in fair value reported in other realized investment gains (losses) and interest and dividends reported
in net investment income. e Company’s hybrid investments include certain preferred stock or debt securities with call or conversion features.
(In millions)
2011 2010
Included in xed maturities:
Trading securities (amortized cost: $2; $3) $ 2 $ 3
Hybrid securities (amortized cost: $26; $45) 28 52
TOTAL $ 30 $ 55
Included in equity securities:
Hybrid securities (amortized cost: $90; $108) $ 65 $ 86
Fixed maturities included $79million at December31,2011 and
$98million at December31,2010, which were pledged as collateral to
brokers as required under certain futures contracts. ese xed maturities
were primarily federal government securities at December31,2011
and primarily corporate securities at December31,2010.
e following information about xed maturities excludes trading and
hybrid securities. e amortized cost and fair value by contractual maturity
periods for xed maturities were as follows at December31,2011:
(In millions)
Amortized Cost Fair Value
Due in one year or less $ 955 $ 967
Due after one year through ve years 4,719 5,060
Due after ve years through ten years 4,997 5,581
Due after ten years 2,699 3,565
Mortgage and other asset-backed securities 859 1,014
TOTAL $ 14,229 $ 16,187
Actual maturities could dier from contractual maturities because
issuers may have the right to call or prepay obligations, with or without
penalties. Also, in some cases the Company may extend maturity dates.
Gross unrealized appreciation (depreciation) on xed maturities by
type of issuer is shown below (excluding trading securities and hybrid
securities with a fair value of $30million at December31,2011 and
$55million at December31,2010).
(In millions)
Amortized Cost
December31,2011
Unrealized
Appreciation
Unrealized
Depreciation Fair Value
Federal government and agency $ 552 $ 406 $ - $ 958
State and local government 2,185 274 (3) 2,456
Foreign government 1,173 103 (2) 1,274
Corporate 9,460 1,070 (45) 10,485
Federal agency mortgage-backed 9 - - 9
Other mortgage-backed 73 10 (4) 79
Other asset-backed 777 160 (11) 926
TOTAL $ 14,229 $ 2,023 $ 65 $ 16,187
(In millions)
Amortized Cost
December31,2010
Unrealized
Appreciation
Unrealized
Depreciation Fair Value
Federal government and agency $ 459 $ 229 $ (1) $ 687
State and local government 2,305 172 (10) 2,467
Foreign government 1,095 63 (4) 1,154
Corporate 8,697 744 (49) 9,392
Federal agency mortgage-backed 9 1 - 10
Other mortgage-backed 80 10 (3) 87
Other asset-backed 752 117 (12) 857
TOTAL $ 13,397 $ 1,336 $ 79 $ 14,654
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