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PART II
ITEM 8 Financial Statements and Supplementary Data
Investments
Securities in the following table are included in fixed maturities and equity securities on the Company’s Consolidated Balance Sheets. The
Company’s hybrid investments include certain preferred stock or debt securities with call or conversion features.
(In millions)
2012 2011
Included in fixed maturities:
Trading securities (amortized cost: $1; $2) $1$2
Hybrid securities (amortized cost: $15; $26) 15 28
TOTAL $16$30
Included in equity securities:
Hybrid securities (amortized cost: $84; $90) $70$65
Fixed maturities included federal government securities of $54 million at December 31, 2012 and $79 million at December 31, 2011, that were
pledged as collateral to brokers as required under certain futures contracts.
The following information about fixed maturities excludes trading and hybrid securities. The amortized cost and fair value by contractual
maturity periods for fixed maturities were as follows at December 31, 2012:
Amortized Fair
(In millions)
Cost Value
Due in one year or less $ 1,121 $ 1,141
Due after one year through five years 5,211 5,633
Due after five years through ten years 5,283 5,973
Due after ten years 2,850 3,796
Mortgage and other asset-backed securities 1,000 1,146
TOTAL $ 15,465 $ 17,689
Actual maturities could differ 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 fixed maturities by type of issuer is shown below (excluding trading securities and hybrid
securities with a fair value of $16 million at December 31, 2012 and $30 million at December 31, 2011).
December 31, 2012
Amortized Unrealized Unrealized Fair
(In millions)
Cost Appreciation Depreciation Value
Federal government and agency $ 509 $ 393 $ - $ 902
State and local government 2,169 270 (2) 2,437
Foreign government 1,197 126 (1) 1,322
Corporate 10,590 1,308 (17) 11,881
Federal agency mortgage-backed 121 1 - 122
Other mortgage-backed 82 11 (4) 89
Other asset-backed 797 145 (6) 936
TOTAL $ 15,465 $ 2,254 $ (30) $ 17,689
CIGNA CORPORATION - 2012 Form 10-K 101
NOTE 12
A. Fixed Maturities and Equity Securities