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PART II
ITEM 8. Financial Statements and Supplementary Data
B. Realized Investment Gains and Losses
The following realized gains and losses on investments for the years ended December 31 exclude amounts required to adjust future policy benefits
for the run-off settlement annuity business.
(In millions)
2013 2012 2011
Fixed maturities $ 113 $ 48 $ 50
Equity securities 8 4 (1)
Commercial mortgage loans (3) (9) (16)
Real estate – (1) (6)
Other investments, including derivatives 95 2 35
Realized investment gains, before income taxes 213 44 62
Less income taxes 72 13 21
NET REALIZED INVESTMENT GAINS $ 141 $ 31 $ 41
Included in pre-tax realized investment gains (losses) were increases in valuation reserves related to commercial mortgage loans and
other-than-temporary impairments on fixed maturities and partnership investments as follows:
(in millions)
2013 2012 2011
Credit related
(1)
$ (8) $ (20) $ (28)
Other (21) (2) (25)
TOTAL $ (29) $ (22) $ (53)
(1) There were no credit losses on fixed maturities for which a portion of the impairment was recognized in other comprehensive income.
The Company recognized pre-tax gains of $3 million in 2013, compared with pre-tax gains of $5 million in 2012 and pre-tax losses of $7 million
in 2011 on hybrid securities.
Realized investment gains in other investments, including derivatives, in 2013 and 2011, primarily represented gains on sale of real estate
properties held in joint ventures.
Realized investment gains that are excluded from the Company’s revenues for the years ended December 31 were as follows:
(In millions)
2013 2012 2011
Separate accounts $ 417 $ 206 $ 210
Investment gains required to adjust future policy benefits for the run-off settlement annuity business $ 9 $ 21 $ 8
Sales information for available-for-sale fixed maturities and equity securities for the years ended December 31 were as follows:
(In millions)
2013 2012 2011
Proceeds from sales $ 1,775 $ 591 $ 876
Gross gains on sales $ 102 $ 37 $ 53
Gross losses on sales $4$2$7
100 CIGNA CORPORATION - 2013 Form 10-K