Health Net 2006 Annual Report Download - page 115

Download and view the complete annual report

Please find page 115 of the 2006 Health Net annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 165

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 4—Investments
As of December 31, 2006 and 2005, the amortized cost, gross unrealized holding gains and losses, and fair
value of our available-for-sale investments were as follows:
2006
Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Carrying
Value
(Dollars in millions)
Mortgage-backed securities ............................... $ 524.5 $ 1.5 $ (6.1) $ 519.9
U.S. government and agencies ............................. 308.6 0.1 (4.9) 303.8
Obligations of states and other political subdivisions ........... 427.9 1.8 (2.9) 426.8
Corporate debt securities ................................. 169.6 — (4.4) 165.2
Other securities ......................................... 0.2 0.1 — 0.3
$1,430.8 $ 3.5 $(18.3) $1,416.0
2005
Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Carrying
Value
(Dollars in millions)
Mortgage-backed securities ............................... $ 368.1 $ 0.4 $ (7.2) $ 361.3
U.S. government and agencies ............................. 371.6 — (8.7) 362.9
Obligations of states and other political subdivisions ........... 462.8 1.3 (2.4) 461.7
Corporate debt securities ................................. 182.6 — (4.9) 177.7
Other securities ......................................... 0.2 — — 0.2
$1,385.3 $ 1.7 $(23.2) $1,363.8
As of December 31, 2006, the contractual maturities of our available-for-sale investments were as follows:
Cost
Estimated
Fair Value
(Dollars in millions)
Due in one year or less ............................................ $ 122.0 $ 121.5
Due after one year through five years ................................ 516.9 506.8
Due after five years through ten years ................................ 175.3 174.6
Due after ten years ............................................... 92.1 93.1
Mortgage-backed securities ........................................ 524.5 520.0
Total available for sale ............................................ $1,430.8 $1,416.0
Proceeds from sales of investments available for sale during 2006 were $464.8 million, resulting in gross
realized gains and losses of $6.5 million and $3.4 million, respectively. Proceeds from sales of investments
available for sale during 2005 were $400.0 million, resulting in gross realized gains and losses of $0.5 million
and $1.1 million, respectively. Proceeds from sales of investments available for sale during 2004 were $282.5
million, resulting in gross realized gains and losses of $4.6 million and $0.4 million, respectively.
F-21