Prudential 2001 Annual Report Download - page 119

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Prudential Financial, Inc.
Notes to Consolidated Financial Statements
6. Investments (continued)
Impact of unrealized investment gains (losses) on:
Unrealized
gains
(losses) on
investments
Deferred
policy
acquisition
costs
Future
policy
benefits
Deferred
income
tax
(liability)
benefit
Accumulated
other
comprehensive
income (loss)
related to net
unrealized
investment
gains (losses)
(In Millions)
Balance, December 31, 1998 .................................. $3,337 $(260) $(1,095) $ (710) $ 1,272
Net investment gains (losses) on investments arising during the period . (5,089) — — 1,845 (3,244)
Reclassification adjustment for (gains) losses included in net income . . 404 — — (146) 258
Impact of net unrealized investment (gains) losses on deferred policy
acquisition costs .......................................... — 566 — (213) 353
Impact of net unrealized investment (gains) losses on future policy
benefits ................................................. — — 1,092 (391) 701
Balance, December 31, 1999 .................................. (1,348) 306 (3) 385 (660)
Net investment gains (losses) on investments arising during the period . 1,458 — — (540) 918
Reclassification adjustment for (gains) losses included in net income . . 621 — — (230) 391
Impact of net unrealized investment (gains) losses on deferred policy
acquisition costs .......................................... — (356) — 132 (224)
Impact of net unrealized investment (gains) losses on future policy
benefits ................................................. — — (101) 35 (66)
Balance, December 31, 2000 .................................. 731 (50) (104) (218) 359
Net investment gains (losses) on investments arising during the period . 757 — — (284) 473
Reclassification adjustment for (gains) losses included in net income . . 884 — — (332) 552
Impact of net unrealized investment (gains) losses on deferred policy
acquisition costs .......................................... — (270) — 97 (173)
Impact of net unrealized investment (gains) losses on future policy
benefits ................................................. — — 27 (10) 17
Balance, December 31, 2001 .................................. $2,372 $(320) $ (77) $ (747) $ 1,228
The table below presents unrealized gains (losses) on investments by asset class:
At December 31,
2001 2000 1999
(In Millions)
Fixed maturities ................................................................................ $2,478 $712 $(2,118)
Equity securities ................................................................................ 20 51 733
Other long-term investments ...................................................................... (126) (32) 37
Unrealized gains (losses) on investments ............................................................. $2,372 $731 $(1,348)
Securities Pledged, Restricted Assets and Special Deposits
The Company pledges investment securities it owns to unaffiliated parties through certain transactions, including
securities lending, securities sold under agreement to repurchase and futures contracts. At December 31, the
carrying value of investments pledged to third parties as reported in the Consolidated Statements of Financial
Position included the following:
2001 2000
(In Millions)
Fixed maturities available for sale ....................................................................... $18,682 $20,080
Trading account assets ................................................................................ 3,379 5,796
Separate account assets ................................................................................ 2,659 2,558
Total securities pledged ............................................................................... $24,720 $28,434
Prudential Financial 2001 Annual Report 117