Prudential 2003 Annual Report Download - page 67

Fixed Maturity Securities and Unrealized Gains and Losses by Industry Category
The following table sets forth the composition of the portion of our fixed maturity securities portfolio by industry
category attributable to the Financial Services Businesses as of the dates indicated and the associated gross unrealized
gains and losses.
As of December 31, 2003 As of December 31, 2002
Industry(1)
Amortized
Cost
Gross
Unrealized
Gains(2)
Gross
Unrealized
Losses(2)
Fair
Value
Amortized
Cost
Gross
Unrealized
Gains(2)
Gross
Unrealized
Losses(2)
Fair
Value
(in millions)
Corporate Securities:
Manufacturing ............... $13,115 $ 996 $ 61 $14,050 $12,505 $ 886 $ 86 $13,305
Finance ..................... 10,839 569 57 11,351 8,594 538 34 9,098
Services .................... 6,646 570 26 7,190 4,775 349 46 5,078
Utilities ..................... 6,467 630 28 7,069 6,115 527 83 6,559
Energy ..................... 2,829 289 10 3,108 3,590 353 25 3,918
Retail and Wholesale .......... 2,402 147 24 2,525 2,533 199 30 2,702
Transportation ............... 1,800 166 4 1,962 1,996 128 10 2,114
Other ...................... 646 31 14 663 446 22 2 466
Total Corporate Securities .......... 44,744 3,398 224 47,918 40,554 3,002 316 43,240
Foreign Government .............. 23,075 892 91 23,876 20,375 1,184 1 21,558
Asset-Backed Securities ............ 6,189 121 19 6,291 5,732 142 30 5,844
Mortgage Backed ................. 4,966 94 28 5,032 4,751 203 3 4,951
U.S. Government ................. 3,992 333 7 4,318 5,863 437 1 6,299
Total ................... $82,966 $4,838 $369 $87,435 $77,275 $4,968 $351 $81,892
(1) Investment data has been classified based on Lehman industry categorizations for domestic public holdings and similar classifications by
industry for all other holdings.
(2) Includes $42 million of gross unrealized gains and $26 million of gross unrealized losses as of December 31, 2003 compared to $67 million of
gross unrealized gains and $7 million of gross unrealized losses as of December 31, 2002 on securities classified as held to maturity, which are
not reflected in other comprehensive income.
As a percentage of amortized cost, fixed maturity investments attributable to the Financial Services Businesses as
of December 31, 2003, consist primarily of 28% foreign government sector, 16% manufacturing sector, 13% finance
sector, 8% services sector, and 8% utilities sector compared to 26% foreign government sector, 16% manufacturing
sector, 11% finance sector, 8% utilities sector, and 8% U.S. government sector as of December 31, 2002. As of
December 31, 2003, 92% of the mortgage-backed securities in the Financial Services Businesses were publicly traded
agency pass-through securities related to residential mortgage loans. Collateralized mortgage obligations represented
the remaining 8% of mortgage-backed securities, and less than 1% of fixed maturities.
The gross unrealized losses related to our fixed maturity portfolio attributable to the Financial Services Businesses
were $0.4 billion as of December 31, 2003, compared to $0.4 billion as of December 31, 2002. The gross unrealized
losses in 2003 were concentrated primarily in the foreign government, manufacturing and finance sectors while gross
unrealized losses in 2002 were concentrated in the manufacturing, utilities, and services sectors. Non-investment grade
securities represented 13% of the gross unrealized losses attributable to the Financial Services Businesses in 2003
versus 51% of gross unrealized losses in 2002.
Prudential Financial 2003 Annual Report 65