Prudential 2005 Annual Report Download - page 107

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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
Trading Account Assets Supporting Insurance Liabilities
The following table sets forth the composition of “Trading account assets supporting insurance liabilities” at December 31:
2005 2004
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
(in millions) (in millions)
Short-term investments and cash equivalents .................................. $ 317 $ 317 $ 951 $ 951
Fixed maturities:
U.S. government corporations and agencies and obligations of U.S. states ....... 206 208 311 306
Foreign government bonds ............................................ 329 330 387 390
Corporate securities ................................................. 10,315 10,048 9,483 9,378
Mortgage-backed securities ........................................... 2,300 2,255 1,494 1,492
Total fixed maturities .................................................... 13,150 12,841 11,675 11,566
Equity securities ........................................................ 388 623 378 447
Total trading account assets supporting insurance liabilities ...................... $13,855 $13,781 $13,004 $12,964
Net change in unrealized gains (losses) from trading account assets supporting insurance liabilities still held at period end,
recorded within “Asset management fees and other income” were $(34) million, $(39) million and $(1) million during the years
ended December 31, 2005, 2004 and 2003 respectively.
Commercial Loans
The Company’s commercial loans are comprised as follows at December 31:
2005 2004
Amount
(in millions)
%of
Total
Amount
(in millions)
%of
Total
Collateralized loans by property type
Office buildings .......................................................... $ 4,555 19.7% $ 5,304 22.4%
Retail stores ............................................................. 3,102 13.4% 3,136 13.2%
Residential properties ..................................................... 1,198 5.2% 1,311 5.5%
Apartment complexes ..................................................... 5,063 21.8% 5,525 23.3%
Industrial buildings ....................................................... 5,201 22.4% 4,826 20.4%
Agricultural properties ..................................................... 1,733 7.5% 1,786 7.5%
Other .................................................................. 2,313 10.0% 1,834 7.7%
Total collateralized loans ............................................... 23,165 100.0% 23,722 100.0%
Valuation allowance ...................................................... (193) (235)
Total net collateralized loans ................................................ 22,972 23,487
Uncollateralized loans
Uncollateralized loans ..................................................... 1,524 2,366
Valuation allowance ...................................................... (55) (365)
Total net uncollateralized loans .............................................. 1,469 2,001
Total commercial loans .................................................... $24,441 $25,488
The commercial loans are geographically dispersed throughout the United States, Canada and Asia with the largest
concentrations in California (25%) and New York (8%) at December 31, 2005.
Prudential Financial 2005 Annual Report 105