Prudential 2005 Annual Report Download - page 49

December 31, 2004
Financial
Services
Businesses
Closed
Block
Business Total % of Total
($ in millions)
Fixed Maturities:
Public, available for sale, at fair value ................................................ $ 83,717 $34,683 $118,400 55.4%
Public, held to maturity, at amortized cost ............................................. 2,624 — 2,624 1.2
Private, available for sale, at fair value ................................................ 18,198 14,130 32,328 15.1
Private, held to maturity, at amortized cost ............................................ 123 — 123 0.1
Trading account assets supporting insurance liabilities, at fair value ............................. 12,964 — 12,964 6.1
Other trading account assets, at fair value ................................................. 121 — 121 0.1
Equity securities, available for sale, at fair value ............................................ 1,649 2,620 4,269 2.0
Commercial loans, at book value ........................................................ 16,917 7,297 24,214 11.3
Policy loans, at outstanding balance ...................................................... 2,919 5,454 8,373 3.9
Other long-term investments(1) ......................................................... 3,974 1,047 5,021 2.3
Short-term investments ................................................................ 3,396 1,840 5,236 2.5
Total general account investments ................................................... 146,602 67,071 213,673 100.0%
Invested assets of other entities and operations(2) ........................................... 4,083 — 4,083
Total investments ................................................................ $150,685 $67,071 $217,756
(1) Other long-term investments consist of real estate and non-real estate related investments in joint ventures (other than our investment in operating joint
ventures, including our investment in Wachovia Securities) and partnerships, investment real estate held through direct ownership, our interest in
separate account investments and other miscellaneous investments.
(2) Includes invested assets of securities brokerage, securities trading, banking operations, real estate and relocation services, and asset management
operations. Excludes assets of our asset management operations managed for third parties and those assets classified as “separate account assets” on our
balance sheet.
As of December 31, 2005, our general account investment portfolio attributable to the Financial Services Businesses consisted
primarily of $108.6 billion of fixed maturity securities (73% of the total portfolio as of December 31, 2005 compared to 71% as of
December 31, 2004), $13.8 billion of trading account assets supporting insurance liabilities (9% of the total portfolio as of both
December 31, 2005 and 2004), $15.8 billion of commercial loans (11% of the total portfolio as of December 31, 2005 compared to 12% as
of December 31, 2004), $2.0 billion of equity securities (1% of the total portfolio as of both December 31, 2005 and 2004) and $9.2 billion
of other investments (6% of the total portfolio as of December 31, 2005 compared to 7% as of December 31, 2004). The increase in general
account investments attributable to the Financial Services Businesses in 2005 was primarily due to portfolio growth as a result of the
reinvestment of net investment income and increased investments financed by borrowings.
As of December 31, 2005, our general account investment portfolio attributable to the Closed Block Business consisted primarily of
$49.5 billion of fixed maturity securities (73% of the total portfolio as of both December 31, 2005 and 2004), $7.3 billion of commercial
loans (11% of the total portfolio as of both December 31, 2005 and 2004), $3.0 billion of equity securities (4% of the total portfolio as of
both December 31, 2005 and 2004) and $7.7 billion of other investments (12% of the total portfolio as of both December 31, 2005 and
2004). The increase in general account investments attributable to the Closed Block Business in 2005 was primarily due to portfolio growth
as a result of the reinvestment of net investment income.
We have substantial insurance operations in Japan, with 30% and 32% of our Financial Services Businesses general account
investments relating to our Japanese insurance operations as of December 31, 2005 and 2004, respectively. The decrease in Japanese
general account investments in 2005 is primarily attributable to the change in currency rates. The following table sets forth the composition
of the investments of our Japanese general account as of the dates indicated.
December 31,
2005
December 31,
2004
(in millions)
Fixed Maturities:
Public, available for sale, at fair value ............................................................... $30,933 $33,090
Public, held to maturity, at amortized cost ............................................................ 3,135 2,624
Private, available for sale, at fair value .............................................................. 2,659 2,309
Private, held to maturity, at amortized cost ........................................................... 227 123
Trading account assets supporting insurance liabilities, at fair value ........................................... 1,022 885
Other trading account assets, at fair value ................................................................ 26 71
Equity securities, available for sale, at fair value ........................................................... 1,732 1,470
Commercial loans, at book value ....................................................................... 2,278 3,371
Policy loans, at outstanding balance ..................................................................... 943 1,037
Other long-term investments(1) ........................................................................ 941 1,375
Short-term investments ............................................................................... 326 1,031
Total Japanese general account investments(2) ........................................................ $44,222 $47,386
(1) Other long-term investments consist of real estate and non-real estate related investments in joint ventures (other than our investment in operating joint
ventures, including our investment in Wachovia Securities) and partnerships, investment real estate held through direct ownership, our interest in
separate account investments and other miscellaneous investments.
Prudential Financial 2005 Annual Report 47