Prudential 2005 Annual Report Download - page 52

Fixed Maturity Securities by Contractual Maturity Date
The following tables set forth the breakdown of our fixed maturity securities portfolio in total by contractual maturity as of
December 31, 2005.
December 31, 2005
Financial Services Businesses Closed Block Business
Amortized
Cost % of Total
Amortized
Cost % of Total
($ in millions)
Maturing in 2006 ............................................................. $ 4,994 4.8% $ 2,065 4.4%
Maturing in 2007 ............................................................. 4,162 4.0 1,786 3.8
Maturing in 2008 ............................................................. 5,610 5.3 2,418 5.1
Maturing in 2009 ............................................................. 5,414 5.1 2,408 5.1
Maturing in 2010 ............................................................. 6,862 6.5 2,412 5.1
Maturing in 2011 ............................................................. 6,898 6.6 2,600 5.5
Maturing in 2012 ............................................................. 5,946 5.7 2,434 5.2
Maturing in 2013 ............................................................. 4,006 3.8 2,444 5.2
Maturing in 2014 ............................................................. 7,169 6.8 2,012 4.2
Maturing in 2015 and beyond ................................................... 53,951 51.4 26,671 56.4
Total Fixed Maturities ......................................................... $105,012 100.0% $47,250 100.0%
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.
December 31, 2005 December 31, 2004
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:
Finance ........................... $ 15,550 $ 370 $ 92 $ 15,828 $ 14,607 $ 531 $ 81 $ 15,057
Manufacturing ..................... 14,512 737 163 15,086 14,562 1,037 71 15,528
Utilities ........................... 8,404 523 60 8,867 8,062 684 14 8,732
Services .......................... 7,145 356 64 7,437 7,058 526 39 7,545
Energy ........................... 3,414 272 15 3,671 3,521 311 13 3,819
Retail and Wholesale ................ 2,629 95 21 2,703 2,637 142 33 2,746
Transportation ..................... 2,355 158 10 2,503 2,415 171 17 2,569
Other ............................ 1,029 32 5 1,056 1,069 34 11 1,092
Total Corporate Securities ................ 55,038 2,543 430 57,151 53,931 3,436 279 57,088
Foreign Government .................... 24,725 931 48 25,608 25,321 882 148 26,055
Asset-Backed Securities .................. 12,516 164 35 12,645 9,193 105 75 9,223
Mortgage Backed ....................... 9,376 97 97 9,376 8,017 133 23 8,127
U.S. Government ....................... 3,357 412 7 3,762 3,775 416 4 4,187
Total ......................... $105,012 $4,147 $617 $108,542 $100,237 $4,972 $529 $104,680
(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 $34 million of gross unrealized gains and $51 million of gross unrealized losses as of December 31, 2005, compared to $39 million of gross
unrealized gains and $21 million of gross unrealized losses as of December 31, 2004 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,
2005, consist primarily of 24% foreign government sector, 15% finance sector, 14% manufacturing sector, 12% asset-backed securities
sector, and 9% mortgage-backed securities sector, compared to 25% foreign government sector, 15% finance sector, 15% manufacturing
sector, 9% asset-backed securities sector, and 8% utilities sector as of December 31, 2004. As of December 31, 2005, 93% 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 7% of mortgage-backed securities (and less than 1% of total fixed
maturities in the Financial Services Businesses).
The gross unrealized losses related to our fixed maturity portfolio attributable to the Financial Services Businesses were $0.6 billion as
of December 31, 2005, compared to $0.5 billion as of December 31, 2004. The gross unrealized losses as of December 31, 2005 were
concentrated primarily in the manufacturing, mortgage backed and finance sectors and as of December 31, 2004 were concentrated
primarily in the foreign government, finance and asset backed securities sectors.
Prudential Financial 2005 Annual Report50