Prudential 2005 Annual Report Download - page 62

Equity Securities
Investment Mix
The equity securities attributable to the Financial Services Businesses relate primarily to our Japanese insurance operations and consist
principally of investments in common stock of publicly traded Japanese companies. The following table sets forth the composition of our
equity securities portfolio attributable to the Financial Services Businesses and the associated gross unrealized gains and losses as of the
dates indicated:
December 31, 2005 December 31, 2004
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in millions)
Public equity .................................... $1,558 $401 $19 $1,940 $1,448 $185 $28 $1,605
Private equity ................................... 88 13 1 100 35 10 1 44
Total Equity ................................ $1,646 $414 $20 $2,040 $1,483 $195 $29 $1,649
The equity securities attributable to the Closed Block Business consist principally of investments in common stock of publicly traded
companies. The following table sets forth the composition of our equity securities portfolio attributable to the Closed Block Business and
the associated gross unrealized gains and losses as of the dates indicated:
December 31, 2005 December 31, 2004
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in millions)
Public equity .................................... $2,526 $552 $114 $2,964 $2,089 $580 $ 53 $2,616
Private equity ................................... 4 — — 4 3 1 — 4
Total Equity ................................ $2,530 $552 $114 $2,968 $2,092 $581 $ 53 $2,620
Unrealized Losses from Equity Securities
The following table sets forth the cost and gross unrealized losses of our equity securities attributable to the Financial Services
Businesses where the estimated fair value had declined and remained below cost by 20% or more for the following timeframes:
December 31, 2005 December 31, 2004
Cost
Gross
Unrealized
Losses Cost
Gross
Unrealized
Losses
(in millions)
Less than six months ........................................................................ $— $— $ 39 $ 11
Six months or greater but less than nine months .................................................. 2 1 — —
Nine months or greater but less than twelve months ............................................... — — 2 1
Twelve months and greater ................................................................... — — — —
Total ................................................................................ $ 2 $ 1 $ 41 $ 12
The gross unrealized losses as of December 31, 2004 were primarily concentrated in the services sector.
The following table sets forth the cost and gross unrealized losses of our equity securities attributable to the Closed Block Business
where the estimated fair value had declined and remained below cost by 20% or more for the following timeframes:
December 31, 2005 December 31, 2004
Cost
Gross
Unrealized
Losses Cost
Gross
Unrealized
Losses
(in millions)
Less than six months ........................................................................ $ 72 $ 17 $ 27 $ 6
Six months or greater but less than nine months .................................................. — — — —
Nine months or greater but less than twelve months ............................................... — — — —
Twelve months and greater ................................................................... — — — —
Total ................................................................................ $ 72 $ 17 $ 27 $ 6
Prudential Financial 2005 Annual Report60