Prudential 2006 Annual Report Download - page 122

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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
Net Investment Income
Net investment income for the years ended December 31, was from the following sources:
2006 2005 2004
(in millions)
Fixed maturities, available for sale ......................................................... $ 8,325 $ 7,536 $ 6,629
Fixed maturities, held to maturity .......................................................... 95 90 106
Equity securities, available for sale ......................................................... 263 234 173
Trading account assets ................................................................... 711 662 402
Commercial loans ...................................................................... 1,628 1,580 1,511
Policy loans ........................................................................... 491 470 463
Broker-dealer related receivables .......................................................... 174 75 52
Short-term investments and cash equivalents ................................................. 582 349 175
Other investment income ................................................................. 449 547 517
Gross investment income ................................................................ 12,718 11,543 10,028
Less investment expenses ................................................................ (1,364) (946) (573)
Net investment income .................................................................. $11,354 $10,597 $ 9,455
Carrying value for non-income producing assets included in fixed maturities, commercial loans and other long-term
investments totaled $18 million, $3 million and $11 million, respectively. Non-income producing assets represent investments that
have not produced income for the twelve months preceding December 31, 2006.
Realized Investment Gains (Losses), Net
Realized investment gains (losses), net, for the years ended December 31, were from the following sources:
2006 2005 2004
(in millions)
Fixed maturities ............................................................................. $ 60 $ 313 $409
Equity securities ............................................................................. 309 431 437
Commercial loans ............................................................................ 82 164 72
Investment real estate ......................................................................... 19 28 58
Joint ventures and limited partnerships ........................................................... 154 30 68
Derivatives ................................................................................. 105 416 (264)
Other ...................................................................................... 45 (4) (2)
Realized investment gains (losses), net ........................................................... $774 $1,378 $ 778
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
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