Prudential 2006 Annual Report Download - page 125
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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
The gross unrealized losses at December 31, 2006 and 2005 are comprised of $891 million and $752 million related to
investment grade securities and $127 million and $157 million related to below investment grade securities, respectively. At
December 31, 2006, $7 million of the gross unrealized losses represented declines in value of greater than 20%, all of which had
been in that position for less than six months, as compared to $13 million at December 31, 2005 that represented declines in value
of greater than 20%, substantially all of which had been in that position for less than six months. At December 31, 2006, the
$656 million of gross unrealized losses of twelve months or more were concentrated in the manufacturing, utilities and finance
sectors. At December 31, 2005, the $248 million of gross unrealized losses of twelve months or more were concentrated in the
manufacturing, mortgage backed securities and foreign government sectors. In accordance with its policy described in Note 2, the
Company concluded that an adjustment for other than temporary impairments for these securities was not warranted at
December 31, 2006 or 2005.
Duration of Gross Unrealized Loss Positions for Equity Securities
The following table shows the fair value and gross unrealized losses aggregated by length of time that individual equity
securities have been in a continuous unrealized loss position, at December 31:
2006
Less than twelve months Twelve months or more Total
Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
(in millions)
Equity securities, available for sale ........... $1,721 $115 $134 $ 8 $1,855 $123
2005
Less than twelve months Twelve months or more Total
Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
(in millions)
Equity securities, available for sale ........... $2,032 $146 $172 $24 $2,204 $170
At December 31, 2006, $25 million of the gross unrealized losses represented declines of greater than 20%, substantially all of
which had been in that position for less than six months. At December 31, 2005, $18 million of the gross unrealized losses
represented declines of greater than 20%, all of which had been in that position for less than six months. In accordance with its
policy described in Note 2, the Company concluded that an adjustment for other than temporary impairments for these securities
was not warranted at December 31, 2006 or 2005.
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
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