Prudential 2006 Annual Report Download - page 139
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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
10. CLOSED BLOCK (continued)
Closed Block Liabilities and Assets designated to the Closed Block at December 31, as well as maximum future earnings to be
recognized from Closed Block Liabilities and Closed Block Assets, are as follows:
2006 2005
(in millions)
Closed Block Liabilities
Future policy benefits ......................................................................... $50,705 $50,112
Policyholders’ dividends payable ................................................................ 1,108 1,089
Policyholder dividend obligation ................................................................. 2,348 2,628
Policyholders’ account balances ................................................................. 5,562 5,568
Other Closed Block liabilities ................................................................... 10,800 9,676
Total Closed Block Liabilities ............................................................... 70,523 69,073
Closed Block Assets
Fixed maturities, available for sale, at fair value ..................................................... 46,707 45,403
Equity securities, available for sale, at fair value ..................................................... 3,684 3,128
Commercial loans ............................................................................ 6,794 6,750
Policy loans ................................................................................. 5,415 5,403
Other long-term investments .................................................................... 922 923
Short-term investments ........................................................................ 1,765 1,340
Total investments ......................................................................... 65,287 62,947
Cash and cash equivalents ...................................................................... 1,275 2,167
Accrued investment income ..................................................................... 662 658
Other Closed Block assets ...................................................................... 277 286
Total Closed Block Assets .................................................................. 67,501 66,058
Excess of reported Closed Block Liabilities over Closed Block Assets ....................................... 3,022 3,015
Portion of above representing accumulated other comprehensive income:
Net unrealized investment gains ................................................................. 1,844 2,402
Allocated to policyholder dividend obligation ....................................................... (1,865) (2,302)
Future earnings to be recognized from Closed Block Assets and Closed Block Liabilities ........................ $ 3,001 $ 3,115
Information regarding the policyholder dividend obligation is as follows:
2006 2005
(in millions)
Balance, January 1 .................................................................................. $2,628 $3,141
Impact on income before gains allocable to policyholder dividend obligation .................................... 157 326
Change in unrealized investment gains .................................................................. (437) (839)
Balance, December 31 ............................................................................... $2,348 $2,628
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
137