Prudential 2006 Annual Report Download - page 61

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, 2006 December 31, 2005
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 ........................... $ 19,189 $ 324 $102 $ 19,411 $ 15,014 $ 337 $ 86 $ 15,265
Manufacturing ..................... 14,133 577 139 14,571 14,491 736 163 15,064
Utilities ........................... 9,313 454 74 9,693 8,400 523 60 8,863
Services .......................... 7,398 297 71 7,624 7,121 356 64 7,413
Energy ........................... 3,550 189 45 3,694 3,406 272 15 3,663
Retail and Wholesale ................ 2,605 78 20 2,663 2,619 95 21 2,693
Transportation ..................... 2,483 128 20 2,591 2,352 158 10 2,500
Other ............................ 563 11 15 559 1,028 32 5 1,055
Total Corporate Securities ................ 59,234 2,058 486 60,806 54,431 2,509 424 56,516
Foreign Government .................... 25,164 685 70 25,779 24,694 929 48 25,575
Asset-Backed Securities .................. 16,196 156 29 16,323 12,516 164 35 12,645
Mortgage Backed ....................... 8,523 77 53 8,547 9,376 97 97 9,376
U.S. Government ....................... 2,812 324 14 3,122 3,343 411 7 3,747
Total ......................... $111,929 $3,300 $652 $114,577 $104,360 $4,110 $611 $107,859
(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 $24 million of gross unrealized gains and $53 million of gross unrealized losses as of December 31, 2006, compared to $30 million of gross
unrealized gains and $51 million of gross unrealized losses as of December 31, 2005 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,
2006, consist primarily of 22% foreign government sector, 17% finance sector, 14% asset-backed securities sector and 13%
manufacturing sector compared to 24% foreign government sector, 14% finance sector, 14% manufacturing sector and 12% asset-backed
securities sector as of December 31, 2005. As of December 31, 2006, 98% 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 2% 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 $0.7 billion as
of December 31, 2006, compared to $0.6 billion as of December 31, 2005. The gross unrealized losses as of December 31, 2006 were
concentrated primarily in the manufacturing, finance, and utilities sectors and as of December 31, 2005 were concentrated primarily in the
manufacturing, mortgage backed and finance sectors.
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
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