Prudential 2006 Annual Report Download - page 63

Public Fixed Maturities—Credit Quality
The following table sets forth our public fixed maturity portfolios by NAIC rating attributable to the Financial Services Businesses as
of the dates indicated.
(1) (2) December 31, 2006 December 31, 2005
NAIC
Designation Rating Agency Equivalent
Amortized
Cost
Gross
Unrealized
Gains(3)
Gross
Unrealized
Losses(3)
Fair
Value
Amortized
Cost
Gross
Unrealized
Gains(3)
Gross
Unrealized
Losses(3)
Fair
Value
(in millions)
1 Aaa, Aa, A ........................... $75,796 $1,787 $322 $77,261 $67,981 $2,254 $298 $69,937
2 Baa ................................. 13,328 580 137 13,771 15,376 746 138 15,984
Subtotal Investment Grade ............... 89,124 2,367 459 91,032 83,357 3,000 436 85,921
3 Ba .................................. 2,692 109 22 2,779 2,710 124 43 2,791
4 B ................................... 1,746 93 23 1,816 1,109 71 20 1,160
5 C and lower ........................... 115 8 2 121 102 6 5 103
6 In or near default ....................... 48 7 1 54 28 10 1 37
Subtotal Below Investment Grade ......... 4,601 217 48 4,770 3,949 211 69 4,091
Total Public Fixed
Maturities .......................... $93,725 $2,584 $507 $95,802 $87,306 $3,211 $505 $90,012
(1) Reflects equivalent ratings for investments of the international insurance operations that are not rated by U.S. insurance regulatory authorities.
(2) Includes, as of December 31, 2006 and December 31, 2005, respectively, 10 securities with amortized cost of $50 million (fair value, $51 million) and
18 securities with amortized cost of $146 million (fair value, $147 million) that have been categorized based on expected NAIC designations pending
receipt of SVO ratings.
(3) Includes $22 million of gross unrealized gains and $47 million gross unrealized losses as of December 31, 2006, compared to $29 million of gross
unrealized gains and $51 million of gross unrealized losses as of December 31, 2005 on securities classified as held to maturity that are not reflected in
other comprehensive income.
The following table sets forth our public fixed maturity portfolios by NAIC rating attributable to the Closed Block Business as of the
dates indicated.
(1) December 31, 2006 December 31, 2005
NAIC
Designation Rating Agency Equivalent
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in millions)
1 Aaa, Aa, A ........................... $27,181 $ 582 $161 $27,602 $24,159 $1,108 $109 $25,158
2 Baa ................................. 6,332 264 69 6,527 6,424 353 56 6,721
Subtotal Investment Grade 33,513 846 230 34,129 30,583 1,461 165 31,879
3 Ba .................................. 2,367 103 17 2,453 2,459 119 33 2,545
4 B ................................... 2,003 63 20 2,046 1,332 38 19 1,351
5 C and lower ........................... 105 3 3 105 99 2 6 95
6 In or near default ....................... 17 3 1 19 13 3 1 15
Subtotal Below Investment Grade ......... 4,492 172 41 4,623 3,903 162 59 4,006
Total Public Fixed Maturities ............. $38,005 $1,018 $271 $38,752 $34,486 $1,623 $224 $35,885
(1) Includes, as of December 31, 2006 and December 31, 2005, respectively, 6 securities with amortized cost of $19 million (fair value, $19 million) and8
securities with amortized cost of $2 million (fair value, $2 million) that have been categorized based on expected NAIC designations pending receipt of
SVO ratings.
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
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