Prudential 2006 Annual Report Download - page 71

Equity Securities
Investment Mix
The equity securities attributable to the Financial Services Businesses consist principally of investments in common and preferred
stock of publicly traded companies. The following table sets forth the composition of our equity securities portfolio attributable to the
Financial Services Businesses and the associated gross unrealized gains and losses as of the dates indicated:
December 31, 2006 December 31, 2005
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in millions)
Public equity ...................................... $3,659 $550 $47 $4,162 $3,308 $468 $55 $3,721
Private equity ..................................... 152 5 5 152 118 13 1 130
Total Equity .................................. $3,811 $555 $52 $4,314 $3,426 $481 $56 $3,851
Public equity securities include common stock mutual fund shares representing our interest in the underlying assets of certain of our
separate account investments. These mutual funds invest primarily in high yield bond funds. The cost, gross unrealized gains, gross
unrealized losses, and fair value of these shares as of December 31, 2006 was $1,291 million, $46 million, $13 million, and $1,324 million,
respectively. The cost, gross unrealized gains, gross unrealized losses, and fair value of these shares as of December 31, 2005 was $1,225
million, $33 million, $30 million, and $1,228 million, respectively.
The equity securities attributable to the Closed Block Business consist principally of investments in common and preferred stock of
publicly traded companies. The following table sets forth the composition of our equity securities portfolio attributable to the Closed Block
Business and the associated gross unrealized gains and losses as of the dates indicated:
December 31, 2006 December 31, 2005
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in millions)
Public equity .................................... $2,989 $843 $ 71 $3,761 $2,741 $585 $114 $3,212
Private equity ................................... 10 1 — 11 4 — — 4
Total Equity ................................ $2,999 $844 $ 71 $3,772 $2,745 $585 $114 $3,216
Unrealized Losses from Equity Securities
The following table sets forth the cost and gross unrealized losses of our equity securities attributable to the Financial Services
Businesses where the estimated fair value had declined and remained below cost by 20% or more for the following timeframes:
December 31, 2006 December 31, 2005
Cost
Gross
Unrealized
Losses Cost
Gross
Unrealized
Losses
(in millions)
Less than six months ........................................................................ $ 62 $ 19 $— $—
Six months or greater but less than nine months .................................................. — — 2 1
Nine months or greater but less than twelve months ............................................... — — — —
Twelve months and greater ................................................................... — — — —
Total ................................................................................ $ 62 $ 19 $ 2 $ 1
The gross unrealized losses as of December 31, 2006 were primarily concentrated in the services, retail and wholesale and other
sectors.
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
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