Prudential 2007 Annual Report Download - page 125

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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
Net Investment Income
Net investment income for the years ended December 31, was from the following sources:
2007 2006 2005
(in millions)
Fixed maturities, available for sale ......................................................... $ 8,797 $ 8,325 $ 7,536
Fixed maturities, held to maturity .......................................................... 90 95 90
Equity securities, available for sale ......................................................... 292 263 234
Trading account assets ................................................................... 758 708 660
Commercial loans ...................................................................... 1,745 1,628 1,580
Policy loans ........................................................................... 521 491 470
Broker-dealer related receivables .......................................................... 199 174 28
Short-term investments and cash equivalents ................................................. 684 589 350
Other long-term investments .............................................................. 442 411 593
Gross investment income ................................................................ 13,528 12,684 11,541
Less investment expenses ................................................................ (1,511) (1,364) (946)
Net investment income .................................................................. $12,017 $11,320 $10,595
Carrying value for non-income producing assets included in fixed maturities and other long-term investments totaled $175 million and
$10 million, respectively, as of December 31, 2007. Non-income producing assets represent investments that have not produced income for
the twelve months preceding December 31, 2007.
Realized Investment Gains (Losses), Net
Realized investment gains (losses), net, for the years ended December 31, were from the following sources:
2007 2006 2005
(in millions)
Fixed maturities ............................................................................. $118 $ 60 $ 313
Equity securities ............................................................................. 634 309 431
Commercial loans ............................................................................ 26 82 164
Investment real estate ......................................................................... 10 19 28
Joint ventures and limited partnerships ........................................................... 105 154 30
Derivatives ................................................................................. (275) 103 416
Other ...................................................................................... (5) 47 (4)
Realized investment gains (losses), net ........................................................... $613 $774 $1,378
Prudential Financial 2007 Annual Report 123