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The following tables set forth “Realized investment gains (losses), net,” by investment type for the Financial Services Businesses and
Closed Block Business, as well as related charges and adjustments associated with the Financial Services Businesses, for the years ended
December 31, 2007, 2006, and 2005, respectively, and gross realized investment gains and losses on fixed maturity securities by segment
for the years ended December 31, 2007, 2006, and 2005, respectively. For a discussion of our general account investment portfolio and
related results, including overall income yield and investment income, as well as our policies regarding other-than-temporary declines in
investment value and the related methodology for recording impairment charges, see “—General Account Investments” below. For
additional details regarding adjusted operating income, which is our measure of performance for the segments of our Financial Services
Businesses, see Note 20 to the Consolidated Financial Statements.
Year ended December 31,
2007 2006 2005
(in millions)
Realized investment gains (losses), net:
Financial Services Businesses ...................................................................... $ 24 $293 $ 742
Closed Block Business ............................................................................ 589 481 636
Consolidated realized investment gains (losses), net ..................................................... $613 $774 $1,378
Financial Services Businesses:
Realized investment gains (losses), net
Fixed maturity investments(1) .................................................................. $ (64) $(219) $ (22)
Equity securities ............................................................................. 297 122 181
Derivative instruments(2) ..................................................................... (336) 171 376
Other ..................................................................................... 127 219 207
Total .......................................................................................... 24 293 742
Related adjustments(3) ........................................................................ 82 (220) (73)
Realized investment gains (losses), net, and related adjustments ........................................... $106 $ 73 $ 669
Related charges(4) ............................................................................... $ (57) $ 17 $ (108)
Closed Block Business:
Realized investment gains (losses), net
Fixed maturity investments(1) .................................................................. $182 $279 $ 335
Equity securities ............................................................................. 337 187 250
Derivative instruments ........................................................................ 61 (68) 40
Other ..................................................................................... 9 83 11
Total .......................................................................................... $589 $481 $ 636
Realized investment gains (losses) by segment—Fixed Maturity Securities
Financial Services Businesses:
Gross realized investment gains:
Individual Life ............................................................................ $ 20 $ 22 $ 50
Individual Annuities ........................................................................ 35 21 41
Group Insurance ........................................................................... 32 29 67
Asset Management ......................................................................... 3 3 2
Financial Advisory ......................................................................... — — —
Retirement ............................................................................... 114 56 155
International Insurance ...................................................................... 85 98 84
International Investments .................................................................... — 60 —
Corporate and Other Operations .............................................................. 16 57 28
Total .......................................................................................... 305 346 427
Gross realized investment losses:
Individual Life ............................................................................ (25) (88) (24)
Individual Annuities ........................................................................ (43) (99) (41)
Group Insurance ........................................................................... (42) (41) (22)
Asset Management ......................................................................... (17) (1) (2)
Financial Advisory ......................................................................... — — —
Retirement ............................................................................... (137) (167) (96)
International Insurance ...................................................................... (64) (91) (235)
International Investments .................................................................... (1) — (1)
Corporate and Other Operations .............................................................. (40) (78) (28)
Total .......................................................................................... (369) (565) (449)
Realized investment gains (losses), net—Financial Services Businesses ............................... $ (64) $(219) $ (22)
Closed Block Business:
Gross realized investment gains ................................................................. $506 $517 $ 492
Gross realized investment losses ................................................................ (324) (238) (157)
Realized investment gains (losses), net—Closed Block Business ....................................... $182 $279 $ 335
52 Prudential Financial 2007 Annual Report