Prudential 2007 Annual Report Download - page 63

Fixed Maturity Securities
Investment Mix
Our fixed maturity securities portfolio consists of publicly traded and privately placed debt securities across an array of industry
categories. The fixed maturity securities relating to our international insurance operations are primarily comprised of foreign government
securities.
We manage our public portfolio to a risk profile directed or overseen by the Asset Liability Management and Risk Management
groups and, in the case of our international insurance portfolios, to a profile that also reflects the local market environment. The investment
objectives for fixed maturity securities are consistent with those described above. The total return that we earn on the portfolio will be
reflected both as investment income and also as realized gains or losses on investments.
We use our private placement and asset-backed portfolios to enhance the diversification and yield of our overall fixed maturity
portfolio. Within our domestic portfolios, we maintain a private fixed income portfolio that is larger than the industry average as a
percentage of total fixed income holdings. Over the last several years, our investment staff has directly originated more than half of our
annual private placement originations. Our origination capability offers the opportunity to lead transactions and gives us the opportunity for
better terms, including covenants and call protection, and to take advantage of innovative deal structures.
Investments in fixed maturity securities attributable to the Financial Services Businesses were $113.5 billion at amortized cost with an
estimated fair value of $114.8 billion as of December 31, 2007 compared to $111.9 billion at amortized cost with an estimated fair value of
$114.6 billion as of December 31, 2006. Investments in fixed maturity securities attributable to the Closed Block Business were $48.7
billion at amortized cost with an estimated fair value of $49.4 billion as of December 31, 2007 compared to $49.5 billion at amortized cost
with an estimated fair value of $50.8 billion as of December 31, 2006.
Fixed Maturity Securities by Contractual Maturity Date
The following tables set forth the breakdown of the amortized cost of our fixed maturity securities portfolio in total by contractual
maturity as of December 31, 2007.
December 31, 2007
Financial Services Businesses Closed Block Business
Amortized
Cost % of Total
Amortized
Cost % of Total
($ in millions)
Maturing in 2008 ............................................................. $ 4,983 4.4% $ 2,783 5.7%
Maturing in 2009 ............................................................. 4,296 3.8 1,903 3.9
Maturing in 2010 ............................................................. 4,938 4.4 1,903 3.9
Maturing in 2011 ............................................................. 6,242 5.5 2,088 4.3
Maturing in 2012 ............................................................. 6,295 5.6 2,171 4.4
Maturing in 2013 ............................................................. 5,034 4.4 2,487 5.1
Maturing in 2014 ............................................................. 7,146 6.3 2,172 4.5
Maturing in 2015 ............................................................. 5,609 4.9 1,809 3.7
Maturing in 2016 ............................................................. 5,360 4.7 1,252 2.6
Maturing in 2017 and beyond ................................................... 63,583 56.0 30,164 61.9
Total Fixed Maturities ......................................................... $113,486 100.0% $48,732 100.0%
Prudential Financial 2007 Annual Report 61