This excerpt taken from the ALL 10-Q filed May 7, 2009.
Change in intent write-downs totaling $105 million for the three months ended March 31, 2009 included $82 million for fixed income securities, $17 million for equity securities and $6 million for mortgage loans compared to $39 million for fixed income securities, $2 million for equity securities, $1 million for mortgage loans and $1 million for other investments for the same period of the prior year. The change in intent write-downs in the first
quarter of 2009 were a result of our risk mitigation and return optimization programs and ongoing comprehensive reviews of our portfolios resulting in write-downs of individually identified securities.
Investments for which we had changed our intent to hold to recovery totaled $1.04 billion and $996 million as of March 31, 2009 and December 31, 2008, respectively. The primary drivers of the change were as follows:
· $676 million in additions of individually identified fixed income securities as a result of ongoing reviews of our portfolios.
· We sold approximately $168 million, recognizing net capital gains of $10 million. The sales included approximately $50 million from risk mitigation and return optimization programs which recognized $9 million in net realized capital losses.
· We re-designated approximately $334 million of investments to intent to hold to recovery due to our inability to dispose of them for values equal to or greater than our view of their intrinsic value. Of these assets $37 million were related to risk mitigation and return optimization programs and $297 million were related to individual identification.
· Valuation adjustments and other charges, including change in intent write-downs totaled $138 million.