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This excerpt taken from the ALL 10-Q filed May 8, 2008. Net realized capital gains and
losses are reflected in the following table.
For further discussion of realized capital gains and losses, see the Investments section of MD&A.
This excerpt taken from the ALL 10-Q filed May 3, 2006. Net Realized Capital Gains and Losses The
following table presents the components of realized capital gains and losses
and the related tax effect.
Dispositions in the above table include sales, losses recognized in anticipation of dispositions and other transactions such as calls and prepayments. We may sell securities during the period in which fair value has declined below amortized cost for fixed income securities or cost for equity securities. In certain situations new factors such as negative developments, subsequent credit deterioration, relative value opportunities, market liquidity concerns and portfolio reallocations can subsequently change our previous intent to continue holding a security.
A changing interest rate environment will drive changes in our portfolio duration targets at a tactical level. A duration target and range is established with an economic view of liabilities relative to a long-term portfolio view. Tactical duration adjustments within management’s approved ranges are accomplished through both cash market transactions and derivative activities that generate realized gains and losses and through new purchases. As a component of our approach to managing portfolio duration, realized gains and losses on derivative instruments are most appropriately considered in conjunction with the unrealized gains and losses on the fixed income portfolio. This approach mitigates the impacts of general interest rate changes to the overall financial condition of the corporation.
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In the first quarter of 2006, we recognized $65 million of losses related to a change in our intent to hold certain securities with unrealized losses until they recover in value. The change in our intent is primarily related to $1.01 billion of securities which had unrealized losses totaling $30 million that may be used to fund net general account liabilities to be transferred at the closing of Allstate Financial’s variable annuity reinsurance agreement with Prudential. Additionally, continued implementation of yield enhancement strategies, strategic asset allocations and comprehensive reviews of our portfolios for both Allstate Protection and Allstate Financial, as well as a liquidity strategy review in the Corporate and Other segment, resulted in the identification of $3.19 billion of securities that had unrealized losses of $35 million which may be sold to achieve these objectives.
This excerpt taken from the ALL 10-Q filed May 3, 2005. Net realized capital gains and losses are presented in
the following table.
For further discussion of realized capital gains and losses, see the Investments section of MD&A.
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