Notes to financial statements
Note 5: Investment Transactions
Investment Activity - Here is a summary of our investment purchases, sales and maturities.
(In thousands)
Year ended December 31
1998
1997
1996
Purchases
Fixed maturities
$ 3,213,663
$ 3,435,901
$ 3,077,119
Equities
1,250,453
1,509,774
1,087,951
Real estate and mortgage loans
211,263
380,258
291,745
Venture capital
97,413
94,891
153,146
Other investments
100,380
24,065
15,846
Total purchases
4,928,905
5,447,441
4,567,552
Proceeds from Sales and Maturities
Fixed maturities:
Sales
1,098,212
1,705,234
1,096,544
Maturities and redemptions
1,322,330
1,432,263
2,012,366
1,353,399
Equities
1,340,620
1,478,575
Real estate and morgage loans
338,709
467,684
185,742
250,015
118,011
Venture capital
63,894
4,384
2,957
Other investments
104,898
Total sales and maturities
4,188,916
4,958,699
5,228,222
$ 219,189
$ 378,636
Net purchases
$ (29,794)
Net Investment Income - Here is a summary of our net investment income.
Year ended December 31
(In thousands)
1998
1997
1996
Fixed maturities
$ 1,405,478
$1,368,654
$ 1,376,038
Equities
17,357
16,279
16,271
Real estate and mortgage loans
120,812
112,944
83,994
Venture capital
297
352
324
Securities lending
726
518
769
Other investments
9,348
18,718
21,529
Short-term investments
57,915
51,371
76,741
Total
1,603,912
1,540,109
1,612,414
Investment expenses
(26,107)
(27,534)
(27,432)
Net investment income
$ 1,584,982
$1,577,805
$1,512,575
Realized and Unrealized Investment Gains (Losses) - The following summarizes our pretax realized investment gains and losses, and the change in unrealized appreciation of investments recorded in common shareholders' equity and in comprehensive income.
(In thousands)
Year ended December 31
1998
1997
1996
Pretax Realized Investment Gains (Losses)
Fixed maturities:
Gross realized gains
$ 10,268
$ 36.233
$ 23,033
Gross realized losses
(21,376)
(43,620)
(40,037)
Total fixed maturities
(11,108)
(7,387)
(17,004)
Equities:
Gross realized gains
241,407
208,978
239,646
Gross realized losses
(77,524)
(46,412)
(31,282)
Total equities
163,883
162,566
208,364
Real estate and mortgage loans
13,883
45,259
(22,137)
Venture capital:
25,231
212,663
86,011
Other investments
9,800
9,947
6,755
Total pretax realized investment gains
$ 201,689
$ 423,048
$ 261,989
Change in Unrealized Appreciation
Fixed maturities
$ 203,315
$399,696
$ (440,916)
Equities
69,009
61,969
27,981
Venture capital
44,556
(154,826)
163,110
Life deferred policy acquisition costs and policy benefits
(653)
(21,171)
53,469
Single premium immediate annuity reserves
(16,678)
(27,411)
-
Other
(16,765)
(1,974)
11,074
Total change in pretax unrealized appreciation
282,784
256,283
(185,282)
Change in deferred taxes
(101,205)
(89,853)
(34,456)
Total change in unrealized appreciation, net of taxes
$ 181,579
$ 166,430
$(219,738)
