Notes to financial statements

Note 4: Investments

Valuation of Investments - The following presents the cost, gross unrealized appreciation and depreciation, and estimated fair market value of our investments in fixed maturities, equities and venture capital.

(In thousands)

 December 31, 1998

Gross Unrealized Appreciation

Gross Unrealized Depreciation

Estimated Fair Value

Cost

Fixed maturities:

U.S. government

$ 2,672,630

$   208,471

$   (7)

$ 2,881,094

States and political subdivisions

6,113,669

445,483

(331)

6,558,821

Foreign governments

909,353

70,378

(1,515)

978,216

Corporate securities

6,747,847

375,100

(26,577)

7,096,370

Asset-backed securities

661,259

26,012

(2,831)

684,440

Mortgage-backed securities

2,791,677

66,212

(571)

2,857,318

19,896,435

1,191,656

(31,832)

21,056,259

Total fixed maturities

Equities

941,723

360,576

(43,790)

1,258,509

Venture capital

389,225

200,969

(18,854)

571,340

Total

$ 21,227,383

$ 1,753,201

$  (94,476)

 $22,886,108

(In thousands)

 December 31, 1997

Gross Unrealized Appreciation

Gross Unrealized Depreciation

Estimated
Fair Value

Cost

Fixed maturities:

U.S. government

$ 2,754,657

$     120,750

$(1,886)

$ 2,873,521

States and political subdivisions

6,280,554

419,744

(535)

6,699,763

Foreign governments

1,118,494

66,586

(23,875)

1,161,205

Corporate securities

6,089,142

287,178

(5,613)

6,370,707

Corporate securities

692,536

14,946

(400)

707,082

Mortgage-backed securities

3,053,327

80,607

(993)

3,132,941

Total fixed maturities

19,988,710

989,811

(33,302)

20,945,219

Equities

804,593

267,889

(20,112)

1,052,370

156,205

Venture capital

324,333

(18,646)

461,892

$(72,060)

Total

$21,117,636

$1,413,905

$22,459,481

Statutory Deposits - At Dec. 31, 1998, our property-liability and life insurance operations had investments in fixed maturities with an estimated fair value of $1.17 billion on deposit with regulatory authorities as required by law.

Fixed Maturities by Maturity Date - The following table presents the breakdown of our fixed maturities by years to maturity. Actual maturities may differ from those stated as a result of calls and prepayments.

(In thousands)

 December 31, 1998

Amortized Cost

Estimated Market Value

One year or less

$     895,252

$     906,956

Over one year through five years

4,459,414

4,686,292

Over five years through 10 years

5,721,337

6,101,179

Over 10 years

5,367,496

5,820,074

Asset-backed securities with various maturities

661,259

684,440

Mortgage-backed securities with                 various maturities

2,791,677

2,857,318

Total

$19,896,435

$21,056,259