The Prudential Series Fund
The Prudential Series Fund
The Prudential Series Fund
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Pruco Life Insurance Company<br />
Notes to Consolidated Financial Statements<br />
3. INVESTMENTS (continued)<br />
Investment Income and Investment Gains and Losses<br />
Net investment income arose from the following sources for the years ended December 31:<br />
2008 2007 2006<br />
(in thousands)<br />
Fixed maturities, available for sale $ 269,498 $ 283,526 $ 322,832<br />
Policy loans 53,073 50,776 48,493<br />
Commercial loans 49,786 37,174 22,662<br />
Short term investments and cash equivalents 10,142 25,064 25,564<br />
Other (1,181) 7,213 7,258<br />
Gross investment income 381,318 403,753 426,809<br />
Less: investment expenses (17,567) (22,359) (25,373)<br />
Net investment income $ 363,751 $ 381,394 $ 401,436<br />
Realized investment gains/ (losses), net including charges for other than temporary impairments, for the years ended December<br />
31, were from the following sources:<br />
2008 2007 2006<br />
(in thousands)<br />
Fixed maturities, available for sale $ (50,358) $ 5,159 $ (59,482)<br />
Derivatives 260,027 (24,926) (2,437)<br />
Commercial loans (3,656) (1,077) (1,168)<br />
Equity securities, available for sale (22) 159 340<br />
Other 215 2 (2)<br />
Realized investment (losses)/gains, net $ 206,206 $ (20,683) $ (62,749)<br />
Writedowns for impairments, which were deemed to be other than temporary for fixed maturities during 2008, 2007 and 2006<br />
were $58 million, $3 million, and $1 million, respectively.<br />
Commercial Loans<br />
<strong>The</strong> Company’s commercial loans are comprised as follows as at December 31:<br />
Amount<br />
(in thousands)<br />
2008 2007<br />
% of<br />
Amount<br />
Total (in thousands)<br />
% of<br />
Total<br />
Commercial mortgage loans by property type<br />
Industrial buildings $ 199,366 22.6 % $ 178,873 23.9 %<br />
Retail stores 163,289 18.5 % 119,528 15.9 %<br />
Apartment complexes 147,744 16.8 % 129,559 17.3 %<br />
Office buildings 159,606 18.1 % 131,557 17.5 %<br />
Agricultural properties 66,518 7.5 % 67,049 8.9 %<br />
Other 145,198 16.5 % 123,174 16.5 %<br />
Total collateralized loans 881,721 100.0 % 749,740 100.0 %<br />
Valuation allowance (8,173) (4,517)<br />
Total net collateralized loans 873,548 745,223<br />
Total other uncollaterized loans 8,090 -<br />
Total commercial loans and other loans $ 881,638 $ 745,223<br />
<strong>The</strong> commercial loans are geographically dispersed throughout the United States with the largest concentrations in California<br />
(22%) and New Jersey (12%) at December 31, 2008.<br />
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