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As of 12/31/09, the majority of Guardian's total investment portfolio is comprised of public fixed income (50.4%), private debt (17.0%), and commercial mortgages (11.5%). Only 1.6% of our total investment portfolio is invested in public equity, which is hedged to protect Guardian's capital from equity volatility.* The majority of our public fixed income holdings are comprised of public corporates (63.1%) and tax-exempt municipals (7.9%). Our portfolio is of excellent credit quality; 92% of our total fixed income is investment grade and 17% of the public fixed income holdings are AAA-rated.
| Asset Class Allocation |
As of December 31, 2009 |
| Statement Value | $ Millions | % of Invested Assets |
| Fixed Income (ex Private) |
14,623.1 |
50.4% |
|
| Private Placement Debt |
4,942.9 |
17.0% |
|
| Commercial Mortgages |
3,339.2 |
11.5% |
|
| Policy Loans |
2,482.7 | 8.6% |
|
| Affiliates & Subsidiaries2 |
1,314.2 |
4.5% |
|
| Private & Real Estate Equity |
721.3 |
2.5% |
|
| Convertible Securities |
504.3 |
1.7% |
|
Public Equity
(Does not reflect hedges)1 |
467.5 |
1.6% |
|
| Other Invested Assets |
405.1 | 1.4% |
|
| Cash & Short-Term Investments |
201.9 |
0.7% |
| Total Invested Assets |
29,002.2 | 100.0% |
1Public Equity is hedged to protect a minimum Cap Ratio floor and excludes Bond & Cash Mutual Funds of $324.2MM
2Affiliates and Subsidiaries includes $412 million in affiliates classified as LLC's on the annual statement but are not private equity
| Fixed Income and Convertible Bonds | As of December 31, 2009 |
| Statement Value | $ Millions |
% of Bonds |
| NAIC 1 (Aaa-A/AAA-A) |
10,085.9 |
50.4% |
|
| NAIC 2 (Baa/BBB) |
8,299.8 |
41.4% |
|
| Investment Grade |
18,385.7 |
91.8% |
|
| NAIC 3 (Ba/BB) |
1,057.4 |
5.3% |
|
| NAIC 4 (B) |
383.1 |
1.9% |
|
| NAIC 5&6 (Caa/CCC & below) |
199.3 |
1.0% |
|
| Below Investment Grade |
1,639.8 |
8.2% |
| Total Bonds3 |
20,025.5 | 100.0% |
3Total Bonds includes public and private debt and convertible bonds, but excludes commercial mortgages and preferred stock
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