Humana 2009 Annual Report Download - page 93

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
4. INVESTMENT SECURITIES
Investment securities classified as current and long-term were as follows at December 31, 2009 and
December 31, 2008, respectively:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
(in thousands)
December 31, 2009
U.S. Treasury and other U.S. government corporations and
agencies:
U.S. Treasury and agency obligations ............... $1,005,203 $ 6,683 $ (2,534) $1,009,352
Mortgage-backed securities ....................... 1,675,667 24,324 (11,328) 1,688,663
Tax-exempt municipal securities ....................... 2,195,077 52,381 (23,417) 2,224,041
Mortgage-backed securities:
Residential .................................... 106,191 220 (10,999) 95,412
Commercial ................................... 285,014 3,252 (8,640) 279,626
Asset-backed securities .............................. 106,471 824 (107) 107,188
Corporate debt securities ............................. 2,043,721 57,173 (21,326) 2,079,568
Redeemable preferred stock ........................... 8,400 4,900 — 13,300
Total debt securities ......................... $7,425,744 $149,757 $ (78,351) $7,497,150
December 31, 2008
U.S. Treasury and other U.S. government corporations and
agencies:
U.S. Treasury and agency obligations ............... $ 587,207 $ 12,759 $ (68) $ 599,898
Mortgage-backed securities ....................... 1,268,956 28,974 (225) 1,297,705
Tax-exempt municipal securities ....................... 1,702,026 27,649 (40,213) 1,689,462
Mortgage-backed securities:
Residential .................................... 450,867 1,565 (105,124) 347,308
Commercial ................................... 313,933 — (53,634) 260,299
Asset-backed securities .............................. 156,618 27 (12,275) 144,370
Corporate debt securities ............................. 945,224 10,532 (99,929) 855,827
Redeemable preferred stock ........................... 8,400 1,650 — 10,050
Total debt securities ......................... 5,433,231 83,156 (311,468) 5,204,919
Equity securities .................................... 12,091 — (1,568) 10,523
Total ................................. $5,445,322 $ 83,156 $(313,036) $5,215,442
We participate in a securities lending program where we loan certain investment securities for short periods
of time in exchange for collateral, consisting of cash or U.S. Government securities, initially equal to at least
102% of the fair value of the investment securities on loan. Investment securities with a fair value of $126.1
million at December 31, 2009 and $437.1 million at December 31, 2008 were on loan. At December 31, 2009, all
collateral from lending our investment securities was in the form of cash which has been reinvested in money
market funds, certificates of deposit, and short-term corporate and asset-backed securities with an average
maturity of approximately 118 days at December 31, 2009 compared to approximately 250 days at December 31,
2008. These available for sale investment securities had an equivalent amortized cost basis and fair value of
$119.6 million at December 31, 2009. At December 31, 2008, these available for sale investment securities had
an amortized cost basis of $437.2 million and a fair value of $402.4 million.
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