Primerica 2010 Annual Report - Direct Selling News

mortgage- and asset-backed securities. Theseimpairment charges are included in the lossesdiscussed above and were as follows:Year ended December 31,2010 2009 2008(In thousands)Impairments on mortgage- and asset-backedsecurities $5,939 $6,339 $9,776As of December 31, 2010, the unrealized losseson our invested asset portfolio were largelycaused by interest rate sensitivity and changesin credit spreads. We believe that fluctuationscaused by interest rate movement have littlebearing on the recoverability of our investment.Because the decline in fair value is attributableto changes in interest rates and not creditquality, and because we have the ability to holdthese investments until a market price recoveryor maturity as well as no present intention todispose of them, we do not consider theseinvestments to be other-than-temporarilyimpaired.OTTI recognized during the year endedDecember 31, 2010 were as follows:Year endedDecember 31,2010 2009(In thousands)Impairment losses related to securities which the Company does not intend to sell or is more-likelythan-notthat it will be required to sell:Total OTTI losses recognized $ 1,402 $34,616Less portion of OTTI loss recognized in accumulated other comprehensive income (loss) (553) (13,573)Net impairment losses recognized in earnings for securities that the Company does not intend to sell or ismore-likely-than-not that it will not be required to sell before recovery 849 21,043OTTI losses recognized in earnings for securities that the Company intends to sell or more-likely-than-notwill be required to sell before recovery 11,309 40,351Net impairment losses recognized in earnings $12,158 $ 61,394132 Freedom Lives Here