lines business in 2008, which generates a higher acquisition cost ratio than our commercial P&C business.
The increase in 2008 also reflects higher acquisition costs on crop business, as 2008 included more profitable results on the first quarter final settlement than in 2007, as well as increased crop/hail production for 2008.
As discussed above, 2007 included a large loss portfolio transfer which had a favorable impact on the 2007 policy acquisition cost ratio.
Insurance – North American’s administrative expense ratio increased in 2009, compared with 2008, primarily due to higher administrative expenses in our retail division to support growth in certain businesses, from both new and existing products, as well as higher spending to support growth in the personal lines business.
The administrative expense ratio increased in 2008, compared with 2007, reflecting the impact of the inclusion of the personal lines business, which generates higher administrative expense ratios than our commercial P&C business, and the reduction in net premiums earned.
Insurance – Overseas General The Insurance – Overseas General segment consists of ACE International, which comprises our network of indigenous retail insurance operations, the wholesale insurance operations of ACE Global Markets, our London market underwriting unit including Lloyd’s Syndicate 2488, and the international A&H and life business of Combined Insurance.
This segment has four regions of operations: Europe, Asia Pacific, Far East, and Latin America.
Combined Insurance distributes specialty individual accident and supplemental health insurance products targeted to middle income consumers in Europe, Asia Pacific, and Latin America.
The following results include Combined Insurance from April 1, 2008.
## Table 0 ##
Insurance – Overseas General’s net premiums written decreased in 2009, compared with 2008, primarily due to a strengthening of the U. S.  dollar relative to major currencies.
Refer to the table below for the impact of foreign exchange on net premiums written and earned.
On a constant dollar basis, our international retail operations experienced P&C growth in all regions, with the exception of the Far East, and reported increased A&H business in Europe, Asia, and Latin America.
In addition to the unfavorable foreign exchange impact, our London wholesale business unit reported lower constant dollar production within most product lines.
Insurance – Overseas General’s net premiums written increased in 2008, compared with 2007, primarily due to the inclusion of Combined Insurance, which added $370 million of net premiums written.
Insurance – Overseas General’s net premiums earned decreased in 2009, compared with 2008, primarily due to an unfavorable foreign exchange impact.
On a constant dollar basis, net premiums earned increased due to growth in P&C production in our international retail operations.
Our London wholesale operations reported a decline in net premiums earned due to lower production.
Insurance – Overseas General’s net premiums earned increased in 2008, compared with 2007, primarily due to the added premiums from Combined Insurance, growth in A&H production, and favorable foreign exchange impact.
Combined Insurance added $371 million to this segment’s 2008 net premiums earned.
## Table 1 ##
Other (income) expense primarily comprises our equity in net income of AGO prior to the June 2009 issuance and Huatai Insurance Company of China, Limited, which is included in equity in net income of partially-owned entities.
As discussed previously, prior to AGO’s June 2009 issuance, we included our investment in AGO in Investments in partially-owned insurance companies and reflected our portion of its net income (loss) under equity in net income of partially-owned entities.
Effective with the June 2009 issuance, we now account for the investment as an available-for-sale equity security.
Refer to “Overview—Investment in Assured Guaranty Ltd”.
Other (income) expense also includes certain federal excise and capital taxes incurred as a result of capital management initiatives.
These transactions are considered capital in nature and are excluded from underwriting results.
Investments Our investment portfolio is invested primarily in publicly traded, investment grade fixed income securities with an average credit quality of AA (with one half invested in AAA securities), as rated by the independent investment rating service S&P.
The portfolio is externally managed by independent, professional investment managers.
The average duration of our fixed income securities, including the effect of options and swaps, was 3.7 years at December 31, 2009, compared with 3.6 years at December 31, 2008.
We estimate that a 100 basis point (bps) increase in interest rates would reduce our book value by approximately $1.6 billion at December 31, 2009.
We experienced net unrealized gains of $3.1 billion in 2009 primarily due to tightening of credit spreads, particularly during the second and third quarters of 2009.
In addition, greater global demand-driven purchases of fixed income investments and a greater demand for risk-based assets contributed to the unrealized gains.
The fixed maturities in an unrealized loss position at December 31, 2009, were comprised of both investment grade and below investment grade securities for which fair value declined primarily due to widening credit spreads since the date of purchase.
As part of our fixed income diversification strategy, we decided to hold to maturity certain commercial mortgage-backed securities that have shorter term durations.
Because we have the intent to hold such securities to maturity, a transfer of such securities with a fair value of $704 million was made during 2009 from Fixed maturities available for sale to Fixed maturities held to maturity.
The $4 million unrealized depreciation at the date of the transfer continues to be reported as a component of Accumulated other comprehensive income and is being amortized over the remaining life of the securities as an adjustment of yield in a manner consistent with the amortization of any premium or discount.
Our Other investments principally comprise direct investments, investment funds, and limited partnerships.
Our exposure to sub-prime asset backed securities was $54 million at December 31, 2009, which represented less than one percent of our investment portfolio.
We do not expect any material investment loss from our exposure to sub-prime mortgages.
Our investment portfolio is broadly diversified across geographies, sectors, and issuers.
We hold no collateralized debt obligations or collateralized loan obligations in our investment portfolio and we provide no credit default protection.
We have long-standing global credit limits for our entire portfolio across the organization.
Exposures are aggregated, monitored, and actively managed by our Global Credit Committee, comprised of senior executives, including our Chief Financial Officer, our Chief Risk Officer, our Chief Investment Officer, and our Treasurer.
We also have well-established, strict contractual investment rules requiring managers to maintain highly diversified exposures to individual issuers and closely monitor investment manager compliance with portfolio guidelines.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) ACE Limited and Subsidiaries 20.
Statutory financial information The Company’s insurance and reinsurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate.
These regulations include restrictions that limit the amount of dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval of the insurance regulatory authorities.
There are no statutory restrictions on the payment of dividends from retained earnings by any of the Bermuda subsidiaries as the minimum statutory capital and surplus requirements are satisfied by the share capital and additional paid-in capital of each of the Bermuda subsidiaries.
The Company’s U. S.  subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by insurance regulators.
Statutory accounting differs from GAAP in the reporting of certain reinsurance contracts, investments, subsidiaries, acquisition expenses, fixed assets, deferred income taxes, and certain other items.
The statutory capital and surplus of the U. S.  subsidiaries met regulatory requirements for 2009, 2008, and 2007.
The amount of dividends available to be paid in 2010, without prior approval from the state insurance departments, totals $733 million.
The combined statutory capital and surplus and statutory net income of the Bermuda and U. S.  subsidiaries as at and for the years ended December 31, 2009, 2008, and 2007, are as follows:
## Table 2 ##
As permitted by the Restructuring discussed previously in Note 7, certain of the Company’s U. S.  subsidiaries discount certain A&E liabilities, which increased statutory capital and surplus by approximately $215 million, $211 million, and $140 million at December 31, 2009, 2008, and 2007, respectively.
The Company’s international subsidiaries prepare statutory financial statements based on local laws and regulations.
Some jurisdictions impose complex regulatory requirements on insurance companies while other jurisdictions impose fewer requirements.
In some countries, the Company must obtain licenses issued by governmental authorities to conduct local insurance business.
These licenses may be subject to reserves and minimum capital and solvency tests.
Jurisdictions may impose fines, censure, and/or criminal sanctions for violation of regulatory requirements.21.
Information provided in connection with outstanding debt of subsidiaries The following tables present condensed consolidating financial information at December 31, 2009, and December 31, 2008, and for the years ended December 31, 2009, 2008, and 2007, for ACE Limited (the Parent Guarantor) and its “Subsidiary Issuer”, ACE INA Holdings, Inc.
The Subsidiary Issuer is an indirect 100 percent-owned subsidiary of the Parent Guarantor.
Investments in subsidiaries are accounted for by the Parent Guarantor under the equity method for purposes of the supplemental consolidating presentation.
Earnings of subsidiaries are reflected in the Parent Guarantor’s investment accounts and earnings.
The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer.
SCHEDULE IV ACE Limited and Subsidiaries SUPPLEMENTAL INFORMATION CONCERNING REINSURANCE Premiums Earned
## Table 3 ##
Critical Accounting Estimates Our Consolidated Financial Statements include amounts that, either by their nature or due to requirements of accounting principles generally accepted in the U. S.  (GAAP), are determined using best estimates and assumptions.
While we believe that the amounts included in our Consolidated Financial Statements reflect our best judgment, actual amounts could ultimately materially differ from those currently presented.
We believe the items that require the most subjective and complex estimates are: ?
unpaid loss and loss expense reserves, including long-tail asbestos and environmental (A&E) reserves; ?
future policy benefits reserves; ?
valuation of value of business acquired (VOBA) and amortization of deferred policy acquisition costs and VOBA; ?
the assessment of risk transfer for certain structured insurance and reinsurance contracts; ?
reinsurance recoverable, including a provision for uncollectible reinsurance; ?
the valuation of our investment portfolio and assessment of other-than-temporary impairments (OTTI); ?
the valuation of deferred tax assets; ?
the valuation of derivative instruments related to guaranteed minimum income benefits (GMIB) ; and ?
the valuation of goodwill.
We believe our accounting policies for these items are of critical importance to our Consolidated Financial Statements.
The following discussion provides more information regarding the estimates and assumptions required to arrive at these amounts and should be read in conjunction with the sections entitled: Prior Period Development, Asbestos and Environmental and Other Run-off Liabilities, Reinsurance Recoverable on Ceded Reinsurance, Investments, Net Realized Gains (Losses), and Other Income and Expense Items.
Unpaid losses and loss expenses Overview and key data As an insurance and reinsurance company, we are required, by applicable laws and regulations and GAAP, to establish loss and loss expense reserves for the estimated unpaid portion of the ultimate liability for losses and loss expenses under the terms of our policies and agreements with our insured and reinsured customers.
The estimate of the liabilities includes provisions for claims that have been reported but are unpaid at the balance sheet date (case reserves) and for future obligations on claims that have been incurred but not reported (IBNR) at the balance sheet date (IBNR may also include a provision for additional development on reported claims in instances where the case reserve is viewed to be potentially insufficient).
Loss reserves also include an estimate of expenses associated with processing and settling unpaid claims (loss expenses).
At December 31, 2009, our gross unpaid loss and loss expense reserves were $37.8 billion and our net unpaid loss and loss expense reserves were $25 billion.
With the exception of certain structured settlements, for which the timing and amount of future claim payments are reliably determinable, our loss reserves are not discounted for the time value of money.
In connection with such structured settlements, we carry net reserves of $76 million, net of discount.
The table below presents a roll-forward of our unpaid losses and loss expenses for the years ended December 31, 2009 and 2008.

<table><tr><td></td><td></td><td></td><td></td><td colspan="2">% Change</td></tr><tr><td>(in millions of U.S. dollars)</td><td>2009</td><td>2008</td><td>2007</td><td>2009 vs.2008</td><td>2008 vs.2007</td></tr><tr><td>Net premiums written</td><td>$5,145</td><td>$5,332</td><td>$4,568</td><td>-4%</td><td>17%</td></tr><tr><td>Net premiums earned</td><td>5,147</td><td>5,337</td><td>4,623</td><td>-4%</td><td>15%</td></tr><tr><td>Losses and loss expenses</td><td>2,597</td><td>2,679</td><td>2,420</td><td>-3%</td><td>11%</td></tr><tr><td>Policy benefits</td><td>4</td><td>12</td><td>–</td><td>-67%</td><td>NM</td></tr><tr><td>Policy acquisition costs</td><td>1,202</td><td>1,193</td><td>963</td><td>1%</td><td>24%</td></tr><tr><td>Administrative expenses</td><td>783</td><td>793</td><td>669</td><td>-1%</td><td>19%</td></tr><tr><td>Underwriting income</td><td>$561</td><td>$660</td><td>$571</td><td>-15%</td><td>16%</td></tr><tr><td>Net investment income</td><td>479</td><td>521</td><td>450</td><td>-8%</td><td>16%</td></tr><tr><td>Net realized gains (losses)</td><td>-20</td><td>-316</td><td>-69</td><td>94%</td><td>-358%</td></tr><tr><td>Other (income) expense</td><td>20</td><td>-11</td><td>-20</td><td>NM</td><td>45%</td></tr><tr><td>Income tax expense</td><td>186</td><td>100</td><td>183</td><td>86%</td><td>-45%</td></tr><tr><td>Net income</td><td>$814</td><td>$776</td><td>$789</td><td>5%</td><td>-2%</td></tr><tr><td>Loss and loss expense ratio</td><td>50.5%</td><td>50.4%</td><td>52.4%</td><td></td><td></td></tr><tr><td>Policy acquisition cost ratio</td><td>23.3%</td><td>22.4%</td><td>20.8%</td><td></td><td></td></tr><tr><td>Administrative expense ratio</td><td>15.2%</td><td>14.8%</td><td>14.5%</td><td></td><td></td></tr><tr><td>Combined ratio</td><td>89.0%</td><td>87.6%</td><td>87.7%</td><td></td><td></td></tr></table>
<table><tr><td>(in millions of U.S. dollars)</td><td> 2009</td><td>2008</td><td>2007</td></tr><tr><td>Equity in net (income) loss of partially-owned entities</td><td>$39</td><td>$-52</td><td>$39</td></tr><tr><td>Noncontrolling interest expense</td><td>3</td><td>11</td><td>7</td></tr><tr><td>Federal excise and capital taxes</td><td>16</td><td>16</td><td>18</td></tr><tr><td>Other</td><td>27</td><td>-14</td><td>17</td></tr><tr><td>Other (income) expense</td><td>$85</td><td>$-39</td><td>$81</td></tr></table>
<table><tr><td></td><td>Bermuda Subsidiaries</td><td>U.S. Subsidiaries</td></tr><tr><td>(in millions of U.S. dollars)</td><td>2009</td><td>2008</td><td>2007</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Statutory capital and surplus</td><td>$9,299</td><td>$6,205</td><td>$8,579</td><td>$5,801</td><td>$5,368</td><td>$5,321</td></tr><tr><td>Statutory net income</td><td>$2,472</td><td>$2,196</td><td>$1,535</td><td>$870</td><td>$818</td><td>$873</td></tr></table>
<table><tr><td>For the years ended December 31, 2009, 2008, and 2007(in millions of U.S. dollars, except for percentages)</td><td>Direct Amount</td><td>Ceded To Other Companies</td><td>Assumed From Other Companies</td><td>Net Amount</td><td>Percentage of Amount Assumed to Net</td></tr><tr><td>2009</td><td>$15,415</td><td>$5,943</td><td>$3,768</td><td>$13,240</td><td>28%</td></tr><tr><td>2008</td><td>$16,087</td><td>$6,144</td><td>$3,260</td><td>$13,203</td><td>25%</td></tr><tr><td>2007</td><td>$14,673</td><td>$5,834</td><td>$3,458</td><td>$12,297</td><td>28%</td></tr></table>

Question: what was the percentage increase in the statutory capital and surplus due to discount of certain a&e liabilities from 2008 to 2009