Interest Expense
## Table 0 ##
2014 vs.  2013 Interest incurred decreased $9.5.
The decrease was primarily due to a lower average interest rate on the debt portfolio which reduced interest by $13, partially offset by a higher average debt balance which increased interest by $6.
The change in capitalized interest was driven by a higher carrying value in construction in progress.2013 vs.  2012 Interest incurred increased $13.7.
The increase was driven primarily by a higher average debt balance for $41, partially offset by a lower average interest rate on the debt portfolio of $24.
The change in capitalized interest was driven by a decrease in project spending and a lower average interest rate.
Effective Tax Rate The effective tax rate equals the income tax provision divided by income from continuing operations before taxes.
Refer to Note 22, Income Taxes, to the consolidated financial statements for details on factors affecting the effective tax rate.2014 vs.  2013 On a GAAP basis, the effective tax rate was 27.0% and 22.8% in 2014 and 2013, respectively.
The effective tax rate was higher in the current year primarily due to the goodwill impairment charge of $305.2, which was not deductible for tax purposes, and the Chilean tax reform enacted in September 2014 which increased income tax expense by $20.6.
These impacts were partially offset by an income tax benefit of $51.6 associated with losses from transactions and a tax election in a non-U.
S.  subsidiary.
The prior year rate included income tax benefits of $73.7 related to the business restructuring and cost reduction plans and $3.7 for the advisory costs.
Refer to Note 4, Business Restructuring and Cost Reduction Actions; Note 9, Goodwill; Note 22, Income Taxes; and Note 23, Supplemental Information, to the consolidated financial statements for details on these transactions.
On a non-GAAP basis, the effective tax rate was 24.0% and 24.2% in 2014 and 2013, respectively.2013 vs.  2012 On a GAAP basis, the effective tax rate was 22.8% and 21.9% in 2013 and 2012, respectively.
The effective rate in 2013 includes income tax benefits of $73.7 related to the business restructuring and cost reduction plans and $3.7 for the advisory costs.
The effective rate in 2012 includes income tax benefits of $105.0 related to the business restructuring and cost reduction plans, $58.3 related to the second quarter Spanish tax ruling, and $3.7 related to the customer bankruptcy charge, offset by income tax expense of $43.8 related to the first quarter Spanish tax settlement and $31.3 related to the gain on the previously held equity interest in DA NanoMaterials.
Refer to Note 4, Business Restructuring and Cost Reduction Actions; Note 5, Business Combinations; Note 22, Income Taxes; and Note 23, Supplemental Information, to the consolidated financial statements for details on these transactions.
On a non-GAAP basis, the effective tax rate was 24.2% in both 2013 and 2012.
Discontinued Operations During the second quarter of 2012, the Board of Directors authorized the sale of our Homecare business, which had previously been reported as part of the Merchant Gases operating segment.
Interest Expense
2014 vs.  2013 Interest incurred decreased $9.5.
The decrease was primarily due to a lower average interest rate on the debt portfolio which reduced interest by $13, partially offset by a higher average debt balance which increased interest by $6.
The change in capitalized interest was driven by a higher carrying value in construction in progress.2013 vs.  2012 Interest incurred increased $13.7.
The increase was driven primarily by a higher average debt balance for $41, partially offset by a lower average interest rate on the debt portfolio of $24.
The change in capitalized interest was driven by a decrease in project spending and a lower average interest rate.
Effective Tax Rate The effective tax rate equals the income tax provision divided by income from continuing operations before taxes.
Refer to Note 22, Income Taxes, to the consolidated financial statements for details on factors affecting the effective tax rate.2014 vs.  2013 On a GAAP basis, the effective tax rate was 27.0% and 22.8% in 2014 and 2013, respectively.
The effective tax rate was higher in the current year primarily due to the goodwill impairment charge of $305.2, which was not deductible for tax purposes, and the Chilean tax reform enacted in September 2014 which increased income tax expense by $20.6.
These impacts were partially offset by an income tax benefit of $51.6 associated with losses from transactions and a tax election in a non-U.
S.  subsidiary.
The prior year rate included income tax benefits of $73.7 related to the business restructuring and cost reduction plans and $3.7 for the advisory costs.
Refer to Note 4, Business Restructuring and Cost Reduction Actions; Note 9, Goodwill; Note 22, Income Taxes; and Note 23, Supplemental Information, to the consolidated financial statements for details on these transactions.
On a non-GAAP basis, the effective tax rate was 24.0% and 24.2% in 2014 and 2013, respectively.2013 vs.  2012 On a GAAP basis, the effective tax rate was 22.8% and 21.9% in 2013 and 2012, respectively.
The effective rate in 2013 includes income tax benefits of $73.7 related to the business restructuring and cost reduction plans and $3.7 for the advisory costs.
The effective rate in 2012 includes income tax benefits of $105.0 related to the business restructuring and cost reduction plans, $58.3 related to the second quarter Spanish tax ruling, and $3.7 related to the customer bankruptcy charge, offset by income tax expense of $43.8 related to the first quarter Spanish tax settlement and $31.3 related to the gain on the previously held equity interest in DA NanoMaterials.
Refer to Note 4, Business Restructuring and Cost Reduction Actions; Note 5, Business Combinations; Note 22, Income Taxes; and Note 23, Supplemental Information, to the consolidated financial statements for details on these transactions.
On a non-GAAP basis, the effective tax rate was 24.2% in both 2013 and 2012.
Discontinued Operations During the second quarter of 2012, the Board of Directors authorized the sale of our Homecare business, which had previously been reported as part of the Merchant Gases operating segment.
In 2012, we sold the majority of our Homecare business to The Linde Group for sale proceeds of €590 million ($777) and recognized a gain of $207.4 ($150.3 after-tax, or $.70 per share).
In addition, an impairment charge of $33.5 ($29.5 after-tax, or $.14 per share) was recorded to write down the remaining business, which was primarily in the United Kingdom and Ireland, to its estimated net realizable value.
In 2013, we recorded an additional charge of $18.7 ($13.6 after-tax, or $.06 per share) to update our estimate of the net realizable value.
In 2014, a gain of $3.9 was recognized for the sale of the remaining Homecare business and settlement of contingencies on the sale to The Linde Group.
Refer to Note 3, Discontinued Operations, to the consolidated financial statements for additional details on this business.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 3.
ACQUISITIONS AND DISPOSITIONS (continued) the second quarter of 2010.
Included within the table above for the year ended December 31, 2010, is an after-tax loss of $5 million recorded in connection with the sale of these operations, consisting of a pre-tax gain of $29 million and income tax expense of $34 million.
Income tax expense reflected above for the year ended December 31, 2009 include net tax expenses associated with the change in repatriation assumption of the earnings in these operations.
Included in this net tax expense for the year ended December 31, 2009 is a tax benefit that was related to January 1, 2009 balances that were recorded in Other Comprehensive Income and for which the pre-tax losses were not recorded until 2010.
(2) In the second quarter of 2007, the Company announced its decision to exit the equity sales, trading and research operations of the Prudential Equity Group (“PEG”).
PEG’s operations were substantially wound down by June 30, 2007.
(3) Reflects the income or loss from discontinued real estate investments, primarily related to gains recognized on the sale of real estate properties.
(4) In the second quarter of 2009, the Company entered into an agreement to sell its mutual fund and banking operations in Mexico.
This transaction closed in the fourth quarter of 2009.
Included within the table above for the years ended December 31, 2010 and 2009 are $6 million and $8 million, respectively of pre-tax gains recorded in connection with the sale of this business.
(5) International securities operations include the European retail transaction-oriented stockbrokerage and related activities of Prudential Securities Group, Inc.  (6) The sale of the Company’s healthcare business to Aetna was completed in 1999.
The loss the Company previously recorded upon the disposal of its healthcare business was reduced in each of the years ended December 31, 2010 and 2008.
The reductions were primarily the result of favorable resolution of certain legal, regulatory and contractual matters.
Charges recorded in connection with the disposals of businesses include estimates that are subject to subsequent adjustment.4.
INVESTMENTS Fixed Maturities and Equity Securities The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) at December 31:
## Table 1 ##
(1) Includes credit tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types.
(2) Includes publicly traded agency pass-through securities and collateralized mortgage obligations.
(3) Represents the amount of other-than-temporary impairment losses in “Accumulated other comprehensive income (loss),” or “AOCI,” which were not included in earnings.
Amount excludes $606 million of net unrealized gains on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.
## Table 2 ##
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 21.
DERIVATIVE INSTRUMENTS (continued) The Company entered into a credit derivative that will require the Company to make certain payments in the event of deterioration in the value of the surplus notes issued by a subsidiary of Prudential Insurance.
The notional of this credit derivative is $500 million and the fair value as of December 31, 2010 and 2009 was a liability of $26 million and $22 million, respectively.
No collateral was pledged in either period.
The Company holds certain externally-managed investments in the European market which contain embedded derivatives whose fair value are primarily driven by changes in credit spreads.
These investments are medium term notes that are collateralized by investment portfolios primarily consisting of investment grade European fixed income securities, including corporate bonds and asset-backed securities, and derivatives, as well as varying degrees of leverage.
The notes have a stated coupon and provide a return based on the performance of the underlying portfolios and the level of leverage.
The Company invests in these notes to earn a coupon through maturity, consistent with its investment purpose for other debt securities.
The notes are accounted for under U. S.  GAAP as available for sale fixed maturity securities with bifurcated embedded derivatives (total return swaps).
Changes in the value of the fixed maturity securities are reported in Equity under the heading “Accumulated Other Comprehensive Income (Loss)” and changes in the market value of the embedded total return swaps are included in current period earnings in “Realized investment gains (losses), net.
” The Company’s maximum exposure to loss from these investments was $754 million and $723 million at December 31, 2010 and 2009, respectively.
In addition to writing credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio.
As of December 31, 2010 and 2009, the Company had $2.184 billion and $2.313 billion of outstanding notional amounts, respectively, reported at fair value as an asset of less than $1 million and an asset of $174 million, respectively.
Types of Derivative Instruments and Derivative Strategies used in a dealer or broker capacity Futures, forwards and options contracts, and swap agreements, are also used in a derivative dealer or broker capacity in the Company’s commodities operations to facilitate transactions of the Company’s clients, hedge proprietary trading activities and as a means of risk management.
These derivatives allow the Company to structure transactions to manage its exposure to commodities and securities prices, foreign exchange rates and interest rates.
Risk exposures are managed through diversification, by controlling position sizes and by entering into offsetting positions.
For example, the Company may manage the risk related to its precious metals inventory by entering into an offsetting position in exchange traded futures contracts.
The fair value of the Company’s derivative contracts used in a derivative dealer or broker capacity is reported on a net-by-counterparty basis in the Company’s Consolidated Statements of Financial Position when management believes a legal right of setoff exists under an enforceable netting agreement.
Realized and unrealized gains and losses from marking-to-market the derivatives used in proprietary positions are recognized on a trade date basis and reported in “Asset management fees and other income.
” The following table sets forth the income statement impact of derivatives used in a dealer or broker capacity.
## Table 3 ##
Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions.
The Company manages credit risk by entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties, and by obtaining collateral where appropriate.
Additionally, limits are set on single party credit exposures which are subject to periodic management review.
The credit exposure of the Company’s over-the-counter (OTC) derivative transactions is represented by the contracts with a positive fair value (market value) at the reporting date.
To reduce credit exposures, the Company seeks to (i) enter into OTC derivative transactions pursuant to master agreements that provide for a netting of payments and receipts with a single counterparty (ii) enter into agreements that allow the use of credit support annexes (CSAs), which are bilateral rating-sensitive agreements that require collateral postings at established threshold levels.
Likewise, the Company effects exchange-traded futures and options transactions through regulated exchanges and these transactions are settled on a daily basis, thereby reducing credit risk exposure in the event of non-performance by counterparties to such financial instruments.
due to the less favorable impact of equity markets on separate account fund performance, partially offset by both the impact of policyholder persistency which in 2010 returned to levels more consistent with expectations, as well as mortality experience.
Partially offsetting these items was a decrease in interest expense of $19 million primarily driven by a decline in interest rates on floating rate debt.
This floating rate debt is swapped to a fixed rate using interest rate swaps, as discussed above.2009 to 2008 Annual Comparison.
Benefits and expenses decreased $102 million, from $2,308 million in 2008 to $2,206 million in 2009.
Absent the impacts of the annual reviews conducted in both periods, as discussed above, benefits and expenses decreased $137 million, from $2,468 million in 2008 to $2,331 million in 2009.
On this basis, amortization of deferred policy acquisition costs decreased $203 million, primarily reflecting the impact of more favorable equity markets in the second half of 2009 on variable product separate account fund performance, which was partially offset by the impact of unfavorable equity markets in late 2008 and early 2009 on variable product policy persistency in early 2009.
Also on this basis, policyholders’ benefits, including interest credited to policyholders’ account balances, increased $85 million, reflecting increased policyholder reserves associated with growth in our in force block of term insurance and an increase in interest credited to policyholders’ account balances due to growth in universal life account balances from increased policyholder deposits, partially offset by improved mortality experience compared to 2008, relative to expected levels.
Sales Results The following table sets forth individual life insurance annualized new business premiums for the periods indicated.
In managing our individual life insurance business, we analyze annualized new business premiums, which do not correspond to revenues under U. S.  GAAP, because annualized new business premiums measure the current sales performance of the business, while revenues primarily reflect the renewal persistency and aging of in force policies written in prior years and net investment income, in addition to current sales.
Annualized new business premiums include 10% of first year excess premiums and deposits.
## Table 4 ##
(1) Annualized scheduled premiums plus 10% of excess (unscheduled) and single premiums from new sales.
Excludes corporate-owned life insurance.2010 to 2009 Annual Comparison.
Sales of new life insurance, measured as described above, decreased $99 million, from $359 million in 2009 to $260 million in 2010.
The decrease in sales is primarily due to a $66 million decrease in term life product sales and a $36 million decrease in sales of universal life products driven by lower third party distribution sales.
Sales from the third party distribution channel were $88 million lower than 2009 due to lower sales of universal life and term life products, both of which were impacted by price increases implemented in 2009.
Sales by Prudential Agents were $11 million lower than 2009 primarily due to lower sales of both universal life products and term life products.
The number of Prudential Agents increased from 2,447 at December 31, 2009 to 2,471 at December 31, 2010.2009 to 2008 Annual Comparison.
Sales of new life insurance, measured as described above, increased $28 million, from $331 million in 2008 to $359 million in 2009.
The increase in sales is primarily due to a $30 million increase in sales of universal life products and a $17 million increase in term life product sales primarily by the third party distribution channel, partially offset by a $19 million decrease in sales of variable life products primarily by Prudential Agents.
Sales from the third party distribution channel were $42 million higher than 2008 due to higher sales of universal life products reflecting the impact of product repricing in the second half of 2008 as well as higher sales of term life products reflecting market disruptions for some of our competitors.
In the second and fourth quarter of 2009 we increased universal life and term life prices.
Sales by Prudential Agents were $14 million lower than 2008 primarily due to lower sales of variable life products which were impacted by the unfavorable market conditions experienced in late 2008 and early 2009.
The number of Prudential Agents increased from 2,360 at December 31, 2008 to 2,447 at December 31, 2009.
Policy Surrender Experience The following table sets forth the individual life insurance business’ policy surrender experience for variable and universal life insurance, measured by cash value of surrenders, for the periods indicated.
These amounts do not correspond to expenses under U. S.  GAAP.
In managing this business, we analyze the cash value of surrenders because it is a measure of the degree to which policyholders are maintaining their in force business with us, a driver of future profitability.
Generally, our term life insurance products do not provide for cash surrender values.

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Interest incurred</td><td>$158.1</td><td>$167.6</td><td>$153.9</td></tr><tr><td>Less: Capitalized interest</td><td>33.0</td><td>25.8</td><td>30.2</td></tr><tr><td>Interest Expense</td><td>$125.1</td><td>$141.8</td><td>$123.7</td></tr></table>
<table><tr><td></td><td colspan="5">2010</td></tr><tr><td></td><td> Amortized Cost</td><td> Gross Unrealized Gains</td><td> Gross Unrealized Losses</td><td> Fair  Value</td><td>Other-than- temporary Impairments in AOCI-3</td></tr><tr><td></td><td colspan="5">(in millions)</td></tr><tr><td> Fixed maturities, available for sale</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Treasury securities and obligations of U.S. government authorities and agencies</td><td>$10,930</td><td>$663</td><td>$295</td><td>$11,298</td><td>$0</td></tr><tr><td>Obligations of U.S. states and their political subdivisions</td><td>2,254</td><td>43</td><td>66</td><td>2,231</td><td>0</td></tr><tr><td>Foreign government bonds</td><td>47,414</td><td>2,920</td><td>95</td><td>50,239</td><td>0</td></tr><tr><td>Corporate securities</td><td>93,703</td><td>6,503</td><td>1,989</td><td>98,217</td><td>-30</td></tr><tr><td>Asset-backed securities-1</td><td>12,459</td><td>214</td><td>1,682</td><td>10,991</td><td>-1,413</td></tr><tr><td>Commercial mortgage-backed securities</td><td>11,443</td><td>663</td><td>69</td><td>12,037</td><td>1</td></tr><tr><td>Residential mortgage-backed securities-2</td><td>9,551</td><td>491</td><td>72</td><td>9,970</td><td>-13</td></tr><tr><td>Total fixed maturities, available for sale</td><td>$187,754</td><td>$11,497</td><td>$4,268</td><td>$194,983</td><td>$-1,455</td></tr><tr><td> Equity securities, available for sale</td><td>$6,469</td><td>$1,393</td><td>$121</td><td>$7,741</td><td></td></tr></table>
<table><tr><td></td><td colspan="5"> 2010</td></tr><tr><td></td><td> Amortized Cost</td><td> Gross Unrealized Gains</td><td> Gross Unrealized Losses</td><td> Fair Value</td><td> Other-than- temporary Impairments in AOCI-3</td></tr><tr><td></td><td colspan="5"> (in millions)</td></tr><tr><td> Fixed maturities, held to maturity</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Foreign government bonds</td><td>$1,199</td><td>$84</td><td>$0</td><td>$1,283</td><td>$0</td></tr><tr><td>Corporate securities</td><td>1,059</td><td>12</td><td>67</td><td>1,004</td><td>0</td></tr><tr><td>Asset-backed securities-1</td><td>1,179</td><td>48</td><td>1</td><td>1,226</td><td>0</td></tr><tr><td>Commercial mortgage-backed securities</td><td>475</td><td>106</td><td>0</td><td>581</td><td>0</td></tr><tr><td>Residential mortgage-backed securities-2</td><td>1,314</td><td>69</td><td>0</td><td>1,383</td><td>0</td></tr><tr><td>Total fixed maturities, held to maturity</td><td>$5,226</td><td>$319</td><td>$68</td><td>$5,477</td><td>$0</td></tr></table>
<table><tr><td></td><td colspan="2">Year Ended December 31,</td></tr><tr><td></td><td>2010</td><td>2009</td></tr><tr><td></td><td colspan="2">(in millions)</td></tr><tr><td> Asset management fees and other income</td><td></td><td></td></tr><tr><td>Interest Rate</td><td>$-7</td><td>$-19</td></tr><tr><td>Commodity</td><td>58</td><td>54</td></tr><tr><td>Currency</td><td>48</td><td>52</td></tr><tr><td>Equity</td><td>9</td><td>3</td></tr><tr><td>Total asset management fees and other income</td><td>$108</td><td>$90</td></tr></table>
<table><tr><td></td><td colspan="3"> Year ended December 31,</td></tr><tr><td></td><td> 2010</td><td> 2009</td><td> 2008</td></tr><tr><td></td><td colspan="3"> (in millions)</td></tr><tr><td> Annualized New Business Premiums-1:</td><td></td><td></td><td></td></tr><tr><td>Variable Life</td><td>$23</td><td>$20</td><td>$39</td></tr><tr><td>Universal Life</td><td>77</td><td>113</td><td>83</td></tr><tr><td>Term Life</td><td>160</td><td>226</td><td>209</td></tr><tr><td>Total</td><td>$260</td><td>$359</td><td>$331</td></tr><tr><td> Annualized new business premiums by distribution channel-1:</td><td></td><td></td><td></td></tr><tr><td>Prudential Agents</td><td>$84</td><td>$95</td><td>$109</td></tr><tr><td>Third party</td><td>176</td><td>264</td><td>222</td></tr><tr><td>Total</td><td>$260</td><td>$359</td><td>$331</td></tr></table>

Question: Which fixed maturities, available for sale occupies the greatest proportion in total amount (in 2010 for fair value)?