## Table 0 ##
Other (income) expense primarily comprises our equity in net income of Huatai Insurance Company of China, Limited and Assured Guaranty Ltd.  (AGO), which is included in equity in net income of partially-owned companies.
Our relationship with AGO is limited to our equity investment, which had a carrying value of $397 million, or $20.73 per share, compared with a market value of $218 million, or $11.40 per share, at December 31, 2008.
We conduct no financial guaranty business directly or with AGO and we retain no financial guaranty exposures with AGO.
Our investment is not other-than-temporarily impaired as of December 31, 2008.
On November 14, 2008, Assured Guaranty Ltd.  (AGO) announced a definitive agreement to purchase Financial Security Assurance, Inc.  (FSA) from Dexia SA (Dexia) for a purchase price of $722 million.
This transaction will be funded by $361 million in cash and 44,657,000 common shares of AGO.
The acquisition is expected to close in March 2009.
AGO will finance the cash portion of the acquisition with proceeds from a public equity offering to WL Ross & Co LLC (WLR) at a per share price between a floor of $6.00 and a ceiling of $8.50.
EITF 08-6, Equity Method Investment Accounting Considerations, requires ACE account for AGO’s issuance of shares, and resulting dilutive effect, as if we had sold a proportionate share of our investment.
Assuming completion of the planned share issuances, ACE will no longer be deemed to exert significant influence over AGO and must account for our AGO investment as an available-for-sale equity security in accordance with FAS 115, Accounting for Certain Investments in Debt and Equity Securities (FAS 115).
FAS 115 requires that we then carry our AGO investment at fair value with any unrealized gains and losses reflected in other comprehensive income.
Assuming AGO had completed its share issuances associated with the FSA acquisition on December 31, 2008, the application of FAS 115 would have reduced our book value by approximately $179 million.
Other income and expense also includes certain federal excise 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 fixed income securities with an average credit quality of AA, as rated by the independent investment rating service Standard and Poor’s (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 3.6 years at December 31, 2008, compared with 3.5 years at December 31, 2007.
We estimate that a 100 basis point (bps) increase in interest rates would reduce our book value by approximately $1.3 billion at December 31, 2008.
For the year ended December 31, 2008, we experienced net unrealized losses of approximately $2.8 billion, primarily due to widening of credit spreads.
We have the ability and intent to hold these securities until they recover their cost.
“Other investments” principally comprises direct investments, investment funds, and limited partnerships.
Our exposure to sub-prime asset backed securities was $76 million at December 31, 2008, 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 continues to be predominantly invested in investment grade fixed income securities and is broadly diversified across geographies, sectors and issuers.
Our aggregate investment exposure to Lehman Brothers and American International Group has been and is a small percentage of our investment portfolio.
We hold no collateralized debt obligations or collateralized loan obligations in our investment portfolio.
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.
The following table reports the significant movements in our shareholders’ equity for the year ended December 31, 2010.
## Table 1 ##
Total shareholders’ equity increased $3.3 billion in 2010, primarily due to net income of $3.1 billion and the change in net unrealized appreciation on investments of $742 million.
Short-term Debt At December 31, 2010, in connection with the financing of the Rain and Hail acquisition, short-term debt includes reverse repurchase agreements totaling $1 billion.
In addition, $300 million in borrowings against ACE’s revolving credit facility were outstanding at December 31, 2010.
At December 31, 2009, short-term debt consisted of a five-year term loan which we repaid in December 2010.
Long-term Debt Our total long-term debt increased by $200 million during the year to $3.4 billion and is described in detail in Note 9 to the Consolidated Financial Statements, under Item 8.
In November 2010, ACE INA issued $700 million of 2.6 percent senior notes due November 2015.
These senior unsecured notes are guaranteed on a senior basis by the Company and they rank equally with all of the Company’s other senior obligations.
In April 2008, as part of the financing of the Combined Insurance acquisition, ACE INA entered into a $450 million floating interest rate syndicated term loan agreement due April 2013.
Simultaneously, the Company entered into a swap transaction that had the economic effect of fixing the interest rate for the term of the loan.
In December 2010, ACE repaid this loan and exited the swap.
In December 2008, ACE INA entered into a $66 million dual tranche floating interest rate term loan agreement.
The first tranche, a $50 million three-year term loan due December 2011, had a floating interest rate.
Simultaneously, the Company entered into a swap transaction that had the economic effect of fixing the interest rate for the term of the loan.
In December 2010, ACE repaid this loan and exited the swap.
The second tranche, a $16 million nine-month term loan, was due and repaid in September 2009.
Trust Preferred Securities The securities outstanding consist of $300 million of trust preferred securities due 2030, issued by a special purpose entity (a trust) that is wholly owned by us.
The sole assets of the special purpose entity are debt instruments issued by one or more of our subsidiaries.
The special purpose entity looks to payments on the debt instruments to make payments on the preferred securities.
We have guaranteed the payments on these debt instruments.
The trustees of the trust include one or more of our officers and at least one independent trustee, such as a trust company.
Our officers serving as trustees of the trust do not receive any compensation or other remuneration for their services in such capacity.
The full $309 million of outstanding trust preferred securities (calculated as $300 million as discussed above plus our equity share of the trust) is shown on our consolidated balance sheet as a liability.
Additional information with respect to the trust preferred securities is contained in Note 9 d) to the Consolidated Financial Statements, under Item 8.
Common Shares Our Common Shares had a par value of CHF 30.57 each at December 31, 2010.
At the Annual General Meeting held in May 2010, the Company’s shareholders approved a par value reduction in an aggregate Swiss franc amount, pursuant to a formula, equal to $1.32 per share, which we refer to as the Base Annual Dividend.
The Base Annual Dividend is payable in four installments, provided that each of the Swiss franc installments will be
Credit Facilities As our Bermuda subsidiaries are not admitted insurers and reinsurers in the U. S. , the terms of certain U. S.  insurance and reinsurance contracts require them to provide collateral, which can be in the form of LOCs.
In addition, ACE Global Markets is required to satisfy certain U. S.  regulatory trust fund requirements which can be met by the issuance of LOCs.
LOCs may also be used for general corporate purposes and to provide underwriting capacity as funds at Lloyd’s.
The following table shows our main credit facilities by credit line, usage, and expiry date at December 31, 2010.
## Table 2 ##
(1)Certain facilities are guaranteed by operating subsidiaries and/or ACE Limited.
(2)May also be used for LOCs.
(3)Supports ACE Global Markets underwriting capacity for Lloyd’s Syndicate 2488 (see discussion below).
In November 2010, we entered into four letter of credit facility agreements which collectively permit the issuance of up to $400 million of letters of credit.
We expect that most of the LOCs issued under the LOC agreements will be used to support the ongoing Funds at Lloyd’s requirements of Syndicate 2488, but LOCs may also be used for other general corporate purposes.
It is anticipated that our commercial facilities will be renewed on expiry but such renewals are subject to the availability of credit from banks utilized by ACE.
In the event that such credit support is insufficient, we could be required to provide alternative security to clients.
This could take the form of additional insurance trusts supported by our investment portfolio or funds withheld using our cash resources.
The value of letters of credit required is driven by, among other things, statutory liabilities reported by variable annuity guarantee reinsurance clients, loss development of existing reserves, the payment pattern of such reserves, the expansion of business, and loss experience of such business.
The facilities in the table above require that we maintain certain covenants, all of which have been met at December 31, 2010.
These covenants include: (i) Maintenance of a minimum consolidated net worth in an amount not less than the “Minimum Amount”.
For the purpose of this calculation, the Minimum Amount is an amount equal to the sum of the base amount (currently $13.8 billion) plus 25 percent of consolidated net income for each fiscal quarter, ending after the date on which the current base amount became effective, plus 50 percent of any increase in consolidated net worth during the same period, attributable to the issuance of Common and Preferred Shares.
The Minimum Amount is subject to an annual reset provision.
(ii)Maintenance of a maximum debt to total capitalization ratio of not greater than 0.35 to 1.
Under this covenant, debt does not include trust preferred securities or mezzanine equity, except where the ratio of the sum of trust preferred securities and mezzanine equity to total capitalization is greater than 15 percent.
In this circumstance, the amount greater than 15 percent would be included in the debt to total capitalization ratio.
At December 31, 2010, (a) the minimum consolidated net worth requirement under the covenant described in (i) above was $14.5 billion and our actual consolidated net worth as calculated under that covenant was $21.6 billion and (b) our ratio of debt to total capitalization was 0.167 to 1, which is below the maximum debt to total capitalization ratio of 0.35 to 1 as described in (ii) above.
Our failure to comply with the covenants under any credit facility would, subject to grace periods in the case of certain covenants, result in an event of default.
This could require us to repay any outstanding borrowings or to cash collateralize LOCs under such facility.
A failure by ACE Limited (or any of its subsidiaries) to pay an obligation due for an amount exceeding $50 million would result in an event of default under all of the facilities described above.
Ratings ACE Limited and its subsidiaries are assigned debt and financial strength (insurance) ratings from internationally recognized rating agencies, including S&P, A. M.  Best, Moody’s Investors Service, and Fitch.
The ratings issued on our companies by these agencies are announced publicly and are available directly from the agencies.
Our internet site, www.
acegroup.
com,
SCHEDULE IV ACE LIMITED AND SUBSIDIARIES SUPPLEMENTAL INFORMATION CONCERNING REINSURANCE Premiums Earned
## Table 3 ##
Global Reinsurance incurred net favorable prior period development of $159 million in 2008, representing 5.9 percent of the segment’s net unpaid loss and loss expense reserves at December 31, 2007.
Life Life experienced net favorable prior period development of $9 million in 2010.
The favorable development followed a detailed review during 2010 and was mainly for accident year 2009 in the short-tail A&H line of business.
Life experienced net favorable prior period development of $3 million in 2009 on short-tail A&H business.
The reserve release followed a detailed review during 2009 and reflected lower reported claim development than previously anticipated.
Life experienced no net prior period development in 2008.
Segment Operating Results – Years Ended December 31, 2010, 2009, and 2008 The discussions that follow include tables that show our segment operating results for the years ended December 31, 2010, 2009, and 2008.
We operate through the following business segments: Insurance – North American, Insurance – Overseas General, Global Reinsurance, and Life.
For more information on each of our segments refer to “Segment Information” under Item 1.
Insurance – North American The Insurance – North American segment comprises our operations in the U. S. , Canada, and Bermuda.
This segment includes the operations of ACE USA (including ACE Canada), ACE Westchester, ACE Bermuda, ACE Private Risk Services, and various run-off operations.
## Table 4 ##
Insurance – North American reported an increase in net premiums written in 2010, compared with 2009.
For 2010, the retail division reported growth in A&H and workers’ compensation, as well as increased premium retention in professional risk lines and favorable foreign exchange impact on Canadian business.
The retail division also benefited from one-time premium-related adjustments totaling $80 million in the fourth quarter of 2010.
These increases were partially offset by less new business and renewed policies across several lines of business, reflecting a decline in value of exposures, competitive market conditions, and our adherence to underwriting discipline.
These factors were especially evident in our national accounts, as well as aerospace and energy lines of business.
Growth in the retail division was also offset by a decline in assumed loss portfolio business.
The years ended December 31, 2010 and 2009, included net premiums written and earned of approximately $86 million and $221 million, respectively, related to assumed loss portfolio business.
Net premiums written in our wholesale

<table><tr><td>(in millions of U.S. dollars)</td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Equity in net income (loss) of partially-owned companies</td><td>$-52</td><td>$39</td><td>$-60</td></tr><tr><td>Minority interest expense</td><td>11</td><td>7</td><td>8</td></tr><tr><td>Federal excise and capital taxes</td><td>16</td><td>18</td><td>10</td></tr><tr><td>Other</td><td>-14</td><td>17</td><td>7</td></tr><tr><td>Other (income) expense</td><td>$-39</td><td>$81</td><td>$-35</td></tr></table>
<table><tr><td>(in millions of U.S. dollars)</td><td>2010</td></tr><tr><td>Balance, beginning of year</td><td>$19,667</td></tr><tr><td>Net income</td><td>3,108</td></tr><tr><td>Dividends declared on Common Shares</td><td>-443</td></tr><tr><td>Change in net unrealized appreciation (depreciation) on investments, net of tax</td><td>742</td></tr><tr><td>Repurchase of shares</td><td>-303</td></tr><tr><td>Other movements, net of tax</td><td>203</td></tr><tr><td>Balance, end of year</td><td>$22,974</td></tr></table>
<table><tr><td>(in millions of U.S. dollars)</td><td>CreditLine<sup>-1</sup></td><td>Usage</td><td>Expiry Date</td></tr><tr><td>Syndicated Letter of Credit Facility</td><td>$1,000</td><td>$574</td><td>Nov. 2012</td></tr><tr><td>Revolving Credit/LOC Facility<sup>-2</sup></td><td>500</td><td>370</td><td>Nov. 2012</td></tr><tr><td>Bilateral Letter of Credit Facility</td><td>500</td><td>500</td><td>Sept. 2014</td></tr><tr><td>Funds at Lloyds’s Capital Facilities<sup>-3</sup></td><td>400</td><td>340</td><td>Dec. 2015</td></tr><tr><td>Total</td><td>$2,400</td><td>$1,784</td><td></td></tr></table>
<table><tr><td>For the years ended December 31, 2010, 2009, and 2008(in millions of U.S. dollars, except for percentages)</td><td>DirectAmount</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>2010</td><td>$15,780</td><td>$5,792</td><td>$3,516</td><td>$13,504</td><td>26%</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></table>
<table><tr><td></td><td></td><td></td><td></td><td colspan="2">% Change</td></tr><tr><td>(in millions of U.S. dollars, except for percentages)</td><td>2010</td><td>2009</td><td>2008</td><td>2010 vs.2009</td><td>2009 vs.2008</td></tr><tr><td>Net premiums written</td><td>$5,797</td><td>$5,641</td><td>$5,636</td><td>3%</td><td>0%</td></tr><tr><td>Net premiums earned</td><td>5,651</td><td>5,684</td><td>5,679</td><td>-1%</td><td>0%</td></tr><tr><td>Losses and loss expenses</td><td>3,918</td><td>4,013</td><td>4,080</td><td>-2%</td><td>-2%</td></tr><tr><td>Policy acquisition costs</td><td>625</td><td>517</td><td>562</td><td>21%</td><td>-8%</td></tr><tr><td>Administrative expenses</td><td>561</td><td>572</td><td>536</td><td>-2%</td><td>7%</td></tr><tr><td>Underwriting income</td><td>547</td><td>582</td><td>501</td><td>-6%</td><td>16%</td></tr><tr><td>Net investment income</td><td>1,138</td><td>1,094</td><td>1,095</td><td>4%</td><td>0%</td></tr><tr><td>Net realized gains (losses)</td><td>417</td><td>10</td><td>-709</td><td>NM</td><td>NM</td></tr><tr><td>Interest expense</td><td>9</td><td>1</td><td>1</td><td>NM</td><td>0%</td></tr><tr><td>Other (income) expense</td><td>-22</td><td>36</td><td>7</td><td>NM</td><td>414%</td></tr><tr><td>Income tax expense</td><td>436</td><td>384</td><td>315</td><td>14%</td><td>22%</td></tr><tr><td>Net income</td><td>$1,679</td><td>$1,265</td><td>$564</td><td>33%</td><td>124%</td></tr><tr><td>Loss and loss expense ratio</td><td>69.3%</td><td>70.6%</td><td>71.8%</td><td></td><td></td></tr><tr><td>Policy acquisition cost ratio</td><td>11.1%</td><td>9.1%</td><td>9.9%</td><td></td><td></td></tr><tr><td>Administrative expense ratio</td><td>9.9%</td><td>10.1%</td><td>9.4%</td><td></td><td></td></tr><tr><td>Combined ratio</td><td>90.3%</td><td>89.8%</td><td>91.1%</td><td></td><td></td></tr></table>

Question: in 2010 what was the percent of the credit utilization
Answer: 0.74333