The following table presents a reconciliation of beginning and ending reserve balances for the periods indicated on a GAAP basis: Reconciliation of Reserves for Losses and LAE
## Table 0 ##
Development of prior year incurred losses was $206.5 million unfavorable in 2007, $135.6 million unfavorable in 2006 and $26.4 million favorable in 2005.
Such losses were the result of the reserve development discussed above, as well as inherent uncertainty in establishing loss and LAE reserves.
Reserves for Asbestos and Environmental Losses and Loss Adjustment Expenses.
At December 31, 2007, 10.2% of the Company’s gross reserves reflected an estimate of the Company’s ultimate liability for A&E claims for which ultimate value cannot be estimated using traditional reserving techniques.
The Company’s A&E liabilities stem from Mt.
McKinley’s direct insurance business and Everest Re’s assumed reinsurance business.
There are significant uncertainties in estimating the amount of the Company’s potential losses from A&E claims.
See ITEM 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Asbestos and Environmental Exposures” and Note 3 of Notes to Consolidated Financial Statements.
Mt.
McKinley’s book of direct A&E exposed insurance is relatively small and homogenous.
It also arises from a limited period, effective 1978 to 1984.
The book is based principally on excess liability policies, thereby limiting exposure analysis to a limited number of policies and forms.
As a result of this focused structure, the Company believes that it is able to comprehensively analyze its exposures, allowing it to identify, analyze and actively monitor those claims which have unusual exposure, including policies in which it may be exposed to pay expenses in addition to policy limits or non-products asbestos claims.
The Company endeavors to be actively engaged with every insured account posing significant potential asbestos exposure to Mt.
McKinley.
Such engagement can take the form of pursuing a final settlement, negotiation, litigation, or the monitoring of claim activity under Settlement in Place (“SIP”) agreements.
SIP agreements generally condition an insurer’s payment upon the actual claim experience of the insured and may have annual payment caps or other measures to control the insurer’s payments.
The Company’s Mt.
McKinley operation is currently managing eight SIP agreements, three of which were executed prior to the acquisition of Mt.
McKinley in 2000.
The Company’s preference with respect to coverage settlements is to execute settlements that call for a fixed schedule of payments, because such settlements eliminate future uncertainty.
The Company has significantly enhanced its classification of insureds by exposure characteristics over time, as well as its analysis by insured for those it considers to be more exposed or active.
Those insureds identified as relatively less exposed or active are subject to less rigorous, but still active management, with an emphasis on monitoring those characteristics, which may indicate an increasing exposure or levels of activity.
The Company continually focuses on further enhancement of the detailed estimation processes used to evaluate potential exposure of policyholders, including those that may not have reported significant A&E losses.
Incurred Losses and LAE.
The following table presents the incurred losses and LAE for the International segment for the periods indicated.
## Table 1 ##
(Some amounts may not reconcile due to rounding. )
Incurred losses and LAE increased by 31.1% to $501.9 million for 2007 compared to $382.8 million for 2006.
The segment loss ratio increased by 9.2 points, principally due to an increase in the catastrophe loss ratio by 6.1 points.
In 2007, catastrophe losses included Tabasco, Mexico floods, $28.5 million; New South Wales storm, $21.1 million; Peruvian earthquake, $10.0 million; Hurricane Dean, $9.0 million and Jakarta flood, $6.8 million.
The 2007 accident year attritional loss ratio was 54.2%, about the same as 2006; however, the reduction in favorable reserve development, year over year, accounted for 3 points of the increase in the segment loss ratio in 2007 compared to 2006.
Incurred losses and LAE decreased 33.4% to $382.8 million for 2006 compared to $574.7 million for 2005.
The segment loss ratio decreased by 30.9 points, principally due to reduced current year catastrophe losses in Canada, Asia and International.
The catastrophe losses for 2005 included the impact from Hurricanes Katrina, Rita and Wilma.
Segment Expenses.
Commission and brokerage increased 10.5% to $199.5 million for 2007 from $180.5 million in 2006, which was in line with the increase in premiums.
Segment other underwriting expenses for 2007 increased to $18.6 million compared to $13.8 million for 2006, primarily due to the allocation of certain corporate charges to segments, which had been previously retained in corporate expenses.
Commission and brokerage increased 8.1% to $180.5 million for 2006 from $167.0 million in 2005.
Segment other underwriting expenses increased 9.5% to $13.8 million compared to $12.6 million for 2005.
The Company had net realized capital losses for 2015 of $184.1 million.
In 2015, the Company recorded $102.2 million of other-than-temporary impairments on fixed maturity securities, $45.6 million of losses due to fair value re-measurements and $36.3 million of net realized capital losses from sales of fixed maturity and equity securities.
In 2014, net realized capital gains were $84.0 million due to $121.7 million of gains from fair value re-measurements on fixed maturity and equity securities and $1.9 million of net realized capital gains from sales of fixed maturity and equity securities, partially offset by $39.5 million of other-thantemporary impairments on fixed maturity securities.
In 2013, net realized capital gains were $300.2 million due to $258.9 million of gains due to fair value re-measurements on fixed maturity and equity securities and $42.4 million of net realized capital gains from sales of fixed maturity and equity securities, partially offset by $1.1 million of other-than-temporary impairments on fixed maturity securities.
The Company’s cash and invested assets totaled $17.7 billion at December 31, 2015, which consisted of 87.4% fixed maturities and cash, of which 91.4% were investment grade; 8.2% equity securities and 4.4% other invested assets.
The average maturity of fixed maturity securities was 4.1 years at December 31, 2015, and their overall duration was 3.0 years.
As of December 31, 2015, the Company did not have any direct investments in commercial real estate or direct commercial mortgages or any material holdings of derivative investments (other than equity index put option contracts as discussed in ITEM 8, “Financial Statements and Supplementary Data” - Note 4 of Notes to Consolidated Financial Statements) or securities of issuers that are experiencing cash flow difficulty to an extent that the Company’s management believes could threaten the issuer’s ability to meet debt service payments, except where other-than-temporary impairments have been recognized.
The Company’s investment portfolio includes structured commercial mortgage-backed securities (“CMBS”) with a book value of $264.9 million and a market value of $266.3 million.
CMBS securities comprising more than 70% of the December 31, 2015 market value are rated AAA by Standard & Poor’s Financial Services LLC (“Standard & Poor’s”).
Furthermore, securities comprising more than 90% of the market value are rated investment grade by Standard & Poor’s.
The following table reflects investment results for the Company for the periods indicated:
## Table 2 ##
(1) Average of the beginning and ending carrying values of investments and cash, less net funds held, future policy benefit reserve, and non-interest bearing cash.
Bonds, common stock and redeemable and non-redeemable preferred stocks are carried at market value.
Common stock which are actively managed are carried at fair value.
(2) After investment expenses, excluding realized net capital gains (losses).
(3) Included in 2015, 2014, 2013, 2012 and 2011 are fair value re-measurements of ($45.6) million, $121.7 million, $258.9 million, $118.1 million and ($4.4) million, respectively.

<table><tr><td></td><td colspan="3">Years Ended December 31,</td></tr><tr><td>(Dollars in millions)</td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td>Gross reserves at beginning of period</td><td>$ 8,840.1</td><td>$ 9,126.7</td><td>$ 7,836.3</td></tr><tr><td>Incurred related to:</td><td></td><td></td><td></td></tr><tr><td>Current year</td><td>2,341.6</td><td>2,298.8</td><td>3,750.7</td></tr><tr><td>Prior years</td><td>206.5</td><td>135.6</td><td>-26.4</td></tr><tr><td>Total incurred losses</td><td>2,548.1</td><td>2,434.4</td><td>3,724.3</td></tr><tr><td>Paid related to:</td><td></td><td></td><td></td></tr><tr><td>Current year</td><td>452.2</td><td>522.7</td><td>664.9</td></tr><tr><td>Prior years</td><td>1,915.4</td><td>2,116.9</td><td>1,553.1</td></tr><tr><td>Total paid losses</td><td>2,367.6</td><td>2,639.6</td><td>2,218.0</td></tr><tr><td>Foreign exchange/translation adjustment</td><td>120.9</td><td>109.3</td><td>-100.3</td></tr><tr><td>Change in reinsurance receivables on unpaid losses and LAE</td><td>-100.9</td><td>-190.7</td><td>-115.6</td></tr><tr><td>Gross reserves at end of period</td><td>$ 9,040.6</td><td>$ 8,840.1</td><td>$ 9,126.7</td></tr></table>
<table><tr><td></td><td colspan="9">Years Ended December 31,</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td colspan="3">2007</td><td colspan="3">2006</td><td colspan="3">2005</td><td colspan="3">2007/2006 Variance</td><td colspan="3">2006/2005 Variance</td></tr><tr><td></td><td>Current</td><td>Prior</td><td>Total</td><td>Current</td><td>Prior</td><td>Total</td><td>Current</td><td>Prior</td><td>Total</td><td>Current</td><td>Prior</td><td>Total</td><td>Current</td><td>Prior</td><td>Total</td></tr><tr><td>(Dollars in millions)</td><td>Year</td><td>Years</td><td>Incurred</td><td>Year</td><td>Years</td><td>Incurred</td><td>Year</td><td>Years</td><td>Incurred</td><td>Year</td><td>Years</td><td>Incurred</td><td>Year</td><td>Years</td><td>Incurred</td></tr><tr><td>Attritional</td><td>$ 435.6</td><td>$ -10.9</td><td>$ 424.7</td><td>$ 389.3</td><td>$ -31.7</td><td>$ 357.5</td><td>$ 386.1</td><td>$ -66.1</td><td>$ 319.9</td><td>$ 46.3</td><td>$ 20.8</td><td>$ 67.2</td><td>$ 3.2</td><td>$ 34.4</td><td>$ 37.6</td></tr><tr><td>Catastrophes</td><td>75.4</td><td>1.8</td><td>77.2</td><td>6.7</td><td>18.6</td><td>25.3</td><td>237.8</td><td>16.9</td><td>254.7</td><td>68.7</td><td>-16.8</td><td>51.9</td><td>-231.1</td><td>1.7</td><td>-229.4</td></tr><tr><td>Total segment</td><td>$ 511.0</td><td>$ -9.1</td><td>$ 501.9</td><td>$ 396.0</td><td>$ -13.1</td><td>$ 382.8</td><td>$ 623.9</td><td>$ -49.2</td><td>$ 574.7</td><td>$ 115.0</td><td>$ 4.0</td><td>$ 119.1</td><td>$ -227.9</td><td>$ 36.1</td><td>$ -191.9</td></tr><tr><td>Loss ratio</td><td>63.6%</td><td>-1.1%</td><td>62.4%</td><td>55.0%</td><td>-1.8%</td><td>53.2%</td><td>91.3%</td><td>-7.2%</td><td>84.1%</td><td>8.6</td><td>0.7</td><td>9.2</td><td>-36.3</td><td>5.4</td><td>-30.9</td></tr><tr><td colspan="3">(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>
<table><tr><td></td><td>December 31,</td></tr><tr><td>(Dollars in millions)</td><td>Average Investments<sup>-1</sup></td><td>Pre-tax Investment Income<sup>-2</sup></td><td>Pre-tax Effective Yield</td><td>Pre-tax Realized Net Capital (Losses) Gains (3)</td><td>Pre-tax Unrealized Net Capital Gains (Losses)</td></tr><tr><td>2015</td><td>$17,430.8</td><td>$473.8</td><td>2.72%</td><td>$-184.1</td><td>$-194.0</td></tr><tr><td>2014</td><td>16,831.9</td><td>530.6</td><td>3.15%</td><td>84.0</td><td>20.3</td></tr><tr><td>2013</td><td>16,472.5</td><td>548.5</td><td>3.33%</td><td>300.2</td><td>-467.2</td></tr><tr><td>2012</td><td>16,220.9</td><td>600.2</td><td>3.70%</td><td>164.4</td><td>161.0</td></tr><tr><td>2011</td><td>15,680.9</td><td>620.0</td><td>3.95%</td><td>6.9</td><td>106.6</td></tr></table>

Question: what is the book to market ratio of the commercial mortgage-backed securities
Answer: 0.99474