Issuer Purchases of Equity Securities The following table provides information about our repurchases of common stock during the three-month period ended December 31, 2006
## Table 0 ##
(1) We repurchased a total of 2,226,300 shares of our common stock during the quarter ended December 31, 2006.
(2) In October 2002, our Board of Directors approved a share repurchase program for the repurchase of up to 23 million shares of our common stock.
Since the program’s inception, an additional 85 million shares have been authorized for repurchase under the program.
Management has discretion to determine the number and price of the shares to be repurchased, and the timing of any repurchases in compliance with applicable law and regulation, under the program.
As of December 31, 2006, we had repurchased a total of 73,669,912 shares under the program.
In 2006, we did not make any unregistered sales of equity securities.
Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) December 31, 2012 1.
Nature of Operations and Significant Accounting Policies — (continued) In addition, the existing DPAC, sales inducement costs or unearned revenue balance associated with the replaced contract is not written off, but instead is carried over to the new contract.
Long-Term Debt Long-term debt includes notes payable, nonrecourse mortgages and other debt with a maturity date greater than one year at the date of issuance.
Current maturities of long-term debt are classified as long-term debt in our statement of financial position.
Reinsurance We enter into reinsurance agreements with other companies in the normal course of business.
We may assume reinsurance from or cede reinsurance to other companies.
Assets and liabilities related to reinsurance ceded are reported on a gross basis.
Premiums and expenses are reported net of reinsurance ceded.
The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies.
We are contingently liable with respect to reinsurance ceded to other companies in the event the reinsurer is unable to meet the obligations it has assumed.
At December 31, 2012 and 2011, our largest exposures to a single third-party reinsurer in our individual life insurance business were $29.7 billion and $25.3 billion of life insurance in force, representing 18% and 16% of total net individual life insurance in force, respectively.
The reinsurance recoverable related to this single third party reinsurer recorded in our consolidated statements of financial position was $26.1 million and $22.6 million at December 31, 2012 and 2011, respectively.
The effects of reinsurance on premiums and other considerations and policy and contract benefits were as follows:
## Table 1 ##
Separate Accounts The separate account assets presented in the consolidated financial statements represent the fair value of funds that are separately administered by us for contracts with equity, real estate and fixed income investments.
The separate account contract owner, rather than us, bears the investment risk of these funds.
The separate account assets are legally segregated and are not subject to claims that arise out of any of our other business.
We receive fees for mortality, withdrawal and expense risks, as well as administrative, maintenance and investment advisory services that are included in the consolidated statements of operations.
Net deposits, net investment income and realized and unrealized capital gains and losses on the separate accounts are not reflected in the consolidated statements of operations.
At December 31, 2012 and December 31, 2011, the separate accounts include a separate account valued at $148.3 million and $146.5 million, respectively, which primarily includes shares of our stock that were allocated and issued to eligible participants of qualified employee benefit plans administered by us as part of the policy credits issued under our 2001 demutualization.
These shares are included in both basic and diluted earnings per share calculations.
In the consolidated statements of financial position, the separate account shares are recorded at fair value and are reported as separate account assets with a corresponding separate account liability to eligible participants of the qualified plan.
Changes in fair value of the separate account shares are reflected in both the separate account assets and separate account liabilities and do not impact our results of operations.
Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) December 31, 2012 9.
Debt — (continued) for each of the years ended December 31, 2012, 2011 and 2010 was approved by the Commissioner, and charged to expense.
Subject to Commissioner approval, the notes due March 1, 2044, may be redeemed at Principal Life’s election on or after March 1, 2014, in whole or in part at a redemption price of approximately 102.3% of par.
The approximate 2.3% premium is scheduled to gradually diminish over the following ten years.
These notes may be redeemed on or after March 1, 2024, at a redemption price of 100% of the principal amount plus interest accrued to the date of redemption.
The non-recourse mortgages, other mortgages and notes payable are primarily financings for real estate developments.
Outstanding principal balances as of December 31, 2012, ranged from $0.3 million to $9.2 million per development with interest rates generally ranging from 5.5% to 5.8%.
Outstanding principal balances as of December 31, 2011, ranged from $5.6 million to $8.7 million per development with interest rates generally ranging from 5.5% to 5.8%.
Outstanding debt is secured by the underlying real estate properties, which were reported as real estate on our consolidated statements of financial position with a carrying value of $54.2 million and $29.5 million as of December 31, 2012 and 2011, respectively.
Also included in non-recourse mortgages and notes payable is a long-term debt obligation we assumed with the purchase of WM Advisors, Inc.  As part of the purchase, we are bound by a class B share financing agreement previously entered into by WM Advisors, Inc.  and a third party.
Load mutual fund shares sold without a front end load are referred to as ‘‘B shares’’.
In exchange for paying the selling commission, we receive fees in the future to recover the up-front commission cost incurred.
Prior to our purchase, WM Advisors, Inc.  had entered into a purchase and sale agreement whereby the third party would purchase the rights to future cash flow streams in exchange for funding the sales commissions.
The fair value of these relinquished fees is reported as a long-term debt liability.
There will be no additional sales under this agreement following the effective date of the purchase.
Therefore, this liability will be extinguished in 2014, which equates to the remaining contractual term in which the fund can recover fees to cover the upfront commission costs.
The value of this obligation as of December 31, 2012 and 2011, was $1.2 million and $3.5 million, respectively.
At December 31, 2012, future annual maturities of the long-term debt were as follows (in millions):
## Table 2 ##
10.
Income Taxes Income Tax Expense Our income tax expense was as follows:
## Table 3 ##
and commercial mortgage loans.
The remainder is invested in other investments, residential mortgage loans, real estate and equity securities.
In addition, policy loans are included in our invested assets.
## Table 4 ##
Investment Results Net Investment Income The following table presents the yield and investment income, excluding net realized capital gains and losses, for our invested assets for the periods indicated.
We calculate annualized yields using a simple average of asset classes at the beginning and end of the reporting period.
The yields for fixed maturities and equity securities are calculated using amortized cost and cost, respectively.
All other yields are calculated using carrying amounts.
## Table 5 ##
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011 Net investment income decreased due to lower reinvestment yields on our invested assets and cash and lower inflation-based investment returns on average invested assets and cash as a result of lower inflation in Chile and the weakening of Latin American currencies against the U. S.  dollar.
These decreases were partially offset by an increase in average invested assets and cash.
Year Ended December 31, 2011 Compared to Year Ended December 31, 2010 Net investment income decreased due to lower yields and a decrease in average invested assets and cash primarily due to our decision to scale back our investment only business.
These decreases were partially offset by higher inflationbased investment returns on average invested assets, most notably fixed maturities and other investments, as a result of higher inflation in Chile and the strengthening of Latin American currencies against the U. S.  dollar.
Further offsetting the decline in investment income were gains on sales of development real estate properties.

<table><tr><td><i>Period</i></td><td><i>Total Number of</i><i>Shares Purchased</i></td><td><i>Average PricePaid PerShare</i></td><td><i>Total Number of SharesPurchased as Part ofPublicly AnnouncedProgram<sup>-1</sup></i></td><td><i>Maximum Number of</i><i>Shares That May Yet BePurchased Under theProgram<sup>-2</sup></i></td></tr><tr><td>October</td><td>447,700</td><td>$86.92</td><td>447,700</td><td>36,108,688</td></tr><tr><td>November</td><td>849,200</td><td>86.79</td><td>849,200</td><td>35,259,488</td></tr><tr><td>December</td><td>929,400</td><td>90.74</td><td>929,400</td><td>34,330,088</td></tr></table>
<table><tr><td></td><td colspan="3">For the year ended December 31,</td></tr><tr><td></td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Premiums and other considerations:</td><td></td><td></td><td></td></tr><tr><td>Direct</td><td>$3,554.1</td><td>$3,205.6</td><td>$3,859.8</td></tr><tr><td>Assumed</td><td>2.6</td><td>3.0</td><td>3.5</td></tr><tr><td>Ceded</td><td>-337.3</td><td>-317.6</td><td>-307.8</td></tr><tr><td>Net premiums and other considerations</td><td>$3,219.4</td><td>$2,891.0</td><td>$3,555.5</td></tr><tr><td>Benefits, claims and settlement expenses:</td><td></td><td></td><td></td></tr><tr><td>Direct</td><td>5,268.6</td><td>4,926.5</td><td>5,471.8</td></tr><tr><td>Assumed</td><td>33.9</td><td>34.0</td><td>36.9</td></tr><tr><td>Ceded</td><td>-178.6</td><td>-343.9</td><td>-304.4</td></tr><tr><td>Net benefits, claims and settlement expenses</td><td>$5,123.9</td><td>$4,616.6</td><td>$5,204.3</td></tr></table>
<table><tr><td>2013</td><td>$9.8</td></tr><tr><td>2014</td><td>6.1</td></tr><tr><td>2015</td><td>107.4</td></tr><tr><td>2016</td><td>—</td></tr><tr><td>2017</td><td>299.7</td></tr><tr><td>Thereafter</td><td>2,248.3</td></tr><tr><td>Total future maturities of the long-term debt</td><td>$2,671.3</td></tr></table>
<table><tr><td> </td><td colspan="3">For the year ended December 31,</td></tr><tr><td> </td><td>2012</td><td> 2011</td><td>2010</td></tr><tr><td> </td><td colspan="3">(in millions)</td></tr><tr><td>Current income taxes (benefits):</td><td></td><td></td><td></td></tr><tr><td>U.S. federal</td><td>$-137.0</td><td>$115.4</td><td>$74.1</td></tr><tr><td>State and foreign</td><td>40.4</td><td>51.4</td><td>34.2</td></tr><tr><td>Total current income taxes (benefits)</td><td>-96.6</td><td>166.8</td><td>108.3</td></tr><tr><td>Deferred income taxes (benefits)</td><td>231.3</td><td>37.4</td><td>-3.4</td></tr><tr><td>Total income taxes</td><td>$134.7</td><td>$204.2</td><td>$104.9</td></tr></table>
<table><tr><td> </td><td colspan="2">December 31, 2012</td><td colspan="2"> December 31, 2011</td></tr><tr><td> </td><td> Carrying amount</td><td>% of total</td><td> Carrying amount</td><td> % of total</td></tr><tr><td> </td><td colspan="4"><i>($ in millions)</i> </td></tr><tr><td>Fixed maturities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Public</td><td>$36,136.2</td><td>52%</td><td>$35,350.3</td><td>53%</td></tr><tr><td>Private</td><td>15,429.8</td><td>22</td><td>14,628.1</td><td>22</td></tr><tr><td>Equity securities</td><td>389.3</td><td>1</td><td>481.9</td><td>1</td></tr><tr><td>Mortgage loans:</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>10,183.3</td><td>15</td><td>9,396.6</td><td>14</td></tr><tr><td>Residential</td><td>1,336.4</td><td>2</td><td>1,330.6</td><td>2</td></tr><tr><td>Real estate held for sale</td><td>87.0</td><td>—</td><td>44.8</td><td>—</td></tr><tr><td>Real estate held for investment</td><td>1,093.3</td><td>2</td><td>1,048.1</td><td>2</td></tr><tr><td>Policy loans</td><td>864.9</td><td>1</td><td>885.1</td><td>1</td></tr><tr><td>Other investments</td><td>3,291.1</td><td>5</td><td>2,985.8</td><td>5</td></tr><tr><td>Total invested assets</td><td>68,811.3</td><td>100%</td><td>66,151.3</td><td>100%</td></tr><tr><td>Cash and cash equivalents</td><td>4,177.2</td><td></td><td>2,833.9</td><td></td></tr><tr><td>Total invested assets and cash</td><td>$72,988.5</td><td></td><td>$68,985.2</td><td></td></tr></table>
<table><tr><td></td><td colspan="6">For the year ended December 31,</td><td colspan="4">Increase (decrease)</td></tr><tr><td></td><td colspan="2">2012</td><td colspan="2">2011</td><td colspan="2">2010</td><td colspan="2">2012 vs. 2011</td><td colspan="2">2011 vs. 2010</td></tr><tr><td></td><td>Yield</td><td>Amount</td><td>Yield</td><td>Amount</td><td>Yield</td><td>Amount</td><td>Yield</td><td>Amount</td><td>Yield</td><td>Amount</td></tr><tr><td></td><td colspan="10">($ in millions)</td></tr><tr><td>Fixed maturities</td><td>5.1%</td><td>$2,485.0</td><td>5.5%</td><td>$2,660.9</td><td>5.7%</td><td>$2,794.7</td><td>-0.4%</td><td>$-175.9</td><td>-0.2%</td><td>$-133.8</td></tr><tr><td>Equity securities</td><td>3.5</td><td>15.2</td><td>3.1</td><td>14.9</td><td>3.0</td><td>14.2</td><td>0.4</td><td>0.3</td><td>0.1</td><td>0.7</td></tr><tr><td>Mortgage loans — commercial</td><td>5.7</td><td>559.6</td><td>5.9</td><td>558.7</td><td>6.0</td><td>589.1</td><td>-0.2</td><td>0.9</td><td>-0.1</td><td>-30.4</td></tr><tr><td>Mortgage loans — residential</td><td>5.7</td><td>76.2</td><td>6.4</td><td>90.5</td><td>5.2</td><td>84.2</td><td>-0.7</td><td>-14.3</td><td>1.2</td><td>6.3</td></tr><tr><td>Real estate</td><td>6.3</td><td>71.4</td><td>6.9</td><td>74.2</td><td>5.5</td><td>57.5</td><td>-0.6</td><td>-2.8</td><td>1.4</td><td>16.7</td></tr><tr><td>Policy loans</td><td>6.1</td><td>53.7</td><td>6.5</td><td>58.2</td><td>6.7</td><td>60.9</td><td>-0.4</td><td>-4.5</td><td>-0.2</td><td>-2.7</td></tr><tr><td>Cash and cash equivalents</td><td>0.3</td><td>9.6</td><td>0.4</td><td>8.5</td><td>0.4</td><td>7.2</td><td>-0.1</td><td>1.1</td><td>—</td><td>1.3</td></tr><tr><td>Other investments</td><td>2.1</td><td>65.4</td><td>-0.3</td><td>-7.6</td><td>-0.9</td><td>-22.5</td><td>2.4</td><td>73.0</td><td>0.6</td><td>14.9</td></tr><tr><td>Total before investment expenses</td><td>4.9</td><td>3,336.1</td><td>5.1</td><td>3,458.3</td><td>5.3</td><td>3,585.3</td><td>-0.2</td><td>-122.2</td><td>-0.2</td><td>-127.0</td></tr><tr><td>Investment expenses</td><td>-0.1</td><td>-81.2</td><td>-0.1</td><td>-83.0</td><td>-0.1</td><td>-89.5</td><td>—</td><td>1.8</td><td>—</td><td>6.5</td></tr><tr><td>Net investment income</td><td>4.8%</td><td>$3,254.9</td><td>5.0%</td><td>$3,375.3</td><td>5.2%</td><td>$3,495.8</td><td>-0.2%</td><td>$-120.4</td><td>-0.2%</td><td>$-120.5</td></tr></table>

Question: In the year with the most Mortgage loans — residential, what is the growth rate of Total before investment expenses? (in %)
Answer: -0.03542