Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Investments – (Continued) Balance Sheets.
We mitigate the risk of non-performance by monitoring the creditworthiness of counterparties and diversifying derivatives to multiple counter-parties.
We occasionally require collateral from our derivative investment counterparties depending on the amount of the exposure and the credit rating of the counterparty.
We do not believe that any of the derivative instruments we use are unusually complex, nor do the use of these instruments, in our opinion, result in a higher degree of risk.
See “Results of Operations,” “Quantitative and Qualitative Disclosures about Market Risk” and Note 4 of the Notes to Consolidated Financial Statements included in Item 8 of this Report for additional information with respect to derivative instruments, including recognized gains and losses on these instruments.
Insurance Net Investment Income The significant components of CNA’s net investment income are presented in the following table:
## Table 0 ##
(a) The change in net unrealized gains (losses) on trading securities, included in net investment income, was $(7.0) and $2.0 million for the years ended December 31, 2005 and 2004.
Net investment income increased in 2005 as compared with 2004.
This increase was due to the reduced interest expense on funds withheld and other deposits and improved results across all other available-for-sale asset classes, especially short-term investments which reflect the improved period over period yields.
During 2005, CNA commuted several significant reinsurance contracts which contained interest crediting provisions and as a result, there will be no further interest expense on funds withheld on the commuted contracts in future periods.
The pretax interest expense on funds withheld related to these significant commuted contracts was $72.0 million, $132.0 million and $235.0 million in 2005, 2004 and 2003, and was reflected as a component of net investment income in our Consolidated Statements of Operations.
See the Reinsurance section of the MD&A for additional information about interest costs on funds withheld and other deposits.
The improvement in net investment income was partly offset by decreases in investment income from the trading portfolio.
Net investment income was slightly higher in 2004 as compared with 2003.
This increase was due primarily to the reduced interest expense on funds withheld and other deposits.
The interest costs on funds withheld and other deposits increased in 2003 as a result of additional cessions to the corporate aggregate reinsurance and other treaties due to adverse net prior year development.
This improvement in 2004 was partly offset by decreases in investment income across all other available-for-sale asset classes which is largely the result of the impacts of the group benefits and individual life sale transactions that are described in Note 14 of the Notes to Consolidated Financial Statements included under Item 8.
Also, the net investment income of the trading portfolio positively impacted results for 2004.
The bond segment of the investment portfolio yielded 4.9% in 2005, 4.6% in 2004 and 5.1% in 2003.
Notes to Consolidated Financial Statements Note 2.
Investments  (Continued) As of December 31, 2005 and 2004, the Company had committed approximately $191.0 million and $104.0 million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships.
The Company invests in multiple bank loan participations as part of its overall investment strategy and has committed to additional future purchases and sales.
The purchase and sale of these investments are recorded on the date that the legal agreements are finalized and cash settlement is made.
As of December 31, 2005 and 2004, the Company had commitments to purchase $135.3 million and $65.9 million and commitments to sell $26.3 million and $17.6 million of various bank loan participations.
When loan participation purchases are settled and recorded they may contain both funded and unfunded amounts.
An unfunded loan represents an obligation by the Company to provide additional amounts under the terms of the loan participation.
The funded portions are reflected on the Consolidated Balance Sheets, while any unfunded amounts are not recorded until a draw is made under the loan facility.
As of December 31, 2005 and December 31, 2004, the Company had obligations on unfunded bank loan participations in the amount of $21.0 million and $3.0 million.
Investments on Deposit CNA may from time to time invest in securities that may be restricted in whole or in part.
As of December 31, 2005 and 2004, CNA did not hold any significant positions in investments whose sale was restricted.
Cash and securities with carrying values of approximately $2.4 billion and $2.6 billion were deposited by CNA’s insurance subsidiaries under requirements of regulatory authorities as of December 31, 2005 and 2004.
The Company’s limited partnership investments contain withdrawal provisions that typically require advanced written notice of up to 90 days for withdrawals.
The carrying value of these investments, reported as a separate line item in the Consolidated Balance Sheets, is $1,769.0 million and $1,783.4 million as of December 31, 2005 and 2004.
Cash and securities with carrying values of approximately $13.0 million and $37.0 million were deposited with financial institutions as collateral for letters of credit and for margin accounts as of December 31, 2005 and 2004.
In addition, cash and securities were deposited in trusts with financial institutions to secure reinsurance obligations with various third parties.
The carrying values of these deposits were approximately $356.0 million and $333.0 million as of December 31, 2005 and 2004.
Note 3.
Fair Value of Financial Instruments
## Table 1 ##
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations – HighMount – (Continued) HighMount’s revenues, profitability and future growth depend substantially on natural gas and NGL prices and HighMount’s ability to increase its natural gas and NGL production.
In recent years, there has been significant price volatility in natural gas and NGL prices due to a variety of factors HighMount cannot control or predict.
These factors, which include weather conditions, political and economic events, and competition from other energy sources, impact supply and demand for natural gas, which determines the pricing.
In recent months, natural gas prices decreased significantly due largely to increased onshore natural gas production, plentiful levels of working gas in storage and reduced commercial demand.
The increase in the onshore natural gas production was due largely to increased production from “unconventional” sources of natural gas such as shale gas, coalbed methane, tight sandstones and methane hydrates, made possible in recent years by modern technology in creating extensive artificial fractures around well bores and advances in horizontal drilling technology.
Other key factors contributing to the softness of natural gas prices likely included a lower level of industrial demand for natural gas, as a result of the ongoing economic downturn, and relatively low crude oil prices.
Due to industry conditions, in February of 2009 HighMount elected to terminate contracts for five drilling rigs at its Permian Basin property in the Sonora, Texas area.
The estimated fee payable to the rig contractor for exercising this early termination right will be approximately $23 million.
In light of these developments, HighMount will reduce 2009 production volumes through decreased drilling activity.
In addition, the price HighMount realizes for its gas production is affected by HighMount’s hedging activities as well as locational differences in market prices.
HighMount’s decision to increase its natural gas production is dependent upon HighMount’s ability to realize attractive returns on its capital investment program.
Returns are affected by commodity prices, capital and operating costs.
HighMount’s operating income, which represents revenues less operating expenses, is primarily affected by revenue factors, but is also a function of varying levels of production expenses, production and ad valorem taxes, as well as depreciation, depletion and amortization (“DD&A”) expenses.
HighMount’s production expenses represent all costs incurred to operate and maintain wells and related equipment and facilities.
The principal components of HighMount’s production expenses are, among other things, direct and indirect costs of labor and benefits, repairs and maintenance, materials, supplies and fuel.
In general, during 2008 HighMount’s labor costs increased primarily due to higher salary levels and continued upward pressure on salaries and wages as a result of the increased competition for skilled workers.
In response to these market conditions, in 2008 HighMount implemented retention programs, including increases in compensation.
Production expenses during 2008 were also affected by increases in the cost of fuel, materials and supplies.
The higher cost environment discussed above continued during all of 2008.
During the fourth quarter of 2008 the price of natural gas declined significantly while operating expenses remained high.
This environment of low commodity prices and high operating expenses continued until December of 2008 when HighMount began to see evidence of decreasing operating expenses and drilling costs.
HighMount’s production and ad valorem taxes increase primarily when prices of natural gas and NGLs increase, but they are also affected by changes in production, as well as appreciated property values.
HighMount calculates depletion using the units-of-production method, which depletes the capitalized costs and future development costs associated with evaluated properties based on the ratio of production volumes for the current period to total remaining reserve volumes for the evaluated properties.
HighMount’s depletion expense is affected by its capital spending program and projected future development costs, as well as reserve changes resulting from drilling programs, well performance, and revisions due to changing commodity prices.
Presented below are production and sales statistics related to HighMount’s operations:
## Table 2 ##

<table><tr><td>Year Ended December 31</td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td>(In millions)</td><td></td><td></td><td></td></tr><tr><td>Fixed maturity securities</td><td>$1,607.5</td><td>$1,571.2</td><td>$1,651.1</td></tr><tr><td>Short-term investments</td><td>146.6</td><td>56.1</td><td>63.2</td></tr><tr><td>Limited partnerships</td><td>254.4</td><td>212.0</td><td>220.6</td></tr><tr><td>Equity securities</td><td>25.0</td><td>13.8</td><td>18.8</td></tr><tr><td>Income from trading portfolio (a)</td><td>46.7</td><td>110.2</td><td></td></tr><tr><td>Interest on funds withheld and other deposits</td><td>-165.8</td><td>-261.1</td><td>-334.6</td></tr><tr><td>Other</td><td>19.7</td><td>17.1</td><td>84.4</td></tr><tr><td>Total investment income</td><td>1,934.1</td><td>1,719.3</td><td>1,703.5</td></tr><tr><td>Investment expenses</td><td>-42.2</td><td>-39.8</td><td>-47.6</td></tr><tr><td>Net investment income</td><td>$1,891.9</td><td>$1,679.5</td><td>$1,655.9</td></tr></table>
<table><tr><td>December 31</td><td colspan="2">2005</td><td colspan="2">2004</td></tr><tr><td></td><td>CarryingAmount</td><td>EstimatedFair Value</td><td>CarryingAmount</td><td>EstimatedFair Value</td></tr><tr><td>(In millions)</td><td></td><td></td><td></td><td></td></tr><tr><td>Financial assets:</td><td></td><td></td><td></td><td></td></tr><tr><td>Other investments</td><td>$3.0</td><td>$3.0</td><td>$7.0</td><td>$8.0</td></tr><tr><td>Separate account business:</td><td></td><td></td><td></td><td></td></tr><tr><td>Fixed maturities securities</td><td>466.0</td><td>466.0</td><td>486.0</td><td>486.0</td></tr><tr><td>Equity securities</td><td>44.0</td><td>44.0</td><td>55.0</td><td>55.0</td></tr><tr><td>Financial liabilities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Premium deposits and annuity contracts</td><td>1,363.0</td><td>1,359.0</td><td>1,563.0</td><td>1,565.0</td></tr><tr><td>Short-term debt</td><td>598.2</td><td>603.0</td><td>1,010.1</td><td>1,010.1</td></tr><tr><td>Long-term debt</td><td>4,608.6</td><td>4,926.8</td><td>5,954.8</td><td>6,091.2</td></tr><tr><td>Financial guarantee contracts</td><td>7.0</td><td>7.0</td><td>45.0</td><td>45.0</td></tr><tr><td>Separate account business:</td><td></td><td></td><td></td><td></td></tr><tr><td>Variable separate accounts</td><td>53.0</td><td>53.0</td><td>64.0</td><td>64.0</td></tr><tr><td>Other</td><td>491.0</td><td>491.0</td><td>499.0</td><td>499.0</td></tr></table>
<table><tr><td>Year Ended December 31</td><td>2008</td><td>2007(a)</td></tr><tr><td>Gas production (Bcf)</td><td>78.9</td><td>34.0</td></tr><tr><td>Gas sales (Bcf)</td><td>72.5</td><td>31.4</td></tr><tr><td>Oil production/sales (Mbbls)</td><td>351.3</td><td>114.0</td></tr><tr><td>NGL production/sales (Mbbls)</td><td>3,507.4</td><td>1,512.9</td></tr><tr><td>Equivalent production (Bcfe)</td><td>102.0</td><td>43.8</td></tr><tr><td>Equivalent sales (Bcfe)</td><td>95.7</td><td>41.2</td></tr><tr><td>Average realized prices, without hedging results:</td><td></td><td></td></tr><tr><td>Gas (per Mcf)</td><td>$8.25</td><td>$5.95</td></tr><tr><td>NGL (per Bbl)</td><td>51.26</td><td>51.02</td></tr><tr><td>Oil (per Bbl)</td><td>95.26</td><td>83.37</td></tr><tr><td>Equivalent (per Mcfe)</td><td>8.48</td><td>6.65</td></tr></table>

Question: In which year is Carrying Amount of Fixed maturities securities greater than 470 million?
Answer: 2004