Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations – CNA Financial – (Continued) Favorable net prior year development of $18 million was recorded in 2008, including $34 million of favorable claim and allocated claim adjustment expense reserve development and $16 million of unfavorable premium development.
Excluding the impact of the $90 million of unfavorable net prior year reserve development discussed above, which had no net impact on the 2008 results of operations, favorable net prior year development was $108 million.
Favorable net prior year development of $123 million, including $104 million of favorable claim and allocated claim adjustment expense reserve development and $19 million of favorable premium development, was recorded in 2007.
Further information on Standard Lines Net Prior Year Development for 2008 and 2007 is included in Note 9 of the Notes to Consolidated Financial Statements included under Item 8.
The following table summarizes the gross and net carried reserves for Standard Lines:
## Table 0 ##
2007 Compared with 2006 Net written premiums for Standard Lines decreased $331 million in 2007 as compared with 2006, primarily due to decreased production.
The decreased production reflected CNA’s disciplined participation in the competitive market.
Net earned premiums decreased $178 million in 2007 as compared with 2006, consistent with the decreased premiums written.
Standard Lines averaged rate decreases of 4.0% for 2007, as compared to flat rates for 2006 for the contracts that renewed during those periods.
Retention rates of 78.0% and 81.0% were achieved for those contracts that were available for renewal in each period.
Net income increased $3 million in 2007 as compared with 2006.
This increase was primarily attributable to improved net operating income, offset by decreased net realized investment results.
See the Investments section of this MD&A for further discussion of net investment income and net realized investment results.
Net operating income increased $131 million in 2007 as compared with 2006.
This increase was primarily driven by favorable net prior year development in 2007 as compared to unfavorable net prior year development in 2006 and increased net investment income.
These favorable impacts were partially offset by decreased current accident year underwriting results including increased catastrophe losses.
Catastrophe losses were $43 million after tax and minority interest in 2007, as compared to $32 million after tax and minority interest in 2006.
The combined ratio improved 4.5 points in 2007 as compared with 2006.
The loss ratio improved 5.1 points primarily due to favorable net prior year development in 2007 as compared to unfavorable net prior year development in 2006.
This favorable impact was partially offset by higher current accident year loss ratios primarily related to the decline in rates.
The dividend ratio improved 0.3 points in 2007 as compared with 2006 due to favorable dividend development in the workers’ compensation line of business.
The expense ratio increased 0.9 points in 2007 as compared with 2006, primarily reflecting the impact of declining earned premiums.
Notes to Consolidated Financial Statements Note 3.
Investments – (Continued)
## Table 1 ##
At December 31, 2008, the fair value of the available-for-sale fixed maturities was $28,886 million, representing 75.1% of the total investment portfolio.
The gross unrealized loss for any single issuer was less than 0.6% of the carrying value of CNA’s total fixed maturity portfolio.
The total fixed maturity portfolio gross unrealized losses included 2,335 securities which were, in aggregate, 22.0% below amortized cost.
The gross unrealized losses on equity securities were $340 million, including 171 securities which were, in aggregate, 38.0% below cost.
The classification between investment grade and non-investment grade is based on a ratings methodology that takes into account ratings from the three major providers, Standard and Poor’s, Moody’s Investor Services and Fitch Ratings in that order of preference.
If a security is not rated by any of the three, the Company formulates an internal rating.
Given the current facts and circumstances, the Impairment Committee has determined that the securities presented in the above unrealized gain/loss tables were temporarily impaired when evaluated at December 31, 2008 and 2007, and therefore no related realized losses were recorded.
A discussion of some of the factors reviewed in making that determination as of December 31, 2008 is presented below.
Decreases in the fair value of fixed maturity securities during 2008 were primarily driven by a sharp increase in risk premium related to credit, structure, liquidity, and other risks as opposed to changes in interest rates.
The decline in fair values was aggravated by a general deterioration in liquidity with widening bid/ask spreads and significant portfolio liquidations of assets as the financial system sought to reduce leverage.
These declines in fair value were most severe for longer duration assets as credit spread curves steepened dramatically.
Declines were particularly severe for structured securities, financial sector obligations and the obligations of non-investment grade credits.
Asset-Backed Securities The unrealized losses on the Company’s investments in asset-backed securities were caused by a combination of factors related to the market disruption caused by credit concerns that began with the sub-prime issue, but then also extended into other asset-backed securities in the Company’s portfolio related to reasons as discussed above.
MASCO CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) T.  OTHER COMMITMENTS AND CONTINGENCIES Litigation.
We are subject to claims, charges, litigation and other proceedings in the ordinary course of our business, including those arising from or related to contractual matters, intellectual property, personal injury, environmental matters, product liability, construction defect, insurance coverage, personnel and employment disputes and other matters, including class actions.
We believe we have adequate defenses in these matters and that the outcome of these matters is not likely to have a material adverse effect on us.
However, there is no assurance that we will prevail in these matters, and we could in the future incur judgments, enter into settlements of claims or revise our expectations regarding the outcome of these matters, which could materially impact our results of operations.
In July 2012, the Company reached a settlement agreement related to the Columbus Drywall litigation.
The Company and its insulation installation companies named in the suit agreed to pay $75 million in return for dismissal with prejudice and full release of all claims.
The Company and its insulation installation companies continue to deny that the challenged conduct was unlawful and admit no wrongdoing as part of the settlement.
A settlement was reached to eliminate the considerable expense and uncertainty of this lawsuit.
The Company recorded the settlement expense in the second quarter of 2012 and the amount was paid in the fourth quarter of 2012.
Warranty.
At the time of sale, the Company accrues a warranty liability for the estimated cost to provide products, parts or services to repair or replace products in satisfaction of warranty obligations.
During the third quarter of 2012, a business in the Other Specialty Products segment recorded a $12 million increase in expected future warranty claims resulting from the completion of an analysis prepared by the Company based upon its periodic assessment of recent business unit specific operating trends including, among others, home ownership demographics, sales volumes, manufacturing quality, an analysis of recent warranty claim activity and an estimate of current costs to service anticipated claims.
Changes in the Company’s warranty liability were as follows, in millions:
## Table 2 ##
Investments.
With respect to the Company’s investments in private equity funds, the Company had, at December 31, 2012, commitments to contribute up to $19 million of additional capital to such funds representing the Company’s aggregate capital commitment to such funds less capital contributions made to date.
The Company is contractually obligated to make additional capital contributions to certain of its private equity funds upon receipt of a capital call from the private equity fund.
The Company has no control over when or if the capital calls will occur.
Capital calls are funded in cash and generally result in an increase in the carrying value of the Company’s investment in the private equity fund when paid.

<table><tr><td>December 31</td><td>2008</td><td>2007</td></tr><tr><td>(In millions)</td><td></td><td></td></tr><tr><td>Gross Case Reserves</td><td>$6,158</td><td>$5,988</td></tr><tr><td>Gross IBNR Reserves</td><td>5,890</td><td>6,060</td></tr><tr><td>Total Gross Carried Claim and Claim Adjustment Expense Reserves</td><td>$12,048</td><td>$12,048</td></tr><tr><td>Net Case Reserves</td><td>$4,995</td><td>$4,750</td></tr><tr><td>Net IBNR Reserves</td><td>4,875</td><td>5,170</td></tr><tr><td>Total Net Carried Claim and Claim Adjustment Expense Reserves</td><td>$9,870</td><td>$9,920</td></tr></table>
<table><tr><td></td><td colspan="2">2008</td><td colspan="2">2007</td></tr><tr><td>December 31</td><td>Estimated Fair Value</td><td>Gross Unrealized Loss</td><td>Estimated Fair Value</td><td>Gross Unrealized Loss</td></tr><tr><td>(In millions)</td><td></td><td></td><td></td><td></td></tr><tr><td>Redeemable and non-redeemable preferred stocks:</td><td></td><td></td><td></td><td></td></tr><tr><td>0-6 months</td><td>$39</td><td>$26</td><td>$893</td><td>$143</td></tr><tr><td>7-11 months</td><td>43</td><td>12</td><td>104</td><td>28</td></tr><tr><td>12-24 months</td><td>497</td><td>324</td><td></td><td></td></tr><tr><td>Total redeemable and non-redeemable preferred stocks</td><td></td><td></td><td></td><td></td></tr><tr><td>available-for-sale</td><td>579</td><td>362</td><td>997</td><td>171</td></tr><tr><td>Available-for-sale equity securities:</td><td></td><td></td><td></td><td></td></tr><tr><td>0-6 months</td><td>5</td><td>1</td><td>34</td><td>1</td></tr><tr><td>7-11 months</td><td></td><td></td><td>1</td><td></td></tr><tr><td>12-24 months</td><td>9</td><td>3</td><td></td><td></td></tr><tr><td>Greater than 24 months</td><td>3</td><td></td><td>3</td><td></td></tr><tr><td>Total equity securities available-for-sale</td><td>17</td><td>4</td><td>38</td><td>1</td></tr><tr><td>Total fixed maturity and equity securities</td><td></td><td></td><td></td><td></td></tr><tr><td>available-for-sale</td><td>$21,148</td><td>$6,067</td><td>$13,636</td><td>$875</td></tr></table>
<table><tr><td></td><td>2012</td><td>2011</td></tr><tr><td>Balance at January 1</td><td>$102</td><td>$107</td></tr><tr><td>Accruals for warranties issued during the year</td><td>42</td><td>28</td></tr><tr><td>Accruals related to pre-existing warranties</td><td>16</td><td>8</td></tr><tr><td>Settlements made (in cash or kind) during the year</td><td>-38</td><td>-38</td></tr><tr><td>Other, net (including currency translation)</td><td>-4</td><td>-3</td></tr><tr><td>Balance at December 31</td><td>$118</td><td>$102</td></tr></table>

Question: What will 7-11 months of Redeemable and non-redeemable preferred stocks for Estimated Fair Value be like in 2009 if it develops with the same increasing rate as current? (in million)
Answer: 17.77885