ITEM 8 / NOTE 9.
REINSURANCE 9.
REINSURANCE In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses.
In addition, our general insurance subsidiaries assume reinsurance from other insurance companies.
We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased.
This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR.
Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss expenses, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid.
Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized.
We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk.
The allowance for doubtful accounts on reinsurance assets was $338 million and $365 million at December 31, 2012 and 2011, respectively.
The following table provides supplemental information for loss and benefit reserves, gross and net of ceded reinsurance:
## Table 0 ##
(a) In 2012 and 2011, the Net of Reinsurance amount reflects the cession under the June 17, 2011 transaction with National Indemnity Company (NICO) of $1.6 billion and $1.7 billion, respectively.
(b) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses.
Short-Duration Reinsurance Short-duration reinsurance is effected under reinsurance treaties and by negotiation on individual risks.
Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts.
Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received.
Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets.
Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums.
For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply.
If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense.
To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity.
Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit.
PROPERTY AND SPECIAL RISKS RESULTS
## Table 1 ##
Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:
## Table 2 ##
Business and Financial Highlights The net premiums written decrease in 2016 was driven by portfolio optimization and continued challenging market conditions, coupled with a decrease of assumed premiums related to the 50 percent quota share reinsurance agreement with United Guaranty.
This quota share reinsurance agreement contributed $146 million and $86 million to pre-tax operating income in 2016 and 2015, respectively.
The increase in net losses and loss ratio were driven by higher catastrophes and higher net adverse prior year loss reserve development, partially offset by lower severe losses.
The expense ratio increase was mainly driven by business mix shift and premium reduction, which more than offset expense reduction.
Lower net investment income was driven primarily by lower alternative investment returns due to weaker performance in equity markets compared to prior years.
Our sale of the Ascot business at the end of 2016 will also lead to a decline in net premiums written in 2017.
## Table 3 ##
Risk Monitoring and Limits The risk monitoring responsibilities, owned by the business units, include ensuring compliance with market risk limits and escalation and remediation of limit breaches.
Such activities must be reported to the ERM Market Risk team by the relevant business unit.
This monitoring approach is aligned with our overall risk limits framework.
To control our exposure to market risk, we rely on a three-tiered hierarchy of limits that the CMRO closely monitors and reports to our CRO, senior management and risk committees.
For further information on our three-tiered hierarchy of limits see Risk Appetite, Limits, Identification, and Measurement – Risk Limits herein.
LIQUIDITY RISK MANAGEMENT Liquidity risk is defined as the risk that our financial condition will be adversely affected by the inability or perceived inability to meet our short-term cash, collateral or other financial obligations.
Failure to appropriately manage liquidity risk can result in insolvency, reduced operating flexibility, increased costs, reputational harm and regulatory action.
AIG and its legal entities seek to maintain sufficient liquidity both during the normal course of business and under defined liquidity stress scenarios to ensure that sufficient cash will be available to meet the obligations as they come due.
AIG Parent liquidity risk tolerance levels are designed to allow us to meet our financial obligations for a minimum of six months under a liquidity stress scenario.
We maintain liquidity limits and minimum coverage ratios designed to ensure that funding needs are met under varying stress conditions.
If we project that we will breach these tolerances, we will assess and determine appropriate liquidity management actions.
However, the market conditions in effect at that time may not permit us to achieve an increase in liquidity sources or a reduction in liquidity requirements.
Risk Identification The following sources of liquidity and funding risks could impact our ability to meet short-term financial obligations as they come due.
## Table 4 ##
Governance Liquidity risk is overseen at the corporate level within ERM.
The CRO has responsibility for the oversight of the Liquidity Risk Management Framework and delegates the day-to-day implementation of this framework to the AIG Treasurer.
Our corporate treasury function manages liquidity risk, subject to ERM oversight and various control processes.
The Liquidity Risk Management Framework is guided by the liquidity risk tolerance as set forth in the Board-approved risk appetite statement.
The principal objective of this framework is to establish minimum liquidity requirements that protect our long-term viability and ability to fund our ongoing business, and to meet short-term financial obligations in a timely manner in both normal and stressed conditions.
$25.7 million in cash, including $4.2 million in taxes and 1,373,609 of HEP’s common units having a fair value of $53.5 million.
Roadrunner / Beeson Pipelines Transaction Also on December 1, 2009, HEP acquired our two newly constructed pipelines for $46.5 million, consisting of a 65- mile, 16-inch crude oil pipeline (the “Roadrunner Pipeline”) that connects our Navajo Refinery Lovington facility to a terminus of Centurion Pipeline L. P. ’s pipeline extending between west Texas and Cushing, Oklahoma and a 37- mile, 8-inch crude oil pipeline that connects HEP’s New Mexico crude oil gathering system to our Navajo Refinery Lovington facility (the “Beeson Pipeline”).
Tulsa West Loading Racks Transaction On August 1, 2009, HEP acquired from us, certain truck and rail loading/unloading facilities located at our Tulsa West facility for $17.5 million.
The racks load refined products and lube oils produced at the Tulsa West facility onto rail cars and/or tanker trucks.
Lovington-Artesia Pipeline Transaction On June 1, 2009, HEP acquired our newly constructed, 16-inch intermediate pipeline for $34.2 million that runs 65 miles from our Navajo Refinery’s crude oil distillation and vacuum facilities in Lovington, New Mexico to its petroleum refinery located in Artesia, New Mexico.
SLC Pipeline Joint Venture Interest On March 1, 2009, HEP acquired a 25% joint venture interest in the SLC Pipeline, a new 95-mile intrastate pipeline system jointly owned with Plains.
The SLC Pipeline commenced operations effective March 2009 and allows various refineries in the Salt Lake City area, including our Woods Cross Refinery, to ship crude oil into the Salt Lake City area from the Utah terminus of the Frontier Pipeline as well as crude oil flowing from Wyoming and Utah via Plains’ Rocky Mountain Pipeline.
HEP’s capitalized joint venture contribution was $25.5 million.
Rio Grande Pipeline Sale On December 1, 2009, HEP sold its 70% interest in Rio Grande Pipeline Company (“Rio Grande”) to a subsidiary of Enterprise Products Partners LP for $35 million.
Results of operations of Rio Grande are presented in discontinued operations.
In accounting for this sale, HEP recorded a gain of $14.5 million and a receivable of $2.2 million representing its final distribution from Rio Grande.
The recorded net asset balance of Rio Grande at December 1, 2009, was $22.7 million, consisting of cash of $3.1 million, $29.9 million in properties and equipment, net and $10.3 million in equity, representing BP, Plc’s 30% noncontrolling interest.
The following table provides income statement information related to HEP’s discontinued operations:

Tables referenced above, in order (Table 0 first):
<table><tr><td> </td><td colspan="2">2012</td><td colspan="2">2011</td></tr><tr><td>  At December 31, <i></i><i>(in millions)</i> </td><td>As Reported</td><td>Net of Reinsurance</td><td>As Reported</td><td>Net of Reinsurance</td></tr><tr><td>Liability for unpaid claims and claims adjustment expense<sup>(a)</sup></td><td>$-87,991</td><td>$-68,782</td><td>$-91,145</td><td>$-70,825</td></tr><tr><td>Future policy benefits for life and accident and health insurance contracts</td><td>-36,340</td><td>-35,408</td><td>-34,317</td><td>-33,312</td></tr><tr><td>Reserve for unearned premiums</td><td>-22,537</td><td>-18,934</td><td>-23,465</td><td>-19,553</td></tr><tr><td>Reinsurance assets<sup>(b)</sup></td><td>23,744</td><td>–</td><td>25,237</td><td>–</td></tr></table>
<table><tr><td> Years Ended December 31,</td><td></td><td></td><td></td><td colspan="2">Change</td></tr><tr><td><i>(in millions)</i></td><td>2016</td><td>2015</td><td>2014</td><td>2016 vs. 2015</td><td>2015 vs. 2014</td></tr><tr><td> Underwriting results:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net premiums written</td><td>$7,549</td><td>$8,046</td><td>$8,055</td><td>-6%</td><td>-%</td></tr><tr><td>Increase in unearned premiums</td><td>-19</td><td>-197</td><td>-250</td><td>90</td><td>21</td></tr><tr><td> Net premiums earned</td><td>7,530</td><td>7,849</td><td>7,805</td><td>-4</td><td>1</td></tr><tr><td>Losses and loss adjustment expenses incurred</td><td>5,694</td><td>4,714</td><td>4,948</td><td>21</td><td>-5</td></tr><tr><td>Acquisition expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Amortization of deferred policy acquisition costs</td><td>951</td><td>910</td><td>1,033</td><td>5</td><td>-12</td></tr><tr><td>Other acquisition expenses</td><td>493</td><td>542</td><td>307</td><td>-9</td><td>77</td></tr><tr><td> Total acquisition expenses</td><td>1,444</td><td>1,452</td><td>1,340</td><td>-1</td><td>8</td></tr><tr><td>General operating expenses</td><td>1,046</td><td>1,060</td><td>1,159</td><td>-1</td><td>-9</td></tr><tr><td> Underwriting income (loss)</td><td>-654</td><td>623</td><td>358</td><td>NM</td><td>74</td></tr><tr><td>Net investment income</td><td>568</td><td>603</td><td>845</td><td>-6</td><td>-29</td></tr><tr><td> Pre-tax operating income (loss)</td><td>$-86</td><td>$1,226</td><td>$1,203</td><td>NM%</td><td>2%</td></tr></table>
<table><tr><td> Loss ratio</td><td> 75.6</td><td>60.1</td><td>63.4</td><td>15.5</td><td>-3.3</td></tr><tr><td>Acquisition ratio</td><td> 19.2</td><td>18.5</td><td>17.2</td><td>0.7</td><td>1.3</td></tr><tr><td>General operating expense ratio</td><td> 13.9</td><td>13.5</td><td>14.8</td><td>0.4</td><td>-1.3</td></tr><tr><td> Expense ratio</td><td> 33.1</td><td>32.0</td><td>32.0</td><td>1.1</td><td>-</td></tr><tr><td> Combined ratio</td><td> 108.7</td><td>92.1</td><td>95.4</td><td>16.6</td><td>-3.3</td></tr><tr><td> Adjustments for accident year loss ratio, as adjusted</td><td> </td><td></td><td></td><td></td><td></td></tr><tr><td> and accident year combined ratio, as adjusted:</td><td> </td><td></td><td></td><td></td><td></td></tr><tr><td>Catastrophe losses and reinstatement premiums</td><td> -15.4</td><td>-7.3</td><td>-7.6</td><td>-8.1</td><td>0.3</td></tr><tr><td>Prior year development net of premium adjustments</td><td> -2.8</td><td>3.6</td><td>3.8</td><td>-6.4</td><td>-0.2</td></tr><tr><td> Accident year loss ratio, as adjusted</td><td> 57.4</td><td>56.4</td><td>59.6</td><td>1.0</td><td>-3.2</td></tr><tr><td> Accident year combined ratio, as adjusted</td><td> 90.5</td><td>88.4</td><td>91.6</td><td>2.1</td><td>-3.2</td></tr></table>
<table><tr><td></td><td>Period</td><td>Standard Deviation</td><td>Suggested 2018 Scenario</td><td>2018 Scenario as a Multiple of Standard Deviation</td><td>2018 Change/ Return</td><td>2018 as a Multiple of Standard Deviation</td><td>Original 2017 Scenario (based on Standard Deviation for 1997-2017 Period)</td></tr><tr><td>10-Year Treasury</td><td>1998-2018</td><td>0.01</td><td>0.01</td><td>1.06</td><td>-</td><td>0.34</td><td>0.01</td></tr><tr><td>S&P 500</td><td>1998-2018</td><td>0.17</td><td>0.20</td><td>1.17</td><td>-0.06</td><td>0.37</td><td>0.20</td></tr><tr><td>USD/JPY</td><td>1998-2018</td><td>0.11</td><td>0.10</td><td>0.92</td><td>0.03</td><td>0.25</td><td>0.10</td></tr></table>
<table><tr><td>Market/Monetization Risk</td><td>Assets may not be readily transformed into cash due to unfavorable market conditions. Market liquidity risk may limit our ability to sell assets at reasonable values to meet liquidity needs.</td></tr><tr><td>Cash Flow Mismatch Risk</td><td>Discrete and cumulative cash flow mismatches or gaps over short-term horizons under both expected and adverse business conditions may create future liquidity shortfalls.</td></tr><tr><td>Event Funding Risk</td><td>Additional funding may be required as the result of a trigger event. Event funding risk comes in many forms and may result from a downgrade in credit ratings, a market event, or some other event that creates a funding obligation or limits existing funding options.</td></tr><tr><td>Financing Risk</td><td>We may be unable to raise additional cash on a secured or unsecured basis due to unfavorable market conditions, AIG-specific issues, or any other issue that impedes access to additional funding.</td></tr></table>

Question: of the recorded net asset balance of rio grande at december 1 , 2009 , what percentage was cash?
Answer: 0.13656
Reasoning program: divide(3.1,22.7)