PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 7.
VALUATION OF BUSINESS ACQUIRED, GOODWILL AND OTHER INTANGIBLES (continued) The fair values of net mortgage servicing rights were $183 million and $176 million at December 31, 2007 and 2006, respectively.
Amortization expense for other intangibles was $46 million for the years ended December 31, 2007 and 2006 and $42 million for the year ended December 31, 2005.
Amortization expense for other intangibles is expected to be approximately $42 million in 2008, $46 million in 2009, $41 million in 2010, $37 million in 2011 and $33 million in 2012.8.
POLICYHOLDERS’ LIABILITIES Future Policy Benefits Future policy benefits at December 31, are as follows:
## Table 0 ##
Life insurance liabilities include reserves for death and endowment policy benefits, terminal dividends and certain health benefits.
Individual and group annuities and supplementary contracts liabilities include reserves for life contingent immediate annuities and life contingent group annuities.
Other contract liabilities include unearned revenue and certain other reserves for group and individual life and health products.
Future policy benefits for individual participating traditional life insurance are based on the net level premium method, calculated using the guaranteed mortality and nonforfeiture interest rates which range from 2.5% to 7.5%.
Participating insurance represented 17% and 20% of domestic individual life insurance in force at December 31, 2007 and 2006, respectively, and 87%, 89% and 90% of domestic individual life insurance premiums for 2007, 2006 and 2005, respectively.
Future policy benefits for individual non-participating traditional life insurance policies, group and individual long-term care policies and individual health insurance policies are generally equal to the aggregate of (1) the present value of future benefit payments and related expenses, less the present value of future net premiums, and (2) any premium deficiency reserves.
Assumptions as to mortality, morbidity and persistency are based on the Company’s experience, and in certain instances, industry experience, when the basis of the reserve is established.
Interest rates used in the determination of the present values range from 1.4% to 9.5%; less than 2% of the reserves are based on an interest rate in excess of 8%.
Future policy benefits for individual and group annuities and supplementary contracts are generally equal to the aggregate of (1) the present value of expected future payments, and (2) any premium deficiency reserves.
Assumptions as to mortality are based on the Company’s experience, and in certain instances, industry experience, when the basis of the reserve is established.
The interest rates used in the determination of the present values range from 1.1% to 14.8%; less than 2% of the reserves are based on an interest rate in excess of 8%.
Future policy benefits for other contract liabilities are generally equal to the present value of expected future payments based on the Company’s experience, except for example, certain group insurance coverages for which future policy benefits are equal to gross unearned premium reserves.
The interest rates used in the determination of the present values range from 2.5% to 6.6%.
Premium deficiency reserves are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses and to recover any unamortized policy acquisition costs.
Premium deficiency reserves have been recorded for the group single premium annuity business, which consists of limited-payment, long-duration traditional and non-participating annuities; structured settlements and single premium immediate annuities with life contingencies; and for certain individual health policies.
Liabilities of $2,464 million and $2,658 million as of December 31, 2007 and 2006, respectively, are included in “Future policy benefits” with respect to these deficiencies, of which $1,160 million and $1,259 million as of December 31, 2007 and 2006, respectively, relate to net unrealized gains on securities classified as available for sale.
The Company’s liability for future policy benefits is also inclusive of liabilities for guarantee benefits related to certain nontraditional long-duration life and annuity contracts, which are discussed more fully in Note 9.
2007 to 2006 Annual Comparison.
The total cash value of surrenders increased $8 million, from $744 million in 2006 to $752 million in 2007, reflecting a greater volume of surrenders of variable life insurance in 2007 compared to the prior year.
The level of surrenders as a percentage of mean future policy benefit reserves, policyholders’ account balances and separate account balances remained essentially flat.2006 to 2005 Annual Comparison.
The total cash value of surrenders increased $46 million, from $698 million in 2005 to $744 million in 2006, reflecting an increase in surrenders of variable corporate-owned life insurance in 2006 compared to the prior year.
The level of surrenders as a percentage of mean future policy benefit reserves, policyholders’ account balances and separate account balances remained flat.
Individual Annuities Operating Results The following table sets forth the Individual Annuities segment’s operating results for the periods indicated.
## Table 1 ##
(1) Revenues exclude Realized investment gains (losses), net, and related charges and adjustments.
The related charges represent payments related to the market value adjustment features of certain of our annuity products.
See “—Realized Investment Gains and General Account Investments—Realized Investment Gains.
” (2) Benefits and expenses exclude related charges which represent the unfavorable (favorable) impact of Realized investment gains (losses), net, on change in reserves and the amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired.
On June 1, 2006, we acquired the variable annuity business of The Allstate Corporation, or Allstate, through a reinsurance transaction for $635 million of total consideration, consisting primarily of a $628 million ceding commission.
Our initial investment in the business was approximately $600 million, consisting of the total consideration, offset by the related tax benefits and an additional contribution of $94 million to meet regulatory capital requirements.
See Note 3 to the Consolidated Financial Statements for further discussion of this acquisition.
Adjusted Operating Income 2007 to 2006 Annual Comparison.
Adjusted operating income increased $130 million, from $586 million in 2006 to $716 million in 2007.
Results for both periods include the impact of annual reviews of our estimate of total gross profits used as a basis for amortizing deferred policy acquisition and other costs and the reserve for the guaranteed minimum death and income benefit features of our variable annuity products.
Adjusted operating income for 2007 included a $30 million benefit from this annual review, reflecting market value increases in the underlying assets associated with our variable annuity products, and decreased cost of actual and expected death claims, partially offset by the impact of model refinements and higher expected lapse rates for the variable annuity business acquired from Allstate.
Adjusted operating income for 2006 included a $37 million benefit from the annual review, primarily reflecting improved net interest spread from increased investment yields.
Absent the effect of the annual reviews discussed above, adjusted operating income for 2007 increased $137 million from 2006.
Adjusted operating income from the variable annuity business acquired from Allstate, excluding the impact of the annual review discussed above, increased $27 million, reflecting a $81 million contribution for 2007, compared to $54 million for 2006, which reflects results only for the initial seven months of operations from the date of acquisition.
The remainder of the increase came primarily from higher fee income driven by higher average asset balances from market appreciation and positive net asset flows in our variable annuity account values.
Also contributing to the increase was a $17 million favorable variance in the mark-to-market of embedded derivatives and related hedge positions associated with our living benefit features, net of amortization of deferred policy acquisition and other costs.
Partially offsetting these items was an increase in amortization of deferred policy acquisition and other costs reflecting increased gross profits in 2007, and an increase in general and administrative expenses, net of capitalization, reflecting higher distribution and asset management costs associated with growth in variable annuity account values, as well as growth of the business.
In addition, interest expense increased driven by higher borrowings related to growth of the business, and net investment income, net of interest credited to policyholders’ account balances, decreased primarily as a result of declining annuity account values invested in our general account, reflecting our emphasis on sales of variable annuities together with asset allocation requirements associated with the living benefit features we offer in our variable annuity products.
Group Insurance Operating Results The following table sets forth the Group Insurance segment’s operating results for the periods indicated.
## Table 2 ##
(1) Revenues exclude Realized investment gains (losses), net, and related adjustments.
See “—Realized Investment Gains and General Account Investments—Realized Investment Gains.
” (2) Benefits and expenses exclude related charges which represent the unfavorable (favorable) impact of Realized investment gains (losses), net, on interest credited to policyholders’ account balances.
Adjusted Operating Income 2007 to 2006 Annual Comparison.
Adjusted operating income increased $50 million, from $229 million in 2006 to $279 million in 2007, primarily reflecting more favorable claims experience in our group life business and, to a lesser extent, growth in our group disability business.
The increase in adjusted operating income was partially offset by higher operating expenses in 2007 and a lower benefit in 2007 compared with 2006 from refinements in reserves as a result of annual reviews.
The increase in operating expenses is due to growth in the disability business and increased compensation and benefit costs in 2007, and was partially offset by higher costs incurred in 2006 related to legal and regulatory matters.
The annual reviews discussed above benefited 2007 $13 million, primarily associated with our long-term disability products, while benefiting 2006 $19 million, primarily associated with our long-term care products.2006 to 2005 Annual Comparison.
Adjusted operating income increased $5 million, from $224 million in 2005 to $229 million in 2006.
This increase primarily reflects more favorable claims experience in our group disability business and, to a lesser extent, a greater benefit from refinements in group disability reserves as a result of annual reviews.
These reserve refinements benefited 2006 $19 million, primarily associated with our long-term care products, while benefiting 2005 $8 million.
In addition, adjusted operating income in 2006 benefited from an increased contribution from investment results, primarily reflecting growth in invested assets and higher interest rates on shorter-term investments.
Less favorable claims experience in our group life business and higher expenses, including higher costs in 2006 related to legal and regulatory matters, largely offset these increases.
Revenues 2007 to 2006 Annual Comparison.
Revenues, as shown in the table above under “—Operating Results,” increased by $237 million, from $4.555 billion in 2006 to $4.792 billion in 2007.
Group life premiums increased by $37 million, from $2.795 billion in 2006 to $2.832 billion in 2007, primarily reflecting increased premiums on experience-rated group life business resulting from the increase in policyholder benefits on these contracts as discussed below.
Group life persistency remained strong, but deteriorated slightly from 95% in 2006 to 94% in 2007.
Group disability premiums, which include long-term care products, increased by $86 million from $761 million in 2006 to $847 million in 2007, primarily reflecting growth in business in force resulting from new sales and persistency which remained strong, but deteriorated from 90% in 2006 to 88% in 2007.
The declines in group life and group disability persistency are reflective of highly competitive pricing in the marketplace and the pricing discipline we apply in writing business.
Policy charges and fee income also increased by $59 million primarily reflecting growth of business in force.
In addition, net investment income increased $50 million primarily reflecting a larger base of invested assets due to business growth.2006 to 2005 Annual Comparison.
Revenues increased $355 million, from $4.200 billion in 2005 to $4.555 billion in 2006.
Group life premiums increased $249 million, from $2.546 billion in 2005 to $2.795 billion in 2006, primarily reflecting growth in business in force resulting from new sales and continued strong persistency, which remain unchanged at 95% for both years.
Group disability premiums, which include long-term care products, increased $37 million, from $724 million in 2005 to $761 million in 2006, primarily reflecting growth in business in force resulting from new sales and continued strong persistency, which improved from 85% in 2005 to 90% in 2006.
Net investment income also increased $30 million primarily reflecting a larger base of invested assets due to business growth, as well as higher interest rates on shorter-term investments.
Our loan portfolio strategy emphasizes diversification by property type and geographic location.
The following tables set forth the breakdown of the gross carrying values of our commercial loan portfolio by geographic region and property type as of the dates indicated.
## Table 3 ##
December 31, 2007
## Table 4 ##
Commercial Loans by Contractual Maturity Date The following tables set forth the breakdown of our commercial loan portfolio by contractual maturity as of December 31, 2007.
## Table 5 ##
Impairment Net unrealized losses on securities available for sale were as follows as of December 31:
## Table 6 ##
The above net unrealized loss amounts at December 31, 2009 and December 31, 2008 excluded the remaining net unrealized loss of $1.01 billion, or $635 million after-tax, and $2.27 billion, or $1.39 billion aftertax, respectively, related to reclassifications of securities available for sale to securities held to maturity.
These after-tax amounts are recorded in other comprehensive income.
The decline in the remaining after-tax unrealized loss amounts related to transferred securities resulted from amortization and from the recognition of losses from other-than-temporary impairment on certain of the securities.
We conduct periodic reviews of individual securities to assess whether other-than-temporary impairment exists.
To the extent that other-than-temporary impairment is identified, the impairment is broken into a credit component and a non-credit component.
The credit component is recognized in our consolidated statement of income, and the non-credit component is recognized in other comprehensive income to the extent that management does not intend to sell the security (see note 3 of the Notes to Consolidated Financial Statements included under Item 8).
The assessment of other-than-temporary impairment involves an evaluation of economic and securityspecific factors, which are more fully described in note 3.
Such factors are based upon estimates, derived by management, which contemplate current market conditions and security-specific performance.
To the extent that market conditions are worse than management’s expectations, other-than-temporary impairment could increase, in particular the credit component that would be recognized in our consolidated statement of income.
National housing prices, according to the Case-Shiller National HPI, have declined to date approximately 30% peak-to-current.
Management currently estimates that national housing prices will continue to decline and bottom out during the second half of 2010, consistent with a peak-to-trough housing price decline of approximately 37%.
As an indication of the sensitivity of our portfolio with respect to our more significant assumptions underlying our assessment of impairment, if we were to increase our default estimates to 110% of management’s current expectations with a corresponding slowing of prepayment speeds to 90% of management’s current expectations, credit-related other-than-temporary impairment could increase by approximately $120 million to $125 million, which impairment would be recorded in our consolidated statement of income.
Excluding the securities for which other-than-temporary impairment was recorded, management considers the aggregate decline in fair value of the remaining securities and the resulting net unrealized losses to be temporary and not the result of any material changes in the credit characteristics of the securities.
Additional information about our assessment of impairment is provided in note 3 of the Notes to Consolidated Financial Statements included under Item 8.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td> 2007</td><td> 2006</td></tr><tr><td></td><td colspan="2"> (in millions)</td></tr><tr><td>Life insurance</td><td>$88,017</td><td>$83,847</td></tr><tr><td>Individual and group annuities and supplementary contracts</td><td>17,463</td><td>17,639</td></tr><tr><td>Other contract liabilities</td><td>3,885</td><td>3,414</td></tr><tr><td>Subtotal future policy benefits excluding unpaid claims and claim adjustment expenses</td><td>109,365</td><td>104,900</td></tr><tr><td>Unpaid claims and claim adjustment expenses</td><td>2,103</td><td>2,051</td></tr><tr><td>Total future policy benefits</td><td>$111,468</td><td>$106,951</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td> Operating results:</td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$2,495</td><td>$2,101</td><td>$1,717</td></tr><tr><td>Benefits and expenses</td><td>1,779</td><td>1,515</td><td>1,212</td></tr><tr><td>Adjusted operating income</td><td>716</td><td>586</td><td>505</td></tr><tr><td>Realized investment gains (losses), net, and related adjustments(1)</td><td>-54</td><td>-72</td><td>3</td></tr><tr><td>Related charges-1(2)</td><td>10</td><td>25</td><td>-5</td></tr><tr><td>Income from continuing operations before income taxes and equity in earnings of operating joint ventures</td><td>$672</td><td>$539</td><td>$503</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td> Operating results:</td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$4,792</td><td>$4,555</td><td>$4,200</td></tr><tr><td>Benefits and expenses</td><td>4,513</td><td>4,326</td><td>3,976</td></tr><tr><td>Adjusted operating income</td><td>279</td><td>229</td><td>224</td></tr><tr><td>Realized investment gains (losses), net, and related adjustments(1)</td><td>-30</td><td>-16</td><td>71</td></tr><tr><td>Related charges-2</td><td>-2</td><td>-2</td><td>-2</td></tr><tr><td>Income from continuing operations before income taxes and equity in earnings of operating joint ventures</td><td>$247</td><td>$211</td><td>$293</td></tr></table>
<table><tr><td></td><td colspan="4">December 31, 2007</td><td colspan="4"> December 31, 2006</td></tr><tr><td></td><td colspan="2">Financial Services Businesses</td><td colspan="2">Closed Block Business</td><td colspan="2">Financial Services Businesses</td><td colspan="2"> Closed Block Business</td></tr><tr><td></td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td> % of Total</td></tr><tr><td></td><td colspan="8"> ($ in millions)</td></tr><tr><td> Commercial loans by region:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Regions:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Pacific</td><td>$5,244</td><td>26.6%</td><td>$2,666</td><td>33.4%</td><td>$4,463</td><td>25.7%</td><td>$2,629</td><td>35.8%</td></tr><tr><td>South Atlantic</td><td>4,421</td><td>22.5</td><td>1,605</td><td>20.1</td><td>3,423</td><td>19.7</td><td>1,364</td><td>18.6</td></tr><tr><td>Middle Atlantic</td><td>2,492</td><td>12.6</td><td>1,671</td><td>20.9</td><td>2,514</td><td>14.5</td><td>1,527</td><td>20.8</td></tr><tr><td>East North Central</td><td>1,654</td><td>8.4</td><td>398</td><td>5.0</td><td>1,464</td><td>8.4</td><td>416</td><td>5.7</td></tr><tr><td>West South Central</td><td>1,008</td><td>5.1</td><td>558</td><td>7.0</td><td>838</td><td>4.8</td><td>401</td><td>5.4</td></tr><tr><td>Mountain</td><td>968</td><td>4.9</td><td>391</td><td>4.9</td><td>868</td><td>5.0</td><td>452</td><td>6.1</td></tr><tr><td>New England</td><td>700</td><td>3.6</td><td>331</td><td>4.1</td><td>627</td><td>3.6</td><td>244</td><td>3.3</td></tr><tr><td>West North Central</td><td>622</td><td>3.2</td><td>208</td><td>2.6</td><td>523</td><td>3.0</td><td>207</td><td>2.8</td></tr><tr><td>East South Central</td><td>368</td><td>1.9</td><td>109</td><td>1.4</td><td>416</td><td>2.4</td><td>113</td><td>1.5</td></tr><tr><td>Subtotal—U.S.</td><td>17,477</td><td>88.8</td><td>7,937</td><td>99.4</td><td>15,136</td><td>87.1</td><td>7,353</td><td>100.0</td></tr><tr><td>Asia</td><td>1,462</td><td>7.4</td><td>—</td><td>—</td><td>1,576</td><td>9.1</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>754</td><td>3.8</td><td>45</td><td>0.6</td><td>657</td><td>3.8</td><td>—</td><td>—</td></tr><tr><td>Total Commercial Loans</td><td>$19,693</td><td>100.0%</td><td>$7,982</td><td>100.0%</td><td>$17,369</td><td>100.0%</td><td>$7,353</td><td>100.0%</td></tr></table>
<table><tr><td></td><td colspan="4">December 31, 2007</td><td colspan="4"> December 31, 2006</td></tr><tr><td></td><td colspan="2">Financial Services Businesses</td><td colspan="2">Closed Block Business</td><td colspan="2">Financial Services Businesses</td><td colspan="2"> Closed Block Business</td></tr><tr><td></td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td> % of Total</td></tr><tr><td></td><td colspan="8"> ($ in millions)</td></tr><tr><td> Commercial loans by property type:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Industrial buildings</td><td>$4,140</td><td>21.0%</td><td>$1,908</td><td>23.9%</td><td>$3,558</td><td>20.5%</td><td>$1,826</td><td>24.8%</td></tr><tr><td>Office buildings</td><td>3,677</td><td>18.7</td><td>1,581</td><td>19.8</td><td>3,151</td><td>18.2</td><td>1,398</td><td>19.0</td></tr><tr><td>Apartment complexes</td><td>3,419</td><td>17.4</td><td>1,554</td><td>19.5</td><td>3,055</td><td>17.6</td><td>1,498</td><td>20.4</td></tr><tr><td>Other</td><td>2,525</td><td>12.8</td><td>809</td><td>10.1</td><td>2,143</td><td>12.3</td><td>799</td><td>10.9</td></tr><tr><td>Retail stores</td><td>2,576</td><td>13.1</td><td>1,275</td><td>16.0</td><td>2,121</td><td>12.2</td><td>1,067</td><td>14.5</td></tr><tr><td>Agricultural properties</td><td>1,289</td><td>6.5</td><td>854</td><td>10.7</td><td>1,190</td><td>6.9</td><td>763</td><td>10.4</td></tr><tr><td>Residential properties</td><td>938</td><td>4.8</td><td>1</td><td>—</td><td>997</td><td>5.7</td><td>2</td><td>—</td></tr><tr><td>Subtotal of collateralized loans</td><td>18,564</td><td>94.3</td><td>7,982</td><td>100.0</td><td>16,215</td><td>93.4</td><td>7,353</td><td>100.0</td></tr><tr><td>Uncollateralized loans</td><td>1,129</td><td>5.7</td><td>—</td><td>—</td><td>1,154</td><td>6.6</td><td>—</td><td>—</td></tr><tr><td>Total Commercial Loans</td><td>$19,693</td><td>100.0%</td><td>$7,982</td><td>100.0%</td><td>$17,369</td><td>100.0%</td><td>$7,353</td><td>100.0%</td></tr></table>
<table><tr><td></td><td colspan="4"> December 31, 2007</td></tr><tr><td></td><td colspan="2">Financial Services Businesses</td><td colspan="2"> Closed Block Business</td></tr><tr><td></td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td> % of Total</td></tr><tr><td></td><td colspan="4"> ($ in millions)</td></tr><tr><td>Maturing in 2008</td><td>$940</td><td>4.8%</td><td>$157</td><td>2.0%</td></tr><tr><td>Maturing in 2009</td><td>2,153</td><td>10.9</td><td>495</td><td>6.2</td></tr><tr><td>Maturing in 2010</td><td>1,852</td><td>9.4</td><td>568</td><td>7.1</td></tr><tr><td>Maturing in 2011</td><td>1,969</td><td>10.0</td><td>621</td><td>7.8</td></tr><tr><td>Maturing in 2012</td><td>2,593</td><td>13.2</td><td>1,015</td><td>12.7</td></tr><tr><td>Maturing in 2013</td><td>1,661</td><td>8.4</td><td>545</td><td>6.8</td></tr><tr><td>Maturing in 2014</td><td>803</td><td>4.1</td><td>696</td><td>8.7</td></tr><tr><td>Maturing in 2015</td><td>1,324</td><td>6.7</td><td>713</td><td>8.9</td></tr><tr><td>Maturing in 2016</td><td>1,979</td><td>10.1</td><td>910</td><td>11.4</td></tr><tr><td>Maturing in 2017 and beyond</td><td>4,419</td><td>22.4</td><td>2,262</td><td>28.4</td></tr><tr><td>Total Commercial Loans</td><td>$19,693</td><td>100.0%</td><td>$7,982</td><td>100.0%</td></tr></table>
<table><tr><td>(In millions)</td><td>2009</td><td>2008</td></tr><tr><td>Fair value</td><td>$72,699</td><td>$54,163</td></tr><tr><td>Amortized cost</td><td>74,843</td><td>60,786</td></tr><tr><td>Net unrealized loss, pre-tax</td><td>$-2,144</td><td>$-6,623</td></tr><tr><td>Net unrealized loss, after-tax</td><td>$-1,316</td><td>$-4,057</td></tr></table>

Question: What was the average of Gross Carrying Value in 2008,2009 and 2010 for Gross Carrying Value? (in million)
Answer: 1648.33
Reasoning program: add(940,2153), add(#0,1852), divide(#1,const_3)