Table of Contents the Turks and Caicos will be denied and is investigating whether tax benefits claimed by the taxpayers they wish to identify are available.
IRS Notice 2004-65 modified Notice 2002-70 by removing these transactions from the transactions listed under that notice.
This summons did not raise any issue in the investigation relating to our tax liability and we have been notified that this matter is closed.
Gross Annualized Premium, Ceded Portion and Net Amount Retained The following table details our gross annualized premiums and other considerations, the portion that was ceded to reinsurers and the net amount that was retained for the year ended December 31, 2004.
## Table 0 ##
(1) Gross includes direct plus assumed premiums.
Claims Provisions/ Reserves In accordance with industry and accounting practices and applicable insurance laws and regulatory requirements, we establish reserves for payment of claims and claims expenses for claims that arise from our insurance policies.
We maintain reserves for future policy benefits and unpaid claims expenses.
Policy reserves represent the accumulation of the premiums received that are set aside to provide for future benefits and expenses on claims not yet incurred.
Claim reserves are established for future payments and associated expenses not yet due on claims that have already been incurred, whether reported to us or not.
Reserves, whether calculated under Accounting Principles Generally Accepted in the United States of America (“GAAP”) or Statutory Accounting Principles (“SAP”), do not represent an exact calculation of future policy benefits and expenses but are instead estimates made by us using actuarial and statistical procedures.
There can be no assurance that any such reserves would be sufficient to fund our future liabilities in all circumstances.
Future loss development could require reserves to be increased, which would adversely affect earnings in current and/or future periods.
Adjustments to reserve amounts may be required in the event of changes from the assumptions regarding future morbidity, the incidence of disability claims and the rate of recovery, including the effects thereon of inflation and other societal and economic factors, persistency, mortality, property claim frequency and severity and the interest rates used in calculating the reserve amounts.
The reserves reflected in our consolidated financial statements are calculated in accordance with GAAP.
See “Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates — Reserves.
” Reserves are regularly reviewed and updated, using the most current information.
Any adjustments are reflected in the current results of operations.
However, because the establishment of reserves is an inherently uncertain process, there can be no assurance that ultimate losses will not exceed existing reserves.
Reserves are reviewed at least quarterly by our business segment management.
Investments The investment portfolio is a critical part of our business activities and important to our overall profitability.
The fundamental investment philosophy is to manage assets, within our stated risk parameters, to generate consistent and high levels of investment income, before gains and losses, while providing a total return that is competitive over the long-term.
Our investment team is charged with: maintaining safety of principal and sufficient liquidity; managing credit, interest rate, prepayment and market risks; maintaining
ITEM 2.
PROPERTIES As of December 31, 2014, we owned or leased 129 major manufacturing sites and 15 major technical centers in 33 countries.
A manufacturing site may include multiple plants and may be wholly or partially owned or leased.
We also have many smaller manufacturing sites, sales offices, warehouses, engineering centers, joint ventures and other investments strategically located throughout the world.
The following table shows the regional distribution of our major manufacturing sites by the operating segment that uses such facilities:
## Table 1 ##
In addition to these manufacturing sites, we had 15 major technical centers: five in North America; five in Europe, Middle East and Africa; four in Asia Pacific; and one in South America.
Of our 129 major manufacturing sites and 15 major technical centers, which include facilities owned or leased by our consolidated subsidiaries, 83 are primarily owned and 61 are primarily leased.
We frequently review our real estate portfolio and develop footprint strategies to support our customers’ global plans, while at the same time supporting our technical needs and controlling operating expenses.
We believe our evolving portfolio will meet current and anticipated future needs.
ITEM 3.
LEGAL PROCEEDINGS We are from time to time subject to various actions, claims, suits, government investigations, and other proceedings incidental to our business, including those arising out of alleged defects, breach of contracts, competition and antitrust matters, product warranties, intellectual property matters, personal injury claims and employment-related matters.
It is our opinion that the outcome of such matters will not have a material adverse impact on our consolidated financial position, results of operations, or cash flows.
With respect to warranty matters, although we cannot ensure that the future costs of warranty claims by customers will not be material, we believe our established reserves are adequate to cover potential warranty settlements.
However, the final amounts required to resolve these matters could differ materially from our recorded estimates.
GM Ignition Switch Recall In the first quarter of 2014, GM, Delphi’s largest customer, initiated a product recall related to ignition switches.
Delphi has received requests for information from, and is cooperating with, various government agencies related to this ignition switch recall.
In addition, Delphi has been named as a co-defendant along with GM (and in certain cases other parties) in product liability and class action lawsuits related to this matter.
During the second quarter of 2014, all of the class action cases were transferred to the United States District Court for the Southern District of New York (the “District Court”) for coordinated pretrial proceedings.
Two consolidated amended class action complaints were filed in the District Court on October 14, 2014.
Delphi was not named as a defendant in either complaint.
Delphi believes the allegations contained in the product liability cases are without merit, and intends to vigorously defend against them.
Although no assurances can be made as to the ultimate outcome of these or any other future claims, Delphi does not believe a loss is probable and, accordingly, no reserve has been made as of December 31, 2014.
Unsecured Creditors Litigation Under the terms of the Fourth Amended and Restated Limited Liability Partnership Agreement of Delphi Automotive LLP (the “Fourth LLP Agreement”), if cumulative distributions to the members of Delphi Automotive LLP under certain provisions of the Fourth LLP Agreement exceed $7.2 billion, Delphi, as disbursing agent on behalf of DPHH, is required to pay to the holders of allowed general unsecured claims against Old Delphi, $32.50 for every $67.50 in excess of $7.2 billion distributed to the members, up to a maximum amount of $300 million.
In December 2014, a complaint was filed in the Bankruptcy Court alleging that the redemption by Delphi Automotive LLP of the membership interests of GM and the PBGC, and the repurchase of shares and payment of dividends by Delphi Automotive PLC, constituted distributions under the terms of the Fourth LLP Agreement approximating $7.2 billion.
Delphi considers cumulative distributions through December 31, 2014 to be substantially below the $7.2 billion threshold, and intends to vigorously contest the allegations set forth in the complaint.
Accordingly, no accrual for this matter has been recorded as of December 31, 2014.
Willis Towers Watson plc
## Table 2 ##
(i) Represents the difference between the contract amount and the cash flow in US dollars which would have been receivable had the foreign currency forward exchange contracts been entered into on December 31, 2014 at the forward exchange rates prevailing at that date.
Income earned within foreign subsidiaries outside of the United Kingdom is generally offset by expenses in the same local currency but the Company does have exposure to foreign exchange movements on the net income of these entities.
Legacy Willis Interest Rate Risk Our operations are financed principally by $1,906 million fixed rate senior notes issued by Legacy Willis maturing through 2043 (shown gross of debt issuance costs) and $240 million under a 7-year term loan facility.
Of the fixed rate senior notes, $300 million are due 2016, $394 million are due 2017, $187 million are due 2019, $500 million are due 2021, $250 million are due 2023, and $275 million are due 2043.
The 7-year term loan facility is repayable in quarterly installments and a final repayment of $186 million is due in the third quarter of 2018.
The Company has access to (i) $800 million under a revolving credit facility expiring July 23, 2018, (ii) $400 million under a revolving credit facility expiring April 28, 2016 and a repayment date of April 28, 2017, which will be available for regulatory capital purposes related to securities underwriting only, and (iii) $22 million under two further revolving credit facilities, of which $20 million is also only available for specific regulatory purposes.
As of December 31, 2015 $467 million (2014: $nil) Willis Towers Watson plc
(i) Represents the difference between the contract amount and the cash flow in US dollars which would have been receivable had the foreign currency forward exchange contracts been entered into on December 31, 2014 at the forward exchange rates prevailing at that date.
Income earned within foreign subsidiaries outside of the United Kingdom is generally offset by expenses in the same local currency but the Company does have exposure to foreign exchange movements on the net income of these entities.
Legacy Willis Interest Rate Risk Our operations are financed principally by $1,906 million fixed rate senior notes issued by Legacy Willis maturing through 2043 (shown gross of debt issuance costs) and $240 million under a 7-year term loan facility.
Of the fixed rate senior notes, $300 million are due 2016, $394 million are due 2017, $187 million are due 2019, $500 million are due 2021, $250 million are due 2023, and $275 million are due 2043.
The 7-year term loan facility is repayable in quarterly installments and a final repayment of $186 million is due in the third quarter of 2018.
The Company has access to (i) $800 million under a revolving credit facility expiring July 23, 2018, (ii) $400 million under a revolving credit facility expiring April 28, 2016 and a repayment date of April 28, 2017, which will be available for regulatory capital purposes related to securities underwriting only, and (iii) $22 million under two further revolving credit facilities, of which $20 million is also only available for specific regulatory purposes.
As of December 31, 2015 $467 million (2014: $nil) was drawn on these facilities.
Additionally, the Company has access to a 1-year term loan in two tranches of €550 million ($598 million) and $400 million to be used for the specific purposes of the acquisitions of Gras Savoye and Towers Watson, respectively.
As of December 31, 2015 the equivalent of $592 million was drawn on the €550 million tranche and $nil on the $400 million tranche.
The interest rate applicable to the bank borrowing is variable according to the period of each individual drawdown.
On December 31, 2015, Legacy Willis consolidated $79 million under a bank overdraft arrangement undertaken by Gras Savoye.
This borrowing had been entered into by Gras Savoye in the ordinary course of its insurance broking operations and was repaid on January 11, 2016.
We are also subject to market risk from exposure to changes in interest rates based on our investing activities where our primary interest rate risk arises from changes in short-term interest rates in both US dollars and pounds sterling.
As a result of our operating activities, we receive cash for premiums and claims which we deposit in short-term investments denominated in US dollars and other currencies.
We earn interest on these funds, which is included in our consolidated financial statements as investment income.
These funds are regulated in terms of access and the instruments in which they may be invested, most of which are short-term in maturity.
During the year ended December 31, 2015, the Company, in order to manage interest rate risk arising from these financial assets, entered into interest rate swaps to receive a fixed rate of interest and pay a variable rate of interest.
The use of interest rate contracts essentially converted groups of short-term variable rate investments to fixed rates.
These derivatives were designated as hedging instruments and were for a total notional amount of $300 million.
The table below provides information about our derivative instruments and other financial instruments that are sensitive to changes in interest rates.
For interest rate swaps, the table presents notional principal amounts and average interest rates analyzed by expected maturity dates.
Notional principal amounts are used to calculate the contractual payments to be exchanged under the contracts.
The duration of the interest rate swaps was three years, with re-fixing periods of three months.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="4"> For the Year Ended December 31, 2004</td></tr><tr><td></td><td colspan="3"></td><td> Percentage</td></tr><tr><td></td><td> Gross-1</td><td> Ceded</td><td> Net</td><td> Retained</td></tr><tr><td></td><td colspan="4"> (In millions)</td></tr><tr><td>Life insurance</td><td>$1,323</td><td>$550</td><td>$773</td><td>58%</td></tr><tr><td>Accident and health</td><td>4,844</td><td>827</td><td>4,017</td><td>83%</td></tr><tr><td>Property and casualty</td><td>2,590</td><td>897</td><td>1,693</td><td>65%</td></tr><tr><td>Total consolidated</td><td>$8,757</td><td>$2,274</td><td>$6,483</td><td></td></tr></table>
<table><tr><td></td><td>North America</td><td>Europe,Middle East& Africa</td><td>Asia Pacific</td><td>South America</td><td>Total</td></tr><tr><td>Electrical/Electronic Architecture</td><td>29</td><td>23</td><td>20</td><td>7</td><td>79</td></tr><tr><td>Powertrain Systems</td><td>4</td><td>10</td><td>6</td><td>2</td><td>22</td></tr><tr><td>Electronics and Safety</td><td>3</td><td>9</td><td>3</td><td>1</td><td>16</td></tr><tr><td>Thermal Systems</td><td>3</td><td>3</td><td>5</td><td>1</td><td>12</td></tr><tr><td>Total</td><td>39</td><td>45</td><td>34</td><td>11</td><td>129</td></tr></table>
<table><tr><td></td><td colspan="6">Settlement date before December 31,</td></tr><tr><td></td><td colspan="2">2015</td><td colspan="2">2016</td><td colspan="2">2017</td></tr><tr><td>December 31, 2014</td><td>Contract amount</td><td>Average contractual exchange rate</td><td>Contract amount</td><td>Average contractual exchange rate</td><td>Contract amount</td><td>Average contractual exchange rate</td></tr><tr><td></td><td>(millions)</td><td></td><td>(millions)</td><td></td><td>(millions)</td><td></td></tr><tr><td>Foreign currency sold</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>US dollars sold for sterling</td><td>$349</td><td>$1.60 = £1</td><td>$245</td><td>$1.61 = £1</td><td>$84</td><td>$1.58 = £1</td></tr><tr><td>Euro sold for US dollars</td><td>98</td><td>€1 = $1.36</td><td>62</td><td>€1 = $1.36</td><td>26</td><td>€1 = $1.32</td></tr><tr><td>Japanese yen sold for US dollars</td><td>28</td><td>¥100.84=$1</td><td>17</td><td>¥101.50 = $1</td><td>6</td><td>¥106.33 = $1</td></tr><tr><td>Total</td><td>$475</td><td></td><td>$324</td><td></td><td>$116</td><td></td></tr><tr><td>Fair Value<sup>(i)</sup></td><td>$4</td><td></td><td>$—</td><td></td><td>$1</td><td></td></tr></table>

Question: How many Contract amount exceed the average of Contract amount in 2015?
Answer: 1