Net operating income excludes net realized investment gains or losses. Our strategy of diversification and integration has allowed us to continue posting strong earnings growth despite the increased market volatility experienced over the past several months. Both of our major business lines showed increases in 1997. Our annuity business benefited from higher policyholder balances and a higher investment spread.
Net income includes net realized investment gains or losses.
First, we wanted to deliver record results for our shareholders. Secondly, we wanted to invest in new initiatives that would position our Company for future growth. We are very pleased to report that we achieved both of these important goals. Liberty Financial launched a number of new initiatives in 1997. New fixed, indexed and variable annuity products were introduced by Keyport, giving the company one of the broadest and most competitive product lines in the annuity business.