Consolidated assumed insurance in force increased from $1.5 trillion to $1.7 trillion for the year ended December 31, 2005. Assumed new business production for 2005 totaled $354.1 billion compared to $279.1 billion in 2004 and $544.4 billion in 2003. The transaction with Allianz Life contributed $287.2 billion to the new business production in 2003.
Income before income taxes for the U.S. operations totaled $269.2 million in 2005, compared to $289.9 million for 2004 and $216.1 million in 2003. The decrease in income from 2004 occurred in the Traditional sub-segment and can be attributed to the unfavorable mortality experience in the first two quarters of 2005. The increase in income in 2004 over 2003 can also be attributed to the Traditional sub-segment, mainly the Allianz Life acquisition which contributed a full year of income in 2004.
Interest credited relates to amounts credited on the Company's cash value products in this segment, which have a significant mortality component. This amount fluctuates with the changes in deposit levels, cash surrender values and investment performance. Income before income taxes is affected by the spread between the investment income and the interest credited on the underlying products. Interest credited expense in 2005 totaled $54.0 million compared to $50.3 million at year-end 2004. This increase relates primarily to one treaty in which the credited loan rate increased from 5.1% in 2004 to 5.7% in 2005.
The Company believes that the analysis of each security whose price has been below market for greater than twelve months indicated that the financial strength, liquidity, leverage, future outlook and/or recent management actions support the view that the security was not other-than-temporarily impaired as of December 31, 2005. The unrealized losses on fixed maturity securities did not exceed 17.0% on an individual security basis and are primarily a result of rising interest rates, changes in credit spreads and the long-dated maturities of the securities. One equity security had an unrealized loss of approximately 37.6% or $0.5 million at December 31, 2005, as a result of a reduction in the dividend rate.
below amortized cost, compliance with covenants, general market conditions and industry sector, intent and ability to hold securities, and various other subjective factors. Based on management's judgment, securities with an other-than-temporary impairment in value are written down to management's estimate of fair value. Included in net realized losses are other-than-temporary write-downs of fixed maturity securities of approximately $0.5 million, $8.5 million, and $20.1 million in 2005, 2004 and 2003, respectively. The circumstances that gave rise to these impairments were management's intention to sell certain securities, bankruptcy proceedings or deterioration in collateral value supporting certain asset-backed securities. Realized losses included other-than-temporary impairment in value of collateralized bond obligations of $9.7 million during 2003.
S.A. and RGA South Africa Holdings. The Company utilizes valuation allowances when it realizes, based on the weight of the available evidence, that it is more likely than not that the deferred income taxes will not be realized. Except for RGA International Reinsurance Company Ltd., the Company has not recognized a deferred tax liability for the undistributed earnings of its wholly owned foreign subsidiaries because the Company considers these earnings to be permanently reinvested and does not expect these earnings to be repatriated in the foreseeable future.
and 2003 of approximately $1.6 million, $3.5 million and $3.2 million, respectively.