(5) In accordance with GAAP, per share amounts are based on results of operations for the period from November 16, 1998 (the effective date of the Company's reorganization) through December 31, 1998. The weighted average number of shares used to determine basic and diluted per share amounts are 47,241,084 and 47,884,815, respectively. See Note 4 to the Consolidated Financial Statements.
(iii) revenues and expenses reported in the income statement for the year ended December 31, 1998 represent all revenues and associated expenses earned or incurred during such period, however, in accordance with generally accepted accounting principles, actual "basic" and "diluted" per share amounts are presented only for periods subsequent to the effective date of the Plan.
For comparability with prior periods, the following table presents the results of operations of the Closed Block for the period from November 16, 1998 through December 31, 1998 combined on a line by line basis with the results of operations outside the Closed Block. In all other respects the financial information herein is presented in accordance with GAAP unless otherwise noted. Management's Discussion and Analysis, which follows this table, addresses the results of operations of the Company on the aforementioned combined basis unless otherwise noted.
Dividends to policyholders were $218.2 million for 1998, a decrease of $6.1 million, or 2.7%, from $224.3 million reported for 1997. The decrease primarily resulted from a reduction in the interest component of the dividend scales on all policies during 1997 by amounts ranging from 15 to 50 basis points, which was partially offset by an increase in life insurance reserves.
Group Pension Profits (see "The Group Pension Transaction" and Note 10 to the Consolidated Financial Statements) were $60.0 million for 1997, an increase of $0.5 million, or approximately 0.8%, as compared to $59.5 million reported in 1996. Group Pension Profits in 1997 consisted of $55.7 million of Group Pension Payments and $4.3 million relating to adjustments required to reflect the earnings from such payments in accordance with GAAP. Such adjustments primarily relate to changes in the valuation allowances established to recognize impairment of assets supporting the business transferred in the Group Pension Transaction. In 1996, Group Pension Profits consisted of $66.7 million of Group Pension Payments offset by $7.2 million relating to an increase in the aforementioned valuation allowances. Group Pension Payments in 1997 decreased from that recorded in 1996 primarily because of the continuing run-off of the Existing Deposits. The decrease in valuation allowances in 1997 resulted primarily from the decrease in mortgage loan assets supporting the transferred business due to prepayments of such loans.
Investment-type product fees were $64.1 million for 1998, an increase of $13.2 million, or 25.9%, from $50.9 million reported for 1997. This increase was primarily the result of an increase in fees relating to the Company's FPVA business of $13.4 million as a result of an increase in the account value of such products. For the year ended December 31, 1998, the Company reported total fees in its FPVA business of $63.4 million, as compared to $50.0 million reported for the year ended December 31, 1997. During 1998, FPVA account values increased by approximately $460.0 million. The increase in account value resulted from new sales and other deposits of $611.7 million and market appreciation of approximately $298.9 million, offset by approximately $450.6 million in withdrawals and surrenders. The average FPVA account value during 1998 was approximately $4.5 billion, as compared to $3.7 billion in 1997.
Amortization of DAC was $34.4 million for 1997, an increase of $11.2 million, or 48.3%, from $23.2 million reported for 1996. This increase primarily consisted of higher amortization of $11.6 million, as compared to the prior year, relating to the Company's FPVA product line which resulted from higher profits due to an increase account value of approximately $1,167.5 million during 1997 to $4,314.1 million, as compared to $3,146.6 million in 1996. The increase in account value in 1997 resulted from new sales and other deposits of $712.7 million and market appreciation of $738.9 million, offset by approximately $284.1 million in withdrawals and surrenders.
At December 31, 1998, aggregate maturities of long-term debt based on required principal payments for 1999 and the succeeding four years are $12.2 million, $87.0 million, $35.9 million, $0.5 million and $0.5 million, respectively, and $247.6 million thereafter.
The following tables present the distribution of problem, potential problem and restructured commercial mortgages by property type and by state as of December 31, 1998 and 1997.
The carrying value of the Company's agricultural mortgage loans was $531.2 million and $512.7 million at December 31, 1998 and 1997, respectively, representing 37.4% and 35.8% of total mortgage assets and 4.8% and 4.9% of general account invested assets at such dates, respectively. The agricultural mortgage portfolio is diversified both geographically and by type of product. The security for these loans includes row crops, permanent plantings, dairies, ranches and timber tracts. Due to strong agricultural markets and advantageous yields, the Company expects to continue to invest in agricultural mortgage investments. Less than 0.9% and 0.5% of total agricultural loans outstanding at December 31, 1998 and 1997, respectively, were delinquent or in process of foreclosure. Following is a summary of agricultural mortgage loans by state which were held by the Company at the dates indicated.