The 2000 statutory and GAAP combined ratios include an adjustment in Commercial Lines due to a reinsurance transaction associated with the acquisition of the Reliance Surety business. Excluding this adjustment, the statutory and GAAP combined ratios before policyholder dividends for 2000 would have been 101.9% and 100.1%, respectively. The 1999 statutory combined ratio before policyholder dividends includes the treatment, on a statutory basis only, of a commutation of an asbestos liability to an insured. In addition, the 1999 statutory and GAAP combined ratios before policyholder dividends include an adjustment in Personal Lines associated with the termination of a quota share reinsurance arrangement. Excluding these items, the statutory and GAAP combined ratios before policyholder dividends for 1999 would have been 101.8% and 101.5%, respectively.
New business in Commercial Accounts for 2000 was significantly higher than 1999, reflecting the impact of the acquisition of Reliance Middle Market renewal business. For 1999, new business in Commercial Accounts was significantly less than 1998, reflecting the Company's selective underwriting policy and continued focus on obtaining profitable new business accounts. The business retention ratio for 2000 was moderately lower than 1999, reflecting an increase in lost business due to the renewal price increases in 2000. The business retention ratio in 1999 was virtually the same as 1998.
Revenues in 2000 of $4.232 billion increased $155 million from 1999. The increase in revenues in 2000 reflected growth in earned premiums in all distribution channels except TRAVELERS SECURE(R), higher net investment income and lower realized investment losses. Revenues were $4.077 billion in 1999 compared to $3.743 billion in 1998. The 1999 increase compared to 1998 reflected growth in earned premiums in all distribution channels and higher net investment income. Personal Lines had approximately 5.4 million, 5.3 million and 5.1 million policies in force at December 31, 2000, 1999 and 1998, respectively.
In Select Accounts, the trend toward increased pricing on renewal business that started in late 1999 gained momentum in 2000. Prices generally rose throughout the year, although these increases varied significantly by region, industry and product. Loss cost trends, however, also worsened in 2000, especially in workers' compensation and auto liability. The impact of these negative loss cost trends has been partially offset by a continued disciplined approach to underwriting and risk selection by the Company. Select Accounts believes that the improvements gained through high quality underwriting and continued price increases in 2001 may be offset by the combination of worsening loss cost trends in certain lines and regulatory pricing constraints in some jurisdictions.
On May 31, 2000, the Company completed the acquisition of the surety business of Reliance Surety for $580 million. In connection with the acquisition, the Company entered into a reinsurance arrangement for pre-existing business, and the resulting net cash outlay for this transaction was approximately $278 million. This transaction included the acquisition of an intangible asset of approximately $450 million, which is being amortized over 15 years. The results of operations and the assets and liabilities acquired from Reliance Surety are included in the financial statements beginning June 1, 2000. This acquisition was accounted for as a purchase.
A summary of reinsurance financial data reflected within the consolidated statement of income is presented below:
The off-balance-sheet risk of interest rate swaps, currency swaps, options, forward contracts and financial futures was not significant at December 31, 2000 and 1999.