Net investment income increased 14.1% and 8.1% in 2000 and 1999, following the growth in policyholder funds. Total portfolio yield on traditional assets increased 1 basis point to 7.72% in 2000 and declined 11 basis points in 1999 due to the reduction in older policies in force. The average investment spread on UL-type products increased 5 basis points to 1.97% in 2000 and increased 29 basis points to 1.92% in 1999. Interest spreads are impacted by portfolio yields and also may vary over time due to competitive strategies and changes in product design.
Total expenses (including the net deferral and amortization of policy acquisition costs) increased 0.9% in 2000 and 1999. Expenses on individual traditional products were 29.7%, 30.0% and 31.3% of premiums in 2000, 1999 and 1998. For UL-type products, expenses as a percentage of policyholder funds and separate accounts were 2.3%, 2.7% and 3.0% in 2000, 1999 and 1998. The improvement in 2000 reflects the Guarantee acquisition, growth in policyholder funds and separate accounts, as well as an adjustment to deferred acquisition cost (DAC) amortization on UL-type products. This adjustment is a result of better than expected experience on UL-type products, which allowed a slow down in DAC amortization. The 1999 decrease reflects overall lower expenses as well as growth in policyholder funds and separate accounts.
The Company spent much of 2000 reviewing strategies in order to position JP for continued growth, and in particular to accelerate life insurance sales growth above the current increase of approximately 4%. The Company is embarking on a significant set of new initiatives designed to boost individual life insurance sales. These initiatives focus particularly on relationships with more productive agents, by providing a higher level of marketing support, as well as new ways of differentiating service for these key agents. Further, JP will focus on selective markets in which the Company will tailor specific products and marketing programs: wealth accumulation, wealth preservation and business planning. The Company will invest approximately $5 million in 2001, primarily in new field recruiting and relationship management marketing support for agents. Related JP initiatives include an increased emphasis on employee development, continued effective cost control and application of "lean manufacturing" concepts to improve quality and reliability throughout our operating processes.
Total assets for the Corporate and Other segment decreased 1.6% in 2000 and decreased 26.9% in 1999. 2000's decline occurred primarily due to asset transfers to support internal growth of other reportable segments and surrenders of 100% co-insured COLI policies net of increases in market values of Available for Sale securities. 1999's decline resulted primarily from surrenders of 100% co-insured COLI policies, declines in market values of Available for Sale securities, net of increases in employee benefit plan assets. Unrealized gains and losses on all Available for Sale fixed income securities are assigned to this segment, and increased $273 during 2000 and declined $524 during 1999. The increase during 2000 is primarily the result of declining interest rates, net of declines in market values of financial services stocks and the 1999 decline resulted from increases in market interest rates and declines in market values of financial services stocks.
While the Company has no commitments for additional financing, additional funds may be borrowed to finance acquisitions or for other corporate purposes.
Defined contribution retirement plans cover most employees and full time agents. The Company matches a portion of participant contributions and makes profit sharing contributions to a fund that acquires and holds shares of the Company's common stock. Most plan assets are invested under a group variable annuity contract issued by JP Life. Expenses were $3, $1 and $3 during 2000, 1999 and 1998.
The effects of reinsurance on total premiums and other considerations and total benefits are as follows:
The Company has five reportable segments which are defined based on the nature of the products and services offered: Individual Products, Annuity and Investment Products (AIP), Benefit Partners (formerly called Group Products), Communications, and Corporate and Other. The Benefit Partners segment was created in the first quarter of 2000, as a result of the acquisition of Guarantee. Amounts related to group non-medical products such as term life, disability and dental insurance that had been classified as Life Insurance Products in prior years have been reclassified to the Benefit Partners segment for all years presented. The remaining amounts that had been classified as Life Insurance Products in prior years relate to individual life insurance products and have been renamed Individual Products for all years presented. Within the Individual Products segment, the Company offers a wide array of individual life insurance products including variable life insurance. AIP offers both fixed and variable annuities, as well as other investment products. As mentioned above, Benefit Partners offers group non-medical products such as term life, disability and dental insurance to the employer marketplace. Various insurance and investment products are currently marketed to individuals and businesses in the United States. The Communications segment consists principally of radio and television broadcasting operations located in strategically selected markets in the Southeastern and Western United States, and sports program production. The Corporate and Other segment includes activities of the parent company and passive investment affiliates, surplus of the life insurance subsidiaries not allocated to other reportable segments including earnings thereon, financing expenses on Corporate debt and debt securities including Capital Securities, federal and state income taxes not otherwise allocated to other reportable segments, and all of the Company's realized gains and losses. Surplus is allocated to the Individual Products, AIP, and Benefit Partners reportable segments based on risk-based capital formulae which give consideration to asset/liability and general business risks, as well as the Company's strategies for managing those risks. Various distribution channels and/or product classes related to the Company's individual life, annuity and investment products and group insurance have been aggregated in the Individual Products, AIP, and Benefit Partners reporting segments.
The segments are managed separately because of the different products, distribution channels and marketing strategies each employs. The Company evaluates performance based on several factors, of which the primary financial measure is reportable segment results, which excludes realized gains and losses. The accounting policies of the business segments are the same as those described in Note 2. Substantially all revenue is derived from sales in the United States, and foreign assets are not material. The following table summarizes financial information of the reportable segments: