$224.2 million in new business, up 19% over last year's $188.3 million, while 2000 included $171.7 million. Net premiums written for commercial lines grew 17% in 2002, while personal lines were up 1%. This growth reflects our ongoing strategy to primarily focus on our core commercial lines operation, while building a smaller, but profitable personal lines segment. For 2002, our overall statutory combined ratio was 103.2% down from 106.7% in 2001 and 108.2% in 2000. This ratio was better than the A.M. Best estimated industry-wide statutory combined ratio of 105.7% for 2002.
The following table presents information regarding our available-for-sale debt securities that were in an unrealized loss position at December 31, 2002 by contractual maturity:
In December 2001 the Company's management adopted a plan to divest itself of its 100% ownership interest in PDA Software Services, Inc. (PDA), which had historically been reported as part of the Diversified Insurance Services segment. This divestiture plan was realized in May 2002 when the Company sold all of the issued and outstanding shares of capital stock of PDA as well as certain software applications developed by PDA at a net gain of $0.5 million. In addition, the Company recovered $5.0 million of capitalized software development costs.
The total deferred tax asset declined slightly at December 31, 2002 to $8.7 million, compared with $9.4 million at December 31, 2001. Increases in current year deferred policy acquisition costs and unrealized gains on the available-for-sale investment portfolio were offset by increases in loss reserve discounting, unearned premium reserves and additional alternative minimum tax credits generated by regular tax net operating loss carrybacks for 2001 and 2000. The following table presents the Company's taxable income (loss), pre-tax financial statement income and net deferred tax asset:
Our future cash payments associated with contractual obligations pursuant to operating leases for office space and equipment, senior convertible notes, convertible subordinated debentures and notes payable as of December 31, 2002 are summarized below:
The value of real estate, furniture and equipment is stated at cost less accumulated depreciation. Provisions for depreciation are computed using the straight-line method over the estimated useful lives of the assets, which range from three to forty years for financial statement purposes and the straight-line method and various accelerated methods for federal income tax purposes. The Company capitalizes the costs of computer software developed or obtained for internal use and amortizes the cost using the straight-line method over estimated useful lives of the systems being developed that range from three to ten years.
(h) Certain investments were on deposit with various state regulatory agencies to comply with insurance laws with carrying values of $26.1 million as of December 31, 2002 and $18.4 million at December 31, 2001.
Under the Company's reinsurance arrangements, which are all prospective in nature, reinsurance premiums ceded are recorded as prepaid reinsurance and amortized over the remaining contract period in proportion to the reinsurance protection provided, or recorded periodically, as per terms of the contract, in a direct relationship to the direct premium recording.
Under a common stock repurchase program authorized by the Board of Directors on July 29, 1996 and extended on July 28, 1998, May 7, 1999, November 2, 1999, February 3, 2000, May 31, 2001 and May 31, 2002, the Company can repurchase up to 8,000,000 shares. The Company acquired 11,000 shares for $0.2 million in 2002, 0.3 million shares for $7.5 million in 2001 and 2.1 million shares for $36.5 million in 2000. The total amount of stock repurchased under this program since July 29, 1996 through December 31, 2002 is 7.3 million shares at a total cost of $140.5 million.
The statutory capital and surplus of the Insurance Subsidiaries in excess of these ordinary dividend amounts must remain with the Insurance Subsidiaries in the absence of the approval of a request for an extraordinary dividend.
The Company has adopted the pro forma footnote disclosure-only provisions of FAS 123. See Note 1(n) for the pro-forma effect on net income and earnings per share if the Company had adopted FAS 123. The fair value of each option grant is estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions for 2002, 2001 and 2000:
We have established a range of reasonably possible IBNR losses for non-environmental net claims of approximately $523.5 million to $666.5 million at December 31, 2002 and of approximately $460.4 million to $573.9 million at December 31, 2001. A low and high reasonable IBNR selection was derived primarily by considering the range of indications calculated using standard actuarial techniques. Our net IBNR reserves for non-environmental claims, including loss expense reserves, were $588.5 million at December 31, 2002 and $496.2 million at December 31, 2001.