technology platform in five states during the third quarter of 2016 for personal auto, homeowners and umbrella and in late 2016 for certain small commercial policies, including business owners and small commercial auto. We plan to expand this platform to our remaining states throughout 2016 and 2017. We believe the difference between our current quote and issuance system and the new system will be dramatic and will deliver a greatly improved experience for both our agents and policyholders. The new system is expected to be the foundational element of our long-term technology strategy.
During 2015, the following efforts were initiated with the objective of improving the competitiveness of our personal lines products while at the same time improving underwriting results:
Net written premiums for the specialty insurance segment for the year ended December 31, 2015 increased 11.6% when compared to 2014 (Table 5). The increase in premiums was primarily due to (i) the Partners General Agency acquisition in 2014, (ii) new programs added during the second half of 2014, and (iii) growth in general liability and umbrella policies in the E&S casualty unit. Partially offsetting the 2015 growth was a decline in the E&S property unit premiums due to continued intense competition within the catastrophe-exposed property marketplace, which has contributed to less favorable pricing opportunities.
The specialty insurance segment’s SAP non-catastrophe loss and ALAE ratio for the year ended December 31, 2015 was 59.7%, compared to 104.0% and 70.8% in 2014 and 2013, respectively (Table 6). The decrease in 2015 when compared to 2014 (Table 6) was due to RED reserve strengthening during 2014.
Our investment portfolio and the investment portfolios of other members of the State Auto Group are managed by our subsidiary, Stateco. Stateco utilizes its own personnel to invest in fixed maturities, large-cap equities and small-cap equity funds,
Our investment operations revenue for the year ended December 31, 2015 was primarily impacted by a decrease of $3.3 million in Treasury Inflation-Protected Securities (“TIPS”) interest income. Because TIPS are dependent on changes in the Consumer Price Index, they are directly impacted by the change in the rate of inflation (as inflation declines TIPS income decreases and vice versa). Interest earned on our fixed maturity securities in 2014 increased slightly compared to 2013, primarily due to an increase of $0.9 million in TIPS income.
The potential impact of the loss reserve variability on net income can be illustrated using the range end points and carried reserve amounts listed above. For example, if ultimate losses reach a level corresponding to the high point of the range, $1,065.8 million, the reserve increase of $28.6 million corresponds to an after-tax decrease of $18.6 million in net income, assuming a tax rate of 35%. Likewise, should ultimate losses decline to a level corresponding to the low point of the range, $897.2 million, the $140.0 million reserve decrease would add $91.0 million of after-tax net income. The loss reserve range noted above represents a range of reasonably likely reserves, not a range of all possible reserves. Therefore, the ultimate losses could reach levels corresponding to reserve amounts outside the range provided.
In October 2014, the Retirement Plans Experience Committee of the Society of Actuaries released reports summarizing updated statistics and analysis for actuaries to consider in the selection of the mortality assumptions used in the valuation of benefit plans, including new mortality tables that reflect updated mortality rates observed during 2004 through 2008. Previously, the pension plan valuation utilized a mortality table required to be used for purposes of minimum funding requirements under ERISA. For the December 31, 2014 valuation, the RP-2014 mortality table was used as a baseline for the mortality assumption and the
The Equity Plan provides that qualified stock options may be granted at an option price not less than the fair market value of the common shares at the date of grant and that nonqualified stock options may be granted at any price determined by the Compensation Committee of the Board of Directors. Options granted generally vest over a three-year period, with one-third of the options vesting on each anniversary of the grant date, and must be exercised no later than ten years from the date of grant. Stock options granted under the Equity Plan for 2015, 2014 and 2013 were 0.3 million, 0.2 million and 0.5 million, respectively.