The consolidated net loss for 2000 was $79.2 million or $1.32 per share, compared with net income of $114.1 million or $1.87 per share in 1999, and $84.9 million or $1.29 per share in 1998. After-tax realized gains (losses) were $(1.5) million in 2000, $104.5 million in 1999, and $9.4 million in 1998. Contributing to the 1999 gain were investment gains from a reallocation of the Group's investment portfolio during the second quarter of 1999. The Corporation completed the reallocation by selling approximately $200 million in equity securities, resulting in after-tax realized gains of approximately $94 million.
Underwriting expenses, as a percentage of net premiums written, decreased by .4 points in 2000 to 34.8%, compared with 35.2% in 1999 and 34.4% in 1998. As mentioned earlier, the Corporation took steps in 2000 to aggressively manage expenses. The savings focused on reductions to salaries and related expenses, advertising, and professional contractor fees. These expense reduction efforts were expected to result in annualized expense savings of approximately $30 million. Due to the timing of severance payments and the run-off of contractual commitments, the Corporation estimated half of the reported amount would be realized in 2000. The Corporation exceeded its expense savings estimates for 2000 by realizing almost $26.0 million in expense reductions. The increase in 1999 over 1998 was primarily due to expenses related to restructuring and integration efforts, which added approximately 1.2 points to the underwriting expense ratio.
Regularly the Group's financial strength is reviewed by independent rating agencies. These agencies may upgrade, downgrade, or affirm their previous rating of the Group. During 2000, A. M. Best and Standard and Poor's (S&P) Rating Services downgraded the Group's financial strength ratings. The Group's A.M. Best rating moved from "A+" (superior) to "A" (excellent) and the S&P rating moved from "A+" to "BBB+". A. M. Best cited earnings deterioration, increased operating leverage, and significant management changes as reasons for the rating change. S&P focused on poor underwriting results, earnings volatility due to catastrophe losses, and an aggressive investment strategy. A. M. Best and S&P both recognized the Group's strong capitalization and expense reduction efforts as positive attributes. Moody's Investors Service affirmed the Group's "A2" rating based on capitalization and expense reduction measures. All three rating agencies recognized the shift in management focus to improve underwriting.
Restructuring charges recorded in 1998 were made up of expenses associated with abandoned lease space totaling $10.0 million or $.15 per share before-tax and $6.5 million or $.10 per share after-tax. The Group released $2.2 million and $2.9 million of the liability due to payments under leases in 2000 and 1999, respectively, and $2.4 million in 1999 for changes in assumptions used to establish the initial reserve.
$17.5 million in refund premiums to eligible 1989 California policyholders. The Corporation expects the payments to be made in the first half of 2001. With this development, the total reserve was decreased to $17.5 million as of September 30, 2000. When the refund payments occur, the remaining $17.5 million liability will be extinguished. This decrease in the reserve resulted in an increase in operating income and net income for the third quarter 2000, but had no effect on the combined ratio reported.