Surrender charges totaled $67.0 million in 2009, $33.6 million in 2008 and $23.4 million in 2007. Surrender charges increased due to the impact of MVAs on certain products sold by our EquiTrust Life independent distribution, as illustrated in the table below and discussed in the "Impact of Recent Business Environment" section above.
Interest Sensitive and Index Product Benefits and Change in Value of Index Product Embedded Derivatives
Benefits and expenses decreased during 2009 and 2008 despite the impact of an increase in the volume of business in force primarily due to decreases made to interest crediting rates on a majority of the traditional annuity products. In addition, expenses were impacted by unlocking deferred policy acquisition costs and the value of insurance in force, which decreased amortization of these items $4.2 million in 2009, and increased amortization $0.9 million in 2008 and $1.3 million in 2007. The average aggregate account value for annuity contracts in force in the Exclusive Annuity segment totaled $1,744.2 million for 2009, $1,564.1 million for 2008 and $1,488.9 million for 2007.
Our exposure to interest rate risk stems largely from our annuity products as the cash flows of these products can vary significantly with changes in interest rates. We have holdings in fixed maturity and mortgage loan portfolios to offset the interest rate risk of our annuity products. We actively manage the projected cash flows and duration of these assets and liabilities by minimizing the difference between the two. The effective duration of the fixed maturity and mortgage loan portfolios backing our annuity products was 6.4 at December 31, 2009 and 6.7 at December 31, 2008. The effective duration of our annuity liabilities was approximately 6.4 at December 31, 2009 and 7.5 at December 31, 2008.
At December 31, 2009, we had 962 fixed maturity and equity securities with gross unrealized losses totaling $730.5 million. Included in the gross unrealized losses are losses attributable to both movements in market interest rates as well as temporary credit issues. Details regarding these securities are included in the "Financial Condition - Investments" section above. Net income (loss) would have been reduced by approximately $414.1 million if all these securities were deemed to be other-than-temporarily impaired on December 31, 2009.
Equity securities, comprised of common and non-redeemable preferred stocks are designated as "available for sale" and are reported at fair value. The change in unrealized appreciation and depreciation of equity securities is included directly in stockholders' equity, net of any related deferred income taxes, as a component of accumulated other comprehensive income (loss).
Realized losses on sales in 2009 were on securities that we did not intend to sell at the prior balance sheet date or on securities that were impaired at the prior quarter end, but decreased in value during the period. In 2008, realized losses on sales in 2008 include a $2.3 million loss on a bank and $2.1 million on a printing and publishing company that experienced significant losses during 2008 and filed for bankruptcy protection.
consolidated statements of operations during 2008 or 2007 for instruments designated as hedges.
Other liabilities: Fair values for the embedded derivatives in our modified coinsurance contracts under which we cede or assume business are based on the difference between the fair value and the cost basis of the underlying fixed maturity securities. Fair values for interest rate swaps are based on counterparty market prices adjusted for a credit component of the counterparty, net of collateral paid. Prices are verified using analytical tools by our internal investment professionals. We are not required to estimate fair value for the remainder of the other liabilities balances.
As multiemployer plans, the assets we contribute to the plans are commingled with the assets contributed by the other employers. Accordingly, unless noted otherwise, we do not separate the disclosure information below between amounts attributable to us and amounts attributable to the other employers. For 2009 and 2008, the measurement date for the plans is December 31. Prior to 2008, the measurement date for the plans was September 30. This change was required due to the adoption of authoritative accounting guidance then issued.
observable inputs other than quoted prices that are used in the valuation of the assets or liabilities; or
We have management agreements, which include Farm Bureau Property & Casualty and other affiliates, under which we provide general business, administrative and management services. Fee income for these services totaled $3.8 million in 2009, $3.5 million in 2008 and $3.1 million in 2007. In addition, Farm Bureau Management Corporation, a wholly-owned subsidiary of the IFBF, provides certain management services to us under a separate arrangement. We incurred related expenses totaling $0.8 million in 2009, $0.5 million in 2008 and $1.0 million in 2007.