The specialty commercial business produced substantial underwriting profits in each of the past three years with combined loss and expense ratios of 91.7% in 1994, 91.0% in 1993 and 90.5% in 1992. Our executive protection, financial fidelity and surety results were highly profitable in each year due to favorable loss experience. The non-fidelity portion of our financial institutions business deteriorated in 1994 due in part to several large losses.
In August 1994, the California Supreme Court issued a decision upholding rollback regulations issued by the California Insurance Commissioner which had previously been ruled invalid by a lower court. These regulations limit the allowable rate of return which an insurer could earn on California business for the rollback period to a rate determined by the Insurance Commissioner and limit the amount of surplus on which an insurer could earn profit during that period. It is not clear what implications, if any, this decision will have on future property and casualty insurance rates in California. A petition for review of the California Supreme Court's decision has been denied by the United States Supreme Court.
Given these changes in our marketplace and the continuation of the shift away from traditional indemnity products to managed care alternatives, we anticipate that we will experience a reduction of premiums in 1995.
Enacted and contemplated health care reform on both a national and state level are reshaping the health insurance industry. Although federal legislation on health insurance did not pass Congress in 1994, the Clinton Administration and certain members of Congress may pursue some form of health care reform. Significant changes, if they occur, are not expected to become operational for some time. It is currently not possible to predict the long term impact of health care reforms on our business.
The fair value of these loans receivable is estimated through the use of valuation techniques which consider current yield factors applied to the net cash flows of the properties serving as the underlying collateral for the loans. The fair value of the loans represents a point-in-time estimate that is not relevant in predicting future earnings or cash flows related to such loans. The difference between the aggregate fair value of $354 million and the carrying value of $395 million at December 31, 1994 is not expected to be realized as we intend to hold the loan portfolio to maturity.
Our Florida residential development activities continued during 1994. Construction of a 171 unit oceanfront high rise condominium project commenced during 1994 with 114 units already under contract. Phased construction of a 214 unit mid-rise condominium project continued during 1994. At year-end, 58 units were sold and 35 units were under contract.
Investment income earned on corporate invested assets and interest and other expenses not allocable to the operating subsidiaries are reflected in the corporate segment. Corporate income after taxes was $8 million in 1994, $14 million in 1993 and $20 million in 1992.
A restructuring of the equity security portfolio begun in 1992 resulted in significant realized investment gains in 1992 and 1993. In 1994, a redistribution of invested assets from equity securities to fixed maturities resulted in significant realized investment gains. In addition, approximately $30 million and $75 million of investment gains were realized in 1994 and 1992, respectively, from the Corporation's partial sales of its investment in Sun Alliance.
A primary reason for the sale of fixed maturities in each of the last three years has been to improve our after-tax portfolio yield without sacrificing quality, where market opportunities have existed to do so. The higher gains realized in 1993 were due to the sale of fixed maturities in the first half of the year as part of the realignment of our portfolio and in the latter part of the year to realize gains to partially offset the reduction of statutory surplus of the property and casualty subsidiaries resulting from the decrease in income related to the Fibreboard settlement.