Our leases expire from 2010 through 2017 and have an average term of five years, although our typical lease term ranges from three to five years. We believe we will not have any difficulty obtaining renewals of leases as they expire or, alternatively, leasing comparable properties. The aggregate annual rent expense under all leases was approximately $51.1 million in 2009.
Our most critical accounting estimate is providing for title loss reserves. Our liability for estimated title losses at December 31, 2009 comprises both known claims ($156.4 million) and our estimate of claims that may be reported in the future ($347.1 million). The amount of the reserve represents the aggregate future payments (net of recoveries) that we expect to incur on policy and escrow losses and in costs to settle claims.
Cash payments on title claims in 2009, 2008 and 2007 were $149.3 million, $136.8 million and $117.6 million, respectively. This increase is consistent with our historical experience that title claims are filed more quickly and there is a higher incidence of agency defalcations in declining real estate markets. The insurance regulators of the states in which our underwriters are domiciled require our statutory premium reserves to be fully funded, segregated and invested in high-quality securities and short-term investments. As of December 31, 2009, cash and investments funding the statutory premium reserve aggregated $404.4 million and our estimate of claims that may be reported in the future totaled $347.1 million. In addition to this restricted cash and investments, we had unrestricted cash and investments (excluding equity method investments) of $135.0 million, which is available for underwriter operations, including claims payments.
In 2009, we repaid $54.8 million of debt in accordance with the underlying terms of the debt instruments. On October 15, 2009, we issued $65.0 million aggregate principal amount of 6.0% Convertible Senior Notes due 2014 (Notes). The $61.7 million in net proceeds were used to retire bank debt on which repayment could have been demanded at any time, thereby extending our maturities for this debt to October 2014 if not converted into shares of Common Stock before or at maturity. The Notes pay interest semiannually at a rate of 6.0% per annum beginning on April 15, 2010. The Notes are convertible into shares of our Common Stock at a conversion rate of 77.6398 shares per $1,000 principal amount of Notes (equal to a conversion price of $12.88 per share), which will be adjusted in certain circumstances. The conversion price represents a 25.0% premium above the $10.30 per share closing price of our Common Stock on the New York Stock Exchange on October 8, 2009.
Since the Notes are initially convertible in full into more than 20 percent of our outstanding common stock, we will seek the approval of our Common Stockholders, at our April 30, 2010 annual shareholders’ meeting, for the issuance of more than 20 percent of our outstanding Common Stock upon conversion of the Notes. Prior to the earlier of shareholder approval or April 15, 2014, holders may surrender their Notes for conversion only for a combination of cash and Common Stock, upon the satisfaction of certain conditions. The conversion is calculated by applying the applicable conversion rate prior to the close of business on the business day immediately preceding the earlier of receipt of shareholder approval or April 15, 2014. The relative amounts of cash and stock paid to the holder of the Notes are dependent upon the market value of our Common Stock