The results of the policies included in the Closed Block are 	reflected as a single line item in our statements of income, 	entitled “Contribution from the Closed Block,” 	whereas, prior to the establishment of the closed block, the 	results of such business were reported in various line items in 	our income statement, including premiums, net investment income, 	net realized gains, benefits, amortization of deferred policy 	acquisition costs, etc.
Net investment income was $902.3 million for 1999, an increase of $166.6 million, or 22.6%, from $735.7 million reported for 1998. The increase in net investment income is primarily due to the combination of higher yields on invested assets (mostly due to higher equity partnerships income), higher average balances, and changes in the mix of invested assets during 1999, as compared to 1998. Higher yields on invested assets in 1999, resulted in higher investment income of approximately $108.3 million. In addition, an increase in the Company’s average total invested assets between the periods of approximately $379.8 million, as well as changes in the mix of invested assets from real estate to relatively higher yielding fixed maturity securities, mortgages and equity securities resulted in additional increases in investment income of approximately $58.3 million. The increase in average invested assets was primarily a result of IPO proceeds received, gains on sales of real estate, and positive cash flow from operations and investing activities between the periods. For 1999, the Company’s average investment in fixed maturity securities (before cumulative unrealized gains or losses), mortgages, equity securities and cash and short term securities increased by approximately $494.1 million, $141.7 million, $91.0 million and $31.9 million, respectively, while real estate and other invested assets (mostly real estate partnerships) decreased by approximately $374.0 million, and $15.3 million, respectively. As of December 31, 1999, invested assets
Benefits to policyholders were $787.1 million for 1999, a decrease of $2.7 million, or 0.3%, from $789.8 million reported for 1998. The decrease consisted primarily of; (i) lower benefits of approximately $0.6 million and $8.6 million recorded in the Accumulation Products and Other Products segment, respectively, (ii) lower benefits of approximately
Interest credited to policyholders’ account balances was $115.5 million for 1999, an increase of $1.8 million, or 1.6%, from $113.7 million reported for 1998. The increase consisted primarily of; (i) higher interest crediting of $4.3 million in the Protection Products segment resulting from the consolidation of USFL, offset primarily by, (ii) lower interest crediting of approximately $5.3 million in the Accumulation Products segment relating to the company’s single premium deferred annuity (“SPDA”) business. During 1999, SPDA account value decreased approximately $77.8 million to $379.4 million, as compared to $457.2 million at the end of 1998. The decrease in account value in 1999 was primarily due to continuing withdrawals, which management believes partially reflects consumer preferences for separate account products. Average interest crediting rates on the Company SPDA’s were approximately 5.3% and 5.5% in 1999 and 1998, respectively.
Consists of loans which have had their maturity date extended 	pursuant to the borrower’s option as provided by the loan 	documents.
The following table presents the Company’s commercial mortgage loan maturity profile for the periods indicated.
The carrying value of commercial mortgage loans at December 31, 2000 was $1,443.3 million, which amount is net of valuation allowances aggregating $40.1 million which represents management’s best estimate of cumulative impairments at such date. However, there can be no assurance that increases in valuation allowances will not be necessary. Any such increases may have a material adverse effect on the Company’s financial position and results of operations.
The carrying value of the Company’s agricultural mortgage loans was $310.3 million and $570.7 million at December 31, 2000 and 1999, respectively, representing 17.7% and 33.3% of total mortgage assets and 2.8% and 5.3% of general account invested assets at such dates, respectively. The agricultural mortgage portfolio is diversified both geographically and by type of product. The security for these loans includes row crops, permanent plantings, dairies, ranches and timber tracts. Due to strong agricultural markets and advantageous yields, the Company expects to continue to invest in agricultural mortgage investments. Less than 3.3% and 1.3% of total agricultural loans outstanding at December 31, 2000 and 1999, respectively, were delinquent or in process of foreclosure. Following is a summary of agricultural mortgage loans by state which were held by the Company at the dates indicated.