Investments

Over the past few years, we have shortened the duration of our fixed-income portfolio to 2.8 years, while maintaining its high quality with an average rating of AA-. As a result, there has been less volatility in our book value from mark-to-market accounting and we are better able to manage the uncertain interest rate environment.

In addition, we have allocated a portion of our portfolio to investments designed to generate capital gains. As investment income is an important component of our economic model, we will continue to position our portfolio to manage the yield curve as well as the impact of potential inflation.