Total averageassetsisused todetermineactivityratios and, whenmultiplied by the profit margin on sales, provides betterinsight intothe profitability of acompany.
The increase in margins is supported by increase in premiums due to the implementation of the new variable annuity products and increase in fee income due to increases in averageassets under management resulting from improvements in equity markets and increased deposit activity as equity market improvements created an environment where investors were willing to re-enter the capital markets.