Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Andrew Wessel - JPMorgan
Andrew Wessel - JPMorgan
Just two, I guess one, for the $7.4 billion of book value investments in the ALM business, what was the market value of that $7.4 billion.
Edward Chaplin
About $5.9 billion. The OCI component in the ALM portfolio declined from June to September by about $700 million.
Andrew Wessel - JPMorgan
And the other question I had was on the deferred tax asset, the $1.3 billion deferred tax asset, on the statutory basis do you expect to be profitable in 2009.
Edward Chaplin
I don’t want to go into forward-looking statements about the fourth quarter at this point.
Andrew Wessel - JPMorgan
Okay that’s fair, were you profitable through the first three quarters.
Edward Chaplin
Through the three quarters on a taxable income basis, we do have a small NOL.
Andrew Wessel - JPMorgan
And then so that would, there’s a chance that I guess that’s get onto another question, but anyway using that deferred tax asset is there kind of an outlook for profitability that makes that $1.3 billion recognizable here or how do you justify carrying it.
Edward Chaplin
Yes, the answer is yes that we anticipate having adequate taxable income to absorb it in the future. A big part of the deferred tax asset is related to unrealized losses and we expect those unrealized losses to reverse so they are sort of self-funding if you will.
Operator
Your next question comes from the line of Darin Arita - Deutsche Bank
Darin Arita - Deutsche Bank
Just a couple of questions here, first with respect to National there’s some confidence expressed in the press release on the creation of that entity, can you give us an update on what is happening there and give us a sense of timing on when that might be resolved.
Edward Chaplin
National was created on February 17, 2009 so of course it does exist today. There have been a series of litigations filed that challenge the decision of the Insurance Superintendent to permit the creation of National. They’re ongoing. There’s extensive disclosure about the progress of the litigations in the 10-Q but just in terms of timing, obviously its litigation, its hard to be very firm about timing.
We would anticipate that our Article 78 actions will be completed some time in 2010. As it gets resolved we’ll have to see what impact that has on other litigations.
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