ODYSSEY RE HOLDINGS CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued The Company frequently reviews its investment portfolio for declines in value, and focuses its attention on securities which have market value of less than 80% of their amortized cost at the time of review. Generally, a change in the market or interest rate environment does not constitute an impairment of an investment but rather a temporary decline. Temporary declines in investments will be recorded as unrealized losses in accumulated other comprehensive income. If the Company determines that a decline is “other than temporary,” the carrying value of the investment will be written down to the fair value and a realized loss will be recorded in the Company’ consolidated statements of operations. The Company’s assessments are based on current evaluations of the financial position and future projections of the entity that issued the investment security. Prior assessments can change, depending upon current pertinent information. In determining possible impairment of debt securities held as investments, the Company reviews market and industry shifts, debt payment schedules that report how current and timely the issuer is with interest and principal payments, the issuer’s current financial position, the effect of foreign exchange rates and relevant analysis by rating agencies, investment advisors and analysts. In determining the possible impairment of equity securities, the Company reviews market and industry shifts, historical price to earnings ratios, recent financial statements, independent auditor’s r eports on the issuer’s financial statements and any significant recommendations by investment advisors or rating agencies. Additional relevant information is also considered in determining the valuation of an investment. The following table reflects the Company’ investments’ fair value and gross unrealized depreciation, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2004 (in thousands): Duration of Unr ealized Loss Less than 12 Months Greater than 12 Months Total Gross Gross Gross Unrealized Number of Unrealized Number of Unrealized Number of Fair Value Depreciation Securities Fair Value Depreciation Securities Fair Value Depreciation Securities Fixed income securities  investment grade: United States government  agencies and authorities $ 667,309 $(17,214) 16 $511,952 $(32,822) 4 $1,179,261 $ (50,036) 20 States, municipalities  and political subdivisions 25,995 (358) 5 10,311 (323) 2 36,306 (681) 7 All other corporate 172,495 (1,501) 2 — — — 172,495 (1,501) 2 Total investment grade 865,799 (19,073) 23 522,263 (33,145) 6 1,388,062 (52,218) 29 Fixed income securities  non-investment grade: States, municipalities and  political subdivisions 4,010 (6,352) 1 — — — 4,010 (6,352) 1 All other corporate 114,267 (14,052) 6 — — — 114,267 (14,052) 6 Total non-investment  grade 118,277 (20,404) 7 — — — 118,277 (20,404) 7 Total fixed income 984,076 (39,477) 30 522,263 (33,145) 6 1,506,339 (72,622) 36 Common stocks,  at fair value 131,520 (34,004) 4 73,767 (11,342) 1 205,287 (45,346) 5 Total temporarily  impaired securities $1,115,596 $(73,481) 34 $596,030 $(44,487) 7 $1,711,626 $(117,968) 41 57