) announced that its operating earnings in the fourth quarter of 2010 were $53.6 million or $0.96 per share, compared to $47.7 million or $0.86 per share in the fourth quarter of 2009. Annualized operating return on beginning equity (2) in the fourth quarter of 2010 was 13.0% compared to 14.3% in the fourth quarter of 2009. Diluted book value per share was $28.16 at December 31, 2010, up 15% since December 31, 2009. Delphi's net income attributable to shareholders in the fourth quarter of 2010 was $52.4 million or $0.94 per share, compared to $16.8 million or $0.30 per share in the fourth quarter of 2009. Net income attributable to shareholders in the fourth quarter of 2010 included a loss on early retirement of senior notes, net of taxes, of $(2.4) million or $(0.04) per share and after-tax net realized investment gains of $1.2 million or $0.02 per share, including other-than-temporary impairments (OTTI), net of taxes, of $(7.1) million or $(0.13) per share. Net income attributable to shareholders in the fourth quarter of 2009 included after-tax net realized investment losses of $(30.9) million or $(0.56) per share, including OTTI, net of taxes, of $(32.6) million or $(0.59) per share. For the year ended December 31, 2010, Delphi's operating earnings were $194.9 million or $3.50 per share, compared to $195.0 million or $3.76 per share for the full year 2009. Net income attributable to shareholders was $173.1 million or $3.11 per share, compared to net income attributable to shareholders of $99.1 million or $1.91 per share for the full year of 2009. Net income attributable to shareholders for the full year of 2010 included a loss on early retirement of senior notes, net of taxes, of $(5.0) million or $(0.09) per share and after-tax net realized investment losses of $(16.8) million or $(0.30) per share, including OTTI of $(39.7) million or $(0.71) per share. Net income attributable to shareholders for the full year of 2009 included after-tax net realized investment losses of $(95.9) million or $(1.85) per share, including OTTI of $(94.1) million or $(1.82) per share. Robert Rosenkranz, Chairman and Chief Executive Officer, commented, “We were pleased to achieve strong fourth quarter operating results, which brought full year operating earnings per share to the very top of the range of guidance we provided at the beginning of the year. This was accomplished in a challenging environment: stagnant payrolls, low interest rates, and an industry-wide trend in our disability business toward increased claims incidence. We benefited from strong growth in premiums and production along with favorable underwriting margins at Safety National, which helped offset the impact of higher disability claims incidence at Reliance Standard Life. Investment income benefited from continued growth in invested assets and very strong returns in our alternative investments portfolio. Delphi strengthened our balance sheet and capital structure in the fourth quarter with the full redemption of our 8.00% Senior Notes and a new $300 million bank credit facility. At the end of 2010, our debt-to-capital ratio was 18% and holding company financial resources were at a comfortable $107 million.” Delphi's core group employee benefit premiums in the fourth quarter of 2010 rose 4% to $346.2 million from $332.8 million in the fourth quarter of 2009. This premium growth was driven by a 13% increase in core premiums at Delphi's Safety National subsidiary. Excess workers' compensation premiums rose 6% in the quarter, boosted by a 99% increase in production, and assumed workers' compensation reinsurance premiums rose 69%. Premiums rose 1% at Delphi's Reliance Standard Life subsidiary, boosted by a 9% increase in production. Delphi's group employee benefit combined ratio in the fourth quarter of 2010 was 96.7%, compared with 93.2% for the fourth quarter of 2009. Delphi's asset accumulation segment, which is primarily focused on individual fixed annuities, had new sales of $106.9 million in the fourth quarter of 2010, up from $16.4 million in last year's fourth quarter. New annuity sales for the full year 2010 were $377.4 million, up from $248.6 million for the full year of 2009. Funds under management at December 31, 2010 rose to $1.7 billion from $1.4 billion at December 31, 2009. Delphi's net investment income in the fourth quarter of 2010 was $102.1 million compared to $74.6 million in the fourth quarter of 2009. Invested assets at December 31, 2010 were $6.5 billion compared to $5.7 billion at December 31, 2009. The tax equivalent yield on the Company's investment portfolio in the fourth quarter of 2010 was 6.8%, compared to 5.7% in the fourth quarter of 2009. Mr. Rosenkranz added, “We will be furnishing guidance on our conference call regarding our expectations for operating earnings in 2011. While we expect the environment to remain difficult due to continued low interest rates and high unemployment levels, we continue to be optimistic about the growth prospects of Delphi's insurance businesses and our ability to capitalize on the leadership positions we have established in our attractive niche markets.”