However, the consumer anxiety from a poor economy in the first half of 2009 gradually gave way to hints of improvement. During the second half of 2009, we experienced a partial recovery of the capital markets and two quarters of GDP growth. Furthermore, consumer confidence, while still low, improved. Unemployment in many of our Focus States appeared to have bottomed out. I was happy to report to you earlier this year that, as a consequence of a slowly improving economy along with the dedication and effort by our agents and sales staff, our business grew 3% in the fourth quarter of 2009.

And even with the economy’s challenges, we continued to add significant shareholder value during the year. Our return on equity exceeded our long term goal of 12%. Operating earnings per share grew nearly 35% while book value per share grew over 23%. For the fifth consecutive year, we increased dividends, raising them over 9% in 2009, and nearly 17% in February of 2010. And we continued to aggressively buy back shares, purchasing approximately 5% of the shares outstanding during 2009. Our capital position remains strong, with capacity to support our operations as well as additional share repurchases in the future.

From an operations standpoint, we took advantage of our strong financial position to upgrade our capabilities. We opened our 325 seat call center in McAllen, Texas, which houses many of our bilingual sales, service and claims staff. We invested in sophisticated telecommunications for our claims call center that handles first notice of loss. And we moved a step closer to completing a consolidation of multiple claims and policy systems, which, when complete, will permit us to provide better service at lower cost. All these activities will play a critical role in serving our customers and agents now and in the future.