in 2005, and the percentage of jet-issued policies, or those handled without human intervention, was 56%. We began the primary rollout of an enhanced version of SmartApp, called SmartApp Next Generation^SM, in 2005. Rollout completion is scheduled for 2006, and this enhanced version will help us further streamline the enrollment process.

Our Billing Transformation Program (BTP) was initiated in 2002 to strengthen our processes and upgrade our technology to more efficiently and accurately bill, reconcile and service our payroll accounts. BTP consists of several initiatives that focus on automating service transactions and providing self-service capability. At year-end, 33,500 payroll accounts were using Online Billing, the highest profile component of BTP. Online Billing simplifies the billing and service process for accounts, enabling sales associates to focus more on relationships and sales growth. We believe that BTP will benefit our company over the next several years from an administrative standpoint.

We have also gained efficiencies through the expansion of our Interactive Voice Response (IVR) system. By handling simple tasks and reducing the number of calls that customer service representatives must take, employees can focus on helping customers resolve more complex issues. As a result, our payroll accounts and policyholders receive the high-quality service they deserve and expect from Aflac.

We believe that adhering to a conservative philosophy creates the best, most reliable foundation from which we manage our financial assets. In turn, we can fulfill the promises we have made to our policyholders. This approach also yields a solid and dependable source of investment income. Some investing highlights from 2005 include:

• Investments and cash were $7.0 billion at the end of 2005, down 22.8% from 2004 due to a lower level of securities lending.
• Net investment income rose 6.5%, from $396 million in 2004 to $421 million in 2005.
• The average yield on new investments was 6.16% in 2005, compared with 6.30% the previous year.

Corporate debt securities again accounted for the majority of our U.S. investments in 2005. Based on amortized cost, 74.0% of our holdings were rated A or better, and only 3.8% were rated below investment grade.

We believe the strengths that have positioned Aflac as the leading producer of supplemental insurance products at the worksite are firmly established. Aflac's product line provides relevant, valuable and affordable benefits that make a difference in consumers' lives. And we have a large and growing sales force that specializes in