Financial review
Corporate functions
| in USD millions, for the years ended December 31 | 2006 | 2005 | Change |
|---|---|---|---|
| Net investment income | 645 | 616 | 5% |
| Interest expense | (1,168) | (984) | (19%) |
| Business operating loss | (888) | (679) | (31%) |
| Headquarter expenses, after recharges to operating businesses and excluding foreign currency | (188) | (91) | nm |
Business operating loss increased by USD 209 million to USD 888 million for the year ended December 31, 2006. Interest expense increased by USD 184 million primarily as a result of debt issued in 2005. Headquarter expenses, after recharges to operating businesses and excluding foreign currency increased by USD 97 million, primarily as a result of expenses for our global branding campaign. Partially offsetting these factors was an increase of foreign currency gains for the Corporate Functions segment of USD 112 million.
