as permitted by the restructuring discussed previously in note 7 , certain of the company 2019s u.s . subsidiaries discount certain a&e liabilities , which increased statutory capital and surplus by approximately $ 211 million , $ 140 million , and $ 157 million as of december 31 , 2008 , 2007 , and 2006 , respectively . the company 2019s international subsidiaries prepare statutory financial statements based on local laws and regulations