Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

14. Comprehensive Income and Accumulated Other Comprehensive Income (Loss)

Comprehensive income includes net income plus unrealized gains/losses on our available-for-sale investment securities, net of tax. In reporting comprehensive income on a net basis in the statement of income, we used a 35% tax rate. The following table illustrates the changes in the balance of each component of accumulated other comprehensive income (loss) for each period presented in the financial statements.

	Year Ended December 31,
	2014			2013			2012
	(in thousands)
Beginning balance	$	(4,295	)	$	2,979		$	2,215
Other comprehensive income (loss) before reclassification		6,558			(7,525	)		1,552
Amounts reclassified from accumulated other comprehensive income (loss)		547			251			(788	)
Net current period other comprehensive income (loss)		7,105			(7,274	)		764
Ending balance	$	2,810		$	(4,295	)	$	2,979

The sale or other-than-temporary impairment (OTTI) of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive income (loss) to current period net income. The effects of reclassifications out of accumulated other comprehensive income (loss) by the respective line items of net income are presented in the following table.

Component of Accumulated Other Comprehensive Income (Loss)	Year Ended December 31,								Affected line item in the statement of income
	2014			2013		2012
				(in thousands)
Unrealized gains (losses) on available-for-sale securities	$	(825	)	$	30	$	1,211		Net realized gains/(losses) on investments
Other-than-temporary impairment		(16	)		(416)		—		Net realized gains/(losses) on investments
		(841	)		(386)		1,211		Income before income taxes
		294			135		(423	)	Income tax expense
	$	(547	)	$	(251)	$	788		Net income

	Pre-Tax Amount			Tax Expense			Net-of-Tax Amount
	(in thousands)
December 31, 2014
Unrealized gain on securities:
Unrealized gain on available-for-sale securities	$	10,133		$	3,546		$	6,587
Change in unrealized losses on fixed maturity securities with OTTI		17			6			11
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer		(44	)		(15	)		(29	)
Reclassification adjustment for gains realized in net income		825			289			536
Net unrealized gain		10,931			3,826			7,105
Other comprehensive income	$	10,931		$	3,826		$	7,105
December 31, 2013
Unrealized loss on securities:
Unrealized loss on available-for-sale securities	$	(11,504	)	$	(4,027	)	$	(7,477	)
Change in unrealized losses on fixed maturity securities with OTTI		2			1			1
Change in unrealized losses on equity securities with OTTI		416			146			270
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer		(75	)		(26	)		(49	)
Reclassification adjustment for gains realized in net income		(30	)		(11	)		(19	)
Net unrealized loss		(11,191	)		(3,917	)		(7,274	)
Other comprehensive income	$	(11,191	)	$	(3,917	)	$	(7,274	)
December 31, 2012
Unrealized gain (loss) on securities:
Unrealized gain on available-for-sale securities	$	2,555		$	894		$	1,661
Change in unrealized losses on fixed maturity securities with OTTI		1			—			1
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer		(101	)		(35	)		(66	)
Reclassification adjustment for gains realized in net income		(1,279	)		(447	)		(832	)
Net unrealized gain		1,176			412			764
Other comprehensive income	$	1,176		$	412		$	764