| ACCUMULATED OTHER COMPREHENSIVE INCOME |
ACCUMULATED OTHER COMPREHENSIVE INCOME The Company has available-for-sale securities and receives an allocation of the actuarial losses and net prior service credits associated with Employers Mutual’s pension and postretirement benefit plans, both of which generate accumulated other comprehensive income (loss) amounts. The following table reconciles, by component, the beginning and ending balances of accumulated other comprehensive income (loss), net of tax. | | | | | | | | | | | | | | | | | | | | | | | | Accumulated other comprehensive income (loss) by component | | | Unrealized
gains (losses) on
available-for-
sale securities | | Unrecognized pension and postretirement benefit obligations | | | ($ in thousands) | | | Net actuarial loss | | Prior service credit | | Total | | Total | Balance at December 31, 2017 | | $ | 83,497 |
| | $ | (13,074 | ) | | $ | 12,961 |
| | $ | (113 | ) | | $ | 83,384 |
| Cumulative adjustment for adoption of financial instruments recognition and measurement changes | | (66,234 | ) | | — |
| | — |
| | — |
| | (66,234 | ) | Other comprehensive income (loss) before reclassifications | | (26,546 | ) | | — |
| | — |
| | — |
| | (26,546 | ) | Amounts reclassified from accumulated other comprehensive income (loss) | | 4,530 |
| | 166 |
| | (1,244 | ) | | (1,078 | ) | | 3,452 |
| Other comprehensive income (loss) | | (22,016 | ) | | 166 |
| | (1,244 | ) | | (1,078 | ) | | (23,094 | ) | Balance at June 30, 2018 | | $ | (4,753 | ) | | $ | (12,908 | ) | | $ | 11,717 |
| | $ | (1,191 | ) | | $ | (5,944 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | Accumulated other comprehensive income (loss) by component | | | Unrealized
gains (losses) on
available-for-
sale securities | | Unrecognized pension and postretirement benefit obligations | | | ($ in thousands) | | | Net actuarial loss | | Prior service credit | | Total | | Total | Balance at December 31, 2016 | | $ | 49,748 |
| | $ | (16,299 | ) | | $ | 12,632 |
| | $ | (3,667 | ) | | $ | 46,081 |
| Other comprehensive income (loss) before reclassifications | | 17,979 |
| | — |
| | — |
| | — |
| | 17,979 |
| Amounts reclassified from accumulated other comprehensive income (loss) | | (4,135 | ) | | 479 |
| | (1,024 | ) | | (545 | ) | | (4,680 | ) | Other comprehensive income (loss) | | 13,844 |
| | 479 |
| | (1,024 | ) | | (545 | ) | | 13,299 |
| Balance at June 30, 2017 | | $ | 63,592 |
| | $ | (15,820 | ) | | $ | 11,608 |
| | $ | (4,212 | ) | | $ | 59,380 |
|
The following tables display amounts reclassified out of accumulated other comprehensive income and into net income during the three and six months ended June 30, 2018 and 2017, respectively. | | | | | | | | | | | | ($ in thousands) | | Amounts reclassified from accumulated other comprehensive income (loss) | | | Accumulated other comprehensive
income (loss) components | | Three months ended
June 30, 2018 | | Six months ended
June 30, 2018 | | Affected line item in the
consolidated statements
of income | Unrealized gains (losses) on investments: | | | | | | | Reclassification adjustment for net realized investment gains (losses) included in net income | | $ | (5,490 | ) | | $ | (5,734 | ) | | Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | Deferred income tax (expense) benefit | | 1,153 |
| | 1,204 |
| | Total income tax expense (benefit) | Net reclassification adjustment | | (4,337 | ) | | (4,530 | ) | | Net income (loss) | | | | | | | | Unrecognized pension and postretirement benefit obligations: | | | | | | | Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: | | | | | | | Net actuarial loss | | (107 | ) | | (210 | ) | | (1) | Prior service credit | | 787 |
| | 1,575 |
| | (1) | Total before tax | | 680 |
| | 1,365 |
| | | Deferred income tax (expense) benefit | | (143 | ) | | (287 | ) | | | Net reclassification adjustment | | 537 |
| | 1,078 |
| | | | | | | | | | Total reclassification adjustment | | $ | (3,800 | ) | | $ | (3,452 | ) | | |
| | (1) | These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). |
| | | | | | | | | | | | ($ in thousands) | | Amounts reclassified from accumulated other comprehensive income (loss) | | | Accumulated other comprehensive
income (loss) components | | Three months ended June 30, 2017 | | Six months ended June 30, 2017 | | Affected line item in the
consolidated statements
of income | Unrealized gains (losses) on investments: | | | | | | | Reclassification adjustment for net realized investment gains (losses) included in net income | | $ | 4,702 |
| | $ | 6,362 |
| | Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | Deferred income tax (expense) benefit | | (1,646 | ) | | (2,227 | ) | | Total income tax expense (benefit) | Net reclassification adjustment | | 3,056 |
| | 4,135 |
| | Net income (loss) | | | | | | | | Unrecognized pension and postretirement benefit obligations: | | | | | | | Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: | | | | | | | Net actuarial loss | | (369 | ) | | (737 | ) | | (1) | Prior service credit | | 788 |
| | 1,575 |
| | (1) | Total before tax | | 419 |
| | 838 |
| | | Deferred income tax (expense) benefit | | (146 | ) | | (293 | ) | | | Net reclassification adjustment | | 273 |
| | 545 |
| | | | | | | | | | Total reclassification adjustment | | $ | 3,329 |
| | $ | 4,680 |
| | |
| | (1) | These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). |
|