XML 42 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
ACCUMULATED OTHER COMPREHENSIVE INCOME
6 Months Ended
Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
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).