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

12 Months Ended

Dec. 31, 2020

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

Comprehensive income (loss) represents the change in shareholders' equity during a reporting period from transactions and other events and circumstances from non-shareholder sources. For the Company, comprehensive income (loss) is equal to net income plus or minus the after tax change in net unrealized investment gains (losses) on fixed maturity securities and the after tax change in net funded status of benefit plans for the periods as shown in the Consolidated Statements of Changes in Shareholders' Equity. AOCI represents the accumulated change in shareholders' equity from these transactions and other events and circumstances from non-shareholder sources as shown in the Consolidated Balance Sheets.

In the Consolidated Balance Sheets, the Company recognizes the net funded status of benefit plans as a component of AOCI, net of tax.

Comprehensive Income (Loss)

The components of comprehensive income (loss) were as follows:


($ in thousands)	Year Ended December 31,
	2020		2019		2018
Net income	$	133,315	$	184,443	$	18,343
Other comprehensive income (loss):
Change in net unrealized investment gains (losses) on fixed maturity securities:
Net unrealized investment gains (losses) on securities arising during the period	183,950		327,363		(275,094)
Less: reclassification adjustment for net investment gains (losses) included in income before income tax	11,235		157,423		(16,363)
Total, before tax	172,715		169,940		(258,731)
Income tax expense (benefit)	36,878		36,433		(55,495)
Total, net of tax	135,837		133,507		(203,236)
Change in net funded status of benefit plans:
Before tax	(503)		1,805		1,294
Income tax expense (benefit)	(105)		387		262
Total, net of tax	(398)		1,418		1,032
Total comprehensive income (loss)	$	268,754	$	319,368	$	(183,861)

Accumulated Other Comprehensive Income (Loss)

The following table reconciles the components of AOCI for the periods indicated.


($ in thousands)	Net Unrealized Investment Gains (Losses) on Securities (1)(2)		Net Funded Status of Benefit Plans (1)		Total (1)
Beginning balance, January 1, 2020	$	230,448	$	(10,767)	$	219,681
Other comprehensive income (loss) before reclassifications	144,713		(398)		144,315
Amounts reclassified from AOCI	(8,876)		—		(8,876)
Net current period other comprehensive income (loss)	135,837		(398)		135,439
Ending balance, December 31, 2020	$	366,285	$	(11,165)	$	355,120

Beginning balance, January 1, 2019	$	96,941	$	(12,185)	$	84,756
Other comprehensive income (loss) before reclassifications	257,871		1,418		259,289
Amounts reclassified from AOCI	(124,364)		—		(124,364)
Net current period other comprehensive income (loss)	133,507		1,418		134,925
Ending balance, December 31, 2019	$	230,448	$	(10,767)	$	219,681

Beginning balance, January 1, 2018	$	300,177	$	(13,217)	$	286,960
Other comprehensive income (loss) before reclassifications	(201,122)		1,032		(200,090)
Amounts reclassified from AOCI	12,927		—		12,927
Cumulative effect of change in accounting principle (3)	(15,041)		—		(15,041)
Net current period other comprehensive income (loss)	(203,236)		1,032		(202,204)
Ending balance, December 31, 2018	$	96,941	$	(12,185)	$	84,756

(1) All amounts are net of tax.

(2) The pretax amounts reclassified from AOCI, $11.2 million, $157.4 million and $(16.4) million, are included in net investment gains (losses) and the related tax expenses, $2.4 million, $33.1 million and $(3.4) million, are included in income tax expense in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018, respectively.

(3) The Company adopted guidance on January 1, 2018 that resulted in reclassifying $15.0 million of after tax net unrealized gains on equity securities from AOCI to Retained earnings.

Comparative information for elements that are not required to be reclassified in their entirety to net income in the same reporting period is located in Note 2.