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Accumulated Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Mar. 31, 2014
Comprehensive Income Loss Note [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The changes in AOCI, net of tax, by component for the three months ended March 31, 2014 and 2013 are as follows:
Three months ended March 31, 2014
(U.S. dollars in thousands)
Unrealized Gains (Losses) on Investments (1)
 
OTTI Losses Recognized in AOCI
 
Foreign Currency Translation Adjustments
 
Underfunded Pension Liability
 
Cash Flow Hedge
 
Total
Balance, beginning of period, net of tax
$
822,439

 
$
(89,190
)
 
$
14,533

 
$
(13,238
)
 
$
2,113

 
$
736,657

OCI before reclassifications
265,251

 
—

 
(5,900
)
 
(32
)

—

 
259,319

Amounts reclassified from AOCI
(22,638
)
 
3,409

 
—

 
—

 
110

 
(19,119
)
Tax (benefit) expense
(32,103
)
 
(113
)
 
2,020

 
—

 
—

 
(30,196
)
Net current period OCI - net of tax
210,510

 
3,296

 
(3,880
)
 
(32
)
 
110

 
210,004

Balance, end of period, net of tax
$
1,032,949

 
$
(85,894
)
 
$
10,653

 
$
(13,270
)
 
$
2,223

 
$
946,661


____________
(1)
Included in these amounts are the impact of net unrealized gains (losses) on investments to the value of future policy benefit reserves. During the year ended December 31, 2013, the initial impact of $44.7 million was recorded. During the three months ended March 31, 2014, additional impacts of $34.0 million were recorded, resulting in a total cumulative impact of net unrealized gains (losses) on investments to the value of future policy benefit reserves of $78.7 million at March 31, 2014.
Three months ended March 31, 2013
(U.S. dollars in thousands)
Unrealized Gains (Losses) on Investments
 
OTTI Losses Recognized in AOCI
 
Foreign Currency Translation Adjustments
 
Underfunded Pension Liability
 
Cash Flow Hedge
 
Total
Balance, beginning of period, net of tax
$
1,591,218

 
$
(121,371
)
 
$
69,391

 
$
(20,892
)
 
$
1,674

 
$
1,520,020

OCI before reclassifications
(87,687
)
 
—

 
(5,053
)
 
385

 
—

 
$
(92,355
)
Amounts reclassified from AOCI
(41,695
)
 
5,185

 
—

 
—

 
110

 
$
(36,400
)
Tax (benefit) expense
12,726

 
(3
)
 
1,134

 
—

 
—

 
$
13,857

Net current period OCI - net of tax
(116,656
)

5,182


(3,919
)

385


110


(114,898
)
Balance, end of period, net of tax
$
1,474,562


$
(116,189
)

$
65,472


$
(20,507
)

$
1,784


$
1,405,122
Reclassification out of Accumulated Other Comprehensive Income
The reclassifications out of AOCI along with the associated income statement line items affected by component, and the total related tax (expense) benefit for the three months ended March 31, 2014 and 2013 are as follows:
Gross Amount Reclassified From AOCI
Details About AOCI Components
(U.S. dollars in thousands)
Three months ended March 31, 2014
 
Three months ended March 31, 2013
 
Affected Line Item in the Statement of Income
Unrealized gains and losses on investments:
 
 
 
 
 
 
$
(24,914
)
 
$
(45,422
)
 
Net realized gains (losses) on investments sold
 
2,276

 
3,727

 
OTTI on investments
 
$
(22,638
)
 
$
(41,695
)
 
Total before tax
 
453

 
274

 
Provision (benefit) for income tax
 
$
(22,185
)
 
$
(41,421
)
 
Net of tax
OTTI losses recognized in OCI:
 
 
 
 
 
 
$
1,958

 
$
4,275

 
Net realized gains (losses) on investments sold
 
1,451

 
910

 
OTTI on investments transferred to (from) OCI
 
$
3,409

 
$
5,185

 
Total before tax
 
(113
)
 
(3
)
 
Provision (benefit) for income tax
 
$
3,296

 
$
5,182

 
Net of tax
Gains and losses on cash flow hedges:
 
 
 
 
 
     Interest rate contracts
$
110

 
$
110

 
Interest Expense
 
—

 
—

 
Provision (benefit) for income tax
 
$
110

 
$
110

 
Net of tax
 
 
 
 
 
 
Total reclassifications for the period, gross of tax
$
(19,119
)
 
$
(36,400
)
 
 
Tax (benefit) expense
340

 
271

 
 
Total reclassifications for the period, net of tax
$
(18,779
)
 
$
(36,129
)