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Accumulated Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Mar. 31, 2015
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, 2015 and 2014 are as follows:
Three months ended March 31, 2015
(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
$
1,590,114

 
$
(76,047
)
 
$
(11,188
)
 
$
(20,789
)
 
$
2,368

 
$
1,484,458

OCI before reclassifications
254,267

 
—

 
32,404

 
975

 
—

 
287,646

Amounts reclassified from AOCI
(74,781
)
 
9,936

 
—

 
—

 
95

 
(64,750
)
Tax benefit (expense)
(5,805
)
 
(78
)
 
3,699

 
—

 
—

 
(2,184
)
Net current period OCI - net of tax
173,681

 
9,858

 
36,103

 
975

 
95

 
220,712

Balance, end of period, net of tax
$
1,763,795

 
$
(66,189
)
 
$
24,915

 
$
(19,814
)
 
$
2,463

 
$
1,705,170

 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2014
(U.S. dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period, net of tax
$
822,432

 
$
(89,190
)
 
$
14,541

 
$
(13,239
)
 
$
2,113

 
$
736,657

OCI before reclassifications
265,250

 
—

 
(5,900
)
 
(31
)
 
—

 
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
210,509

 
3,296

 
(3,880
)
 
(31
)
 
110

 
210,004

Balance, end of period, net of tax
$
1,032,941

 
$
(85,894
)
 
$
10,661

 
$
(13,270
)
 
$
2,223

 
$
946,661


____________
(1)
Included in these amounts is the impact of Shadow Adjustments. As of December 31, 2014 the cumulative impact of these adjustments was $445.1 million. During the three months ended March 31, 2015, net movements of $(60.4) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $384.8 million as of March 31, 2015.
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, 2015 and 2014 are as follows:
Gross Amount Reclassified From AOCI
Details About AOCI Components
(U.S. dollars in thousands)
Three months ended March 31, 2015
 
Three months ended March 31, 2014
 
Affected Line Item in the Statement of Income
Unrealized gains and losses on investments:
 
 
 
 
 
 
$
(78,551
)
 
$
(24,914
)
 
Net realized gains (losses) on investments sold
 
15,724

 
2,276

 
OTTI on investments
 
$
(11,954
)
 
$
—

 
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
 
$
(74,781
)
 
$
(22,638
)
 
Total before tax
 
87

 
453

 
Provision (benefit) for income tax
 
$
(74,694
)
 
$
(22,185
)
 
Net of tax
OTTI losses recognized in OCI:
 
 
 
 
 
 
$
9,875

 
$
1,958

 
Net realized gains (losses) on investments sold
 
61

 
1,451

 
OTTI on investments transferred to (from) OCI
 
$
9,936

 
$
3,409

 
Total before tax
 
(3
)
 
(113
)
 
Provision (benefit) for income tax
 
$
9,933

 
$
3,296

 
Net of tax
Gains and losses on cash flow hedges:
 
 
 
 
 
Interest rate contracts
$
95

 
$
110

 
Interest Expense
 
—

 
—

 
Provision (benefit) for income tax
 
$
95

 
$
110

 
Net of tax
 
 
 
 
 
 
Total reclassifications for the period, gross of tax
$
(64,750
)
 
$
(19,119
)
 
 
Tax benefit (expense)
84

 
340

 
 
Total reclassifications for the period, net of tax
$
(64,666
)
 
$
(18,779
)