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Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2015
Comprehensive Income Loss Note [Abstract]  
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
The changes in AOCI, net of tax, by component for the three and six months ended June 30, 2015 and 2014 are as follows:
Three months ended June 30, 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
$
1,763,795

 
$
(66,189
)
 
$
24,915

 
$
(19,814
)
 
$
2,463

 
$
1,705,170

OCI before reclassifications
(544,273
)
 
—

 
(36,362
)
 
(1,329
)
 
—

 
(581,964
)
Amounts reclassified from AOCI
(87,558
)
 
1,662

 
—

 
—

 
12

 
(85,884
)
Tax benefit (expense)
37,000

 
(87
)
 
1,939

 
—

 
—

 
38,852

Net current period OCI - net of tax
(594,831
)
 
1,575

 
(34,423
)
 
(1,329
)
 
12

 
(628,996
)
Balance, end of period, net of tax
$
1,168,964

 
$
(64,614
)
 
$
(9,508
)
 
$
(21,143
)
 
$
2,475

 
$
1,076,174

 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2014
(U.S. dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period, net of tax
$
1,032,941

 
$
(85,894
)
 
$
10,661

 
$
(13,270
)
 
$
2,223

 
$
946,661

OCI before reclassifications
363,348

 
—

 
(3,621
)
 
(8
)
 
—

 
359,719

Amounts reclassified from AOCI
(74,337
)
 
1,640

 
—

 
—

 
110

 
(72,587
)
Tax benefit (expense)
(20,774
)
 
(4
)
 
(5,981
)
 
—

 
—

 
(26,759
)
Net current period OCI - net of tax
268,237

 
1,636

 
(9,602
)
 
(8
)
 
110

 
260,373

Balance, end of period, net of tax
$
1,301,178

 
$
(84,258
)
 
$
1,059

 
$
(13,278
)
 
$
2,333

 
$
1,207,034

 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2015
(U.S. dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period, net of tax
$
1,590,114

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

 
$
1,484,458

OCI before reclassifications
(290,007
)
 
—

 
(3,958
)
 
(354
)
 
—

 
(294,319
)
Amounts reclassified from AOCI
(162,338
)
 
11,598

 
—

 
—

 
107

 
(150,633
)
Tax benefit (expense)
31,195

 
(165
)
 
5,638

 
—

 
—

 
36,668

Net current period OCI - net of tax
(421,150
)
 
11,433

 
1,680

 
(354
)
 
107

 
(408,284
)
Balance, end of period, net of tax
$
1,168,964

 
$
(64,614
)
 
$
(9,508
)
 
$
(21,143
)
 
$
2,475

 
$
1,076,174

 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 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
628,599

 
—

 
(9,521
)
 
(39
)
 
—

 
619,039

Amounts reclassified from AOCI
(96,975
)
 
5,049

 
—

 
—

 
220

 
(91,706
)
Tax benefit (expense)
(52,878
)
 
(117
)
 
(3,961
)
 
—

 
—

 
(56,956
)
Net current period OCI - net of tax
478,746

 
4,932

 
(13,482
)
 
(39
)
 
220

 
470,377

Balance, end of period, net of tax
$
1,301,178

 
$
(84,258
)
 
$
1,059

 
$
(13,278
)
 
$
2,333

 
$
1,207,034


____________
(1)
Included in these amounts is the impact of Shadow Adjustments. As of December 31, 2014 the cumulative impact of the Shadow Adjustments was $445.1 million. During the six months ended June 30, 2015, net movements of $(86.7) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $358.4 million as of June 30, 2015.
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 and six months ended June 30, 2015 and 2014 are as follows:
Gross Amount Reclassified From AOCI
Details About AOCI Components
(U.S. dollars in thousands)
Three months ended June 30, 2015
 
Three months ended June 30, 2014
 
Six months ended June 30, 2015
 
Six months ended June 30, 2014
 
Affected Line Item in the Statement of Income
Unrealized gains and losses on investments:
 
 
 
 
 
 
 
 
 
 
$
(71,027
)
 
$
(107,470
)
 
$
(149,578
)
 
$
(132,384
)
 
Net realized gains (losses) on investments sold and net unrealized gains (losses) on investments Trading
 
19,398

 
33,133

 
35,122

 
35,409

 
OTTI on investments
 
$
(35,929
)
 
$
—

 
$
(47,882
)
 
$
—

 
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
 
$
(87,558
)
 
$
(74,337
)
 
$
(162,338
)
 
$
(96,975
)
 
Total before tax
 
3,694

 
3,699

 
3,781

 
4,152

 
Provision (benefit) for income tax
 
$
(83,864
)
 
$
(70,638
)
 
$
(158,557
)
 
$
(92,823
)
 
Net of tax
OTTI losses recognized in OCI:
 
 
 
 
 
 
 
 
 
 
$
1,594

 
$
1,386

 
$
11,469

 
$
3,344

 
Net realized gains (losses) on investments sold
 
68

 
254

 
129

 
1,705

 
OTTI on investments transferred to (from) OCI
 
$
1,662

 
$
1,640

 
$
11,598

 
$
5,049

 
Total before tax
 
(12
)
 
(4
)
 
(15
)
 
(117
)
 
Provision (benefit) for income tax
 
$
1,650

 
$
1,636

 
$
11,583

 
$
4,932

 
Net of tax
Gains and losses on cash flow hedges:
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
12

 
$
110

 
$
107

 
$
220

 
Interest Expense
 
—

 
—

 
—

 
—

 
Provision (benefit) for income tax
 
$
12

 
$
110

 
$
107

 
$
220

 
Net of tax
 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period, gross of tax
$
(85,884
)
 
$
(72,587
)
 
$
(150,633
)
 
$
(91,706
)
 
 
Tax benefit (expense)
3,682

 
3,695

 
3,766

 
4,035

 
 
Total reclassifications for the period, net of tax
$
(82,202
)
 
$
(68,892
)
 
$
(146,867
)
 
$
(87,671
)