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Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 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 nine months ended September 30, 2015 and 2014 are as follows:
Three months ended September 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
$
1,168,964

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

 
$
1,076,174

OCI before reclassifications
(4,334
)
 
—

 
(24,267
)
 
93

 
—

 
(28,508
)
Amounts reclassified from AOCI
(94,393
)
 
2,318

 
—

 
—

 
12

 
(92,063
)
Tax benefit (expense)
(2,213
)
 
(181
)
 
1,873

 
—

 
—

 
(521
)
Net current period OCI - net of tax
(100,940
)
 
2,137

 
(22,394
)
 
93

 
12

 
(121,092
)
Balance, end of period, net of tax
$
1,068,024

 
$
(62,477
)
 
$
(31,902
)
 
$
(21,050
)
 
$
2,487

 
$
955,082

 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2014
(U.S. dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period, net of tax
$
1,301,178

 
$
(84,258
)
 
$
1,059

 
$
(13,278
)
 
$
2,333

 
$
1,207,034

OCI before reclassifications
51,133

 
—

 
(14,167
)
 
418

 
—

 
37,384

Amounts reclassified from AOCI
(28,795
)
 
6,078

 
87

 
—

 
83

 
(22,547
)
Tax benefit (expense)
7,906

 
(115
)
 
2,267

 
—

 
—

 
10,058

Net current period OCI - net of tax
30,244

 
5,963

 
(11,813
)
 
418

 
83

 
24,895

Balance, end of period, net of tax
$
1,331,422

 
$
(78,295
)
 
$
(10,754
)
 
$
(12,860
)
 
$
2,416

 
$
1,231,929

 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 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
(294,341
)
 
—

 
(28,225
)
 
(261
)
 
—

 
(322,827
)
Amounts reclassified from AOCI
(256,731
)
 
13,916

 
—

 
—

 
119

 
(242,696
)
Tax benefit (expense)
28,982

 
(346
)
 
7,511

 
—

 
—

 
36,147

Net current period OCI - net of tax
(522,090
)
 
13,570

 
(20,714
)
 
(261
)
 
119

 
(529,376
)
Balance, end of period, net of tax
$
1,068,024

 
$
(62,477
)
 
$
(31,902
)
 
$
(21,050
)
 
$
2,487

 
$
955,082

 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 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
679,732

 
—

 
(23,688
)
 
379

 
—

 
656,423

Amounts reclassified from AOCI
(125,770
)
 
11,127

 
87

 
—

 
303

 
(114,253
)
Tax benefit (expense)
(44,972
)
 
(232
)
 
(1,694
)
 
—

 
—

 
(46,898
)
Net current period OCI - net of tax
508,990

 
10,895

 
(25,295
)
 
379

 
303

 
495,272

Balance, end of period, net of tax
$
1,331,422

 
$
(78,295
)
 
$
(10,754
)
 
$
(12,860
)
 
$
2,416

 
$
1,231,929


____________
(1)
Included in these amounts is the impact of Shadow Adjustments as defined in Note 6, "Investments.". As of December 31, 2014 the cumulative impact of the Shadow Adjustments was $445.1 million. During the nine months ended September 30, 2015, net movements of $(127.4) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $317.7 million as of September 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 nine months ended September 30, 2015 and 2014 are as follows:
Gross Amount Reclassified From AOCI
Details About AOCI Components
(U.S. dollars in thousands)
Three months ended September 30, 2015
 
Three months ended September 30, 2014
 
Nine months ended September 30, 2015
 
Nine months ended September 30, 2014
 
Affected Line Item in the Statement of Income
Unrealized gains and losses on investments:
 
 
 
 
 
 
 
 
 
 
$
(97,761
)
 
$
(18,665
)
 
$
(247,339
)
 
$
(151,049
)
 
Net realized gains (losses) on investments sold and net unrealized gains (losses) on investments Trading
 
44,036

 
8,246

 
79,158

 
43,655

 
OTTI on investments
 
$
(40,668
)
 
$
(18,376
)
 
$
(88,550
)
 
$
(18,376
)
 
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
 
$
(94,393
)
 
$
(28,795
)
 
$
(256,731
)
 
$
(125,770
)
 
Total before tax
 
1,253

 
956

 
5,034

 
5,108

 
Provision (benefit) for income tax
 
$
(93,140
)
 
$
(27,839
)
 
$
(251,697
)
 
$
(120,662
)
 
Net of tax
OTTI losses recognized in OCI:
 
 
 
 
 
 
 
 
 
 
$
1,617

 
$
5,686

 
$
13,086

 
$
9,030

 
Net realized gains (losses) on investments sold
 
701

 
392

 
830

 
2,097

 
OTTI on investments transferred to (from) OCI
 
$
2,318

 
$
6,078

 
$
13,916

 
$
11,127

 
Total before tax
 
(10
)
 
(3
)
 
(25
)
 
(120
)
 
Provision (benefit) for income tax
 
$
2,308

 
$
6,075

 
$
13,891

 
$
11,007

 
Net of tax
Foreign currency translation:
 
 
 
 
 
 
 
 
 
Foreign exchange relating to affiliate investments
$
—

 
$
87

 
$
—

 
$
87

 
Exchange gains (losses) - before tax
 
—

 
—

 
—

 
—

 
Provision (benefit) for income tax
 
$
—

 
$
87

 
$
—

 
$
87

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

 
$
83

 
$
119

 
$
303

 
Interest Expense
 
—

 
—

 
—

 
—

 
Provision (benefit) for income tax
 
$
12

 
$
83

 
$
119

 
$
303

 
Net of tax
 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period, gross of tax
$
(92,063
)
 
$
(22,547
)
 
$
(242,696
)
 
$
(114,253
)
 
 
Tax benefit (expense)
1,243

 
953

 
5,009

 
4,988

 
 
Total reclassifications for the period, net of tax
$
(90,820
)
 
$
(21,594
)
 
$
(237,687
)
 
$
(109,265
)