Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 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 indicated years ended December 31 are as follows:

(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, net of tax, December 31, 2012	$	1,591,210		$	(121,371	)	$	69,399		$	(20,892	)	$	1,674		$	1,520,020
OCI before reclassifications	(742,768		)	—			(62,934		)	9,722			—			(795,980		)
Amounts reclassified from AOCI	(119,970		)	32,193			206			1,440			439			(85,692		)
Tax benefit (expense)	93,960			(12		)	7,870			(3,509		)	—			98,309
Net current period OCI - net of tax	$	(768,778	)	$	32,181		$	(54,858	)	$	7,653		$	439		$	(783,363	)
Balance, net of tax, December 31, 2013	$	822,432		$	(89,190	)	$	14,541		$	(13,239	)	$	2,113		$	736,657
OCI before reclassifications (1)	954,326			—			(26,497		)	(10,877		)	—			916,952
Amounts reclassified from AOCI	(143,330		)	14,082			87			812			255			(128,094		)
Tax benefit (expense)	(43,314		)	(939		)	681			2,515			—			(41,057		)
Net current period OCI - net of tax	$	767,682		$	13,143		$	(25,729	)	$	(7,550	)	$	255		$	747,801
Balance, net of tax, December 31, 2014	$	1,590,114		$	(76,047	)	$	(11,188	)	$	(20,789	)	$	2,368		$	1,484,458
OCI before reclassifications (1)	(474,304		)	—			(33,690		)	(6,100		)	—			(514,094		)
Amounts reclassified from AOCI	(346,911		)	18,987			—			1,145			(200		)	(326,979		)
Tax benefit (expense)	34,195			(442		)	8,375			1,103			—			43,231
Net current period OCI - net of tax	$	(787,020	)	$	18,545		$	(25,315	)	$	(3,852	)	$	(200	)	$	(797,842	)
Balance, net of tax, December 31, 2015	$	803,094		$	(57,502	)	$	(36,503	)	$	(24,641	)	$	2,168		$	686,616

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(1) Included in these amounts is the impact of Shadow Adjustments. As of December 31, 2014, $445.1 million was recorded. During the year ended December 31, 2015, additional net impacts of $(170.7) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $274.4 million at December 31, 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 indicated years ended December 31, are as follows:

Gross Amount Reclassified From AOCI
Details About AOCI Components (U.S. dollars in thousands)	2015			2014			Affected Line Item in the Statement of Income
Unrealized gains and losses on investments:
	$	(316,508	)	$	(175,639	)	Net realized gains (losses) on investments sold
	95,344			$	54,095		OTTI on investments
	(125,747		)	$	(21,786	)	Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
	$	(346,911	)	$	(143,330	)	Total before tax
	7,597			$	(1,593	)	Provision (benefit) for income tax
	$	(339,314	)	$	(144,923	)	Net of tax
OTTI losses recognized in OCI:
	$	18,014		$	11,848		Net realized gains (losses) on investments sold
	973			$	2,234		OTTI on investments transferred to (from) OCI
	$	18,987		$	14,082		Total before tax
	(32		)	$	(175	)	Provision (benefit) for income tax
	$	18,955		$	13,907		Net of tax
Foreign Currency Translation:
Foreign exchange relating to affiliate investments	$	—		$	87		Exchange gains (losses) - before tax
	—			$	—		Provision (benefit) for income tax
	$	—		$	87		Net of tax
Underfunded Pension Liability:
Pension expense	$	1,145		$	812		Operating Expenses
	(401		)	$	(206	)	Provision (benefit) for income tax
	$	744		$	606		Net of tax
Gains and losses on cash flow hedges:
Interest rate contracts	$	(200	)	$	255		Interest Expense
	—			$	—		Provision (benefit) for income tax
	$	(200	)	$	255		Net of tax
Total reclassifications for the period, gross of tax	$	(326,979	)	(128,094		)
Tax (benefit) expense	7,164			(1,974		)
Total reclassifications for the period, net of tax	$	(319,815	)	(130,068		)