Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2016

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 months ended March 31, 2016 and 2015 are as follows:

Three months ended March 31, 2016 (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	$	803,094		$	(57,502	)	$	(36,503	)	$	(24,641	)	$	2,168		$	686,616
OCI before reclassifications	575,022			—			(15,416		)	(1,049		)	—			558,557
Amounts reclassified from AOCI	(117,114		)	2,311			—			—			(39		)	(114,842		)
Tax benefit (expense)	(34,707		)	(44		)	(1,023		)	—			—			(35,774		)
Net current period OCI - net of tax	423,201			2,267			(16,439		)	(1,049		)	(39		)	407,941
Balance, end of period, net of tax	$	1,226,295		$	(55,235	)	$	(52,942	)	$	(25,690	)	$	2,129		$	1,094,557
Three months ended March 31, 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	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

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(1) For certain annuity contracts that are subject to the GreyCastle Life Retro Arrangements, policy benefit reserves were historically increased for the impact of changes in unrealized gains on investments supporting such contracts as if the gains had been realized, with a corresponding entry to other comprehensive income ("Shadow Adjustments"). As of December 31, 2015, the cumulative impact of the Shadow Adjustments was $274.4 million. During the three months ended March 31, 2016, net movements of $(17.0) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $257.4 million as of March 31, 2016.

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, 2016 and 2015 are as follows:

Gross Amount Reclassified From AOCI
Details About AOCI Components (U.S. dollars in thousands)	Three months ended March 31, 2016			Three months ended March 31, 2015			Affected Line Item in the Statement of Income
Unrealized gains and losses on investments:
	$	(116,988	)	$	(78,551	)	Net realized gains (losses) on investments sold and net unrealized gains (losses) on investments Trading
	21,928			15,724			OTTI on investments
	$	(22,054	)	$	(11,954	)	Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
	$	(117,114	)	$	(74,781	)	Total before tax
	1,577			87			Provision (benefit) for income tax
	$	(115,537	)	$	(74,694	)	Net of tax
OTTI losses recognized in OCI:
	$	2,313		$	9,875		Net realized gains (losses) on investments sold
	(2		)	61			OTTI on investments transferred to (from) OCI
	$	2,311		$	9,936		Total before tax
	(44		)	(3		)	Provision (benefit) for income tax
	$	2,267		$	9,933		Net of tax
Gains and losses on cash flow hedges:
Interest rate contracts	$	(39	)	$	95		Interest Expense
	—			—			Provision (benefit) for income tax
	$	(39	)	$	95		Net of tax
Total reclassifications for the period, gross of tax	$	(114,842	)	$	(64,750	)
Tax benefit (expense)	1,533			84
Total reclassifications for the period, net of tax	$	(113,309	)	$	(64,666	)