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Accumulated Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Mar. 31, 2016
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, 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


____________
(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.
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, 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
)