XML 35 R22.htm IDEA: XBRL DOCUMENT v3.5.0.2
Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2016 and 2015 are as follows:
Three months ended June 30, 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
$
1,226,295

 
$
(55,235
)
 
$
(52,942
)
 
$
(25,690
)
 
$
2,129

 
$
1,094,557

OCI before reclassifications
392,620

 
—

 
71,918

 
100

 
—

 
464,638

Amounts reclassified from AOCI
(112,377
)
 
1,810

 
—

 
—

 
(48
)
 
(110,615
)
Tax benefit (expense)
(31,460
)
 
42

 
(8,575
)
 
—

 
—

 
(39,993
)
Net current period OCI - net of tax
248,783

 
1,852

 
63,343

 
100

 
(48
)
 
314,030

Balance, end of period, net of tax
$
1,475,078

 
$
(53,383
)
 
$
10,401

 
$
(25,590
)
 
$
2,081

 
$
1,408,587

 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2015
(U.S. dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2016
(U.S. dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period, net of tax
$
803,094

 
$
(57,502
)
 
$
(36,503
)
 
$
(24,641
)
 
$
2,168

 
$
686,616

OCI before reclassifications
967,642

 
—

 
56,502

 
(949
)
 
—

 
1,023,195

Amounts reclassified from AOCI
(229,491
)
 
4,121

 
—

 
—

 
(87
)
 
(225,457
)
Tax benefit (expense)
(66,167
)
 
(2
)
 
(9,598
)
 
—

 
—

 
(75,767
)
Net current period OCI - net of tax
671,984

 
4,119

 
46,904

 
(949
)
 
(87
)
 
721,971

Balance, end of period, net of tax
$
1,475,078

 
$
(53,383
)
 
$
10,401

 
$
(25,590
)
 
$
2,081

 
$
1,408,587

 
 
 
 
 
 
 
 
 
 
 
 
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


____________
(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 six months ended June 30, 2016, net movements of $(25.8) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $248.7 million as of June 30, 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 and six months ended June 30, 2016 and 2015 are as follows:
Gross Amount Reclassified From AOCI
Details About AOCI Components
(U.S. dollars in thousands)
Three months ended June 30, 2016
 
Three months ended June 30, 2015
 
Six months ended June 30, 2016
 
Six months ended June 30, 2015
 
Affected Line Item in the Statement of Income
Unrealized gains and losses on investments:
 
 
 
 
 
 
 
 
 
 
$
(139,457
)
 
$
(71,027
)
 
$
(256,445
)
 
$
(149,578
)
 
Net realized gains (losses) on investments sold and net unrealized gains (losses) on investments Trading
 
33,030

 
19,398

 
54,958

 
35,122

 
OTTI on investments
 
$
(5,950
)
 
$
(35,929
)
 
$
(28,004
)
 
$
(47,882
)
 
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
 
$
(112,377
)
 
$
(87,558
)
 
$
(229,491
)
 
$
(162,338
)
 
Total before tax
 
1,633

 
3,694

 
3,210

 
3,781

 
Provision (benefit) for income tax
 
$
(110,744
)
 
$
(83,864
)
 
$
(226,281
)
 
$
(158,557
)
 
Net of tax
OTTI losses recognized in OCI:
 
 
 
 
 
 
 
 
 
 
$
2,066

 
$
1,594

 
$
4,379

 
$
11,469

 
Net realized gains (losses) on investments sold
 
(256
)
 
68

 
(258
)
 
129

 
OTTI on investments transferred to (from) OCI
 
$
1,810

 
$
1,662

 
$
4,121

 
$
11,598

 
Total before tax
 
42

 
(12
)
 
(2
)
 
(15
)
 
Provision (benefit) for income tax
 
$
1,852

 
$
1,650

 
$
4,119

 
$
11,583

 
Net of tax
Gains and losses on cash flow hedges:
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
(48
)
 
$
12

 
$
(87
)
 
$
107

 
Interest Expense
 
—

 
—

 
—

 
—

 
Provision (benefit) for income tax
 
$
(48
)
 
$
12

 
$
(87
)
 
$
107

 
Net of tax
 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period, gross of tax
$
(110,615
)
 
$
(85,884
)
 
$
(225,457
)
 
$
(150,633
)
 
 
Tax benefit (expense)
1,675

 
3,682

 
3,208

 
3,766

 
 
Total reclassifications for the period, net of tax
$
(108,940
)
 
$
(82,202
)
 
$
(222,249
)
 
$
(146,867
)