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Accumulated Other Comprehensive Income (Tables)
 12 Months Ended
Dec. 31, 2016
Comprehensive Income Loss Note [Abstract]  
Components of acculumated 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, 2013
$
822,432

 
$
(89,190
)
 
$
14,541

 
$
(13,239
)
 
$
2,113

 
$
736,657

OCI before reclassifications
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
(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

OCI before reclassifications
254,333

 
—

 
102,772

 
(1,332
)
 
—

 
355,773

Amounts reclassified from AOCI
(353,910
)
 
6,599

 
—

 
3,100

 
(182
)
 
(344,393
)
Tax benefit (expense)
26,912

 
(49
)
 
(7,299
)
 
(2,014
)
 
—

 
17,550

Net current period OCI - net of tax
$
(72,665
)
 
$
6,550

 
$
95,473

 
$
(246
)
 
$
(182
)
 
$
28,930

Balance, net of tax, December 31, 2016
$
730,429

 
$
(50,952
)
 
$
58,970

 
$
(24,887
)
 
$
1,986

 
$
715,546

____________
(1)
Included in these amounts is the impact of Shadow Adjustments on future policy benefit reserves. As of December 31, 2015, $274.4 million was recorded. During the year ended December 31, 2016, additional net impacts of $(62.3) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $212.1 million at December 31, 2016.
Reclassifications out of AOCI
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:
Details About AOCI Components
(U.S. dollars in thousands)
2016
 
2015
Affected Line Item in the Statement of Income
 
 
 
 
 
 
 
Unrealized gains and losses on investments:
 
 
 
Net realized gains (losses) on investments sold
$
(350,875
)
 
$
(316,508
)
OTTI on investments
81,595

 
95,344

Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
(51,100
)
 
(125,747
)
Income (loss) from investment fund affiliates
(33,530
)
 
—

Total before tax
$
(353,910
)
 
$
(346,911
)
Provision (benefit) for income tax
10,084

 
7,597

Net of tax
$
(343,826
)
 
$
(339,314
)
 
 
 
 
OTTI losses recognized in OCI:
 
 
 
Net realized gains (losses) on investments sold
$
7,038

 
$
18,014

OTTI on investments transferred to (from) OCI
(439
)
 
973

Total before tax
$
6,599

 
$
18,987

Provision (benefit) for income tax
(49
)
 
(32
)
Net of tax
$
6,550

 
$
18,955

 
 
 
 
Underfunded Pension Liability:
 
 
 
Operating Expenses
$
3,100

 
$
1,145

Provision (benefit) for income tax
(1,085
)
 
(401
)
Net of tax
$
2,015

 
$
744

 
 
 
 
Gains and losses on cash flow hedges:
 
 
 
Interest Expense
$
(182
)
 
$
(200
)
Provision (benefit) for income tax
—

 
—

Net of tax
$
(182
)
 
$
(200
)
 
 
 
 
Total reclassifications for the period, gross of tax
$
(344,393
)
 
$
(326,979
)
Tax (benefit) expense
8,950

 
7,164

Total reclassifications for the period, net of tax
$
(335,443
)
 
$
(319,815
)