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Accumulated Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Mar. 31, 2018
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, 2018 and 2017 are as follows:
Three Months Ended March 31, 2018
(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
$
870,478

 
$
(43,527
)
 
$
83,042

 
$
(22,356
)
 
$
1,794

 
$
889,431

OCI before reclassifications
(399,792
)
 
—

 
(3,112
)
 
(223
)
 
—

 
(403,127
)
Amounts reclassified from AOCI
10,875

 
3,713

 
—

 
—

 
(48
)
 
14,540

Tax benefit (expense)
28,747

 
(97
)
 
680

 
34

 
—

 
29,364

Net current period OCI - net of tax
(360,170
)
 
3,616

 
(2,432
)
 
(189
)
 
(48
)
 
(359,223
)
Reclassification due to the adoption of ASU 2016-01 (2)
$
(221,856
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(221,856
)
Reclassification due to the adoption of ASU 2018-02
$
6,357

 
$
—

 
$
(216
)
 
$
(2,238
)
 
$
—

 
$
3,903

Balance, end of period, net of tax
$
294,809

 
$
(39,911
)
 
$
80,394

 
$
(24,783
)
 
$
1,746

 
$
312,255

 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2017
(U.S. dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period, net of tax
$
730,429

 
$
(50,952
)
 
$
58,970

 
$
(24,887
)
 
$
1,986

 
$
715,546

OCI before reclassifications
149,959

 
—

 
39,204

 
(341
)
 
—

 
188,822

Amounts reclassified from AOCI
(52,554
)
 
1,455

 
—

 
—

 
(48
)
 
(51,147
)
Tax benefit (expense)
(10,952
)
 
(13
)
 
2,734

 
(16
)
 
—

 
(8,247
)
Net current period OCI - net of tax
86,453

 
1,442

 
41,938

 
(357
)
 
(48
)
 
129,428

Balance, end of period, net of tax
$
816,882

 
$
(49,510
)
 
$
100,908

 
$
(25,244
)
 
$
1,938

 
$
844,974


____________
(1)
For certain annuity contracts that are subject to the GreyCastle Life Retro Arrangements, future 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"). Upon completion of the GreyCastle Life Retro Arrangements, no further Shadow Adjustments were recorded. At December 31, 2017, the cumulative impact of the Shadow Adjustments was $184.9 million. During the three months ended March 31, 2018, net movements of $(4.2) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $180.8 million at March 31, 2018.
(2)
The reclassification out of AOCI due to the adoption of ASU 2016-01 includes $233.8 million of net unrealized gains less $11.9 million of deferred tax on net unrealized gains as discussed in Note 1(b), "Significant Accounting Policies - Recent Accounting Pronouncements."

Reclassification out of Accumulated Other Comprehensive Income
The reclassifications out of AOCI along with the associated Unaudited Consolidated Statements of Income line items affected by component, and the total related tax (expense) benefit for the three months ended March 31, 2018 and 2017 are as follows:
Gross Amount Reclassified From AOCI
Details About AOCI Components - Affected Line Items in the Unaudited Consolidated Statements of Income
(U.S. dollars in thousands)
Three months ended March 31, 2018
 
Three months ended March 31, 2017
Unrealized gains and losses on investments:
 
 
 
Net realized gains (losses) on investments AFS
$
17,762

 
$
(47,020
)
OTTI
2,848

 
6,874

Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets
(9,735
)
 
(12,408
)
Income (loss) from investment affiliates
—

 
—

Total before tax
$
10,875

 
$
(52,554
)
Provision (benefit) for income tax
(2,002
)
 
(474
)
Net of tax
$
8,873

 
$
(53,028
)
OTTI losses recognized in OCI:
 
 
 
Net realized gains (losses) on investments AFS
$
3,552

 
$
1,455

OTTI transferred to (from) OCI
161

 
—

Total before tax
$
3,713

 
$
1,455

Provision (benefit) for income tax
(97
)
 
(13
)
Net of tax
$
3,616

 
$
1,442

Gains and losses on cash flow hedges:
 
 
 
Interest Expense
$
(48
)
 
$
(48
)
Provision (benefit) for income tax
—

 
—

Net of tax
$
(48
)
 
$
(48
)
Total reclassifications for the period, gross of tax
$
14,540

 
$
(51,147
)
Tax benefit (expense)
(2,099
)
 
(487
)
Total reclassifications for the period, net of tax
$
12,441

 
$
(51,634
)