Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2012

Comprehensive Income Loss Note [Abstract]

Accumulated other comprehensive income (loss)

20. Accumulated Other Comprehensive Income (Loss)

The related tax effects allocated to each component of the change in accumulated other comprehensive income (loss) were as follows:

		Before		Tax		Net of
		Tax		(Benefit)		Tax
(U.S. dollars in thousands)		Amount		Expense		Amount
Year Ended December 31, 2012:
Unrealized gains on investments:
	Unrealized gains (losses) arising during year	$	985,543	$	(7,348)	$	992,891
	Less reclassifications for (losses) realized in income		14,098		(24,137)		38,235
Net unrealized gains (losses) on investments		$	971,445		16,789		954,656
Change in value cash flow hedge			439		-		439
Change in underfunded pension liability			(9,985)		-		(9,985)
Foreign currency translation adjustments			(6,448)		1,715		(8,163)
Change in accumulated other comprehensive income		$	955,451	$	18,504	$	936,947
Year Ended December 31, 2011:
Unrealized gains on investments:
	Unrealized gains (losses) arising during year	$	384,495	$	51,775	$	332,720
	Less reclassifications for (losses) realized in income		(188,359)		(9,927)		(178,432)
Net unrealized gains (losses) on investments		$	572,854		61,702		511,152
Change in value cash flow hedge			439		-		439
Change in underfunded pension liability			(2,622)		-		(2,622)
Foreign currency translation adjustments			(25,598)		1,102		(26,700)
Change in accumulated other comprehensive income		$	545,073	$	62,804	$	482,269
Year Ended December 31, 2010:
Unrealized gains on investments:
	Unrealized gains (losses) arising during year	$	968,891	$	36,122	$	932,769
	Less reclassifications for (losses) realized in income		(270,803)		(5,369)		(265,434)
Net unrealized gains (losses) on investments		$	1,239,694		41,491		1,198,203
Change in value cash flow hedge			439		-		439
Change in net unrealized gain on future policy benefit reserves			(3,714)		-		(3,714)
Change in underfunded pension liability			(2,619)		-		(2,619)
Foreign currency translation adjustments			54,641		3,688		50,953
Change in accumulated other comprehensive income		$	1,288,441	$	45,179	$	1,243,262

The December 31, 2012, 2011 and 2010 balance of each component of accumulated other comprehensive income (loss) were as follows:

(U.S. dollars in thousands)	2012		2011		2010
Accumulated unrealized gains (losses) on investments, net of tax	$	1,597,823		710,447		238,751
OTTI losses recognized in other comprehensive income, net of tax		(121,371)		(188,651)		(228,107)
Accumulated foreign currency translation		69,391		77,554		104,254
Accumulated underfunded pension liability		(27,506)		(17,521)		(14,899)
Accumulated cash flow hedge		1,674		1,235		796
Total	$	1,520,011	$	583,064	$	100,795