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Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2013
Comprehensive Income Loss Note [Abstract]  
Accumulated Other Comprehensive Income
The changes in AOCI, net of tax, by component for the three months ended June 30, 2013 are as follows:
Three months ended June 30, 2013
(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
$
1,481,175

 
$
(116,189
)
 
$
65,470

 
$
(27,121
)
 
$
1,784

 
$
1,405,119

OCI before reclassifications (1)
(701,365
)
 
—

 
(23,715
)
 
(90
)
 
—

 
(725,170
)
Amounts reclassified from AOCI
(55,408
)
 
14,440

 
—

 
—

 
110

 
(40,858
)
Tax (benefit) expense
71,671

 
(2
)
 
—

 
—

 
—

 
71,669

Net current period OCI - net of tax
(685,102
)
 
14,438

 
(23,715
)
 
(90
)
 
110

 
(694,359
)
Balance, end of period, net of tax
$
796,073

 
$
(101,751
)
 
$
41,755

 
$
(27,211
)
 
$
1,894

 
$
710,760


____________
(1)
Amounts are net of cumulative adjustments recorded to the value of future policy benefit reserves of $32.9 million. These amounts were recorded during the three months ended June 30, 2013.
The changes in AOCI, net of tax, by component for the six months ended June 30, 2013 are as follows:
Six months ended June 30, 2013
(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
$
1,597,832

 
$
(121,371
)
 
$
69,391

 
$
(27,506
)
 
$
1,674

 
$
1,520,020

OCI before reclassifications (1)
(789,053
)
 
—

 
(27,636
)
 
295

 
—

 
(816,394
)
Amounts reclassified from AOCI
(97,103
)
 
19,625

 
—

 
—

 
220

 
(77,258
)
Tax (benefit) expense
84,397

 
(5
)
 
—

 
—

 
—

 
84,392

Net current period OCI - net of tax
(801,759
)
 
19,620

 
(27,636
)
 
295

 
220

 
(809,260
)
Balance, end of period, net of tax
$
796,073

 
$
(101,751
)
 
$
41,755

 
$
(27,211
)
 
$
1,894

 
$
710,760

____________
(1)
Amounts are net of cumulative adjustments recorded to the value of future policy benefit reserves of $32.9 million. These amounts were recorded during the three months ended June 30, 2013.
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, 2013 and 2012 are as follows:
Gross Amount Reclassified From AOCI
Details About AOCI Components
(U.S. dollars in thousands)
Three months ended June 30, 2013
 
Six months ended June 30, 2013
 
Affected Line Item in the Statement of Income
Unrealized gains and losses on investments:
 
 
 
 
 
 
$
(56,969
)
 
$
(102,391
)
 
Net realized gains (losses) on investments sold
 
1,561

 
5,288

 
OTTI on investments
 
$
(55,408
)
 
$
(97,103
)
 
Total before tax
 
(3,560
)
 
(3,286
)
 
Provision (benefit) for income tax
 
$
(58,968
)
 
$
(100,389
)
 
Net of tax
OTTI losses recognized in OCI:
 
 
 
 
 
 
$
13,612

 
$
17,887

 
Net realized gains (losses) on investments sold
 
828

 
1,738

 
OTTI on investments transferred to (from) OCI
 
$
14,440

 
$
19,625

 
Total before tax
 
(2
)
 
(5
)
 
Provision (benefit) for income tax
 
$
14,438

 
$
19,620

 
Net of tax
Gains and losses on cash flow hedges:
 
 
 
 
 
     Interest rate contracts
$
110

 
$
220

 
Interest Expense
 
—

 
—

 
Provision (benefit) for income tax
 
$
110

 
$
220

 
Net of tax
 
 
 
 
 
 
Total reclassifications for the period, gross of tax
$
(40,858
)
 
$
(77,258
)
 
 
Tax (benefit) expense
(3,562
)
 
(3,291
)
 
 
Total reclassifications for the period, net of tax
$
(44,420
)
 
$
(80,549
)