Other Comprehensive Income (Loss)

The pretax components of our other comprehensive income (loss) and related income tax (expense) benefit for the years ended December 31, 2017, 2016 and 2015 are included in table 10.1 below:



	Table	10.1
Components of other comprehensive income (loss)	(In thousands)		2017			2016			2015
	Net unrealized investment gains (losses) arising during the year		$	69,052		$	(5,425	)	$	(33,718	)
	Income tax (expense) benefit		(21,505		)	1,776			11,738
	Valuation allowance ⁽¹⁾		—			—			62,383
	Net of taxes		47,547			(3,649		)	40,403

	Net changes in benefit plan assets and obligations		(8,983		)	(14,799		)	(12,818		)
	Income tax benefit		3,144			5,179			4,487
	Valuation allowance ⁽¹⁾		—			—			(7,383		)
	Net of taxes		(5,839		)	(9,620		)	(15,714		)

	Net changes in unrealized foreign currency translation adjustment		45			(1,463		)	(5,699		)
	Income tax (expense) benefit		(14		)	512			2,000
	Valuation allowance ⁽¹⁾		—			—			(529		)
	Net of taxes		31			(951		)	(4,228		)

	Total other comprehensive income (loss)		60,114			(21,687		)	(52,235		)
	Total income tax (expense) benefit, net of valuation allowance		(18,375		)	7,467			72,696
	Total other comprehensive income (loss), net of tax		$	41,739		$	(14,220	)	$	20,461


⁽¹⁾	See Note 12 – “Income Taxes” for a discussion of the valuation allowance recorded against deferred tax assets in 2015.

The pretax and related income tax benefit (expense) components of the amounts reclassified from our accumulated other comprehensive loss ("AOCL") to our consolidated statements of operations for the years ended December 31, 2017, 2016 and 2015 are included in table 10.2 below:



	Table	10.2
Reclassifications from AOCL	(In thousands)		2017			2016			2015
	Reclassification adjustment for net realized (losses) gains included in net income ⁽¹⁾		$	(2,580	)	$	6,207		$	11,693
	Income tax benefit (expense)		903			(2,050		)	(4,076		)
	Valuation allowance ⁽²⁾		—			—			3,635
	Net of taxes		(1,677		)	4,157			11,252

	Reclassification adjustment related to benefit plan assets and obligations ⁽³⁾		906			1,480			2,184
	Income tax (expense)		(317		)	(518		)	(764		)
	Valuation allowance ⁽²⁾		—			—			574
	Net of taxes		589			962			1,994

	Reclassification adjustment related to foreign currency ⁽⁴⁾		—			1,467			—
	Income tax (expense)		—			(513		)	—
	Net of taxes		—			954			—

	Total reclassifications		(1,674		)	9,154			13,877
	Total income tax benefit (expense), net of valuation allowance		586			(3,081		)	(631		)
	Total reclassifications, net of tax		$	(1,088	)	$	6,073		$	13,246


⁽¹⁾	(Decreases) increases Net realized investment gains on the consolidated statements of operations.


⁽²⁾	See Note 12 – “Income Taxes” for a discussion of the valuation allowance recorded against deferred tax assets in 2015.


⁽³⁾	Decreases (increases) Other underwriting and operating expenses, net on the consolidated statements of operations.


⁽⁴⁾	Increases (decreases) Other revenue on the consolidated statements of operations.

A rollforward of AOCL for the years ended December 31, 2017, 2016, and 2015, including amounts reclassified from AOCL, is included in table 10.3 below.



	Table	10.3
Rollforward of AOCL	(In thousands)		Net unrealized gains and losses on available-for-sale securities			Net benefit plan assets and obligations recognized in shareholders' equity			Net unrealized foreign currency translation			Total AOCL
	Balance, December 31, 2014, net of tax		$	(57,551	)	$	(28,938	)	$	5,148		$	(81,341	)
	Other comprehensive income (loss) before reclassifications		51,655			(13,720		)	(4,228		)	33,707
	Less: Amounts reclassified from AOCL		11,252			1,994			—			13,246
	Balance, December 31, 2015, net of tax		(17,148		)	(44,652		)	920			(60,880		)
	Other comprehensive income (loss) before reclassifications		508			(8,658		)	3			(8,147		)
	Less: Amounts reclassified from AOCL		4,157			962			954			6,073
	Balance, December 31, 2016, net of tax		(20,797		)	(54,272		)	(31		)	(75,100		)
	Other comprehensive income (loss) before reclassifications		45,870			(5,250		)	31			40,651
	Less: Amounts reclassified from AOCL		(1,677		)	589			—			(1,088		)
	Less: Amounts reclassified for lower enacted corporate tax rate		(2,525		)	12,947			—			10,422
	Balance, December 31, 2017, net of tax		$	29,275		$	(73,058	)	$	—		(43,783		)