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Equity
 6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Equity EQUITY

Accumulated Other Comprehensive Income (Loss)

AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2020 and 2019, are as follows:
 
Accumulated Other Comprehensive Income (Loss)
 
Foreign Currency Translation Adjustment
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated Other Comprehensive Income (Loss)
 
(in thousands)
Balance, December 31, 2019
$
(981
)
 
$
86,616

 
$
85,635

Change in OCI before reclassifications
41

 
77,489

 
77,530

Amounts reclassified from AOCI
0

 
(1,030
)
 
(1,030
)
Income tax benefit (expense)
(9
)
 
(16,057
)
 
(16,066
)
Balance, June 30, 2020
$
(949
)
 
$
147,018

 
$
146,069


 
Accumulated Other Comprehensive Income (Loss)
 
Foreign Currency Translation Adjustment
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated Other Comprehensive Income (Loss)
 
(in thousands)
Balance, December 31, 2018
$
(989
)
 
$
(13,378
)
 
$
(14,367
)
Change in OCI before reclassifications
4

 
88,557

 
88,561

Amounts reclassified from AOCI
0

 
4,304

 
4,304

Income tax benefit (expense)
(1
)
 
(19,500
)
 
(19,501
)
Balance, June 30, 2019
$
(986
)
 
$
59,983

 
$
58,997


(1)
Includes cash flow hedges of $14 million and $3 million as of June 30, 2020 and December 31, 2019, respectively, and $3 million and $2 million as of June 30, 2019 and December 31, 2018, respectively.


Reclassifications out of Accumulated Other Comprehensive Income (Loss)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Amounts reclassified from AOCI (1)(2):
 
 
 
 
 
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
Cash flow hedges - Currency/ Interest rate(3)
$
164

 
$
(646
)
 
$
1,673

 
$
(825
)
Net unrealized investment gains (losses) on available-for-sale securities
(41
)
 
(384
)
 
(643
)
 
(3,479
)
Total net unrealized investment gains (losses)(4)
123

 
(1,030
)
 
1,030

 
(4,304
)
Total reclassifications for the period
$
123

 
$
(1,030
)
 
$
1,030

 
$
(4,304
)

(1)
All amounts are shown before tax.
(2)
Positive amounts indicate gains/ benefits reclassified out of AOCI. Negative amounts indicate losses/ costs reclassified out of AOCI.
(3)
See Note 4 for additional information on cash flow hedges.
(4)
See table below for additional information on unrealized investment gains (losses), including the impact on DAC and other costs, future policy benefits, policyholders’ account balances and other liabilities.

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on available-for-sale fixed maturity securities and certain other invested assets and other assets are included in the Company’s Unaudited Interim Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows:

Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized
 
Net Unrealized Gains (Losses) on 
Investments
 
DAC and Other Costs(2)
 
Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated Other Comprehensive
Income (Loss) Related To Net Unrealized Investment Gains (Losses)
 
(in thousands)
Balance, December 31, 2019(1)
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Net investment gains (losses) on investments arising during the period
0

 
0

 
0

 
0

 
0

Reclassification adjustment for (gains) losses included in net income
0

 
0

 
0

 
0

 
0

Increase (decrease) due to non-credit related losses recognized in AOCI during the period
0

 
0

 
0

 
0

 
0

Impact of net unrealized investment (gains) losses on DAC and other costs
0

 
4

 
0

 
(1
)
 
3

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities
0

 
0

 
50

 
(10
)
 
40

Balance, June 30, 2020
$
0

 
$
4

 
$
50

 
$
(11
)
 
$
43


(1)
Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020.
(2)
"Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.
(3)
"Other liabilities" primarily includes reinsurance payables.
All Other Net Unrealized Investment Gains (Losses) in AOCI
 
Net Unrealized Gains (Losses) on 
Investments(1)
 
DAC and Other Costs(3)
 
Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated Other Comprehensive
Income (Loss) Related To Net Unrealized Investment Gains (Losses)
 
(in thousands)
Balance, December 31, 2019(2)
$
116,039

 
$
8,973

 
$
(15,373
)
 
$
(23,023
)
 
$
86,616

Net investment gains (losses) on investments arising during the period
83,683

 
0

 
0

 
(17,574
)
 
66,109

Reclassification adjustment for (gains) losses included in net income
(1,030
)
 
0

 
0

 
216

 
(814
)
Reclassification due to allowance for credit losses recorded during the period
0

 
0

 
0

 
0

 
0

Impact of net unrealized investment (gains) losses on DAC and other costs
0

 
15,723

 
0

 
(3,302
)
 
12,421

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities
0

 
0

 
(21,971
)
 
4,614

 
(17,357
)
Balance, June 30, 2020
$
198,692

 
$
24,696

 
$
(37,344
)
 
$
(39,069
)
 
$
146,975


(1)
Includes cash flow hedges. See Note 4 for information on cash flow hedges.
(2)
Includes net unrealized gains (losses) for which an OTTI loss had been previously recognized.
(3)
"Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.
(4)
"Other liabilities" primarily includes reinsurance payables.