Other Comprehensive Income

Other comprehensive income includes net holding gains on available-for-sale investments arising during the period, changes in unrealized other-than-temporary impairment losses on fixed maturities arising during the period and reclassification adjustments for net gains included in net income. Other comprehensive income also includes changes in foreign currency translation adjustments and changes in net actuarial pension loss.

The following table presents the change in accumulated other comprehensive income (loss) by component, net of taxes and noncontrolling interests, for the three months ended March 31, 2019 and 2018.



(dollars in thousands)	Unrealized Holding Gains on Available-for-Sale Securities			Foreign Currency			Net Actuarial Pension Loss			Total
December 31, 2017	$	2,477,973		$	(74,003	)	$	(58,399	)	$	2,345,571
Cumulative effect of adoption of ASU No. 2016-01	(2,626,265		)	2,492			—			(2,623,773		)
Cumulative effect of adoption of ASU No. 2018-02	401,539			—			—			401,539
January 1, 2018	253,247			(71,511		)	(58,399		)	123,337
Other comprehensive income (loss) before reclassifications	(116,922		)	4,911			664			(111,347		)
Amounts reclassified from accumulated other comprehensive income	814			—			—			814
Total other comprehensive income (loss)	(116,108		)	4,911			664			(110,533		)
March 31, 2018	$	137,139		$	(66,600	)	$	(57,735	)	$	12,804

December 31, 2018	$	48,060		$	(86,652	)	$	(56,058	)	$	(94,650	)
Other comprehensive income before reclassifications	152,331			2,372			1,361			156,064
Amounts reclassified from accumulated other comprehensive loss	(246		)	—			—			(246		)
Total other comprehensive income	152,085			2,372			1,361			155,818
March 31, 2019	$	200,145		$	(84,280	)	$	(54,697	)	$	61,168

Effective January 1, 2018, the Company adopted ASU No. 2016-01 and as a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income. Rather, changes in the fair value of equity securities are now recognized in net income. Upon adoption of this ASU, cumulative net unrealized gains on equity securities of $2.6 billion, net of deferred income taxes, were reclassified from accumulated other comprehensive income into retained earnings.

Effective January 1, 2018, the Company adopted ASU No. 2018-02, which provided an option to reclassify tax effects remaining in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act to retained earnings. As a result of adopting the ASU, the Company reclassified $401.5 million of previously recognized deferred taxes from accumulated other comprehensive income into retained earnings as of January 1, 2018.

The following table summarizes the tax expense (benefit) associated with each component of other comprehensive income (loss).



	Three Months Ended March 31,
(dollars in thousands)	2019			2018
Change in net unrealized gains on available-for-sale investments:
Net holding gains (losses) arising during the period	$	40,818		$	(28,230	)
Reclassification adjustments for net gains (losses) included in net income (loss)	(66		)	217
Change in net unrealized gains on available-for-sale investments	40,752			(28,013		)
Change in foreign currency translation adjustments	—			766
Change in net actuarial pension loss	362			136
Total	$	41,114		$	(27,111	)

The following table presents the details of amounts reclassified from accumulated other comprehensive income into income (loss), by component.



	Three Months Ended March 31,
(dollars in thousands)	2019			2018
Unrealized holding gains on available-for-sale investments:
Net realized investment gains (losses), excluding other-than-temporary impairment losses	312			(1,031		)
Income taxes	(66		)	217
Reclassification of unrealized holding gains (losses), net of taxes	$	246		$	(814	)

Net actuarial pension loss:
Underwriting, acquisition and insurance expenses	$	(1,723	)	$	(800	)
Income taxes	362			136
Reclassification of net actuarial pension loss, net of taxes	$	(1,361	)	$	(664	)