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Other Comprehensive Income
 9 Months Ended
Sep. 30, 2019
Other Comprehensive Income (Loss), Tax [Abstract]  
Other Comprehensive Income 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 nine months ended September 30, 2019 and 2018.

(dollars in thousands)
Unrealized Holding Gains (Losses) 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
(2,615,734
)
 
2,492

 
—

 
(2,613,242
)
Cumulative effect of adoption of ASU No. 2018-02
401,539

 
—

 
—

 
401,539

January 1, 2018
263,778

 
(71,511
)
 
(58,399
)
 
133,868

Other comprehensive income (loss) before reclassifications
(306,069
)
 
(19,928
)
 
1,741

 
(324,256
)
Amounts reclassified from accumulated other comprehensive income
5,496

 
—

 
—

 
5,496

Total other comprehensive income (loss)
(300,573
)
 
(19,928
)
 
1,741

 
(318,760
)
September 30, 2018
$
(36,795
)
 
$
(91,439
)
 
$
(56,658
)
 
$
(184,892
)
 
 
 
 
 
 
 
 
December 31, 2018
$
48,060

 
$
(86,652
)
 
$
(56,058
)
 
$
(94,650
)
Other comprehensive income (loss) before reclassifications
329,113

 
(5,929
)
 
2,338

 
325,522

Amounts reclassified from accumulated other comprehensive loss
760

 
—

 
—

 
760

Total other comprehensive income (loss)
329,873

 
(5,929
)
 
2,338

 
326,282

September 30, 2019
$
377,933

 
$
(92,581
)
 
$
(53,720
)
 
$
231,632



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).
 
Quarter Ended September 30,
 
Nine Months Ended September 30,
(dollars in thousands)
2019
 
2018
 
2019
 
2018
Change in net unrealized gains (losses) on available-for-sale investments:
 
 
 
 
 
 
 
Net holding gains (losses) arising during the period
$
13,018

 
$
(24,047
)
 
$
88,168

 
$
(84,825
)
Reclassification adjustments for net losses included in net income
54

 
2,810

 
202

 
1,461

Change in net unrealized gains (losses) on available-for-sale investments
13,072

 
(21,237
)
 
88,370

 
(83,364
)
Change in foreign currency translation adjustments
—

 
6,594

 
—

 
3,072

Change in net actuarial pension loss
123

 
135

 
622

 
463

Total
$
13,195

 
$
(14,508
)
 
$
88,992

 
$
(79,829
)


The following table presents the details of amounts reclassified from accumulated other comprehensive income (loss) into income, by component.
 
Quarter Ended September 30,
 
Nine Months Ended September 30,
(dollars in thousands)
2019
 
2018
 
2019
 
2018
Unrealized holding gains (losses) on available-for-sale investments:
 
 
 
 
 
 
 
Net realized investment losses, excluding other-than-temporary impairment losses
(257
)
 
(13,383
)
 
(962
)
 
(6,957
)
Income taxes
54

 
2,810

 
202

 
1,461

Reclassification of unrealized holding losses, net of taxes
$
(203
)
 
$
(10,573
)
 
$
(760
)
 
$
(5,496
)
 
 
 
 
 
 
 
 
Net actuarial pension loss:
 
 
 
 

 

Underwriting, acquisition and insurance expenses
$
(585
)
 
$
(644
)
 
$
(2,960
)
 
$
(2,204
)
Income taxes
123

 
135

 
622

 
463

Reclassification of net actuarial pension loss, net of taxes
$
(462
)
 
$
(509
)
 
$
(2,338
)
 
$
(1,741
)