Note 23. Other Comprehensive Income (loss)

12 Months Ended

Dec. 31, 2012

Notes

Note 23. Other Comprehensive Income (loss)

Note 23.          Other Comprehensive Income (Loss)

The components of other comprehensive income (loss) include (i) the after-tax net unrealized gains and losses on investment securities available-for-sale, including the subsequent increases and decreases in fair value of available-for-sale securities previously impaired and the non-credit related component of other-than-temporary impairments of fixed maturities and (ii) the after-tax unrealized gains and losses on certain derivative instruments.

Changes in the balances for each component of accumulated other comprehensive income, shown net of taxes, for the years ended December 31, 2012, 2011 and 2010 were as follows (in thousands):

		2012		2011		2010
Unrealized Gains and Losses Available-for Sale:
Beginning balance	$	8,150	$	633	$	(7,104)
Unrealized gains (losses) on investments		13,519		15,737		14,608
Other-than-temporary impairments
recognized in other comprehensive income		(247)		(618)		-
Adjustments to DAC (Refer to Note 1G)		(2,930)		(2,453)		(3,042)
Unrealized gains (losses) on investments arising
during the year before reclassifications		10,342		12,666		11,566
Amounts reclassified from accumulated
other comprehensive income		(3,146)		(4,926)		(3,585)
Other comprehensive income		7,196		7,740		7,981
Less:  Other comprehensive income attributable
to noncontrolling interests		(118)		(343)		(244)
Purchases of noncontrolling interests		3		120		-
Ending balance	$	15,231	$	8,150	$	633
Derivative instruments:
Beginning balance	$	(297)	$	-	$	-
Other comprehensive income before
reclassifications		79		(297)		-
Amounts reclassified from accumulated
other comprehensive income		-		-		-
Other comprehensive income		79		(297)		-
Ending balance	$	(218)	$	(297)	$	-
Total accumulated other comprehensive income	$	15,013	$	7,853	$	633

Amounts reclassified from other comprehensive income to earnings for the years ended December 31, 2012, 2011 and 2010, and the related tax effects, were as follows (in thousands):

		Before		Tax		Net of
		Tax		Effect		Tax
2012:
Unrealized gains on available-for-sale securities arising during the year	$	15,475	$	(5,133)	$	10,342
Reclassification adjustments to income statement line items:
Net realized investment gains		(5,352)		1,684		(3,668)
Net impairment losses recognized in earnings		704		(182)		522
Net unrealized gains on available-for-sale securities		10,827		(3,631)		7,196
Net unrealized gains (losses) on derivative instruments		131		(52)		79
Other comprehensive income	$	10,958	$	(3,683)	$	7,275
2011:
Unrealized gains on available-for-sale securities arising during the year	$	18,783	$	(6,117)	$	12,666
Reclassification adjustments to income statement line items:
Net realized investment gains		(8,961)		3,026		(5,935)
Net impairment losses recognized in earnings		1,523		(514)		1,009
Net unrealized gains on available-for-sale securities		11,345		(3,605)		7,740
Net unrealized gains (losses) on derivative instruments		(494)		197		(297)
Other comprehensive income	$	10,851	$	(3,408)	$	7,443
2010:
Unrealized gains on available-for-sale securities arising during the year	$	17,964	$	(6,398)	$	11,566
Reclassification adjustments to income statement line items:
Net realized investment gains		(9,474)		3,433		(6,041)
Net impairment losses recognized in earnings		3,819		(1,363)		2,456
Net unrealized gains on available-for-sale securities		12,309		(4,328)		7,981
Net unrealized gains (losses) on derivative instruments		-		-		-
Other comprehensive income	$	12,309	$	(4,328)	$	7,981