Note 13. Other Comprehensive Income (loss)

3 Months Ended

Mar. 31, 2013

Notes

Note 13. Other Comprehensive Income (loss)

Note 13.          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 a cash flow hedge.

Changes in the balances for each component of accumulated other comprehensive income, shown net of taxes, for the three months ended March 31, 2013 and 2012 were as follows (in thousands):

		Three Months Ended March 31, 2013
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	15,231	$	(218)	$	15,013
Unrealized gains (losses)		545		14		559
Adjustments to DAC		903		-		903
Other comprehensive income (loss) before reclassifications		1,448		14		1,462
Amounts reclassified from accumulated
other comprehensive income		(2,975)		-		(2,975)
Net other comprehensive income (loss)		(1,527)		14		(1,513)
Less other comprehensive loss attributable
to noncontrolling interests		91		-		91
Acquired from noncontrolling interests		36		-		36
Ending balance	$	13,831	$	(204)	$	13,627

		Three Months Ended March 31, 2012
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	8,150	$	(297)	$	7,853
Unrealized gains (losses)		972		(22)		950
Adjustments to DAC		(14)		-		(14)
Other comprehensive income (loss) before reclassifications		958		(22)		936
Amounts reclassified from accumulated
other comprehensive income		(553)		-		(553)
Net other comprehensive income (loss)		405		(22)		383
Less other comprehensive loss attributable
to noncontrolling interests		33		-		33
Acquired from noncontrolling interests		1		-		1
Ending balance	$	8,589	$	(319)	$	8,270

Amounts reclassified out of accumulated other comprehensive income and the related effects on certain line items in the Condensed Consolidated Statements of Income are presented below for the three months ended March 31, 2013 and 2012 (in thousands):

		Three Months Ended
		March 31,
		2013		2012
Unrealized (gains) losses on available-for-sale securities reclassified
during the period to the following income statement line items:
Net realized investment gains	$	(4,326)	$	(888)
Net impairment losses recognized in earnings		-		83
Reclassification adjustments, pre-tax		(4,326)		(805)
Tax effect		(1,351)		(252)
Reclassification adjustments, net of tax	$	(2,975)	$	(553)