Note 13. Other Comprehensive Income (loss)

6 Months Ended

Jun. 30, 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 periods indicated were as follows (in thousands):

		Three Months Ended June 30, 2013
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	13,831	$	(204)	$	13,627
Other comprehensive income (loss) before reclassifications		(9,992)		13		(9,979)
Amounts reclassified from accumulated OCI		(7,572)		-		(7,572)
Net other comprehensive income (loss)		(17,564)		13		(17,551)
Less other comprehensive loss attributable
to noncontrolling interests		465		-		465
Ending balance	$	(3,268)	$	(191)	$	(3,459)

		Three Months Ended June 30, 2012
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	8,589	$	(319)	$	8,270
Other comprehensive income (loss) before reclassifications		5,215		17		5,232
Amounts reclassified from accumulated OCI		(926)		-		(926)
Net other comprehensive income (loss)		4,289		17		4,306
Less other comprehensive loss attributable
to noncontrolling interests		(126)		-		(126)
Acquired from noncontrolling interests		2		-		2
Ending balance	$	12,754	$	(302)	$	12,452

		Six Months Ended June 30, 2013
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	15,231	$	(218)	$	15,013
Other comprehensive income (loss) before reclassifications		(8,544)		27		(8,517)
Amounts reclassified from accumulated OCI		(10,547)		-		(10,547)
Net other comprehensive income (loss)		(19,091)		27		(19,064)
Less other comprehensive loss attributable
to noncontrolling interests		556		-		556
Acquired from noncontrolling interests		36		-		36
Ending balance	$	(3,268)	$	(191)	$	(3,459)

		Six Months Ended June 30, 2012
		Unrealized		Unrealized
		Gains (Losses) on		Gains (Losses) on
		Available-for-Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	8,150	$	(297)	$	7,853
Other comprehensive income (loss) before reclassifications		6,173		(5)		6,168
Amounts reclassified from accumulated OCI		(1,479)		-		(1,479)
Net other comprehensive income (loss)		4,694		(5)		4,689
Less other comprehensive loss attributable
to noncontrolling interests		(93)		-		(93)
Acquired from noncontrolling interests		3		-		3
Ending balance	$	12,754	$	(302)	$	12,452

Presented below are the amounts reclassified out of accumulated other comprehensive income and recognized in earnings for each of the periods indicated (in thousands):

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2013		2012		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	$	11,475	$	2,102	$	15,801	$	2,990
Net impairment losses recognized in earnings		-		(621)		-		(704)
Income from operations before income tax		11,475		1,481		15,801		2,286
Tax effect		3,903		555		5,254		807
Net income	$	7,572	$	926	$	10,547	$	1,479