Note 14. Other Comprehensive Income (loss)

9 Months Ended

Sep. 30, 2013

Notes

Note 14. Other Comprehensive Income (loss)

Note 14.          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 (loss), shown net of taxes, for the periods indicated were as follows (in thousands):

		Three Months Ended September 30, 2013
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	(3,268)	$	(191)	$	(3,459)
Other comprehensive income (loss) before reclassifications		(1,364)		58		(1,306)
Amounts reclassified from accumulated OCI		(1,151)		-		(1,151)
Net other comprehensive income (loss)		(2,515)		58		(2,457)
Less other comprehensive loss attributable
to noncontrolling interests		(6)		-		(6)
Ending balance	$	(5,789)	$	(133)	$	(5,922)

		Three Months Ended September 30, 2012
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	12,754	$	(302)	$	12,452
Other comprehensive income (loss) before reclassifications		5,017		76		5,093
Amounts reclassified from accumulated OCI		(775)		-		(775)
Net other comprehensive income (loss)		4,242		76		4,318
Less other comprehensive loss attributable
to noncontrolling interests		(137)		-		(137)
Acquired from noncontrolling interests		-		-		-
Ending balance	$	16,859	$	(226)	$	16,633

		Nine Months Ended September 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		(9,908)		85		(9,823)
Amounts reclassified from accumulated OCI		(11,698)		-		(11,698)
Net other comprehensive income (loss)		(21,606)		85		(21,521)
Less other comprehensive loss attributable
to noncontrolling interests		550		-		550
Acquired from noncontrolling interests		36		-		36
Ending balance	$	(5,789)	$	(133)	$	(5,922)

		Nine Months Ended September 30, 2012
		Unrealized
		Gains (Losses) on
		Available-for-Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	8,150	$	(297)	$	7,853
Other comprehensive income (loss) before reclassifications		11,190		71		11,261
Amounts reclassified from accumulated OCI		(2,254)		-		(2,254)
Net other comprehensive income (loss)		8,936		71		9,007
Less other comprehensive loss attributable
to noncontrolling interests		(230)		-		(230)
Acquired from noncontrolling interests		3		-		3
Ending balance	$	16,859	$	(226)	$	16,633

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

		Three Months Ended				Nine Months Ended
		September 30,				September 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	$	1,846	$	1,205	$	17,647	$	4,195
Net impairment losses recognized in earnings		-		-		-		(704)
Income from operations before income tax		1,846		1,205		17,647		3,491
Tax effect		695		430		5,949		1,237
Net income	$	1,151	$	775	$	11,698	$	2,254