Note 8. Accumulated Other Comprehensive Income (loss)

6 Months Ended

Jun. 30, 2014

Notes

Note 8. Accumulated Other Comprehensive Income (loss)

 Note 8.                        Accumulated 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 June 30, 2014
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	(4,842)	$	(112)	$	(4,954)
Other comprehensive income (loss) before reclassifications		6,145		13		6,158
Amounts reclassified from accumulated OCI		(2,641)		-		(2,641)
Net other comprehensive income (loss)		3,504		13		3,517
Less: Other comprehensive income attributable
to noncontrolling interests		(82)		-		(82)
Ending balance	$	(1,420)	$	(99)	$	(1,519)

		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
Acquired from noncontrolling interests		-		-		-
Ending balance	$	(3,268)	$	(191)	$	(3,459)

		Six Months Ended June 30, 2014
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	(10,350)	$	(122)	$	(10,472)
Other comprehensive income (loss) before reclassifications		12,763		23		12,786
Amounts reclassified from accumulated OCI		(3,620)		-		(3,620)
Net other comprehensive income (loss)		9,143		23		9,166
Less: Other comprehensive income attributable
to noncontrolling interests		(213)		-		(213)
Ending balance	$	(1,420)	$	(99)	$	(1,519)

		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)

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				Six months Ended
		June 30,				June 30,
		2014		2013		2014		2013
Unrealized gains (losses) on available-for-sale securities
reclassified during the period to the following income
statement line items:
Net realized investment gains	$	4,009	$	11,475	$	5,486	$	15,801
Income before income tax		4,009		11,475		5,486		15,801
Tax effect		1,368		3,903		1,866		5,254
Net income	$	2,641	$	7,572	$	3,620	$	10,547