Note10. Accumulated Other Comprehensive Income (loss)

6 Months Ended

Jun. 30, 2015

Notes

Note10. Accumulated Other Comprehensive Income (loss)

Note10.                       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, shown net of taxes, for the periods indicated were as follows (in thousands):

		Three Months Ended June 30, 2015
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	942	$	(41)	$	901
Other comprehensive income (loss) before reclassifications		(2,791)		8		(2,783)
Amounts reclassified from accumulated OCI		(1,368)		-		(1,368)
Net other comprehensive income (loss)		(4,159)		8		(4,151)
Less: Other comprehensive income attributable
to noncontrolling interests		33		-		33
Ending balance	$	(3,184)	$	(33)	$	(3,217)

		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)

		Six Months Ended June 30, 2015
		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Beginning balance	$	72	$	(50)	$	22
Other comprehensive income (loss) before reclassifications		(106)		17		(89)
Amounts reclassified from accumulated OCI		(3,145)		-		(3,145)
Net other comprehensive income (loss)		(3,251)		17		(3,234)
Less: Other comprehensive income attributable
to noncontrolling interests		(10)		-		(10)
Acquired from noncontrolling interests		5		-		5
Ending balance	$	(3,184)	$	(33)	$	(3,217)

		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)

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,
		2015		2014		2015		2014
Unrealized gains (losses) on available-for-sale securities
reclassified during the period to the following income
statement line items:
Net realized investment gains	$	2,114	$	4,009	$	4,879	$	5,486
Income before income tax		2,114		4,009		4,879		5,486
Tax effect		746		1,368		1,734		1,866
Net income	$	1,368	$	2,641	$	3,145	$	3,620