Other Comprehensive Income

The following table presents the accumulated balances for each classification of other comprehensive income (loss):



	Three Months Ended September 30, 2018
	Unrealized holding gains (losses) arising on fixed maturities, available-for-sale ⁽¹⁾			Unrealized holding gains (losses) arising on cash flow hedges ⁽²⁾			Future policy benefits, DAC and VOBA adjustments			Employee benefit plan adjustment ⁽³⁾			Total
Balances, July 1, 2018	$	4,657		$	53,880		$	(19,361	)	$	(90,276	)	$	(51,100	)
OCI before reclassifications	(148,340		)	4,063			35,053			—			(109,224		)
Deferred income tax benefit (expense)	31,151			(853		)	(7,361		)	—			22,937
AOCI before reclassification, net of tax	(117,189		)	3,210			27,692			—			(86,287		)
Amounts reclassified from AOCI	(2,219		)	(4,718		)	—			646			(6,291		)
Deferred income tax benefit (expense)	467			991			—			(136		)	1,322
Amounts reclassified from AOCI, net of tax	(1,752		)	(3,727		)	—			510			(4,969		)
Balances, September 30, 2018	$	(114,284	)	$	53,363		$	8,331		$	(89,766	)	$	(142,356	)

⁽¹⁾Reclassifications affect investment gains (losses), net on the condensed consolidated statements of income.

⁽²⁾ Reclassifications affect net investment income on the condensed consolidated statements of income, except for $(443) (before tax) which affected interest expense for the three months ended September 30, 2018.

⁽³⁾The adjustments for defined benefit plans are included in the computation of net periodic (benefit) cost of employee benefit plans (see note 11 for additional details).



	Three Months Ended September 30, 2017
	Unrealized holding gains (losses) arising on fixed maturities, available-for-sale ⁽¹⁾			Unrealized holding gains (losses) arising on cash flow hedges ⁽²⁾			Future policy benefits, DAC and VOBA adjustments			Employee benefit plan adjustment ⁽³⁾			Total
Balances, July 1, 2017	$	550,776		$	50,132		$	(113,256	)	$	(81,513	)	$	406,139
OCI before reclassifications	39,983			(23,111		)	(1,977		)	8,553			23,448
Deferred income tax (expense) benefit	(13,994		)	8,089			692			(2,994		)	(8,207		)
AOCI before reclassification, net of tax	25,989			(15,022		)	(1,285		)	5,559			15,241
Amounts reclassified from AOCI	(2,508		)	(377		)	—			2,193			(692		)
Deferred income tax benefit (expense)	878			132			—			(768		)	242
Amounts reclassified from AOCI, net of tax	(1,630		)	(245		)	—			1,425			(450		)
Balances, September 30, 2017	$	575,135		$	34,865		$	(114,541	)	$	(74,529	)	$	420,930

⁽¹⁾Reclassifications affect investment gains (losses), net on the condensed consolidated statements of income.

⁽²⁾ Reclassifications affect net investment income on the condensed consolidated statements of income, except for $690 (before tax) which affected interest expense for the three months ended September 30, 2017.

⁽³⁾The adjustments for defined benefit plans are included in the computation of net periodic (benefit) cost of employee benefit plans (see note 11 for additional details).



	Nine Months Ended September 30, 2018
	Unrealized holding gains (losses) arising on fixed maturities, available-for-sale ⁽¹⁾			Unrealized holding gains (losses) arising on cash flow hedges ⁽²⁾			Future policy benefits, DAC and VOBA adjustments			Employee benefit plan adjustment ⁽³⁾			Total
Balances, January 1, 2018	$	544,887		$	103,529		$	(116,267	)	$	(91,192	)	$	440,957
Change in estimate of tax reform impact	108,846			(83,806		)	(25,040		)	—			—

OCI before reclassifications	(961,854		)	56,506			189,415			—			(715,933		)
Deferred income tax benefit (expense)	201,989			(11,866		)	(39,777		)	—			150,346
AOCI before reclassification, net of tax	(759,865		)	44,640			149,638			—			(565,587		)
Amounts reclassified from AOCI	(10,320		)	(13,924		)	—			1,805			(22,439		)
Deferred income tax benefit (expense)	2,168			2,924			—			(379		)	4,713
Amounts reclassified from AOCI, net of tax	(8,152		)	(11,000		)	—			1,426			(17,726		)
Balances, September 30, 2018	$	(114,284	)	$	53,363		$	8,331		$	(89,766	)	$	(142,356	)

⁽¹⁾Reclassifications affect investment gains (losses), net on the condensed consolidated statements of income.

⁽²⁾ Reclassifications affect net investment income on the condensed consolidated statements of income, except for $(1,075) (before tax) which affected interest expense for the nine months ended September 30, 2018.

⁽³⁾The adjustments for defined benefit plans are included in the computation of net periodic (benefit) cost of employee benefit plans (see note 11 for additional details).



	Nine Months Ended September 30, 2017
	Unrealized holding gains (losses) arising on fixed maturities, available-for-sale ⁽¹⁾			Unrealized holding gains (losses) arising on cash flow hedges ⁽²⁾			Future policy benefits, DAC and VOBA adjustments			Employee benefit plan adjustment ⁽³⁾			Total
Balances, January 1, 2017	$	311,748		$	67,076		$	(58,646	)	$	(84,303	)	$	235,875
OCI before reclassifications	407,208			(48,311		)	(85,992		)	8,553			281,458
Deferred income tax (expense) benefit	(142,523		)	16,909			30,097			(2,994		)	(98,511		)
AOCI before reclassification, net of tax	264,685			(31,402		)	(55,895		)	5,559			182,947
Amounts reclassified from AOCI	(1,997		)	(1,245		)	—			6,485			3,243
Deferred income tax benefit (expense)	699			436			—			(2,270		)	(1,135		)
Amounts reclassified from AOCI, net of tax	(1,298		)	(809		)	—			4,215			2,108
Balances, September 30, 2017	$	575,135		$	34,865		$	(114,541	)	$	(74,529	)	$	420,930

⁽¹⁾Reclassifications affect investment gains (losses), net on the condensed consolidated statements of income.

⁽²⁾ Reclassifications affect net investment income on the condensed consolidated statements of income, except for $2,357 (before tax) which affected interest expense for the nine months ended September 30, 2017.

⁽³⁾The adjustments for defined benefit plans are included in the computation of net periodic (benefit) cost of employee benefit plans (see note 11 for additional details).