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Investments (Tables)
 6 Months Ended
Jun. 30, 2016
Investments [Abstract]  
Fixed Maturities and Equity Securities, Available-for-sale Securities
The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated:
 
June 30, 2016
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
OTTI
in AOCI(3)
 
(in thousands)
Fixed maturities, available-for-sale
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government authorities and agencies
$
97,295

 
$
9,147

 
$
0

 
$
106,442

 
$
0

Obligations of U.S. states and their political subdivisions
535,802

 
60,097

 
0

 
595,899

 
0

Foreign government bonds
84,275

 
4,863

 
184

 
88,954

 
0

Public utilities
636,650

 
68,052

 
2,802

 
701,900

 
0

Redeemable preferred stock
4,818

 
975

 
200

 
5,593

 
0

All other U.S. public corporate securities
1,675,441

 
145,623

 
8,071

 
1,812,993

 
(241
)
All other U.S. private corporate securities
670,299

 
30,256

 
4,473

 
696,082

 
(230
)
All other foreign public corporate securities
183,326

 
12,385

 
1,613

 
194,098

 
0

All other foreign private corporate securities
571,278

 
14,102

 
18,075

 
567,305

 
0

Asset-backed securities(1)
196,034

 
4,855

 
1,385

 
199,504

 
(2,557
)
Commercial mortgage-backed securities
310,468

 
16,861

 
37

 
327,292

 
0

Residential mortgage-backed securities(2)
85,329

 
5,701

 
30

 
91,000

 
(297
)
Total fixed maturities, available-for-sale
$
5,051,015

 
$
372,917

 
$
36,870

 
$
5,387,062

 
$
(3,325
)
Equity securities, available-for-sale
 
 
 
 
 
 
 
 
 
Common stocks:
 
 
 
 
 
 
 
 
 
Public utilities
$
66

 
$
3

 
$
19

 
$
50

 
 
Industrial, miscellaneous & other
0

 
191

 
0

 
191

 
 
Mutual funds
22,342

 
718

 
300

 
22,760

 
 
Non-redeemable preferred stocks
0

 
0

 
0

 
0

 
 
Total equity securities, available-for-sale
$
22,408

 
$
912

 
$
319

 
$
23,001

 
 

(1)
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
(2)
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(3)
Represents the amount of OTTI losses in Accumulated Other Comprehensive Income ("AOCI"), which were not included in earnings. Amount excludes $8 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

 
December 31, 2015
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
OTTI
in AOCI(3)
 
(in thousands)
Fixed maturities, available-for-sale
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government authorities and agencies
$
87,107

 
$
7,170

 
$
228

 
$
94,049

 
$
0

Obligations of U.S. states and their political subdivisions
602,508

 
24,219

 
1,958

 
624,769

 
0

Foreign government bonds
70,107

 
3,094

 
2,791

 
70,410

 
0

Public utilities
790,038

 
30,862

 
18,402

 
802,498

 
0

Redeemable preferred stock
5,316

 
1,530

 
145

 
6,701

 
0

All other U.S. public corporate securities
2,138,358

 
81,905

 
61,142

 
2,159,121

 
(217
)
All other U.S. private corporate securities
1,085,345

 
26,299

 
13,963

 
1,097,681

 
0

All other foreign public corporate securities
270,063

 
8,230

 
6,508

 
271,785

 
0

All other foreign private corporate securities
784,283

 
9,933

 
42,528

 
751,688

 
0

Asset-backed securities(1)
431,578

 
6,203

 
2,650

 
435,131

 
(3,056
)
Commercial mortgage-backed securities
396,160

 
10,614

 
2,429

 
404,345

 
0

Residential mortgage-backed securities(2)
114,943

 
7,876

 
65

 
122,754

 
(690
)
Total fixed maturities, available-for-sale
$
6,775,806

 
$
217,935

 
$
152,809

 
$
6,840,932

 
$
(3,963
)
Equity securities, available-for-sale
 
 
 
 
 
 
 
 
 
Common stocks:
 
 
 
 
 
 
 
 
 
Public utilities
$
66

 
$
2

 
$
29

 
$
39

 
 
Industrial, miscellaneous & other
0

 
165

 
0

 
165

 
 
Mutual funds
54,543

 
256

 
3,030

 
51,769

 
 
Non-redeemable preferred stocks
0

 
0

 
0

 
0

 
 
Total equity securities, available-for-sale
$
54,609

 
$
423

 
$
3,059

 
$
51,973

 
 

(1)
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
(2)
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(3)
Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $9 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.
Investments Classified by Contractual Maturity Date
The amortized cost and fair value of fixed maturities by contractual maturities at June 30, 2016, are as follows:
 
Available-for-Sale
 
Amortized Cost
 
Fair Value
 
(in thousands)
Due in one year or less
$
308,390

 
$
309,265

Due after one year through five years
731,155

 
765,105

Due after five years through ten years
826,148

 
849,618

Due after ten years
2,593,491

 
2,845,278

Asset-backed securities
196,034

 
199,504

Commercial mortgage-backed securities
310,468

 
327,292

Residential mortgage-backed securities
85,329

 
91,000

Total
$
5,051,015

 
$
5,387,062
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities
The following table depicts the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Fixed maturities, available-for-sale
 
 
 
 
 
 
 
Proceeds from sales
$
220,349

 
$
46,614

 
$
499,621

 
$
134,934

Proceeds from maturities/repayments
128,369

 
150,345

 
298,236

 
302,168

Gross investment gains from sales, prepayments and maturities
92,953

 
2,546

 
95,747

 
5,063

Gross investment losses from sales and maturities
(2,525
)
 
(242
)
 
(4,093
)
 
(633
)
Equity securities, available-for-sale
 
 
 
 
 
 
 
Proceeds from sales
$
28,442

 
$
0

 
$
28,452

 
$
0

Gross investment gains from sales
216

 
0

 
216

 
0

 Gross investment losses from sales
(1,934
)
 
0

 
(1,934
)
 
0

Fixed maturity and equity security impairments
 
 
 
 
 
 
 
Net writedowns for OTTI losses on fixed maturities recognized in earnings(1)
$
(109
)
 
$
(372
)
 
$
(16,259
)
 
$
(384
)
Writedowns for impairments on equity securities
0

 
(2
)
 
0

 
(2
)

(1)
Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI
The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts.
 
Three Months Ended
 
Six Months Ended
 
June 30, 2016
 
June 30, 2016
 
(in thousands)
Balance, beginning of period
$
5,858

 
$
7,041

Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period
(229
)
 
(1,136
)
Credit loss impairments previously recognized on securities impaired to fair value during the period(1)
670

 
0

Credit loss impairments recognized in the current period on securities not previously impaired
102

 
522

Additional credit loss impairments recognized in the current period on securities previously impaired
6

 
6

Increases due to the passage of time on previously recorded credit losses
32

 
85

Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected
(231
)
 
(310
)
Assets transferred to parent and affiliates
(658
)
 
(658
)
Balance, end of period
$
5,550

 
$
5,550


 
Three Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2015
 
(in thousands)
Balance, beginning of period
$
8,628

 
$
8,729

Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period
(69
)
 
(133
)
Credit loss impairments previously recognized on securities impaired to fair value during the period(1)
0

 
0

Credit loss impairments recognized in the current period on securities not previously impaired
0

 
0

Additional credit loss impairments recognized in the current period on securities previously impaired
15

 
27

Increases due to the passage of time on previously recorded credit losses
40

 
77

Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected
(58
)
 
(144
)
Balance, end of period
$
8,556

 
$
8,556


(1)
Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost.
Trading Account Assets Disclosure
The following table sets forth the composition of “Trading account assets” as of the dates indicated:
 
June 30, 2016
 
December 31, 2015
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Fixed maturities
$
23,549

 
$
20,151

 
$
50,565

 
$
46,364

Equity securities
12,047

 
16,882

 
14,761

 
18,248

Total trading account assets
$
35,596

 
$
37,033

 
$
65,326

 
$
64,612
Commercial Mortgage and Other Loans
The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated:
 
June 30, 2016
 
December 31, 2015
 
Amount
(in thousands)
 
% of
Total
 
Amount
(in thousands)
 
% of
Total
Commercial mortgage and agricultural property loans by property type:
 
 
 
 
 
 
 
Retail
$
236,774

 
23.1
%
 
$
440,767

 
26.7
%
Apartments/Multi-Family
310,390

 
30.3

 
445,379

 
27.0

Industrial
151,966

 
14.8

 
254,884

 
15.4

Office
136,456

 
13.3

 
226,332

 
13.6

Other
75,289

 
7.4

 
92,581

 
5.6

Hospitality
48,925

 
4.8

 
85,910

 
5.2

Total commercial mortgage loans
959,800

 
93.7

 
1,545,853

 
93.5

Agricultural property loans
64,778

 
6.3

 
106,623

 
6.5

Total commercial mortgage and agricultural property loans by property type
1,024,578

 
100.0
%
 
1,652,476

 
100.0
%
Valuation allowance
(1,151
)
 
 
 
(2,651
)
 
 
Total net commercial mortgage and agricultural property loans by property type
1,023,427

 
 
 
1,649,825

 
 
Other Loans
 
 
 
 
 
 
 
Uncollateralized loans
0

 
 
 
8,410

 
 
Valuation allowance
0

 
 
 
0

 
 
Total other loans
0

 
 
 
8,410

 
 
Total commercial mortgage and other loans
$
1,023,427

 
 
 
$
1,658,235

 
 
Allowance for Losses
Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows:
 
June 30, 2016
 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
Uncollateralized Loans
 
Total
 
(in thousands)
Allowance for credit losses, beginning of year
$
2,587

 
$
64

 
$
0

 
$
2,651

Addition to (release of) allowance for losses
(1,481
)
 
(19
)
 
0

 
(1,500
)
Charge-offs, net of recoveries
0

 
0

 
0

 
0

Total ending balance
$
1,106

 
$
45

 
$
0

 
$
1,151

 
December 31, 2015
 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
Uncollateralized Loans
 
Total
 
(in thousands)
Allowance for credit losses, beginning of year
$
4,071

 
$
83

 
$
0

 
$
4,154

Addition to (release of) allowance for losses
(1,484
)
 
(19
)
 
0

 
(1,503
)
Charge-offs, net of recoveries
0

 
0

 
0

 
0

Total ending balance
$
2,587

 
$
64

 
$
0

 
$
2,651
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans
The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated:
 
June 30, 2016
 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
Uncollateralized Loans
 
Total
 
(in thousands)
Allowance for Credit Losses:
 
 
 
 
 
 
 
Individually evaluated for impairment
$
0

 
$
0

 
$
0

 
$
0

Collectively evaluated for impairment
1,106

 
45

 
0

 
1,151

Loans acquired with deteriorated credit quality
0

 
0

 
0

 
0

Total ending balance
$
1,106

 
$
45

 
$
0

 
$
1,151

Recorded Investment(1):
 
 
 
 
 
 
 
Gross of reserves: individually evaluated for impairment
$
2,629

 
$
0

 
$
0

 
$
2,629

Gross of reserves: collectively evaluated for impairment
957,171

 
64,778

 
0

 
1,021,949

Gross of reserves: loans acquired with deteriorated credit quality
0

 
0

 
0

 
0

Total ending balance, gross of reserves
$
959,800

 
$
64,778

 
$
0

 
$
1,024,578


(1)
Recorded investment reflects the carrying value gross of related allowance.
 
December 31, 2015
 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
Uncollateralized Loans
 
Total
 
(in thousands)
Allowance for Credit Losses:
 
 
 
 
 
 
 
Individually evaluated for impairment
$
0

 
$
0

 
$
0

 
$
0

Collectively evaluated for impairment
2,587

 
64

 
0

 
2,651

Loans acquired with deteriorated credit quality
0

 
0

 
0

 
0

Total ending balance
$
2,587

 
$
64

 
$
0

 
$
2,651

Recorded Investment(1):
 
 
 
 
 
 
 
Gross of reserves: individually evaluated for impairment
$
0

 
$
287

 
$
0

 
$
287

Gross of reserves: collectively evaluated for impairment
1,545,853

 
106,336

 
8,410

 
1,660,599

Gross of reserves: loans acquired with deteriorated credit quality
0

 
0

 
0

 
0

Total ending balance, gross of reserves
$
1,545,853

 
$
106,623

 
$
8,410

 
$
1,660,886


(1)
Recorded investment reflects the carrying value gross of related allowance.
Impaired Financing Receivables
Impaired loans include those loans for which it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Impaired commercial mortgage and other loans identified in management's specific review of probable loan losses and the related allowance for losses, as of the dates indicated, are as follows:
 
June 30, 2016
 
Recorded Investment(1)
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment Before Allowance(2)
 
Interest Income Recognized(3)
 
(in thousands)
With no related allowance recorded
$
0

 
$
0

 
$
0

 
$
0

 
$
0

With an allowance recorded
0

 
0

 
0

 
0

 
0

Total
$
0

 
$
0

 
$
0

 
$
0

 
$
0


(1)
Recorded investment reflects the carrying value gross of related allowance.
(2)
Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
(3)
The interest income recognized is for the year-to-date income regardless of when the impairments occurred.
 
December 31, 2015
 
Recorded Investment(1)
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment Before Allowance(2)
 
Interest Income Recognized(3)
 
(in thousands)
With no related allowance recorded
$
0

 
$
0

 
$
0

 
$
0

 
$
0

With an allowance recorded
0

 
0

 
0

 
12,700

 
769

Total
$
0

 
$
0

 
$
0

 
$
12,700

 
$
769


(1)
Recorded investment reflects the carrying value gross of related allowance.
(2)
Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
(3)
The interest income recognized is for the year-to-date income regardless of when the impairments occurred.
Credit Quality Indicators
The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses as of the dates indicated:
 
Debt Service Coverage Ratio - June 30, 2016
 
Greater than 1.2X
 
1.0X to <1.2X
 
Less than 1.0X
 
Total
 
(in thousands)
Loan-to-Value Ratio
 
 
 
 
 
 
 
0%-59.99%
$
696,210

 
$
14,627

 
$
0

 
$
710,837

60%-69.99%
208,923

 
2,403

 
0

 
211,326

70%-79.99%
94,894

 
5,307

 
0

 
100,201

Greater than 80%
0

 
2,214

 
0

 
2,214

Total commercial mortgage and agricultural property loans
$
1,000,027

 
$
24,551

 
$
0

 
$
1,024,578

 
Debt Service Coverage Ratio - December 31, 2015
 
Greater than 1.2X
 
1.0X to <1.2X
 
Less than 1.0X
 
Total
 
(in thousands)
Loan-to-Value Ratio
 
 
 
 
 
 
 
0%-59.99%
$
1,004,751

 
$
35,579

 
$
6,762

 
$
1,047,092

60%-69.99%
378,799

 
4,969

 
4,016

 
387,784

70%-79.99%
197,208

 
12,471

 
0

 
209,679

Greater than 80%
0

 
2,938

 
4,983

 
7,921

Total commercial mortgage and agricultural property loans
$
1,580,758

 
$
55,957

 
$
15,761

 
$
1,652,476
Past Due Financing Receivables
The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage loans on nonaccrual status as of the dates indicated.
 
June 30, 2016
 
Current
 
30-59 Days Past Due
 
60-89 Days Past Due
 
Greater Than 90 Days
 
Total Commercial Mortgage and Other Loans
 
NonAccrual Status
 
(in thousands)
Commercial mortgage loans
$
959,800

 
$
0

 
$
0

 
$
0

 
$
959,800

 
$
0

Agricultural property loans
64,778

 
0

 
0

 
0

 
64,778

 
0

Uncollateralized loans
0

 
0

 
0

 
0

 
0

 
0

Total
$
1,024,578

 
$
0

 
$
0

 
$
0

 
$
1,024,578

 
$
0


 
December 31, 2015
 
Current
 
30-59 Days Past Due
 
60-89 Days Past Due
 
Greater Than 90 Days
 
Total Commercial Mortgage and Other Loans
 
NonAccrual Status
 
(in thousands)
Commercial mortgage loans
$
1,545,853

 
$
0

 
$
0

 
$
0

 
$
1,545,853

 
$
0

Agricultural property loans
106,336

 
287

 
0

 
0

 
106,623

 
0

Uncollateralized loans
8,410

 
0

 
0

 
0

 
8,410

 
0

Total
$
1,660,599

 
$
287

 
$
0

 
$
0

 
$
1,660,886

 
$
0
Net Investment Income
Net investment income for the three and six months ended June 30, 2016 and 2015, was from the following sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Fixed maturities, available-for-sale
$
54,043

 
$
66,546

 
$
129,753

 
$
130,484

Equity securities, available-for-sale
1

 
0

 
1

 
1

Trading account assets
445

 
735

 
1,204

 
1,247

Commercial mortgage and other loans
14,804

 
21,639

 
34,577

 
42,536

Policy loans
15,281

 
15,371

 
30,779

 
30,486

Short-term investments and cash equivalents
462

 
184

 
1,199

 
459

Other long-term investments
(674
)
 
2,684

 
(1,554
)
 
10,754

Gross investment income
84,362

 
107,159

 
195,959

 
215,967

Less: investment expenses
(5,743
)
 
(5,673
)
 
(11,888
)
 
(11,061
)
Net investment income
$
78,619

 
$
101,486

 
$
184,071

 
$
204,906
Realized Gain (Loss) on Investments
Realized investment gains (losses), net, for the three and six months ended June 30, 2016 and 2015, were from the following sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
 
 
 
 
Fixed maturities
$
90,319

 
$
1,932

 
$
75,395

 
$
4,046

Equity securities
(1,718
)
 
(2
)
 
(1,718
)
 
(2
)
Commercial mortgage and other loans
29,429

 
128

 
29,991

 
279

Joint ventures and limited partnerships
81

 
128

 
(67
)
 
165

Derivatives
742,347

 
(172,883
)
 
811,994

 
(116,162
)
Other
4

 
41

 
18

 
43

Realized investment gains (losses), net
$
860,462

 
$
(170,656
)
 
$
915,613

 
$
(111,631
)
Components of Accumulated Other Comprehensive Income
The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the six months ended June 30, 2016 and 2015, are as follows:
 
Accumulated Other Comprehensive Income (Loss)
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated
Other
Comprehensive
Income (Loss)
 
(in thousands)
Balance, December 31, 2015
$
(397
)
 
$
65,202

 
$
64,805

Change in OCI before reclassifications
121

 
344,649

 
344,770

Amounts reclassified from AOCI
0

 
(73,677
)
 
(73,677
)
Income tax benefit (expense)
(42
)
 
(94,840
)
 
(94,882
)
Balance, June 30, 2016
$
(318
)
 
$
241,334

 
$
241,016

 
 
Accumulated Other Comprehensive Income (Loss)
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated
Other
Comprehensive
Income (Loss)
 
(in thousands)
Balance, December 31, 2014
$
(67
)
 
$
178,758

 
$
178,691

Change in OCI before reclassifications
(338
)
 
(123,909
)
 
(124,247
)
Amounts reclassified from AOCI
0

 
(4,044
)
 
(4,044
)
Income tax benefit (expense)
118

 
44,582

 
44,700

Balance, June 30, 2015
$
(287
)
 
$
95,387

 
$
95,100


(1)
Includes cash flow hedges of $38 million and $48 million as of June 30, 2016 and December 31, 2015, respectively, and $24 million and $12 million as of June 30, 2015 and December 31, 2014, respectively.
Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications out of Accumulated Other Comprehensive Income (Loss)
 
Three Months Ended
June 30, 2016
 
Six Months Ended
June 30, 2016
 
(in thousands)
Amounts reclassified from AOCI (1)(2):
 
 
 
Net unrealized investment gains (losses):
 
 
 
Cash flow hedges - Currency/Interest rate(3)
$
3,599

 
$
2,772

Net unrealized investment gains (losses) on available-for-sale securities(4)
85,002

 
70,905

Total net unrealized investment gains (losses)
88,601

 
73,677

Total reclassifications for the period
$
88,601

 
$
73,677


 
Three Months Ended
June 30, 2015
 
Six Months Ended
June 30, 2015
 
(in thousands)
Amounts reclassified from AOCI (1)(2):
 
 
 
Net unrealized investment gains (losses):
 
 
 
Cash flow hedges - Currency/Interest rate(3)
$
(523
)
 
$
1,278

Net unrealized investment gains (losses) on available-for-sale securities(4)
2,453

 
2,766

Total net unrealized investment gains (losses)
1,930

 
4,044

Total reclassifications for the period
$
1,930

 
$
4,044


(1)
All amounts are shown before tax.
(2)
Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
(3)
See Note 5 for additional information on cash flow hedges.
(4)
See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition costs and other costs, future policy benefits and policyholders’ account balances. 
Net Unrealized Investment Gain (Loss) AOCI Rollforward
Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss has been recognized
 
Net Unrealized
Gains (Losses)
on Investments
 
Deferred Policy Acquisition Costs and
Other Costs
 
Future Policy
Benefits and
Policyholders’
Account
Balances(2)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated
Other
Comprehensive
Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
 
(in thousands)
Balance, December 31, 2015
$
5,196

 
$
(1,350
)
 
$
1,114

 
$
(1,767
)
 
$
3,193

Net investment gains (losses) on investments arising during the period
1,016

 
0

 
0

 
(356
)
 
660

Reclassification adjustment for (gains) losses included in net income
(1,316
)
 
0

 
0

 
461

 
(855
)
Reclassification adjustment for OTTI losses excluded from net income(1)
(512
)
 
0

 
0

 
179

 
(333
)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs
0

 
(64
)
 
0

 
22

 
(42
)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances
0

 
0

 
50

 
(18
)
 
32

Balance, June 30, 2016
$
4,384

 
$
(1,414
)
 
$
1,164

 
$
(1,479
)
 
$
2,655


(1)
Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
(2)
Balances are net of reinsurance.
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward
All Other Net Unrealized Investment Gains and Losses in AOCI
 
Net Unrealized
Gains (Losses)
on Investments(2)
 
Deferred Policy Acquisition Costs and
Other Costs
 
Future Policy
Benefits and
Policyholders’
Account
Balances(3)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated
Other
Comprehensive
Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
 
(in thousands)
Balance, December 31, 2015
$
111,837

 
$
(19,252
)
 
$
2,647

 
$
(33,223
)
 
$
62,009

Net investment gains (losses) on investments arising during the period
341,126

 
0

 
0

 
(119,393
)
 
221,733

Reclassification adjustment for (gains) losses included in net income
(72,361
)
 
0

 
0

 
25,326

 
(47,035
)
Reclassification adjustment for OTTI losses excluded from net income(1)
512

 
0

 
0

 
(179
)
 
333

Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs
0

 
(68,802
)
 
0

 
24,081

 
(44,721
)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances
0

 
0

 
71,323

 
(24,963
)
 
46,360

Balance, June 30, 2016
$
381,114

 
$
(88,054
)
 
$
73,970

 
$
(128,351
)
 
$
238,679


(1)
Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
(2)
Includes cash flow hedges. See Note 5 for information on cash flow hedges.
(3)
Balances are net of reinsurance.
Unrealized Gains and (Losses) on Investments
The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated:
 
June 30, 2016
 
December 31, 2015
 
(in thousands)
Fixed maturity securities on which an OTTI loss has been recognized
$
4,384

 
$
5,196

Fixed maturity securities, available-for-sale - all other
331,663

 
59,930

Equity securities, available-for-sale
593

 
(2,636
)
Derivatives designated as cash flow hedges(1)
38,143

 
48,271

Other investments
10,715

 
6,272

Net unrealized gains (losses) on investments
$
385,498

 
$
117,033


(1)
See Note 5 for more information on cash flow hedges.
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures
The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, as of the dates indicated:
 
June 30, 2016
 
Less than twelve months
 
Twelve months or more
 
Total
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
(in thousands)
Fixed maturities, available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government authorities and agencies
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Obligations of U.S. states and their political subdivisions
0

 
0

 
0

 
0

 
0

 
0

Foreign government bonds
2,788

 
4

 
3,454

 
180

 
6,242

 
184

Public utilities
1,907

 
31

 
33,821

 
2,771

 
35,728

 
2,802

Redeemable preferred stock
670

 
44

 
0

 
156

 
670

 
200

All other U.S. public corporate securities
36,685

 
617

 
121,550

 
7,454

 
158,235

 
8,071

All other U.S. private corporate securities
67,986

 
3,283

 
26,786

 
1,190

 
94,772

 
4,473

All other foreign public corporate securities
782

 
45

 
8,574

 
1,568

 
9,356

 
1,613

All other foreign private corporate securities
123,488

 
5,381

 
107,454

 
12,694

 
230,942

 
18,075

Asset-backed securities
79,598

 
893

 
46,920

 
492

 
126,518

 
1,385

Commercial mortgage-backed securities
0

 
0

 
3,524

 
37

 
3,524

 
37

Residential mortgage-backed securities
989

 
21

 
1,285

 
9

 
2,274

 
30

Total
$
314,893

 
$
10,319

 
$
353,368

 
$
26,551

 
$
668,261

 
$
36,870

Equity securities, available-for-sale
$
2,993

 
$
73

 
$
2,806

 
$
246

 
$
5,799

 
$
319


 
December 31, 2015
 
Less than twelve months
 
Twelve months or more
 
Total
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
(in thousands)
Fixed maturities, available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of
U.S. government authorities and agencies
$
5,985

 
$
228

 
$
0

 
$
0

 
$
5,985

 
$
228

Obligations of U.S. states and their political subdivisions
77,756

 
1,958

 
0

 
0

 
77,756

 
1,958

Foreign government bonds
44,854

 
1,940

 
1,813

 
851

 
46,667

 
2,791

Public utilities
323,086

 
13,151

 
26,094

 
5,251

 
349,180

 
18,402

Redeemable preferred stock
0

 
145

 
0

 
0

 
0

 
145

All other U.S. public corporate securities
802,158

 
49,343

 
61,110

 
11,799

 
863,268

 
61,142

All other U.S. private corporate securities
323,218

 
12,476

 
17,103

 
1,487

 
340,321

 
13,963

All other foreign public corporate securities
121,662

 
5,098

 
6,079

 
1,410

 
127,741

 
6,508

All other foreign private corporate securities
284,191

 
14,089

 
154,791

 
28,439

 
438,982

 
42,528

Asset-backed securities
249,084

 
1,565

 
93,675

 
1,085

 
342,759

 
2,650

Commercial mortgage-backed securities
129,765

 
2,350

 
4,221

 
79

 
133,986

 
2,429

Residential mortgage-backed securities
18,435

 
59

 
1,519

 
6

 
19,954

 
65

Total
$
2,380,194

 
$
102,402

 
$
366,405

 
$
50,407

 
$
2,746,599

 
$
152,809

Equity securities, available-for-sale
$
35,869

 
$
2,339

 
$
9,281

 
$
720

 
$
45,150

 
$
3,059