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Equity
 6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Equity EQUITY

Accumulated Other Comprehensive Income (Loss)

AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Consolidated Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2020 and 2019, 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, 2019
$
(7,917
)
 
$
289,359

 
$
281,442

Change in OCI before reclassifications
(3,888
)
 
195,529

 
191,641

Amounts reclassified from AOCI
0

 
(4,502
)
 
(4,502
)
Income tax benefit (expense)
12

 
(40,116
)
 
(40,104
)
Balance, June 30, 2020
$
(11,793
)
 
$
440,270

 
$
428,477

 
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, 2018
$
(17,448
)
 
$
(10,848
)
 
$
(28,296
)
Change in OCI before reclassifications
7,007

 
332,927

 
339,934

Amounts reclassified from AOCI
0

 
10,672

 
10,672

Income tax benefit (expense)
2

 
(72,147
)
 
(72,145
)
Balance, June 30, 2019
$
(10,439
)
 
$
260,604

 
$
250,165


(1)
Includes cash flow hedges of $94 million and $26 million as of June 30, 2020 and December 31, 2019, respectively, and $29 million and $(18) million as of June 30, 2019 and December 31, 2018, respectively.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Amounts reclassified from AOCI (1)(2):
 
 
 
 
 
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
Cash flow hedges - Currency/Interest rate(3)
$
(553
)
 
$
(4,393
)
 
$
11,240

 
$
(3,999
)
Net unrealized investment gains (losses) on available-for-sale securities
(4,063
)
 
(2,489
)
 
(6,738
)
 
(6,673
)
Total net unrealized investment gains (losses)(4)
(4,616
)
 
(6,882
)
 
4,502

 
(10,672
)
Total reclassifications for the period
$
(4,616
)
 
$
(6,882
)
 
$
4,502

 
$
(10,672
)

(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 4 for additional information on cash flow hedges.
(4)
See table below for additional information on unrealized investment gains (losses), including the impact on DAC and other costs, future policy benefits, policyholders’ account balances and other liabilities. 

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on available-for-sale fixed maturity securities and certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows:

Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized
 
Net Unrealized
Gains (Losses)
on Investments
 
DAC and Other Costs(2)
 
Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated
Other
Comprehensive
Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
 
(in thousands)
Balance, December 31, 2019(1)
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Net investment gains (losses) on investments arising during the period
53

 
0

 
0

 
(11
)
 
42

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

 
0

 
0

 
0

 
0

Increase (decrease) due to non-credit related losses recognized in AOCI during the period
(927
)
 
0

 
0

 
195

 
(732
)
Impact of net unrealized investment (gains) losses on DAC and other costs
0

 
133

 
0

 
(28
)
 
105

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities
0

 
0

 
59

 
(12
)
 
47

Balance, June 30, 2020
$
(874
)
 
$
133

 
$
59

 
$
144

 
$
(538
)

(1)
Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020.
(2)
"Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.
(3)
"Other liabilities" primarily includes reinsurance payables.

All Other Net Unrealized Investment Gains (Losses) in AOCI
 
Net Unrealized
Gains (Losses)
on Investments(1)
 
DAC and Other Costs(3)
 
Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated
Other
Comprehensive
Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
 
(in thousands)
Balance, December 31, 2019(2)
$
425,180

 
$
423,227

 
$
(482,134
)
 
$
(76,914
)
 
$
289,359

Net investment gains (losses) on investments arising during the period
235,368

 
0

 
0

 
(49,428
)
 
185,940

Reclassification adjustment for (gains) losses included in net income
(4,502
)
 
0

 
0

 
945

 
(3,557
)
Reclassification due to allowance for credit losses recorded during the period
927

 
0

 
0

 
(195
)
 
732

Impact of net unrealized investment (gains) losses on DAC and other costs
0

 
475,035

 
0

 
(99,758
)
 
375,277

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities
0

 
0

 
(515,119
)
 
108,176

 
(406,943
)
Balance, June 30, 2020
$
656,973

 
$
898,262

 
$
(997,253
)
 
$
(117,174
)
 
$
440,808


(1)
Includes cash flow hedges. See Note 4 for information on cash flow hedges.
(2)
Includes net unrealized gains (losses) for which an OTTI loss had been previously recognized.
(3)
"Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.
(4)
"Other liabilities" primarily includes reinsurance payables.