Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other Comprehensive Income

Other Comprehensive Income

The pretax components of our other comprehensive income (loss) and the related income tax (expense) benefit for the three and nine months ended September 30, 2015 and 2014 are included in the tables below.

	Three Months Ended September 30,
	2015			2014
	(In thousands)
Net unrealized holding gains (losses) arising during the period	$	27,271		$	(17,377	)
Income tax (expense) benefit	(9,531		)	6,069
Valuation allowance (1)	77,555			(5,993		)
Net of taxes	95,295			(17,301		)
Net changes in benefit plan assets and obligations	(546		)	(1,732		)
Income tax benefit	192			606
Valuation allowance (1)	(7,001		)	(606		)
Net of taxes	(7,355		)	(1,732		)
Net changes in unrealized foreign currency translation adjustment	(3,724		)	(3,835		)
Income tax benefit	1,306			1,345
Valuation allowance (1)	(529		)	—
Net of taxes	(2,947		)	(2,490		)
Total other comprehensive income (loss)	23,001			(22,944		)
Total income tax benefit, net of valuation allowance	61,992			1,421
Total other comprehensive income (loss), net of tax	$	84,993		$	(21,523	)

	Nine Months Ended September 30,
	2015			2014
	(In thousands)
Net unrealized holding (losses) gains arising during the period	$	(17,126	)	$	67,102
Income tax benefit (expense)	5,955			(23,436		)
Valuation allowance (1)	62,383			23,132
Net of taxes	51,212			66,798
Net changes in benefit plan assets and obligations	(1,638		)	(5,198		)
Income tax benefit	574			1,819
Valuation allowance (1)	(7,383		)	(1,819		)
Net of taxes	(8,447		)	(5,198		)
Net changes in unrealized foreign currency translation adjustment	(6,228		)	(1,000		)
Income tax benefit	2,186			350
Valuation allowance (1)	(529		)	—
Net of taxes	(4,571		)	(650		)
Total other comprehensive (loss) income	(24,992		)	60,904
Total income tax benefit, net of valuation allowance	63,186			46
Total other comprehensive income, net of tax	$	38,194		$	60,950

(1) See Note 11 – “Income Taxes” for a discussion of the valuation allowance recorded against deferred tax assets.

The pretax and related income tax (expense) benefit components of the amounts reclassified from our accumulated other comprehensive loss to our consolidated statements of operations for the three and nine months ended September 30, 2015 and 2014 are included in the tables below.

	Three Months Ended September 30,
	2015			2014
	(In thousands)
Reclassification adjustment for net realized gains (losses) included in net income	$	(1,120	)	$	(840	)
Income tax benefit	395			299
Valuation allowance	(413		)	(330		)
Net of taxes	(1,138		)	(871		)
Reclassification adjustment related to benefit plan assets and obligations	546			1,732
Income tax expense	(192		)	(606		)
Valuation allowance	192			606
Net of taxes	546			1,732
Total reclassifications	(574		)	892
Total income tax expense, net of valuation allowance	(18		)	(31		)
Total reclassifications, net of tax	$	(592	)	$	861

	Nine Months Ended September 30,
	2015			2014
	(In thousands)
Reclassification adjustment for net realized gains (losses) included in net income (1)	$	10,591		$	(5,725	)
Income tax (expense) benefit	(3,697		)	2,014
Valuation allowance	3,635			(2,075		)
Net of taxes	10,529			(5,786		)
Reclassification adjustment related to benefit plan assets and obligations	1,638			5,198
Income tax expense	(574		)	(1,819		)
Valuation allowance	574			1,819
Net of taxes	1,638			5,198
Total reclassifications	12,229			(527		)
Total income tax expense, net of valuation allowance	(62		)	(61		)
Total reclassifications, net of tax	$	12,167		$	(588	)

(1) The reclassification adjustment for the nine months ended September 30, 2014 has been recast to conform to the 2015 method for determining amounts included in net income. This revision had no impact to our consolidated financial statements and is not material to amounts disclosed by us in prior periods.

Changes in our accumulated other comprehensive loss (“AOCL”), including amounts reclassified from other comprehensive income (loss), for the nine months ended September 30, 2015 are included in the table below.

	Nine Months Ended September 30, 2015
	Unrealized gains and losses on available-for- sale securities				Defined benefit plans				Foreign currency translation			Total accumulated other comprehensive loss
	(In thousands)
Balance at December 31, 2014, net of tax	$	(57,551	)		$	(28,938	)		$	5,148		$	(81,341	)
Other comprehensive income (loss) before reclassifications	61,741				(6,809		)		(4,571		)	50,361
Less: Amounts reclassified from AOCL	10,529			(1)	1,638			(2)	—			12,167
Balance at September 30, 2015, net of tax	$	(6,339	)		$	(37,385	)		$	577		$	(43,147	)

(1) Increases Net realized investment gains on the consolidated statements of operations.

(2) Decreases Other underwriting and operating expenses, net on the consolidated statements of operations.