Other Comprehensive Income

6 Months Ended

Jun. 30, 2015

Other Comprehensive Income [Abstract]

Other Comprehensive Income

Note 9 – Other Comprehensive Income

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

	Three Months Ended June 30,
	2015			2014
	(In thousands)
Net unrealized holding (losses) gains arising during the period	$	(64,118	)	$	44,818
Income tax benefit (expense)		22,362			(15,634	)
Valuation allowance		(21,890	)		15,317
Net of taxes		(63,646	)		44,501
Net changes in benefit plan assets and obligations		(392	)		(1,980	)
Income tax benefit		137			693
Valuation allowance		(137	)		(693	)
Net of taxes		(392	)		(1,980	)
Net changes in unrealized foreign currency translation adjustment		598			904
Income tax expense		(208	)		(317	)
Net of taxes		390			587
Total other comprehensive income (loss)		(63,912	)		43,742
Total income tax benefit (expense), net of valuation allowance		264			(634	)
Total other comprehensive income (loss), net of tax	$	(63,648	)	$	43,108

	Six Months Ended June 30,
	2015			2014
	(In thousands)
Net unrealized holding (losses) gains arising during the period	$	(44,397	)	$	84,479
Income tax benefit (expense)		15,486			(29,505	)
Valuation allowance		(15,172	)		29,125
Net of taxes		(44,083	)		84,099
Net changes in benefit plan assets and obligations		(1,092	)		(3,466	)
Income tax benefit		382			1,213
Valuation allowance		(382	)		(1,213	)
Net of taxes		(1,092	)		(3,466	)
Net changes in unrealized foreign currency translation adjustment		(2,504	)		2,835
Income tax benefit (expense)		880			(995	)
Net of taxes		(1,624	)		1,840
Total other comprehensive income (loss)		(47,993	)		83,848
Total income tax benefit (expense), net of valuation allowance		1,194			(1,375	)
Total other comprehensive income (loss), net of tax	$	(46,799	)	$	82,473

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

	Three Months Ended June 30,
	2015			2014
	(In thousands)
Reclassification adjustment for net realized gains (losses) included in net income	$	477		$	(1,896	)
Income tax (expense) benefit		(161	)		669
Valuation allowance		122			(699	)
Net of taxes		438			(1,926	)
Reclassification adjustment related to benefit plan assets and obligations		392			1,980
Income tax expense		(137	)		(693	)
Valuation allowance		137			693
Net of taxes		392			1,980
Total reclassifications		869			84
Total income tax expense, net of valuation allowance		(39	)		(30	)
Total reclassifications, net of tax	$	830		$	54

	Six Months Ended June 30,
	2015			2014
	(In thousands)
Reclassification adjustment for net realized gains (losses) included in net income	$	11,711		$	(4,885	)
Income tax (expense) benefit		(4,092	)		1,715
Valuation allowance		4,048			(1,745	)
Net of taxes		11,667			(4,915	)
Reclassification adjustment related to benefit plan assets and obligations		1,092			3,466
Income tax expense		(382	)		(1,213	)
Valuation allowance		382			1,213
Net of taxes		1,092			3,466
Total reclassifications		12,803			(1,419	)
Total income tax expense, net of valuation allowance		(44	)		(30	)
Total reclassifications, net of tax	$	12,759		$	(1,449	)

See Note 11 – “Income Taxes” for a discussion of the valuation allowance.

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

	Six Months Ended June 30, 2015
	Unrealized gains and losses on available-for- sale securities			Defined benefit plans			Foreign currency translation			Total accumulated other comprehensive income
	(In thousands)
Balance at December 31, 2014, net of tax	$	(57,551	)	$	(28,938	)	$	5,148		$	(81,341	)
Other comprehensive loss before reclassifications		(32,416	)		-			(1,624	)	$	(34,040	)
Less: Amounts reclassified from AOCL		11,667	(1)		1,092	(2)		-		$	12,759
Balance at June 30, 2015, net of tax	$	(101,634	)	$	(30,030	)	$	3,524		$	(128,140	)

(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.