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Comprehensive Income
 12 Months Ended
Dec. 31, 2013
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Comprehensive Income
COMPREHENSIVE INCOME
The following table presents the components of the Company’s other comprehensive income (loss) for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):
For the year ended December 31, 2013:
 
 
Before-Tax Amount  
 
Tax (Expense) Benefit  
 
After-Tax Amount  
Foreign currency translation adjustments:
 
 
 
 
 
 
Change arising during year
 
$
(88,409
)
 
$
1,791

 
$
(86,618
)
Foreign currency swap
 
40,347

 
(14,121
)
 
26,226

Net foreign currency translation adjustments
 
(48,062
)
 
(12,330
)
 
(60,392
)
Unrealized gains on investments:(1)
 
 
 
 
 
 
Unrealized net holding gains arising during the year
 
(1,519,967
)
 
465,740

 
(1,054,227
)
Less: Reclassification adjustment for net gains realized in net income
 
9,355

 
(3,274
)
 
6,081

Net unrealized gains
 
(1,529,322
)
 
469,014

 
(1,060,308
)
Change in unrealized other-than-temporary impairments on fixed maturity securities
 
4,456

 
(1,560
)
 
2,896

Unrealized pension and postretirement benefits:
 
 
 
 
 
 
Net prior service cost arising during the year
 
525

 
(171
)
 
354

Net loss arising during the period
 
21,624

 
(7,469
)
 
14,155

Unrealized pension and postretirement benefits, net
 
22,149

 
(7,640
)
 
14,509

Other comprehensive income (loss)
 
$
(1,550,779
)
 
$
447,484

 
$
(1,103,295
)
For the year ended December 31, 2012:
 
 
Before-Tax Amount  
 
Tax (Expense) Benefit  
 
After-Tax Amount  
Foreign currency translation adjustments:
 
 
 
 
 
 
Change arising during year
 
$
57,229

 
$
(6,244
)
 
$
50,985

Foreign currency swap
 
(20,470
)
 
7,165

 
(13,305
)
Net foreign currency translation adjustments
 
36,759

 
921

 
37,680

Unrealized gains on investments:(1)
 
 
 
 
 
 
Unrealized net holding gains arising during the year
 
786,449

 
(275,181
)
 
511,268

Less: Reclassification adjustment for net gains realized in net income
 
91,327

 
(31,964
)
 
59,363

Net unrealized gains
 
695,122

 
(243,217
)
 
451,905

Change in unrealized other-than-temporary impairments on fixed maturity securities
 
9,899

 
(3,465
)
 
6,434

Unrealized pension and postretirement benefits:
 
 
 
 
 
 
Net prior service cost arising during the year
 
298

 
(95
)
 
203

Net loss arising during the period
 
(8,347
)
 
2,874

 
(5,473
)
Unrealized pension and postretirement benefits, net
 
(8,049
)
 
2,779

 
(5,270
)
Other comprehensive income
 
$
733,731

 
$
(242,982
)
 
$
490,749

For the year ended December 31, 2011:
 
 
 
 
 
 
 
 
Before-Tax Amount  
 
Tax (Expense) Benefit  
 
After-Tax Amount  
Foreign currency translation adjustments:
 
 
 
 
 
 
Change arising during year
 
$
(28,779
)
 
$
121

 
$
(28,658
)
Foreign currency swap
 
4,858

 
(1,700
)
 
3,158

Net foreign currency translation adjustments
 
(23,921
)
 
(1,579
)
 
(25,500
)
Unrealized gains on investments:(1)
 
 
 
 
 
 
Unrealized net holding gains arising during the year
 
1,118,586

 
(302,134
)
 
816,452

Less: Reclassification adjustment for net gains realized in net income
 
72,841

 
(25,494
)
 
47,347

Net unrealized gains
 
1,045,745

 
(276,640
)
 
769,105

Change in unrealized other-than-temporary impairments on fixed maturity securities
 
(1,901
)
 
665

 
(1,236
)
Unrealized pension and postretirement benefits:
 
 
 
 
 
 
Net prior service cost arising during the year
 
460

 
(185
)
 
275

Net gain arising during the period
 
(25,441
)
 
8,766

 
(16,675
)
Unrealized pension and postretirement benefits, net
 
(24,981
)
 
8,581

 
(16,400
)
Other comprehensive income
 
$
994,942

 
$
(268,973
)
 
$
725,969

(1)
Includes cash flow hedges. See Note 5 - “Derivative Instruments” for additional information on cash flow hedges.
A summary of the components of net unrealized appreciation (depreciation) of balances carried at fair value is as follows (dollars in thousands):
 
For the years ended December 31,
 
2013
 
2012
 
2011
Change in net unrealized appreciation (depreciation) on:
 
 
 
 
 
 
Fixed maturity securities available-for-sale
 
$
(1,528,773
)
 
$
713,778

 
$
1,058,505

Other investments(1)
 
(12,274
)
 
6,181

 
(7,213
)
Effect on unrealized appreciation on:
 
 
 
 
 
 
Deferred policy acquisition costs
 
16,181

 
(14,938
)
 
(7,448
)
Net unrealized appreciation (depreciation)
 
$
(1,524,866
)
 
$
705,021

 
$
1,043,844

(1)
Includes cash flow hedges. See Note 5 - “Derivative Instruments” for additional information on cash flow hedges.
The balance of and changes in each component of AOCI were as follows (dollars in thousands):
 
 
 
Accumulated    
Currency
Translation
Adjustments
 
Unrealized
Appreciation
(Depreciation)
of Investments     
 
Pension and
Postretirement    
Benefits
 
Accumulated
Other
Comprehensive    
Income (Loss)
For the year ended December 31, 2013
 
 
 
 
 
 
Balance, beginning of year
 
$
267,475

 
$
1,877,657

 
$
(36,230
)
 
$
2,108,902

Change in foreign currency translation adjustments
 
(60,392
)
 
—

 
—

 
(60,392
)
Unrealized gain (loss) on investments(1)
 
—

 
(1,063,377
)
 
—

 
(1,063,377
)
Change in other-than-temporary impairment losses on fixed maturity securities
 
—

 
2,896

 
—

 
2,896

Changes in pension and other postretirement plan adjustments
 
—

 
—

 
11,577

 
11,577

Amounts reclassified from AOCI
 
—

 
3,069

 
2,932

 
6,001

Balance, end of year
 
$
207,083

 
$
820,245


$
(21,721
)
 
$
1,005,607

For the year ended December 31, 2012
 
 
 
 
 
 
Balance, beginning of year
 
$
229,795

 
$
1,419,318

 
$
(30,960
)
 
$
1,618,153

Change in foreign currency translation adjustments
 
37,680

 
—

 
—

 
37,680

Unrealized gain on investments(1)
 
—

 
451,905

 
—

 
451,905

Change in other-than-temporary impairment losses on fixed maturity securities
 
—

 
6,434

 
—

 
6,434

Changes in pension and other postretirement plan adjustments
 
—

 
—

 
(5,270
)
 
(5,270
)
Balance, end of year
 
$
267,475

 
$
1,877,657

 
$
(36,230
)
 
$
2,108,902

For the year ended December 31, 2011
 
 
 
 
 
 
Balance, beginning of year
 
$
255,295

 
$
651,449

 
$
(14,560
)
 
$
892,184

Change in foreign currency translation adjustments
 
(25,500
)
 
—

 
—

 
(25,500
)
Unrealized gain on investments(1)
 
—

 
769,105

 
—

 
769,105

Change in other-than-temporary impairment losses on fixed maturity securities
 
—

 
(1,236
)
 
—

 
(1,236
)
Changes in pension and other postretirement plan adjustments
 
—

 
—

 
(16,400
)
 
(16,400
)
Balance, end of year
 
$
229,795

 
$
1,419,318

 
$
(30,960
)
 
$
1,618,153

(1)
Includes cash flow hedges. See Note 5 - “Derivative Instruments” for additional information on cash flow hedges.





The following table presents the amounts of AOCI reclassifications for the year ended December 31, 2013 (dollars in thousands):
Details about AOCI Components
 
Amount Reclassified from AOCI
 
Affected Line Item in Statement of Income         
Unrealized gains and losses on available-for-sale securities
 
$
9,355

 
Investment related gains (losses), net
Gains and losses on cash flow hedge - interest rate swap
 
1,012

 
Investment income
Deferred policy acquisition costs attributed to unrealized gains and losses(1)
 
(16,181
)
 
 
 
 
(5,814
)
 
Total before tax
 
 
2,745

 
Tax expense
 
 
$
(3,069
)
 
Net of tax
Amortization of unrealized pension and postretirement benefits:
 
 
 
 
Prior service cost(2)
 
$
(373
)
 
 
Actuarial gains/(losses)(2)
 
(4,138
)
 
 
 
 
(4,511
)
 
Total before tax
 
 
1,579

 
Tax benefit
 
 
$
(2,932
)
 
Net of tax
 
 
 
 
 
Total reclassifications for the period
 
$
(6,001
)
 
Net of tax
(1)
This AOCI component is included in the computation of the deferred policy acquisition cost. See Note 8 – “Deferred Policy Acquisition Costs” for additional details.
(2)
These AOCI components are included in the computation of the net periodic pension cost. See Note 10 – “Employee Benefit Plans” for additional details.