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Deferred Policy Acquisition Costs
 12 Months Ended
Dec. 31, 2018
Deferred Policy Acquisition Costs Disclosures [Abstract]  
Deferred Policy Acquisition Costs
DEFERRED POLICY ACQUISITION COSTS
The following reflects the amounts of policy acquisition costs deferred and amortized (dollars in thousands):
 
Years ended December 31,
 
2018
 
2017
 
2016
Balance, beginning of year
 
$
3,239,824

 
$
3,338,605

 
$
3,392,437

Capitalization
 
607,743

 
348,470

 
350,233

Amortization (including interest)
 
(437,696
)
 
(432,474
)
 
(341,115
)
Change in value of embedded derivatives
 
14,658

 
(70,392
)
 
(40,077
)
Attributed to unrealized investment gains (losses)
 
26,608

 
(8,220
)
 
(3,541
)
Foreign currency translation
 
(53,367
)
 
63,835

 
(19,332
)
Balance, end of year
 
$
3,397,770

 
$
3,239,824

 
$
3,338,605


Some reinsurance agreements involve reimbursing the ceding company for allowances and commissions in excess of first-year premiums. These amounts represent acquisition costs and are capitalized to the extent deemed recoverable from the future premiums and amortized against future profits of the business. This type of agreement presents a risk to the extent that the business lapses faster than originally anticipated, resulting in future profits being insufficient to recover the Company’s investment.