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OTHER COMPREHENSIVE INCOME (LOSS)
 9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
OTHER COMPREHENSIVE INCOME (LOSS)
The following table presents the tax effects allocated to each component of other comprehensive income (loss):
 
 
2018
 
2017
 
 
 
Before Tax Amount
 
Tax (Expense) Benefit
 
Net of Tax Amount
 
Before Tax Amount
 
Tax (Expense) Benefit
 
Net of Tax Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized investment gains (losses) arising during the period
$
(27,968
)
 
$
1,907

 
$
(26,061
)
 
$
64,431

 
$
(1,926
)
 
$
62,505

 
 
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income
26,896

 
(972
)
 
25,924

 
(15,925
)
 
2,639

 
(13,286
)
 
 
Unrealized investment gains (losses) arising during the period, net of reclassification adjustment(1)
(1,072
)
 
935

 
(137
)
 
48,506

 
713

 
49,219

 
 
Non-credit portion of OTTI losses
—

 
—

 
—

 
—

 
—

 
—

 
 
Foreign currency translation adjustment
994

 
—

 
994

 
8,088

 
—

 
8,088

 
 
Total other comprehensive income (loss), net of tax
$
(78
)
 
$
935

 
$
857

 
$
56,594

 
$
713

 
$
57,307

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized investment gains (losses) arising during the period
$
(266,117
)
 
$
8,596

 
$
(257,521
)
 
$
215,360

 
$
(8,899
)
 
$
206,461

 
 
Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income
79,552

 
(2,363
)
 
77,189

 
8,269

 
1,900

 
10,169

 
 
Unrealized investment gains (losses) arising during the period, net of reclassification adjustment(1)
(186,565
)
 
6,233

 
(180,332
)
 
223,629

 
(6,999
)
 
216,630

 
 
Non-credit portion of OTTI losses
—

 
—

 
—

 
—

 
—

 
—

 
 
Foreign currency translation adjustment
(6,864
)
 
—

 
(6,864
)
 
46,824

 
—

 
46,824

 
 
Total other comprehensive income (loss), net of tax
$
(193,429
)
 
$
6,233

 
$
(187,196
)
 
$
270,453

 
$
(6,999
)
 
$
263,454

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1)
Effective January 1, 2018, the Company adopted ASU No. 2016-01. The adoption of this guidance resulted in a cumulative adjustment to reclassify unrealized investment gains on equity securities from accumulated other comprehensive income to retained earnings. As prescribed, the prior period has not been restated to conform to the current presentation. Refer to Item 1, Note 1 'Basis of Presentation and Significant Accounting Policies' to the Consolidated Financial Statements for additional information.
    
The following table presents reclassifications from Accumulated Other Comprehensive Income ("AOCI") to net income available to common shareholders:
 
 
 
Amount reclassified from AOCI(1)
 
 
 
 
 
 
AOCI Components
Consolidated Statement of Operations line item that includes reclassification
Three months ended September 30,
 
Nine months ended September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized investment gains (losses) on available for sale investments
 
 
 
 
 
 
 
 
 
 
 
Other investment gains (losses)
$
(21,350
)
 
$
21,337

 
$
(71,918
)
 
$
5,224

 
 
 
OTTI losses
(5,546
)
 
(5,412
)
 
(7,634
)
 
(13,493
)
 
 
 
Total before tax
(26,896
)
 
15,925

 
(79,552
)
 
(8,269
)
 
 
 
Income tax (expense) benefit
972

 
(2,639
)
 
2,363

 
(1,900
)
 
 
 
Net of tax
$
(25,924
)
 
$
13,286

 
$
(77,189
)
 
$
(10,169
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange loss
$
—

 
$
—

 
$
—

 
$
(24,149
)
 
 
 
Income tax (expense) benefit
—

 
—

 
—

 
—

 
 
 
Net of tax
$
—

 
$
—

 
$
—

 
$
(24,149
)
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Amounts in parentheses are debits to net income (loss) available (attributable) to common shareholders.

On March 27, 2017, as part of the wind down of our Australia operation, the Australia Prudential Regulation Authority revoked the authorization of AXIS Specialty Australia to carry on insurance business in Australia. As this resulted in the substantial liquidation of AXIS Specialty Australia, the Company released the cumulative translation adjustment related to AXIS Specialty Australia of $24 million from AOCI in the Consolidated Balance Sheet to foreign exchange losses in the Consolidated Statement of Operations.