In connection with the acquisition of Dana Companies in December 2016, we acquired properties in the United States. The acquired properties have no present value and are not used to run our operations.
Our businesses strategies are discussed in "Item 1. Business - Company Overview", "- Business Strategy", "-Strategic Growth" and "- Recent Acquisitions and Significant New Business."
2016 versus 2015: Noncontrolling interest in earnings of the Atrium segment was $4.5 million and $14.3 million for the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016, Trident and Dowling had a combined 40.39% noncontrolling interest in the Atrium segment, although their share of net earnings was higher in 2015 due primarily to the interest expense recorded in the segment, which was an Enstar Specific Expense.
We acquired Alpha on November 13, 2015 which contributed $2.5 million to our 2016 results, compared to $nil in 2015 and 2014 because the transaction closed later in the year during 2015. This transaction resulted in higher amounts across all components of earnings from continuing operations in 2016 compared to 2015.
We utilize and pay fees to various companies to provide investment advisory and/or management services. These fees, which are predominantly based upon the amount of assets under management, are included in net investment income. The total fees we paid to our investment managers for the year ended December 31, 2016 were $6.0 million, including $1.1 million to our largest single investment manager.
In January 2016, the FASB issued ASU 2016-01, which amends the guidance on the classification and measurement of financial instruments. Although the ASU retains many of the current requirements, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities, and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The ASU is effective for interim and annual reporting periods beginning after December 15, 2017. The adoption of this guidance may have an impact, possibly material, on our consolidated financial statements at the date of adoption in relation to any financial liabilities for which we may elect the fair value option.
As of December 31, 2016 and 2015, included in the table above were restricted investments of $786.0 million and $804.2 million, respectively.
The cumulative currency translation adjustment ("CTA") balance in accumulated other comprehensive income (loss), a component of shareholders’ equity, included $(14.8) million as at December 31, 2016 related to Pavonia. Upon completion of the sale, the CTA will be included in earnings as a reduction of the gain on sale.
The Pavonia business qualifies as a discontinued operation. The following table summarizes the components of net earnings (losses) from discontinued operations on the consolidated statements of earnings for the years ended December 31, 2016, 2015 and 2014:
For the years ended December 31, 2016, and 2015, we did not recognize any other-than-temporary impairment losses on our available-for-sale securities. We determined that no credit losses existed as at December 31, 2016 and 2015. A description of our other-than-temporary impairment process is included in Note 2 - "Significant Accounting Policies." There were no changes to our process in the years ended December 31, 2016, and 2015.
Multi-strategy hedge fund was an investment in a hedge fund that invested in a variety of asset classes including funds, fixed income, equity securities and other investments. The fund was sold in December 2016. The proceeds of sale were contributed to our investment in the start-up reinsurer KaylaRe Holdings, which is recorded as an equity-method investment in other assets on our consolidated balance sheet.
Our investment in the real estate debt fund was valued based on the most recently available NAV from the external fund manager. The fair value of this investment was measured using the NAV practical expedient and therefore has not been categorized within the fair value hierarchy. This fund was fully redeemed during the year ended December 31, 2016.
Case reserves are recognized for known claims (including the cost of related litigation) when sufficient information has been developed to indicate the involvement of a specific insurance policy. We use considerable judgment in estimating losses for reported claims on an individual claim basis based upon our knowledge of the circumstances surrounding the claim, the severity of the injury or damage, the jurisdiction of the occurrence, the potential for ultimate exposure, the type of loss, and our experience with the line of business and policy provisions relating to the particular type of claim. The reserves for unpaid reported losses and LAE are established by management based on reports from brokers, ceding companies and insureds and represent the estimated ultimate cost of events or conditions that have been reported to, or specifically identified, by us. We also consider facts currently known and the current state of the law and coverage litigation.
The net reduction in incurred losses and LAE for the year ended December 31, 2014 of $264.7 million included current period incurred losses of $24.2 million related to SeaBright. Excluding SeaBright's current period net incurred losses and LAE of $24.2 million net incurred losses and LAE relating to prior periods were reduced by $288.9 million which was attributable to a reduction in estimates of net ultimate losses of $235.8 million and a reduction in provisions for unallocated LAE of $49.4 million, relating to 2014 run-off activity, partially offset by an increase in provisions for bad debt of $7.7 million and the amortization of fair value adjustments over the estimated payout period relating to companies acquired amounting to $4.0 million.
Financial and business covenants imposed on us include certain limitations on mergers, consolidations, acquisitions, indebtedness and guarantees, restrictions on dividends, and limitations on liens. We are also required to maintain an average credit quality in our fixed income investment portfolio of BBB or its equivalent, and certain of our subsidiaries are restricted from engaging in certain derivative transactions without lender consent. The covenants require our regulated insurance subsidiaries to maintain capital resources of at least 1.1 times the amount required to meet solvency requirements.
For the years ended December 31, 2016, 2015 and 2014, 4,298, 5,174 and 3,716 restricted share units, respectively, were credited to the accounts of non-employee directors under the Enstar Group Limited Deferred Compensation and Ordinary Share Plan for Non-Employee Directors (the "Deferred Compensation Plan"). Expense related to the restricted share units for the years ended December 31, 2016, 2015 and 2014, was $0.7 million, $1.0 million and $0.5 million, respectively.
Our effective tax rate is driven by the geographical distribution of our pre-tax net earnings between our taxable and non-taxable jurisdictions.
During the years ended December 31, 2016, 2015 and 2014, we recognized a benefit for the reversal of interest and penalties related to unrecognized tax benefits due to the expiration of the statute of limitations in the amount of $nil, $nil and $2.2 million, respectively. There were no accruals for the payment of interest and penalties related to unrecognized tax benefits at each of December 31, 2016, 2015 and 2014.
As at December 31, 2016, the total amount of net assets of our consolidated subsidiaries that were restricted was $1.6 billion.
The underwriting capacity of a member of Lloyd’s is supported by providing Funds at Lloyd’s, as described in Note 5 - "Investments." Business plans, including maximum underwriting capacity, for Lloyd’s syndicates requires annual approval by the Lloyd’s Franchise Board, which may require changes to any business plan or additional capital to support underwriting plans.
Other liabilities included $220.5 million for indemnity and defense costs for pending and future claims at December 31, 2016, determined using standard actuarial techniques for asbestos-related exposures. Other liabilities also included $2.3 million for environmental liabilities associated with Dana properties.