XML 62 R11.htm IDEA: XBRL DOCUMENT v3.2.0.727
Segment Information Level 1 (Notes)
6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Information
The Company currently conducts business principally in six reporting segments, as well as a Corporate category. The Company's revenues from continuing operations are generated primarily in the United States ("U.S."). Any foreign sourced revenue in continuing operations is immaterial.
The Company’s reporting segments, as well as the Corporate category, are as follows:
Commercial Lines
Commercial Lines provides workers’ compensation, property, automobile, marine, livestock, liability and umbrella coverages primarily throughout the U.S., along with a variety of customized insurance products and risk management services including professional liability, bond, surety and specialty casualty coverages.
Personal Lines
Personal Lines provides standard automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP.
Property & Casualty Other Operations
Property & Casualty Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and including substantially all of the Company’s asbestos and environmental exposures.
Group Benefits
Group Benefits provides employers, associations, affinity groups and financial institutions with group life, accident and disability coverage, along with other products and services, including voluntary benefits, and group retiree health.
Mutual Funds
Mutual Funds offers investment products for retail and retirement accounts and provides investment management and administrative services such as product design, implementation and oversight. This business also includes a portion of the runoff of the mutual funds which supports the Company's variable annuity products.
Talcott Resolution
Talcott Resolution is comprised of runoff business from the Company's individual annuity, institutional, and private-placement life insurance businesses. The Company's individual annuity business consists of annuity products for individuals, which include variable, fixed, and payout annuity products. In addition, Talcott Resolution includes the retained Japan fixed payout annuity liabilities, as well as the Company's discontinued Japan annuity business prior to its sale in 2014.
Corporate
The Company includes in the Corporate category the Company’s debt financing and related interest expense, as well as other capital raising activities, certain purchase accounting adjustments and other charges not allocated to the segments.
Financial Measures and Other Segment Information
Certain transactions between segments occur during the year that primarily relate to tax settlements, insurance coverage, expense reimbursements, services provided, security transfers and capital contributions. Also, one segment may purchase annuity contracts from another to fund pension costs and to settle certain group life claims. In addition, certain inter-segment transactions occur that relate to interest income on allocated surplus. Consolidated net investment income is unaffected by such transactions.
The following table presents net income (loss) for each reporting segment, as well as the Corporate category.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Net income (loss)
2015
2014
 
2015
2014
Commercial Lines
$
259

$
199

 
$
499

$
441

Personal Lines
41

(30
)
 
117

69

Property & Casualty Other Operations
(111
)
(144
)
 
(88
)
(122
)
Group Benefits
56

55

 
108

106

Mutual Funds
22

21

 
44

42

Talcott Resolution
217

(504
)
 
328

(359
)
Corporate
(71
)
(64
)
 
(128
)
(149
)
Net income (loss)
$
413

$
(467
)
 
$
880

$
28


The following table presents revenues by product line for each reporting segment, as well as the Corporate category.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Revenues
2015
2014
 
2015
2014
Earned premiums and fee income
 
 
 
 
 
Commercial Lines
 
 
 
 
 
Workers’ compensation
$
760

$
734

 
$
1,504

$
1,466

Property
160

137

 
316

273

Automobile
152

145

 
300

289

Package business
299

289

 
591

572

Liability
142

146

 
277

291

Bond
55

52

 
108

103

Professional liability
55

56

 
110

106

Total Commercial Lines
1,623

1,559

 
3,206

3,100

Personal Lines
 
 
 
 
 
Automobile
665

650

 
1,320

1,286

Homeowners
301

296

 
598

588

Total Personal Lines [1]
966

946

 
1,918

1,874

Group Benefits
 
 
 
 
 
Group disability
374

365

 
745

734

Group life
376

371

 
741

759

Other
46

41

 
90

83

Total Group Benefits
796

777

 
1,576

1,576

Mutual Funds
 
 
 
 
 
Mutual Fund
154

148

 
303

286

Talcott
30

35

 
60

71

Total Mutual Funds
184

183

 
363

357

Talcott Resolution
288

352

 
573

705

Corporate
3

4

 
5

7

Total earned premiums and fee income
3,860

3,821

 
7,641

7,619

Net investment income
796

768

 
1,605

1,592

Net realized capital gains
9

(4
)
 
14

(39
)
Other revenues
20

31

 
42

56

Total revenues
$
4,685

$
4,616

 
$
9,302

$
9,228


[1]
For the three months ended June 30, 2015 and 2014, AARP members accounted for earned premiums of $785 and $755, respectively. For the six months ended June 30, 2015 and 2014, AARP members accounted for earned premiums of $1.6 billion and $1.5 billion, respectively.