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Business Dispositions and Discontinued Operations | 3 Months Ended
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Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract] |
Business Dispositions and Discontinued Operations | Discontinued Operations Sale of life and annuity run-off business On December 3, 2017, the Company’s wholly-owned subsidiary, Hartford Holdings, Inc. (HHI) entered into a definitive agreement to sell the Company's life and annuity run-off business, to a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. Under the terms of the sale agreement, the investor group will form a limited partnership that will acquire Hartford Life, Inc. (HLI), a holding company, and its life and annuity operating subsidiaries, for cash of approximately $1.4 billion after a pre-closing dividend to The Hartford of $300 and The Hartford will receive a 9.7% ownership interest in the limited partnership valued at a cost of $164. In addition, as part of the terms of the sale agreement, The Hartford will reduce its long-term debt by $142 because the debt, which was issued by HLI, will be included as part of the sale. Including cash proceeds and the retained equity interest and net of transaction costs, net proceeds for the sale are approximately $1.5 billion. The transaction completes The Hartford’s exit from the life and annuity run-off businesses and is anticipated to close by June 30, 2018, subject to regulatory approval and other closing conditions. The life and annuity run-off operations meet the criteria for reporting as discontinued operations and are reported in the Corporate category. The Company has recognized an estimated loss on sale within discontinued operations of approximately $3.2 billion including $3.3 billion in the fourth quarter of 2017 and a reduction of loss on sale of $62 in the first quarter of 2018. The reduction in loss in the first quarter of 2018 was largely due to the reclassification to retained earnings of $193 of tax effects stranded in AOCI due to the accounting for tax reform, less $107 of operating income from discontinued operations in the first quarter of 2018 and a reclassification of $10 of net unrealized gains net of shadow DAC from AOCI to retained earnings. See Note 1 - Adoption of New Accounting Standards within Basis of Presentation and Significant Accounting Policies, for additional information about the reclassifications from AOCI to retained earnings. Under the agreement, results from the discontinued operations inure to the buyer; therefore, apart from the effect of the reclassification of amounts from AOCI to retained earnings, the loss from discontinued operations during the period between signing and closing will remain largely unchanged as any income earned by the life and annuity run-off business will be offset by a higher loss on sale. At closing, shareholders’ equity will be further reduced for the amount of accumulated other comprehensive income (AOCI) of the life and annuity run-off business, which was approximately $892 and $1 billion as of March 31, 2018 and December 31, 2017, respectively, largely consisting of net unrealized gains on investments, net of shadow DAC. Following the sale, the Company will manage invested assets of the life and annuity run-off business for an initial term of five years and provide transition services for an estimated period of 12 to 24 months. The following table summarizes the major classes of assets and liabilities of discontinued operations. Major Classes of Assets and Liabilities to be Transferred to the Buyer in Connection with the Sale
| Carrying Value as of 3/31/2018 | Carrying Value as of 12/31/2017
Assets |  |
Cash and investments | $ | 29,227 |  | $ | 30,135 |
Reinsurance recoverables | 20,701 |  | 20,785 |
Loss accrual [1] | (3,195 | ) | (3,257 | )
Other assets | 1,425 |  | 1,439 |
Separate account assets | 108,393 |  | 115,834 |
Total assets held for sale | 156,551 |  | 164,936 |
Liabilities |  |
Reserve for future policy benefits and unpaid loss and loss adjustment expenses | $ | 14,282 |  | $ | 14,482 |
Other policyholder funds and benefits payable | 28,921 |  | 29,228 |
Long-term debt | 142 |  | 142 |
Other liabilities | 2,456 |  | 2,756 |
Separate account liabilities | 108,393 |  | 115,834 |
Total liabilities held for sale | $ | 154,194 |  | $ | 162,442 |
[1] | Represents the estimated accrued loss on sale of the Company's life and annuity run-off business.
Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations
| For the periods ended March 31,
| 2018 | 2017
Revenues |  |
Earned premiums | $ | 27 |  | $ | 36 |
Fee income and other | 232 |  | 223 |
Net investment income | 312 |  | 318 |
Net realized capital losses | 21 |  | (45 | )
Total revenues | 592 |  | 532 |
Benefits, losses and expenses |  |  |
Benefits, losses and loss adjustment expenses | 328 |  | 333 |
Amortization of DAC | 41 |  | 19 |
Insurance operating costs and other expenses [1] | 101 |  | 94 |
Total benefits, losses and expenses | 470 |  | 446 |
Income before income taxes | 122 |  | 86 |
Income tax expense | 15 |  | 11 |
Income from operations of discontinued operations, net of tax | 107 |  | 75 |
Net realized capital gain on disposal, net of tax | 62 |  | — |
Income from discontinued operations, net of tax | $ | 169 |  | $ | 75 |
[1]Corporate allocated overhead has been included in continuing operations. Cash flows from discontinued operations included in the Consolidated Statement of Cash Flows were as follows: Cash Flows from Discontinued Operations
| Three Months Ended March 31,
| 2018 | 2017
Net cash provided by operating activities from discontinued operations | $ | 267 |  | $ | 342 |
Net cash (used in) provided by investing activities from discontinued operations | $ | (187 | ) | $ | (467 | )
Net cash (used in) provided by financing activities from discontinued operations [1] | $ | (340 | ) | $ | 105 |
Cash paid for interest | $ | 2 |  | $ | 2 |
[1] Excludes return of capital to parent of $300 for the three months ended March 31, 2017.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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