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Business Dispositions and Discontinued Operations | 9 Months Ended
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Sep. 30, 2018
Discontinued Operations and Disposal Groups [Abstract] |
Business Dispositions and Discontinued Operations | Discontinued Operations Sale of life and annuity run-off business On May 31, 2018, the Company’s wholly-owned subsidiary, Hartford Holdings, Inc. (HHI), completed the sale of its 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 signed December 3, 2017, the investor group formed a limited partnership, Hopmeadow Holdings LP, that acquired Hartford Life, Inc. (HLI), and its life and annuity operating subsidiaries, for cash of approximately $1.4 billion after a pre-closing dividend to The Hartford of $300. The Hartford received 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 reduced its long-term debt by $142 because the debt, which was issued by HLI, was included as part of the sale. Including cash proceeds and the retained equity interest and net of transaction costs, net proceeds for the sale were approximately $1.5 billion. The life and annuity run-off operations met the criteria for reporting as discontinued operations and are reported in the Corporate category through the date of sale. The Company has recognized a loss on sale within discontinued operations of approximately $3.1 billion including $3.3 billion in the fourth quarter of 2017 and a reduction in loss on sale of $202 in the first nine months of 2018. The reduction in loss on sale in 2018 primarily resulted from the reclassification to retained earnings of $193 of tax effects stranded in AOCI due to the accounting for Tax Reform and a $141 increase in estimated retained tax benefits, primarily net operating loss carryovers, partially offset by $104 of operating income from discontinued operations during the period up until the closing date and a reclassification of $10 of net unrealized capital gains 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. The estimated amount of retained net operating loss carryovers depends on the estimated tax basis of the business sold which has increased since the date the Company entered into the sale agreement. At closing, shareholders’ equity was further reduced for the amount of AOCI of the life and annuity run-off business, which was approximately $758 largely consisting of net unrealized gains on investments, net of shadow DAC. The AOCI balance was $1 billion as of December 31, 2017. Cash inflows and outflows from and to the life and annuity run-off business after closing were immaterial to the overall inflows and outflows the Company. Additionally, the revenues and expenses presented in continuing operations related to pre-disposal operations were immaterial. 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 up to 24 months. The Hartford reported its 9.7% ownership interest in Hopmeadow Holdings LP in other assets in the Consolidated Balance Sheet, which is accounted for under the equity method. The Hartford recognizes its share of income in other revenues in the Condensed Consolidated Statement of Operations on a three month delay when financial information from the investee becomes available. The Company recognized $2 of income for the three and nine months ended September 30, 2018. The post-sale period amount represents month of June 2018 results as the Company's share of net income is dependent on the availability of financial information from the investee. Major Classes of Assets and Liabilities Transferred to the Buyer in Connection with the Sale
| Carrying Value as of Closing | Carrying Value as of 12/31/2017
Assets |  |
Cash and investments | $ | 27,058 |  | $ | 30,135 |
Reinsurance recoverables | 20,718 |  | 20,785 |
Loss accrual [1] | (3,044 | ) | (3,257 | )
Other assets | 2,907 |  | 1,439 |
Separate account assets | 110,773 |  | 115,834 |
Total assets held for sale | 158,412 |  | 164,936 |
Liabilities |  |
Reserve for future policy benefits and unpaid loss and loss adjustment expenses | $ | 14,308 |  | $ | 14,482 |
Other policyholder funds and benefits payable | 28,680 |  | 29,228 |
Long-term debt | 142 |  | 142 |
Other liabilities | 2,222 |  | 2,756 |
Separate account liabilities | 110,773 |  | 115,834 |
Total liabilities held for sale | $ | 156,125 |  | $ | 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
| Three Months Ended September 30, | Nine Months Ended September 30,
| 2018 | 2017 | 2018 | 2017
Revenues |  |  |  |
Earned premiums | $ | — |  | $ | 27 |  | $ | 39 |  | $ | 97 |
Fee income and other | — |  | 217 |  | 382 |  | 665 |
Net investment income | — |  | 326 |  | 519 |  | 964 |
Net realized capital gains (losses) | 4 |  | (29 | ) | (68 | ) | (53 | )
Total revenues | 4 |  | 541 |  | 872 |  | 1,673 |
Benefits, losses and expenses |  |  |  |  |
Benefits, losses and loss adjustment expenses | — |  | 356 |  | 535 |  | 1,036 |
Amortization of DAC | — |  | 15 |  | 58 |  | 58 |
Insurance operating costs and other expenses [1] | (5 | ) | 93 |  | 157 |  | 275 |
Total benefits, losses and expenses | (5 | ) | 464 |  | 750 |  | 1,369 |
Income before income taxes | 9 |  | 77 |  | 122 |  | 304 |
Income tax expense (benefit) | (7 | ) | (12 | ) | 2 |  | 28 |
Income from operations of discontinued operations, net of tax | 16 |  | 89 |  | 120 |  | 276 |
Net realized capital gain (loss) on disposal, net of tax | (11 | ) | — |  | 202 |  | — |
Income from discontinued operations, net of tax | $ | 5 |  | $ | 89 |  | $ | 322 |  | $ | 276 |
[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
| Nine Months Ended September 30,
| 2018 | 2017
Net cash provided by operating activities from discontinued operations | $ | 603 |  | $ | 612 |
Net cash provided by investing activities from discontinued operations | $ | 463 |  | $ | 266 |
Net cash used in financing activities from discontinued operations [1] | $ | (737 | ) | $ | (595 | )
Cash paid for interest | $ | — |  | $ | 2 |
[1] Excludes return of capital to parent of $619 and $598 for the nine months ended September 30, 2018 and 2017, respectively.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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