XML 54 R8.htm IDEA: XBRL DOCUMENT
v3.20.2

Business Acquisitions and Dispositions (Notes) | 9 Months Ended
--- | ---
Sep. 30, 2020
Business Combinations [Abstract] |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 2. BUSINESS ACQUISITION AND DISPOSITION Business Acquisition Navigators Group On May 23, 2019, The Hartford acquired Navigators Group, a specialty underwriter, for total consideration of $2.121 billion and recorded provisional estimates of the fair value of the assets acquired and liabilities assumed. In the second quarter of 2020, The Hartford finalized its provisional estimates and recorded additional assets of $9 and liabilities of $7 with a net reduction in goodwill of $2. The measurement period adjustments, determined as if the accounting had been completed as of the acquisition date, had no effect on the Condensed Consolidated Statements of Operations. The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date, the measurement period adjustments recorded, and the final purchase price allocation. Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date
| Preliminary Values as of May 23, 2019 (as previously reported) | Measurement Period Adjustments | Adjusted Values as of May 23, 2019
Assets |  |  |
Cash and invested assets | $ | 3,848 |  | $ | 3 |  | $ | 3,851 |
Premiums receivable | 492 |  | 6 |  | 498 |
Reinsurance recoverables | 1,100 |  | (3) |  | 1,097 |
Prepaid reinsurance premiums | 238 |  | — |  | 238 |
Other intangible assets | 580 |  | — |  | 580 |
Property and equipment | 83 |  | — |  | 83 |
Other assets | 99 |  | 3 |  | 102 |
Total Assets Acquired | 6,440 |  | 9 |  | 6,449 |
Liabilities |  |  |
Unpaid losses and loss adjustment expenses | 2,823 |  | — |  | 2,823 |
Unearned premiums | 1,219 |  | — |  | 1,219 |
Long-term debt | 284 |  | — |  | 284 |
Deferred income taxes, net | 48 |  | (1) |  | 47 |
Other liabilities | 568 |  | 8 |  | 576 |
Total Liabilities Assumed | 4,942 |  | 7 |  | 4,949 |
Net identifiable assets acquired | 1,498 |  | 2 |  | 1,500 |
Goodwill [1] | 623 |  | (2) |  | 621 |
Net Assets Acquired | $ | 2,121 |  | $ | — |  | $ | 2,121 |
[1] Non-deductible for income tax purposes. The following table presents supplemental pro forma amounts of revenue and net income for the Company for the nine months ended September 30, 2019, as though the business was acquired on January 1, 2018. Pro forma adjustments include the revenue and earnings of Navigators Group as well as amortization of identifiable intangible assets acquired. Pro Forma Results
| Nine Months Ended September 30, 2019
Total Revenue | $ | 16,055 |
Net Income | $ | 1,532 |
Business Disposition Sale of Continental Europe Operations On September 30, 2020, the Company entered into a definitive agreement to sell our Continental Europe Operations. The transaction is expected to close by the second quarter of 2021, subject to customary closing conditions, including regulatory approvals. The complete sale of the Continental Europe Operations consists of multiple arrangements designed as a single transaction. The assets and liabilities of the Continental Europe Operations have been classified as held for sale in the Company's Condensed Consolidated Balance Sheets beginning with the period ended September 30, 2020. Total consideration less costs to sell is estimated to be approximately $14, resulting in an estimated loss on the sale of approximately $51, before tax, which has been recorded within net realized capital gains (losses) in the third quarter of 2020 in the Condensed Consolidated Statements of Operations. The Company also recorded related income tax benefits of $19, for an estimated after-tax loss of $32 on the sale, in the third quarter of 2020. The accrual for the estimated before tax loss is included as a reduction of the carrying value of assets held for sale in the Company's Condensed Consolidated Balance Sheets as of September 30, 2020. The Continental Europe Operations are reported under the Commercial Lines segment. The estimate of consideration less costs to sell of $14 includes an estimate of consideration that is contingent on how the ultimate amounts required to settle claims on 2020 and prior accident years, as determined at the end of 2024 compare with recorded reserves as currently estimated. The contingent consideration has been estimated at its fair value of $12 and could increase or decrease depending on how ultimate losses develop. Any change in the estimated fair value of contingent consideration in a future period would increase or decrease the estimated loss on sale in that period. Carrying Value of Assets and Liabilities to be Transferred in Connection With the Sale [1]
| As of September 30, 2020
Assets |
Investments and cash | $ | 138 |
Reinsurance recoverables and other | 29 |
Total assets held for sale | 167 |
Liabilities |
Unpaid losses and loss adjustment expenses | 74 |
Unearned premiums | 35 |
Other liabilities | 44 |
Total liabilities held for sale | $ | 153 |
[1] As of September 30, 2020, the estimated fair value of the disposal group is $14 based on the estimated consideration to be received less cost to sell. Within the disposal group, as of September 30, 2020, investments in fixed maturities and short-term investments, which are measured at fair value on a recurring basis, had a fair value of $80, of which $2 was based on quoted prices in active markets for identical assets and $78 was based on significant observable inputs. The remaining fair value less costs to sell for the disposal group is ($66), which is measured on a nonrecurring basis using significant unobservable inputs. See Note 5—Fair Value Measurements for more information.

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: 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 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
Name: | us-gaap_MergersAcquisitionsAndDispositionsDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration