XML 89 R29.htm IDEA: XBRL DOCUMENT v3.22.4
Business Dispositions (Notes)
 12 Months Ended
Dec. 31, 2022
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]  
Business Dispositions and Discontinued Operations 21. BUSINESS DISPOSITIONS
Sale of Continental Europe Operations
On December 29, 2021, the Company completed the sale of its Continental Europe Operations for approximately $11, net of transaction costs. The complete sale of the Continental Europe Operations consists of multiple arrangements designed as a single transaction. The Continental Europe Operations are included in the Commercial Lines segment. Revenues and earnings are not material to the Company's consolidated results of operations for the years ended December 31, 2021 and 2020.
The sale resulted in losses of approximately $21 and $48, before tax, for the periods ended December 31, 2021 and 2020, respectively, which were recorded within net realized gains (losses) in the Consolidated Statements of Operations. The Company also recorded related income tax benefits on the sale of $5 and $18, for after tax losses of $16 and $30, for the years ended December 31, 2021 and 2020, respectively.
Total consideration less costs to sell of $11 is subject to change based 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 $0 and could result in an increase or decrease in consideration 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.
Major Classes of Assets and Liabilities Transferred by the Company to the Buyer in Connection with the Sale
Carrying Value as of
ClosingDecember 31, 2020 [1][2]
Assets
Investments and cash$150 $142 
Reinsurance recoverables and other13 35 
Total assets held for sale163 177 
Liabilities
Unpaid losses and loss adjustment expenses81 84 
Unearned premiums19 31 
Other liabilities52 43 
Total liabilities held for sale$152 $158 
[1]As of December 31, 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 December 31, 2020, investments in fixed maturities and short-term investments, which are measured at fair value on a recurring basis, had a fair value of $84, of which $1 was based on quoted prices in active markets for identical assets and $83 was based on significant observable inputs. The remaining fair value less costs to sell for the disposal group is $(70), which is measured on a nonrecurring basis using significant unobservable inputs. See Note 4—Fair Value Measurements for more information.
[2]Classified as assets and liabilities held for sale.