Dispositions (Tables)

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Gain by Transaction Component

The following represents a summary of the pre-tax gain recognized in the first quarter 2016 by transaction component, as well as the related classification within the financial statements:

Total expected gain at close	$	638,517
Transaction closing gains on March 1, 2016:
Gain on sale of entities, net of transaction costs	$	41,098
Novations, resulting in recognized gains	60,913			(b)
Loss on retroactive reinsurance component, before realized gains	(128,661		)	(c)
Net loss prior to realized gains on transferred securities supporting retroactive component	(26,650		)	(a)
Realized gains on transferred securities supporting retroactive component	146,727			(c)
Net gain realized as of March 1, 2016	$	120,077
Deferred gain as of March 1, 2016	$	518,440
Amortization of deferred gain for March 2016	44,593			(d)
Deferred gain as of March 31, 2016	$	473,847		(e)
Total net gains realized for the first quarter 2016	$	164,670

(a) Amount classified within underwriting, general and administrative expenses within the Consolidated Statements of Operations.

(b) Novations of certain insurance policies directly to Sun Life allowed for immediate gain recognition.

(c) Reinsurance of existing claims liabilities requires retroactive accounting necessitating losses to be recognized immediately. However, upon transfer of the associated assets supporting the liabilities, the Company recognized realized gains which more than offset the retroactive losses. The Company was required to classify the realized gains as part of net realized gains on investments, within the Consolidated Statements of Operations.

(d) Amount classified as amortization of deferred gain on disposal of businesses within the Consolidated Statements of Operations.

(e) Amount classified as a component of the deferred gain on disposal of businesses within the Consolidated Balance Sheets.