Dispositions (Tables)

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Gain by Transaction Component

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

Total expected gain, after adjustment	$	640,497
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, after adjustment	$	520,420
Amortization of deferred gain for the three months ended March 31, 2016	44,593			(d)
Amortization of deferred gain for the three months ended June 30, 2016	122,835			(d)
Deferred gain as of June 30, 2016	$	352,992		(e)
Total net gains realized for 2016	$	287,505

(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.