HELD-FOR-SALE

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

HELD-FOR-SALE:

Assets and liabilities related to the business classified as held-for-sale are separately reported in the Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale.

U.S. Financial Life Insurance Company and MONY Life Insurance Company of the Americas, Ltd

On December 10, 2019, Holdings entered into a definitive agreement to sell U.S. Financial Life Insurance Company (“USFL”) and MONY Life Insurance Company of the Americas, Ltd (“MLICA”), indirect wholly-owned subsidiaries of Holdings. As a result of the agreement, an estimated impairment of $105 million, net of income tax, was recorded during the quarter ended December 31, 2019 and was included in Investment gains (losses), net in the consolidated statements of income (loss). During the quarter ended March 31, 2020, the Company recorded an additional impairment of $39 million, net of income tax.

At March 31, 2020 and December 31, 2019, respectively, USFL and MLICA had total assets of $843 million and $962 million which is reported in Assets held-for-sale and $679 million and $724 million of total liabilities reported in Liabilities held-for-sale. The assets held-for-sale are reported in the Protection Solutions segment.

The transaction closed on April 1, 2020. See Note 18 for further detail of the sale.

The following table summarizes the components of assets and liabilities held-for-sale on the consolidated balance sheets at March 31, 2020 and December 31, 2019:



	March 31, 2020			December 31, 2019
	(in millions)
Assets:
Fixed maturity securities	$	860		$	896
Trading securities, at fair value	14			17
Policy loans	20			19
Cash and cash equivalents	41			65
Amounts due from reinsurers	41			43
Deferred policy acquisition costs	31			31
Other assets	18			24
Assets held-for-sale	1,025			1,095
Less: Loss accrual	(182		)	(133		)
Total assets held-for-sale	$	843		$	962

Liabilities:
Policyholders’ account balances	$	279		$	286
Future policy benefits and other policyholders’ liabilities	398			421
Amounts due to reinsurers	(2		)	6
Other liabilities	4			11
Total liabilities held-for-sale	$	679		$	724