Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations in condensed consolidated statements of operations



	As of December 31, 2012
	Carrying Value
Asset-backed securities ("ABS")	$	289
Collateralized debt obligations ("CDOs") [1]	474
Commercial mortgage-backed securities ("CMBS")	940
Corporate	11,330
Foreign govt./govt. agencies	263
Municipal	899
Residential mortgage-backed securities ("RMBS")	705
U.S. Treasuries	115
Total fixed maturities, AFS, at fair value (amortized cost of $13,596) [2]	15,015
Equity securities, AFS, at fair value (cost of $27) [3]	28
Fixed maturities, at fair value using the FVO [4]	16
Mortgage loans (net of allowances for loan losses of $1)	1,288
Policy loans, at outstanding balance	542
Total invested assets transferred	$	16,889

2. Business Dispositions (continued)

Composition of Invested Assets Transferred (continued)

[1] The market value includes the fair value of bifurcated embedded derivative features of certain securities. Changes in fair value are recorded in the net unrealized capital gains (losses).

[2] Includes $14.4 billion and $657 of securities in level 2 and 3 of the fair value hierarchy, respectively.

[3] All equity securities transferred are included in level 2 of the fair value hierarchy.

[4] All FVO securities transferred are included in level 3 of the fair value hierarchy.

The following table presents the combined amounts related to the operations of the Mutual Funds business, HICC and HAIL which are being reported as discontinued operations in the Consolidated Statements of Operations. The Company does not expect these transactions to have a material impact on the Company’s future earnings.



	For the years ended December 31,
	2012			2011		2010
Revenues
Fee income and other	$	526		$	569	$	616
Net investment income (loss)	—			1		(1		)
Net realized capital gains	—			1		—
Total revenues	526			571		615
Benefits, losses and expenses
Insurance operating costs and other expenses	384			374		413
Amortization of DAC	35			47		68
Goodwill impairment	149			—		—
Total benefits, losses and expenses	568			421		481
Income (loss) before income taxes	(42		)	150		134
Income tax expense (benefit)	(13		)	52		48
Income (loss) from operations of discontinued operations, net of tax	(29		)	98		86
Net realized capital gain on disposal, net of tax	—			—		37
Income (loss) from discontinued operations, net of tax	$	(29	)	$	98	$	123

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References+ Details