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HELD-FOR-SALE CLASSIFICATION
 6 Months Ended
Jun. 30, 2017
HELD-FOR-SALE CLASSIFICATION  
HELD-FOR-SALE CLASSIFICATION

4. Held-For-Sale Classification

Held-For-Sale Classification

We report a business as held-for-sale when management has approved the sale or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized.

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

Fuji Life, previously classified as held-for-sale, was sold on April 30, 2017.

At June 30, 2017, the following businesses were reported as held-for-sale:

United Guaranty Asia

On August 15, 2016, we entered into a definitive agreement to sell our 100 percent interest in United Guaranty Corporation (UGC) and certain related affiliates to Arch Capital Group Ltd. (Arch). This transaction closed on December 31, 2016. However, due to pending regulatory approvals, United Guaranty Asia was not included in the December 31, 2016 closing and $40 million of cash consideration was retained by Arch. The sale of United Guaranty Asia was completed on July 1, 2017 and we received the $40 million cash proceeds.

Certain Insurance Subsidiary Operations

On October 18, 2016, we entered into agreements to sell certain insurance operations to Fairfax Financial Holdings Limited (Fairfax). The agreements include the sale of our subsidiary operations in Argentina, Chile, Colombia, Uruguay, Venezuela and Turkey. Fairfax will also acquire renewal rights for the portfolios of local business written by our operations in Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia, and assume certain of our operating assets and employees. Total cash consideration to us is expected to be approximately $234 million. The transaction will close on a country-by-country basis as the regulatory approvals are obtained. In the second quarter of 2017, the sale of operations in Turkey as well as the renewal rights in Bulgaria, the Czech Republic, Hungary, Poland and Slovakia were completed, which resulted in total cash proceeds of $48 million. The sale of operations in Chile and Colombia was completed on July 31, 2017. The remaining sales are still subject to obtaining the relevant regulatory approvals and other customary closing conditions.

The following table summarizes the components of assets and liabilities held-for-sale on the Condensed Consolidated Balance Sheets at June 30, 2017 and December 31, 2016*:

June 30,December 31,
(in millions)20172016
Assets:
Fixed maturity securities$147$6,045
Equity securities9149
Mortgage and other loans receivable, net2137
Other invested assets332
Short-term investments137130
Cash67133
Accrued investment income321
Premiums and other receivables, net of allowance276351
Reinsurance assets, net of allowance-8
Deferred policy acquisition costs-471
Other assets41273
Assets of businesses held for sale7157,720
Less: Loss Accrual(160)(521)
Total assets held for sale$555$7,199
Liabilities:
Liability for unpaid losses and loss adjustment expenses$410$402
Unearned premiums274297
Future policy benefits for life and accident and health insurance contracts-4,579
Other policyholder funds-378
Long-term debt6-
Other liabilities137450
Total liabilities held for sale$827$6,106

* Excludes net intercompany assets of $394 million and $384 million at June 30, 2017 and December 31, 2016, respectively, that are eliminated in consolidation.