The Hartford 2012 Annual Report Download - page 241

Table of Contents
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
On November 1, 2011, the Company completed a merger with CenterState Banks, Inc. (“CBI”), pursuant to which Federal Trust Corporation (“FTC”), a
wholly owned subsidiary of the Company, was merged with and into CBI, and Federal Trust Bank (“FTB”), a federally chartered, FDIC-insured thrift and
wholly owned subsidiary of FTC, was merged with and into CenterState Bank of Florida, N.A. (“CenterState Bank”), a wholly owned subsidiary of CBI.
The Company recorded an after-tax charge of $74 to net realized capital losses in the second quarter of 2011 for the estimated loss on disposal, including the
write off of remaining goodwill of $10, after-tax, and losses on certain FTC and FTB assets and liabilities, which were not transferred to CenterState Bank.
Upon final closing with CBI, the Company recorded a benefit of $ 6, after tax, in the fourth quarter of 2011 related to the divestiture.
In the first quarter of 2011, the Company completed the sale of its wholly-owned subsidiary Specialty Risk Services (“SRS”) and recorded a net realized
capital gain of $150, after-tax. SRS is a third-party claims administration business that provides self-insured, insured, and alternative market clients with
customized claims services. The Company is required to provide certain services to SRS for up to 24 months under a Transition Services Agreement. During
the fourth quarter 2011 the Company recorded a charge of $ 4, after-tax, attributed to asset disposals. SRS is included in the Property & Casualty Commercial
reporting segment.
In addition, during the fourth quarter of 2010, the Company completed the sales of its indirect wholly-owned subsidiaries Hartford Investments Canada
Corporation (“HICC”) and Hartford Advantage Investment, Ltd. (“HAIL”) and recorded net realized gains (losses) of $ 41 and $(4), respectively.
The following table summarizes the amounts related to discontinued operations in the Consolidated Statements of Operations.
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  
Revenues
Fee income and other $ — $ — $ 36
Net investment income — 17 28
Net realized capital losses — (6) (5)
Other revenues —48 213
  
Benefits, losses and expenses
Amortization of DAC — — 17
Insurance operating costs and other expenses 6 54 256
Goodwill impairment — — 153
   
 
Income tax expense (benefit) (2) 1 (53)
 
Net realized capital gain (loss) on disposal, net of tax (1) 82 37
    
F-99