The Hartford 2013 Annual Report Download - page 157

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
2. Business Dispositions (continued)
F-21
As of December 31, 2012
Carrying Value
Total fixed maturities, AFS at fair value (amortized cost of $13,916) [1] 15,349
Equity securities, AFS, at fair value (cost of $35) [2] 37
Fixed maturities, at fair value using the FVO [3] 16
Mortgage loans (net of allowances for loan losses of $1) 1,364
Policy loans, at outstanding balance 582
Total invested assets transferred $ 17,348
[1] Includes $14.7 billion and $670 of securities in level 2 and 3 of the fair value hierarchy, respectively.
[2] All equity securities transferred are included in level 2 of the fair value hierarchy.
[3] All FVO securities transferred are included in level 3 of the fair value hierarchy.
Sale of Catalyst 360
On December 31, 2013, the Company completed the sale of its member contact center for health insurance products offered through the
AARP Health Program ("Catalyst 360") to Optum, Inc., a division of UnitedHealth Group. The impact of this transaction was not
material to the Company's results of operations, financial position or liquidity. The Company will provide limited transition services for
18-24 months. Catalyst 360 is included in the Consumer Markets reporting segment.
Purchase Agreement with Forethought Financial Group, Inc.
On December 31, 2012, the Company completed the sale of its U.S. individual annuity new business capabilities to Forethought
Financial Group. Effective May 1, 2012, all new U.S. annuity policies sold by the Company were reinsured to Forethought Life
Insurance Company. The Company ceased the sale of such annuity policies and the reinsurance agreement terminated as to new
business in the second quarter of 2013. The reinsurance agreement has no impact on in-force policies issued on or before April 27, 2012
and the impact of this transaction was not material to the Company's results of operations, financial position or liquidity. The Individual
Annuity business is included in the Talcott Resolution reporting segment.
Sale of Woodbury Financial Services, Inc.
On November 30, 2012, the Company completed the sale of Woodbury Financial Services, Inc. ("Woodbury Financial Services",
"WFS"), an indirect wholly-owned subsidiary, to AIG Advisor Group, Inc, a subsidiary of American International Group, Inc. The
impact of the disposition of this business was not material to the Company's results of operations, financial position or liquidity. The
WFS broker-dealer business is included in the Corporate reporting category.
Servicing Agreement of Hartford Life Private Placement LLC
On July 13, 2012, the Company closed a sale transaction with Philadelphia Financial Group, Inc. (“Philadelphia Financial”) whereby
Philadelphia Financial acquired certain assets used to administer the Company's private placement life insurance (“PPLI”) businesses
and will service the PPLI businesses. The Company retained certain corporate functions associated with this business as well as the
mortality risk on the insurance policies. Upon closing, the Company recorded a deferred gain of $61 after-tax, which will be amortized
over the estimated life of the underlying insurance policies. The PPLI business is included in the Talcott Resolution reporting segment.
See Note 20 - Discontinued Operations of Notes to Consolidated Financial Statements for the sale of subsidiaries that are being reported
as discontinued operations.