The Hartford 2015 Annual Report Download - page 228

Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
18. Discontinued Operations and Business Dispositions
F-97
Discontinued Operations
On June 30, 2014, the Company completed the sale of all of the issued and outstanding equity of HLIKK to ORIX Life Insurance
Corporation ("Buyer"), a subsidiary of ORIX Corporation, a Japanese company for cash proceeds of $963. The sale transaction resulted
in an after-tax loss on disposition of $659 in the year ended December 31, 2014. The operations of the Company's HLIKK business
meet the criteria for reporting as discontinued operations. The Company's HLIKK business is included in the Talcott Resolution
reporting segment.
Concurrently with the sale, HLIKK recaptured certain risks that had been reinsured to the Company’s U.S. subsidiaries, Hartford Life
and Annuity Insurance Company ("HLAI") and HLIC by terminating intercompany agreements. Upon closing, the Buyer became
responsible for all liabilities for the recaptured business. The Company has, however, continued to provide reinsurance for yen
denominated fixed payout annuities of approximately $619 as of December 31, 2015.
The following table summarizes the major classes of assets and liabilities transferred by the Company in connection with the sale.
Carrying Value
as of Closing
Assets
Cash and investments $ 18,733
Reinsurance recoverables $ 46
Property and equipment, net $ 18
Other assets $ 988
Liabilities
Reserve for future policy benefits and unpaid loss and loss adjustment expenses $ 320
Other policyholder funds and benefits payable $ 2,265
Other policyholder funds and benefits payable - international variable annuities $ 16,465
Short-term debt $ 247
Other liabilities $ 102
Sale of Hartford Life International Limited
On December 12, 2013, the Company completed the sale of all of the issued and outstanding equity of HLIL in a cash transaction to
Columbia Insurance Company, a Berkshire Hathaway company, for approximately $285. At closing, HLIL’s sole asset was its
subsidiary, Hartford Life Limited, a Dublin-based company that sold variable annuities in the U.K. from 2005 to 2009. The sale
transaction resulted in an after-tax loss of $102 upon disposition in the year ended December 31, 2013. The operations of the Company's
U.K. variable annuity business meet the criteria for reporting as discontinued operations. The Company's U.K. variable annuities
business is included in the Talcott Resolution reporting segment.