The Hartford 2012 Annual Report Download - page 163

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[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 realized capital gains (losses).
[2] Includes $14.7 billion and $670 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.
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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 are reinsured to Forethought Life Insurance Company. The Company will cease the sale of
such annuity policies and the reinsurance agreement will terminate 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.
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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. ("AIG Advisor Group"), 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.
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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 for sale of subsidiaries that are being reported as discontinued operations.
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