HARTFORD FINANCIAL SERVICES GROUP INC/DE | 2013 | FY | 3


Business Dispositions
Discontinued Operations
On December 12, 2013, the Company completed the sale of HLIL, an indirect wholly-owned subsidiary. For further information regarding the sale of HLIL, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements.
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 following table summarizes the amounts related to discontinued operations in the Consolidated Statements of Operations.
 
For the years ended December 31,
 
2013
2012
2011
Revenues
 
 
 
Earned premiums
$
4

$

$

Fee income and other
13

46

50

Net investment income (loss)
 
 
 
  Securities available-for-sale and other
(3
)
10

26

  Equity securities, trading
140

201

(14
)
Total Net Investment Income
137

211

12

Net realized capital losses
(49
)
33

75

Other revenues


48

Total revenues
105

290

185

Benefits, losses and expenses
 

 

 

Benefits, losses and loss adjustment expenses
2

2

(2
)
Benefits, losses and loss adjustment expenses - returns credited on international variable annuities
140

201

(14
)
Amortization of DAC



Insurance operating costs and other expenses
23

39

95

Total benefits, losses and expenses
165

242

79

Income (loss) before income taxes
(60
)
48

106

Income tax expense (benefit)
(28
)
(15
)
49

Income (loss) from operations of discontinued operations, net of tax
(32
)
63

57

Net realized capital gain (loss) on disposal, net of tax [1]
(102
)
(1
)
82

Income (loss) from discontinued operations, net of tax
$
(134
)
$
62

$
139

[1] Includes an income tax benefit of $219 on the sale of HLIL for the year ended December 31, 2013.

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