Business Acquisitions

6 Months Ended

Jun. 30, 2018

Aetna Group Insurance

On November 1, 2017, The Hartford acquired Aetna's U.S. group life and disability business through a reinsurance transaction for total consideration of $1.452 billion. The acquisition date fair values of certain assets and liabilities, including insurance reserves and intangible assets, as well as the related estimated useful lives of intangibles, are provisional and are subject to revision within one year of the acquisition date. Under the terms of the agreement, a final balance sheet will be agreed to in 2018 and our estimates of fair values are pending finalization. There were no adjustments to the provisional amounts during the six month period ended June 30, 2018.

The following table presents supplemental pro forma amounts of revenue and net income for the Company for the three and six months ended June 30, 2017, as though the business was acquired on January 1, 2016.

Pro Forma Results



	Three months ended June 30, 2017 [1]			Six months ended June 30, 2017 [1]
Total Revenue	$	4,793		$	9,532
Net Income	$	(20	)	$	370

[1]Pro forma adjustments include the revenue and earnings of the Aetna U.S. group life and disability business as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under the Company’s accounting policy.