Business Acquisitions (Notes)

6 Months Ended

Jun. 30, 2020

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

2. BUSINESS ACQUISITION

Navigators Group

On May 23, 2019, The Hartford acquired Navigators Group, a specialty underwriter, for total consideration of $2.121 billion and recorded provisional estimates of the fair value of the assets acquired and liabilities assumed. In the second quarter of 2020, The Hartford finalized its provisional estimates and recorded

additional assets of $9 and liabilities of $7 with a net reduction in goodwill of $2. The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date, the measurement period adjustments recorded, and the final purchase price allocation.

Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date



	Preliminary Values as of May 23, 2019 (as previously reported)		Measurement Period Adjustments			Adjusted Values as of May 23, 2019
Assets
Cash and invested assets	$	3,848	$	3		$	3,851
Premiums receivable	492		6			498
Reinsurance recoverables	1,100		(3		)	1,097
Prepaid reinsurance premiums	238		—			238
Other intangible assets	580		—			580
Property and equipment	83		—			83
Other assets	99		3			102
Total Assets Acquired	6,440		9			6,449
Liabilities
Unpaid losses and loss adjustment expenses	2,823		—			2,823
Unearned premiums	1,219		—			1,219
Long-term debt	284		—			284
Deferred income taxes, net	48		(1		)	47
Other liabilities	568		8			576
Total Liabilities Assumed	4,942		7			4,949
Net identifiable assets acquired	1,498		2			1,500
Goodwill [1]	623		(2		)	621
Net Assets Acquired	$	2,121	$	—		$	2,121

[1] Non-deductible for income tax purposes.

The measurement period adjustments, determined as if the accounting had been completed as of the acquisition date, had no effect on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020.

The following table presents supplemental pro forma amounts of revenue and net income for the Company for the six months ended June 30, 2019, as though the business was acquired on January 1, 2018. Pro forma adjustments include the revenue and earnings of Navigators Group as well as amortization of identifiable intangible assets acquired.

Pro Forma Results



	Six months ended June 30, 2019
Total Revenue	$	10,708
Net Income	$	997