Goodwill

3 Months Ended

Mar. 31, 2012

Goodwill [Abstract]

Goodwill

13. Goodwill

The carrying value of goodwill allocated to reporting units is as follows:

	March 31, 2012									December 31, 2011
	Gross		Accumulated Impairments			Discontinued Operations		Carrying Value		Gross		Accumulated Impairments			Discontinued Operations [1]			Carrying Value
Commercial Markets
Property & Casualty Commercial	$	30	$	(30	)	$	—	$	—	$	30	$	(30	)	$	—		$	—
Consumer Markets		119		—			—		119		119		—			—			119
Wealth Management
Individual Life		224		—			—		224		224		—			—			224
Retirement Plans		87		—			—		87		87		—			—			87
Mutual Funds		159		—			—		159		159		—			—			159
Total Wealth Management		470					—		470		470		—			—			470
Corporate		772		(355	)		—		417		787		(355	)		(15	)		417
Total Goodwill	$	1,391	$	(385	)	$	—	$	1,006	$	1,406	$	(385	)	$	(15	)	$	1,006

[1] Represents goodwill written off related to Federal Trust Corporation which is currently recorded in discontinued operations.

During the first quarter of 2012, the Company determined that a triggering event requiring an impairment assessment had occurred as a result of its decision to pursue sales or other strategic alternatives for the Individual Life and Retirement Plans reporting units. The Company completed an interim impairment test during the first quarter of 2012 for these two reporting units which resulted in no impairment of goodwill. Retirement Plans passed the first step of the interim goodwill impairment test with a significant margin. Individual Life passed the first step of the interim goodwill impairment test with a margin of less than 10% between the fair value and book value of the reporting unit as of February 29, 2012. The Company will continue to monitor the impact to fair value from certain assumptions such as product sales and lapse rates which may be more sensitive following the announcement of its decision and from information developed through the effort to market the reporting units.

The fair value of the Individual Life reporting unit is based on discounted cash flows using earnings projections on in force business and product sales. There could be a positive or negative impact on the result of step one in future periods if assumptions change about the level of economic capital, product sales, earnings projections or the weighted average cost of capital.