Segment Information

9 Months Ended

Sep. 30, 2014

Segment Information Details [Abstract]

Segment Information [Text Block]

Note 15 ― Segment Information

Effective with the first quarter of 2014, the Company has combined the results of its run-off reinsurance business with other immaterial operating segments in Other Operations. Prior year segment information has been conformed to the current presentation.

The financial results of the Company's businesses are reported in the following segments:

Global Health Care aggregates the Commercial and Government operating segments due to their similar economic characteristics, products and services and regulatory environment:

• The Commercial operating segment encompasses both the U.S. commercial and certain international health care businesses serving employers and their employees, other groups, and individuals. Products and services include medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services to insured and self-insured customers.

• The Government operating segment offers Medicare Advantage and Medicare Part D plans to seniors and Medicaid plans.

Global Supplemental Benefits includes supplemental health, life and accident insurance products offered in selected international markets and in the U.S.

Group Disability and Life provides group long-term and short-term disability, group life, accident and specialty insurance products and related services.

The Company also reports results in two other categories.

Other Operations consist of:

• corporate-owned life insurance (“COLI”);
• run-off reinsurance business that is predominantly comprised of GMDB and GMIB business effectively exited through reinsurance with Berkshire in 2013;

• deferred gains recognized from the 1998 sale of the individual life insurance and annuity business and the 2004 sale of the retirement benefits business; and
• run-off settlement annuity business.

Corporate reflects amounts not allocated to other segments, such as net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment operations), interest on uncertain tax positions, certain litigation matters, intersegment eliminations, compensation cost for stock options, expense associated with its frozen pension plans and certain corporate project and overhead costs.

The Company measures the financial results of its segments using “segment earnings (loss)”, defined as shareholders' net income (loss) excluding after-tax realized investment gains and losses.

Summarized segment financial information was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2014		2013		2014		2013
Premiums and fees, Mail order pharmacy revenues and Other revenues
Global Health Care	$	6,757	$	6,230	$	20,029	$	18,698
Global Supplemental Benefits		747		638		2,166		1,872
Group Disability and Life		910		848		2,716		2,553
Other Operations		35		29		95		52
Corporate		(7)		(3)		(13)		(11)
Total	$	8,442	$	7,742	$	24,993	$	23,164
Segment earnings
Global Health Care	$	434	$	424	$	1,275	$	1,230
Global Supplemental Benefits		83		39		197		143
Group Disability and Life		55		92		232		194
Other Operations		19		35		49		(412)
Corporate		(72)		(54)		(203)		(167)
Segment earnings		519		536		1,550		988
Realized investment gains, net of taxes		15		17		85		127
Shareholders' net income	$	534	$	553	$	1,635	$	1,115