Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

Effective January 1, 2014, the Company realigned certain operations and management responsibilities to better fit within its geographic-based segments. Operations in Mexico and Latin America have been moved from Europe & South Africa to the U.S. segment, which has been renamed U.S. and Latin America. Operations in India have been moved from Europe & South Africa to the Asia Pacific segment. The Europe & South Africa segment has been renamed Europe, Middle East and Africa. Prior-period figures have been adjusted to conform to the new segment reporting structure.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies in Note 2 of the consolidated financial statements accompanying the 2013 Annual Report. The Company measures segment performance primarily based on profit or loss from operations before income taxes. There are no intersegment reinsurance transactions and the Company does not have any material long-lived assets. Investment income is allocated to the segments based upon average assets and related capital levels deemed appropriate to support the segment business volumes.

The Company allocates capital to its segments based on an internally developed economic capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model considers the unique and specific nature of the risks inherent in the Company’s businesses. As a result of the economic capital allocation process, a portion of investment income and investment related gains and losses are attributed to the segments based on the level of allocated capital. In addition, the segments are charged for excess capital utilized above the allocated economic capital basis. This charge is included in policy acquisition costs and other insurance expenses.

The Company’s reportable segments are strategic business units that are primarily segregated by geographic region. Information related to revenues, income before income taxes and total assets of the Company for each reportable segment are summarized below (dollars in thousands).

	Three months ended March 31,
Total revenues:	2014		2013
U.S. and Latin America:
Traditional	$	1,278,692	$	1,196,924
Non-Traditional	288,621		314,100
Canada	277,749		297,089
Europe, Middle East and Africa	365,857		307,587
Asia Pacific	415,029		409,851
Corporate and Other	31,225		75,551
Total	$	2,657,173	$	2,601,102

	Three months ended March 31,
Income before income taxes:	2014		2013
U.S. and Latin America:
Traditional	$	50,972	$	79,543
Non-Traditional	83,124		97,564
Canada	20,064		36,308
Europe, Middle East and Africa	15,205		10,963
Asia Pacific	26,311		18,242
Corporate and Other	3,764		36,207
Total	$	199,440	$	278,827

Total Assets:	March 31, 2013		December 31, 2013
U.S. and Latin America:
Traditional	$	13,326,226	$	13,285,423
Non-Traditional	11,743,411		11,716,908
Canada	4,012,037		4,103,730
Europe, Middle East and Africa	2,572,563		2,230,568
Asia Pacific	3,657,850		3,597,456
Corporate and Other	5,229,494		4,740,388
Total	$	40,541,581	$	39,674,473