Segment Information

6 Months Ended

Jun. 30, 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 amounts 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 (loss) before income taxes and total assets of the Company for each reportable segment are summarized below (dollars in thousands).

	Three months ended June 30,				Six months ended June 30,
Total revenues:	2014		2013		2014		2013
U.S. and Latin America:
Traditional	$	1,333,027	$	1,275,331	$	2,611,719	$	2,472,255
Non-Traditional	293,448		301,991		582,069		616,091
Canada	309,113		295,325		586,862		592,414
Europe, Middle East and Africa	391,318		310,169		757,175		617,756
Asia Pacific	483,171		383,978		898,200		793,829
Corporate and Other	22,943		23,848		54,168		99,399
Total	$	2,833,020	$	2,590,642	$	5,490,193	$	5,191,744

	Three months ended June 30,						Six months ended June 30,
Income (loss) before income taxes:	2014			2013			2014			2013
U.S. and Latin America:
Traditional	$	93,988		$	90,213		$	144,960		$	169,756
Non-Traditional	95,474			80,996			178,598			178,560
Canada	35,020			35,659			55,084			71,967
Europe, Middle East and Africa	61,322			11,949			76,527			22,912
Asia Pacific	34,928			(287,345		)	61,239			(269,103		)
Corporate and Other	(20,197		)	(6,230		)	(16,433		)	29,977
Total	$	300,535		$	(74,758	)	$	499,975		$	204,069

Total Assets:	June 30, 2013		December 31, 2013
U.S. and Latin America:
Traditional	$	13,659,119	$	13,285,423
Non-Traditional	11,706,053		11,716,908
Canada	4,074,727		4,103,730
Europe, Middle East and Africa	4,407,325		2,230,568
Asia Pacific	3,817,197		3,597,456
Corporate and Other	5,506,630		4,740,388
Total	$	43,171,051	$	39,674,473