Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Effective January 1, 2015, the Company further refined its reporting of the Canada; Europe, Middle East and Africa; and Asia Pacific segments into traditional and non-traditional businesses to reflect the expanded product offerings within its geographic-based segments. The Company’s traditional and non-traditional segments are now managed separately and have discrete financial information available that is reviewed regularly by the Company’s chief operating decision maker. The Company has recently experienced growth and opportunity in its non-traditional businesses resulting from its efforts to meet the needs of its clients and adapt to the changing regulatory environment within the insurance industry. The non-traditional business primarily consists of asset-intensive, longevity, financial reinsurance and capital motivated transactions that are sourced and managed by the Company’s Global Financial Solutions unit. The prior period presentation has 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 2014 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:	2015		2014		2015		2014
U.S. and Latin America:
Traditional	$	1,342,248	$	1,333,027	$	2,597,538	$	2,611,719
Non-Traditional	191,775		293,448		384,448		582,069
Total	1,534,023		1,626,475		2,981,986		3,193,788
Canada:
Traditional	270,090		301,401		535,094		572,845
Non-Traditional	11,458		7,712		23,332		14,017
Total	281,548		309,113		558,426		586,862
Europe, Middle East and Africa:
Traditional	284,192		307,100		579,424		614,850
Non-Traditional	75,308		84,218		130,684		142,325
Total	359,500		391,318		710,108		757,175
Asia Pacific:
Traditional	411,314		465,538		805,189		852,427
Non-Traditional	7,076		17,633		26,646		45,773
Total	418,390		483,171		831,835		898,200
Corporate and Other	36,879		22,943		68,598		54,168
Total	$	2,630,340	$	2,833,020	$	5,150,953	$	5,490,193

	Three months ended June 30,						Six months ended June 30,
Income (loss) before income taxes:	2015			2014			2015			2014
U.S. and Latin America:
Traditional	$	82,793		$	93,988		$	100,636		$	144,960
Non-Traditional	70,393			95,474			124,898			178,598
Total	153,186			189,462			225,534			323,558
Canada:
Traditional	22,736			32,009			45,463			51,442
Non-Traditional	3,094			3,011			7,225			3,642
Total	25,830			35,020			52,688			55,084
Europe, Middle East and Africa:
Traditional	9,159			26,787			19,641			25,795
Non-Traditional	31,432			34,535			51,066			50,732
Total	40,591			61,322			70,707			76,527
Asia Pacific:
Traditional	4,315			28,213			56,963			47,080
Non-Traditional	(1,405		)	6,715			8,740			14,159
Total	2,910			34,928			65,703			61,239
Corporate and Other	(8,727		)	(20,197		)	(16,717		)	(16,433		)
Total	$	213,790		$	300,535		$	397,915		$	499,975

Total Assets:	June 30, 2015		December 31, 2014
U.S. and Latin America:
Traditional	$	15,904,747	$	14,159,824
Non-Traditional	13,854,077		11,572,251
Total	29,758,824		25,732,075
Canada:
Traditional	3,805,372		3,946,942
Non-Traditional	25,348		49,186
Total	3,830,720		3,996,128
Europe, Middle East and Africa:
Traditional	2,586,327		2,514,868
Non-Traditional	2,064,621		2,178,454
Total	4,650,948		4,693,322
Asia Pacific:
Traditional	2,997,342		2,951,723
Non-Traditional	625,125		667,645
Total	3,622,467		3,619,368
Corporate and Other	5,597,312		6,638,718
Total	$	47,460,271	$	44,679,611