SEGMENT INFORMATION

The Company has geographic-based and business-based operational segments. Geographic-based operations are further segmented into traditional and financial solutions businesses.

The U.S. and Latin America Traditional segment provides individual and group life and health reinsurance to domestic clients for a variety of products through yearly renewable term agreements, coinsurance, and modified coinsurance. The U.S. and Latin America Financial Solutions segment includes asset-intensive products that concentrate on the investment risk within underlying annuities and corporate-owned life insurance policies, and financial reinsurance that assists ceding companies in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position.

The Canada Traditional segment is primarily engaged in individual life reinsurance, as well as creditor, group life and health, critical illness and disability reinsurance, through yearly renewable term and coinsurance agreements. The Canada Financial Solutions segment concentrates on assisting clients with longevity risk transfer structures within underlying annuities and pension benefit obligations, and on assisting clients in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position through financial reinsurance structures.

The Europe, Middle East and Africa Traditional segment provides individual and group life and health products through yearly renewable term and coinsurance agreements, reinsurance of critical illness coverage that provides a benefit in the event of the diagnosis of a pre-defined critical illness and underwritten annuities. The Europe, Middle East and Africa Financial Solutions segment provides longevity, asset-intensive and financial reinsurance. Longevity reinsurance takes the form of closed block annuity reinsurance and longevity swap structures.

The Asia Pacific Traditional segment provides individual and group life and health reinsurance, critical illness coverage, disability and superannuation through yearly renewable term and coinsurance agreements. The Asia Pacific Financial Solutions segment provides financial reinsurance, asset-intensive and certain disability and life blocks.

Corporate and Other operations include investment income from invested assets not allocated to support segment operations and proceeds from the Company’s capital-raising efforts that have not been deployed yet, in addition to investment related gains or losses. Additionally, Corporate and Other includes results associated with the Company’s collateral finance and securitization notes and results from certain wholly-owned subsidiaries and joint ventures that, among other activities, develop and market technology solutions for the insurance industry.

The accounting policies of the segments are the same as those described in Note 2 – “Summary of Significant Accounting Policies.” 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.

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 is 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.

Information related to revenues, income (loss) before income taxes, interest expense, depreciation and amortization, and assets of the Company’s operations are summarized below (dollars in thousands):



For the years ended December 31,	2017		2016		2015
Revenues:
U.S. and Latin America:
Traditional	$	6,100,171	$	5,964,968	$	5,465,026
Financial Solutions	1,150,378		840,446		643,865
Total	7,250,549		6,805,414		6,108,891
Canada:
Traditional	1,103,520		1,118,004		1,023,012
Financial Solutions	48,938		46,938		45,034
Total	1,152,458		1,164,942		1,068,046
Europe, Middle East and Africa:
Traditional	1,362,075		1,195,149		1,190,742
Financial Solutions	311,071		340,518		286,666
Total	1,673,146		1,535,667		1,477,408
Asia Pacific:
Traditional	2,210,686		1,771,150		1,638,357
Financial Solutions	73,775		63,382		56,581
Total	2,284,461		1,834,532		1,694,938
Corporate and Other	155,155		180,956		68,895
Total	$	12,515,769	$	11,521,511	$	10,418,178



For the years ended December 31,	2017			2016			2015
Income (loss) before income taxes:
U.S. and Latin America:
Traditional	$	373,434		$	371,101		$	235,771
Financial Solutions	401,584			283,380			207,963
Total	775,018			654,481			443,734
Canada:
Traditional	120,218			134,705			124,175
Financial Solutions	16,643			7,945			13,902
Total	136,861			142,650			138,077
Europe, Middle East and Africa:
Traditional	70,486			30,059			48,410
Financial Solutions	123,514			138,007			108,445
Total	194,000			168,066			156,855
Asia Pacific:
Traditional	148,786			113,928			105,654
Financial Solutions	13,130			4,063			19,619
Total	161,916			117,991			125,273
Corporate and Other	(124,980		)	(39,242		)	(119,144		)
Total	$	1,142,815		$	1,043,946		$	744,795



For the years ended December 31,	2017		2016		2015
Interest expense:
Corporate and Other	$	146,025	$	137,623	$	142,863
Total	$	146,025	$	137,623	$	142,863



For the years ended December 31,	2017		2016		2015
Depreciation and amortization:
U.S. and Latin America:
Traditional	$	284,959	$	271,732	$	218,974
Financial Solutions	208,790		155,560		44,275
Total	493,749		427,292		263,249
Canada:
Traditional	24,057		22,170		23,887
Financial Solutions	10		11		—
Total	24,067		22,181		23,887
Europe, Middle East and Africa:
Traditional	35,000		46,562		60,193
Financial Solutions	91		72		—
Total	35,091		46,634		60,193
Asia Pacific:
Traditional	114,333		45,562		31,955
Financial Solutions	1,448		1,492		217
Total	115,781		47,054		32,172
Corporate and Other	37,276		13,894		16,495
Total	$	705,964	$	557,055	$	395,996

The table above includes amortization of DAC, including the effect from investment related gains and losses.



For the years ended December 31,	2017		2016
Assets:
U.S. and Latin America:
Traditional	$	18,603,423	$	18,140,825
Financial Solutions	15,959,206		13,712,106
Total	34,562,629		31,852,931
Canada:
Traditional	4,161,452		3,846,682
Financial Solutions	126,372		85,405
Total	4,287,824		3,932,087
Europe, Middle East and Africa:
Traditional	3,099,495		2,559,124
Financial Solutions	5,274,993		3,876,131
Total	8,374,488		6,435,255
Asia Pacific:
Traditional	4,915,442		3,968,081
Financial Solutions	1,198,585		676,281
Total	6,114,027		4,644,362
Corporate and Other	7,175,850		6,233,244
Total	$	60,514,818	$	53,097,879

Companies in which RGA has significant influence over the operating and financing decisions but are not required to be consolidated, are reported on the equity basis of accounting. The equity in the net income of such investments is not material to the results of operations or financial position of individual segments or the Company taken as a whole. Capital expenditures of each reporting segment were immaterial in the periods noted.

No individual client generated 10% or more of the Company’s total gross premiums on a consolidated basis in 2017, 2016 and 2015. For the purpose of this disclosure, companies that are within the same insurance holding company structure are combined.