Segment Information

3 Months Ended

Mar. 31, 2020

The accounting policies of the segments are the same as those described in the Significant Accounting Policies and Pronouncements in Note 2 of the consolidated financial statements accompanying the 2019 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.

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.

The Company has geographic-based and business-based operational segments. Geographic-based operations are further segmented into traditional and financial solutions businesses. Information related to revenues, income (loss) before income taxes and total assets of the Company for each reportable segment are summarized below (dollars in millions):



	Three months ended March 31,
Revenues:	2020			2019
U.S. and Latin America:
Traditional	$	1,533		$	1,541
Financial Solutions	139			254
Total	1,672			1,795
Canada:
Traditional	296			312
Financial Solutions	24			24
Total	320			336
Europe, Middle East and Africa:
Traditional	407			384
Financial Solutions	78			109
Total	485			493
Asia Pacific:
Traditional	667			673
Financial Solutions	68			55
Total	735			728
Corporate and Other	(8		)	68
Total	$	3,204		$	3,420



	Three months ended March 31,
Income (loss) before income taxes:	2020			2019
U.S. and Latin America:
Traditional	$	(62	)	$	12
Financial Solutions	(15		)	83
Total	(77		)	95
Canada:
Traditional	23			51
Financial Solutions	3			1
Total	26			52
Europe, Middle East and Africa:
Traditional	17			16
Financial Solutions	30			38
Total	47			54
Asia Pacific:
Traditional	24			37
Financial Solutions	(25		)	6
Total	(1		)	43
Corporate and Other	(91		)	(27		)
Total	$	(96	)	$	217



Assets:	March 31, 2020		December 31, 2019
U.S. and Latin America:
Traditional	$	19,418	$	19,353
Financial Solutions	21,268		25,117
Total	40,686		44,470
Canada:
Traditional	4,366		4,361
Financial Solutions	44		64
Total	4,410		4,425
Europe, Middle East and Africa:
Traditional	3,924		4,032
Financial Solutions	6,051		6,502
Total	9,975		10,534
Asia Pacific:
Traditional	7,118		6,800
Financial Solutions	3,471		2,557
Total	10,589		9,357
Corporate and Other	9,994		7,945
Total	$	75,654	$	76,731