Segment Information

6 Months Ended

Jun. 30, 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 June 30,				Six months ended June 30,
Revenues:	2020		2019		2020		2019
U.S. and Latin America:
Traditional	$	1,642	$	1,584	$	3,175	$	3,125
Financial Solutions	323		302		462		556
Total	1,965		1,886		3,637		3,681
Canada:
Traditional	311		318		607		630
Financial Solutions	22		24		46		48
Total	333		342		653		678
Europe, Middle East and Africa:
Traditional	371		370		778		754
Financial Solutions	136		114		214		223
Total	507		484		992		977
Asia Pacific:
Traditional	636		634		1,303		1,307
Financial Solutions	75		59		143		114
Total	711		693		1,446		1,421
Corporate and Other	90		62		82		130
Total	$	3,606	$	3,467	$	6,810	$	6,887



	Three months ended June 30,						Six months ended June 30,
Income (loss) before income taxes:	2020			2019			2020			2019
U.S. and Latin America:
Traditional	$	(158	)	$	55		$	(220	)	$	67
Financial Solutions	117			92			102			175
Total	(41		)	147			(118		)	242
Canada:
Traditional	44			46			67			97
Financial Solutions	4			4			7			5
Total	48			50			74			102
Europe, Middle East and Africa:
Traditional	16			16			33			32
Financial Solutions	98			52			128			90
Total	114			68			161			122
Asia Pacific:
Traditional	47			34			71			71
Financial Solutions	26			2			1			8
Total	73			36			72			79
Corporate and Other	1			(41		)	(90		)	(68		)
Total	$	195		$	260		$	99		$	477



Assets:	June 30, 2020		December 31, 2019
U.S. and Latin America:
Traditional	$	19,867	$	19,353
Financial Solutions	24,832		25,117
Total	44,699		44,470
Canada:
Traditional	4,282		4,361
Financial Solutions	19		64
Total	4,301		4,425
Europe, Middle East and Africa:
Traditional	4,087		4,032
Financial Solutions	6,449		6,502
Total	10,536		10,534
Asia Pacific:
Traditional	7,559		6,800
Financial Solutions	3,829		2,557
Total	11,388		9,357
Corporate and Other	9,805		7,945
Total	$	80,729	$	76,731