Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The accounting policies of the segments are the same as those described in Note 2 – “Significant Accounting Policies and Pronouncements” of the Company’s 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 September 30,				Nine months ended September 30,
Revenues:	2020		2019		2020		2019
U.S. and Latin America:
Traditional	$	1,599	$	1,610	$	4,774	$	4,735
Financial Solutions	399		383		861		939
Total	1,998		1,993		5,635		5,674
Canada:
Traditional	309		325		916		955
Financial Solutions	23		24		69		72
Total	332		349		985		1,027
Europe, Middle East and Africa:
Traditional	390		378		1,168		1,132
Financial Solutions	110		117		324		340
Total	500		495		1,492		1,472
Asia Pacific:
Traditional	680		685		1,983		1,992
Financial Solutions	66		46		209		160
Total	746		731		2,192		2,152
Corporate and Other	67		60		149		190
Total	$	3,643	$	3,628	$	10,453	$	10,515

	Three months ended September 30,						Nine months ended September 30,
Income (loss) before income taxes:	2020			2019			2020			2019
U.S. and Latin America:
Traditional	$	14		$	113		$	(206	)	$	180
Financial Solutions	74			119			176			294
Total	88			232			(30		)	474
Canada:
Traditional	30			43			97			140
Financial Solutions	6			3			13			8
Total	36			46			110			148
Europe, Middle East and Africa:
Traditional	7			25			40			57
Financial Solutions	92			61			220			151
Total	99			86			260			208
Asia Pacific:
Traditional	78			22			149			93
Financial Solutions	10			2			11			10
Total	88			24			160			103
Corporate and Other	(26		)	(41		)	(116		)	(109		)
Total	$	285		$	347		$	384		$	824

Assets:	September 30, 2020		December 31, 2019
U.S. and Latin America:
Traditional	$	19,929	$	19,353
Financial Solutions	25,123		25,117
Total	45,052		44,470
Canada:
Traditional	4,458		4,361
Financial Solutions	13		64
Total	4,471		4,425
Europe, Middle East and Africa:
Traditional	4,288		4,032
Financial Solutions	6,711		6,502
Total	10,999		10,534
Asia Pacific:
Traditional	7,815		6,800
Financial Solutions	4,115		2,557
Total	11,930		9,357
Corporate and Other	9,675		7,945
Total	$	82,127	$	76,731