Segment Information

6 Months Ended

Jun. 30, 2021

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” in the Notes to Consolidated Financial Statements included in the Company’s 2020 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:	2021		2020		2021		2020
U.S. and Latin America:
Traditional	$	1,816	$	1,642	$	3,453	$	3,175
Financial Solutions	433		323		751		462
Total	2,249		1,965		4,204		3,637
Canada:
Traditional	366		311		709		607
Financial Solutions	26		22		52		46
Total	392		333		761		653
Europe, Middle East and Africa:
Traditional	459		371		916		778
Financial Solutions	139		136		285		214
Total	598		507		1,201		992
Asia Pacific:
Traditional	653		636		1,300		1,303
Financial Solutions	104		75		208		143
Total	757		711		1,508		1,446
Corporate and Other	141		90		582		82
Total	$	4,137	$	3,606	$	8,256	$	6,810

	Three months ended June 30,				Six months ended June 30,
Income (loss) before income taxes:	2021		2020		2021		2020
U.S. and Latin America:
Traditional	$	135	$	(158)	$	(203)	$	(220)
Financial Solutions	186		117		269		102
Total	321		(41)		66		(118)
Canada:
Traditional	32		44		56		67
Financial Solutions	4		4		10		7
Total	36		48		66		74
Europe, Middle East and Africa:
Traditional	(12)		16		(80)		33
Financial Solutions	83		98		143		128
Total	71		114		63		161
Asia Pacific:
Traditional	(12)		47		29		71
Financial Solutions	31		26		59		1
Total	19		73		88		72
Corporate and Other	35		1		385		(90)
Total	$	482	$	195	$	668	$	99

Assets:	June 30, 2021		December 31, 2020
U.S. and Latin America:
Traditional	$	20,760	$	20,071
Financial Solutions	29,272		25,433
Total	50,032		45,504
Canada:
Traditional	5,017		4,682
Financial Solutions	8		13
Total	5,025		4,695
Europe, Middle East and Africa:
Traditional	5,058		4,763
Financial Solutions	6,419		7,292
Total	11,477		12,055
Asia Pacific:
Traditional	8,664		8,197
Financial Solutions	6,814		4,299
Total	15,478		12,496
Corporate and Other	6,932		9,906
Total	$	88,944	$	84,656