Segment Information

3 Months Ended

Mar. 31, 2022

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 2021 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:	2022		2021
U.S. and Latin America:
Traditional	$	1,867	$	1,637
Financial Solutions	252		318
Total	2,119		1,955
Canada:
Traditional	362		343
Financial Solutions	25		26
Total	387		369
Europe, Middle East and Africa:
Traditional	476		457
Financial Solutions	182		146
Total	658		603
Asia Pacific:
Traditional	688		647
Financial Solutions	21		104
Total	709		751
Corporate and Other	57		441
Total	$	3,930	$	4,119

	Three months ended March 31,
Income (loss) before income taxes:	2022		2021
U.S. and Latin America:
Traditional	$	(166)	$	(338)
Financial Solutions	44		83
Total	(122)		(255)
Canada:
Traditional	6		24
Financial Solutions	13		6
Total	19		30
Europe, Middle East and Africa:
Traditional	(6)		(68)
Financial Solutions	85		60
Total	79		(8)
Asia Pacific:
Traditional	51		41
Financial Solutions	(56)		28
Total	(5)		69
Corporate and Other	(31)		350
Total	$	(60)	$	186

Assets:	March 31, 2022		December 31, 2021
U.S. and Latin America:
Traditional	$	20,960	$	20,572
Financial Solutions	27,229		29,028
Total	48,189		49,600
Canada:
Traditional	5,144		5,091
Financial Solutions	43		18
Total	5,187		5,109
Europe, Middle East and Africa:
Traditional	4,655		4,670
Financial Solutions	6,506		7,165
Total	11,161		11,835
Asia Pacific:
Traditional	10,769		10,048
Financial Solutions	8,808		7,678
Total	19,577		17,726
Corporate and Other	5,647		7,905
Total	$	89,761	$	92,175