Segment Information

6 Months Ended

Jun. 30, 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 June 30,				Six months ended June 30,
Revenues:	2022		2021		2022		2021
U.S. and Latin America:
Traditional	$	1,868	$	1,816	$	3,735	$	3,453
Financial Solutions	278		433		530		751
Total	2,146		2,249		4,265		4,204
Canada:
Traditional	367		366		729		709
Financial Solutions	27		26		52		52
Total	394		392		781		761
Europe, Middle East and Africa:
Traditional	447		459		923		916
Financial Solutions	134		139		316		285
Total	581		598		1,239		1,201
Asia Pacific:
Traditional	686		653		1,374		1,300
Financial Solutions	43		104		64		208
Total	729		757		1,438		1,508
Corporate and Other	37		141		94		582
Total	$	3,887	$	4,137	$	7,817	$	8,256

	Three months ended June 30,				Six months ended June 30,
Income (loss) before income taxes:	2022		2021		2022		2021
U.S. and Latin America:
Traditional	$	209	$	135	$	43	$	(203)
Financial Solutions	61		186		105		269
Total	270		321		148		66
Canada:
Traditional	16		32		22		56
Financial Solutions	4		4		17		10
Total	20		36		39		66
Europe, Middle East and Africa:
Traditional	2		(12)		(4)		(80)
Financial Solutions	33		83		118		143
Total	35		71		114		63
Asia Pacific:
Traditional	58		(12)		109		29
Financial Solutions	(66)		31		(122)		59
Total	(8)		19		(13)		88
Corporate and Other	(63)		35		(94)		385
Total	$	254	$	482	$	194	$	668

Assets:	June 30, 2022		December 31, 2021
U.S. and Latin America:
Traditional	$	21,508	$	20,572
Financial Solutions	26,201		29,028
Total	47,709		49,600
Canada:
Traditional	5,026		5,091
Financial Solutions	34		18
Total	5,060		5,109
Europe, Middle East and Africa:
Traditional	4,506		4,670
Financial Solutions	5,313		7,165
Total	9,819		11,835
Asia Pacific:
Traditional	9,196		10,048
Financial Solutions	9,494		7,678
Total	18,690		17,726
Corporate and Other	3,331		7,905
Total	$	84,609	$	92,175