Segment Information

9 Months Ended

Sep. 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 September 30,				Nine months ended September 30,
Revenues:	2022		2021		2022		2021
U.S. and Latin America:
Traditional	$	1,867	$	1,795	$	5,602	$	5,248
Financial Solutions	315		374		845		1,125
Total	2,182		2,169		6,447		6,373
Canada:
Traditional	358		354		1,087		1,063
Financial Solutions	27		25		79		77
Total	385		379		1,166		1,140
Europe, Middle East and Africa:
Traditional	457		454		1,380		1,370
Financial Solutions	142		174		458		459
Total	599		628		1,838		1,829
Asia Pacific:
Traditional	705		663		2,079		1,963
Financial Solutions	171		95		235		303
Total	876		758		2,314		2,266
Corporate and Other	24		109		118		691
Total	$	4,066	$	4,043	$	11,883	$	12,299

	Three months ended September 30,				Nine months ended September 30,
Income (loss) before income taxes:	2022		2021		2022		2021
U.S. and Latin America:
Traditional	$	204	$	(126)	$	247	$	(329)
Financial Solutions	70		128		175		397
Total	274		2		422		68
Canada:
Traditional	32		44		54		100
Financial Solutions	4		—		21		10
Total	36		44		75		110
Europe, Middle East and Africa:
Traditional	1		(91)		(3)		(171)
Financial Solutions	31		85		149		228
Total	32		(6)		146		57
Asia Pacific:
Traditional	118		(96)		227		(67)
Financial Solutions	(2)		6		(124)		65
Total	116		(90)		103		(2)
Corporate and Other	(92)		16		(186)		401
Total	$	366	$	(34)	$	560	$	634

Assets:	September 30, 2022		December 31, 2021
U.S. and Latin America:
Traditional	$	20,640	$	20,572
Financial Solutions	25,598		29,028
Total	46,238		49,600
Canada:
Traditional	4,994		5,091
Financial Solutions	42		18
Total	5,036		5,109
Europe, Middle East and Africa:
Traditional	4,341		4,670
Financial Solutions	4,375		7,165
Total	8,716		11,835
Asia Pacific:
Traditional	9,072		10,048
Financial Solutions	10,023		7,678
Total	19,095		17,726
Corporate and Other	3,620		7,905
Total	$	82,705	$	92,175