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Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company has geographic-based and business-based operational segments. Geographic-based operations are further segmented into traditional and financial solutions businesses.
The U.S. and Latin America Traditional segment provides individual and group life and health reinsurance to domestic clients for a variety of products through yearly renewable term agreements, coinsurance, and modified coinsurance. The U.S. and Latin America Financial Solutions segment includes asset-intensive products that concentrate on the investment risk within underlying annuities and corporate-owned life insurance policies, financial reinsurance, and capital solutions that assists ceding companies in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position.
The Canada Traditional segment is primarily engaged in individual life reinsurance, and to a lesser extent creditor, group life and health, critical illness and disability reinsurance, through yearly renewable term and coinsurance agreements. The Canada Financial Solutions segment concentrates on assisting clients with longevity risk transfer structures within underlying annuities and pension benefit obligations and provides capital solutions to assist clients in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position through financial reinsurance and other capital solutions structures.
The Europe, Middle East and Africa Traditional segment provides individual and group life and health products through yearly renewable term and coinsurance agreements, reinsurance of critical illness coverage that provides a benefit in the event of the diagnosis of a pre-defined critical illness and underwritten annuities. The Europe, Middle East and Africa Financial Solutions segment provides longevity, asset-intensive and financial reinsurance. Longevity reinsurance takes the form of closed block annuity reinsurance and longevity swap structures.
The Asia Pacific Traditional segment provides individual and group life and health reinsurance, critical illness coverage, disability and superannuation through yearly renewable term and coinsurance agreements. The Asia Pacific Financial Solutions segment provides financial reinsurance, asset-intensive and certain disability and life blocks.
Corporate and Other revenues primarily include investment income from unallocated invested assets, investment related gains and losses and service fees. Corporate and Other expenses consist of the offset to capital charges allocated to the operating segments within the policy acquisition costs and other insurance income line item, unallocated overhead and executive costs, interest expense related to debt, and the investment income and expense associated with the Company’s collateral finance and securitization transactions and service business expenses. Additionally, Corporate and Other includes results that, among other activities, develop and market technology, and provide consulting and outsourcing solutions for the insurance and reinsurance industries. The Company invests in this area in an effort to both support its clients and accelerate the development of new solutions and services to increase consumer engagement within the life industry.
The accounting policies of the segments are the same as those described in Note 2 – “Significant Accounting Policies and Pronouncements.” 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.
Information related to revenues, income (loss) before income taxes, interest expense, depreciation and amortization, and assets of the Company’s operations are summarized below (dollars in millions):
For the years ended December 31,202220212020
Revenues:
U.S. and Latin America:
Traditional$7,629 $7,198 $6,560 
Financial Solutions1,100 1,492 1,220 
Total8,729 8,690 7,780 
Canada:
Traditional1,465 1,448 1,260 
Financial Solutions105 101 92 
Total1,570 1,549 1,352 
Europe, Middle East and Africa:
Traditional1,830 1,827 1,633 
Financial Solutions623 616 471 
Total2,453 2,443 2,104 
Asia Pacific:
Traditional2,823 2,778 2,806 
Financial Solutions476 417 309 
Total3,299 3,195 3,115 
Corporate and Other207 781 245 
Total$16,258 $16,658 $14,596 
For the years ended December 31,202220212020
Income (loss) before income taxes:
U.S. and Latin America:
Traditional$268 $(540)$(298)
Financial Solutions199 515 295 
Total467 (25)(3)
Canada:
Traditional86 128 134 
Financial Solutions32 15 21 
Total118 143 155 
Europe, Middle East and Africa:
Traditional10 (239)27 
Financial Solutions196 303 258 
Total206 64 285 
Asia Pacific:
Traditional294 (10)174 
Financial Solutions(18)98 59 
Total276 88 233 
Corporate and Other(236)421 (117)
Total$831 $691 $553 
For the years ended December 31,202220212020
Interest expense:
Corporate and Other$184 $127 $170 
Total$184 $127 $170 
For the years ended December 31,202220212020
Depreciation and amortization:
U.S. and Latin America:
Traditional$314 $360 $291 
Financial Solutions(111)80 90 
Total203 440 381 
Canada:
Traditional22 21 24 
Financial Solutions— — — 
Total22 21 24 
Europe, Middle East and Africa:
Traditional60 66 46 
Financial Solutions1 1 1 
Total61 67 47 
Asia Pacific:
Traditional82 87 94 
Financial Solutions68 43 20 
Total150 130 114 
Corporate and Other18 22 23 
Total$454 $680 $589 
The table above includes amortization of DAC, including the effect from investment related gains and losses.
For the years ended December 31,20222021
Assets:
U.S. and Latin America:
Traditional$20,567 $20,572 
Financial Solutions25,228 29,028 
Total45,795 49,600 
Canada:
Traditional4,912 5,091 
Financial Solutions52 18 
Total4,964 5,109 
Europe, Middle East and Africa:
Traditional4,723 4,670 
Financial Solutions4,998 7,165 
Total9,721 11,835 
Asia Pacific:
Traditional9,510 10,048 
Financial Solutions10,628 7,678 
Total20,138 17,726 
Corporate and Other4,088 7,905 
Total$84,706 $92,175 
Companies in which the Company has significant influence over the operating and financing decisions but are not required to be consolidated are reported on the equity basis of accounting. The equity in the net income of such investments is not material to the results of operations or financial position of individual segments or the Company taken as a whole. Capital expenditures of each reporting segment were immaterial in the periods noted.
No individual client generated 10% or more of the Company’s total gross premiums and other revenues on a consolidated basis in 2022, 2021 and 2020. For the purpose of this disclosure, companies that are within the same insurance holding company structure are combined.