Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

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 2022 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:	2023		2022
U.S. and Latin America:
Traditional	$	1,812	$	1,851
Financial Solutions	515		233
Total	2,327		2,084
Canada:
Traditional	359		365
Financial Solutions	27		26
Total	386		391
Europe, Middle East and Africa:
Traditional	460		473
Financial Solutions	169		183
Total	629		656
Asia Pacific:
Traditional	729		703
Financial Solutions	131		20
Total	860		723
Corporate and Other	49		63
Total	$	4,251	$	3,917

	Three months ended March 31,
Income (loss) before income taxes:	2023		2022
U.S. and Latin America:
Traditional	$	121	$	60
Financial Solutions	114		57
Total	235		117
Canada:
Traditional	29		15
Financial Solutions	10		9
Total	39		24
Europe, Middle East and Africa:
Traditional	27		34
Financial Solutions	59		67
Total	86		101
Asia Pacific:
Traditional	79		108
Financial Solutions	(13)		(56)
Total	66		52
Corporate and Other	(75)		(27)
Total	$	351	$	267

Assets:	March 31, 2023		December 31, 2022
U.S. and Latin America:
Traditional	$	22,671	$	22,612
Financial Solutions	25,111		25,203
Total	47,782		47,815
Canada:
Traditional	4,898		4,826
Financial Solutions	196		177
Total	5,094		5,003
Europe, Middle East and Africa:
Traditional	4,011		3,652
Financial Solutions	5,561		5,215
Total	9,572		8,867
Asia Pacific:
Traditional	9,615		9,254
Financial Solutions	14,693		12,023
Total	24,308		21,277
Corporate and Other	2,364		1,942
Total	$	89,120	$	84,904