Segment Information

9 Months Ended

Sep. 30, 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 September 30,				Nine months ended September 30,
Revenues:	2023		2022		2023		2022
U.S. and Latin America:
Traditional	$	1,949	$	1,855	$	5,693	$	5,552
Financial Solutions	1,115		292		1,908		811
Total	3,064		2,147		7,601		6,363
Canada:
Traditional	366		359		1,098		1,095
Financial Solutions	26		27		79		82
Total	392		386		1,177		1,177
Europe, Middle East and Africa:
Traditional	471		456		1,382		1,372
Financial Solutions	160		142		459		460
Total	631		598		1,841		1,832
Asia Pacific:
Traditional	801		720		2,282		2,124
Financial Solutions	130		171		397		234
Total	931		891		2,679		2,358
Corporate and Other	135		28		262		140
Total	$	5,153	$	4,050	$	13,560	$	11,870

	Three months ended September 30,				Nine months ended September 30,
Income (loss) before income taxes:	2023		2022		2023		2022
U.S. and Latin America:
Traditional	$	105	$	(69)	$	288	$	81
Financial Solutions	108		53		290		153
Total	213		(16)		578		234
Canada:
Traditional	6		12		70		54
Financial Solutions	30		6		46		22
Total	36		18		116		76
Europe, Middle East and Africa:
Traditional	(60)		5		(29)		43
Financial Solutions	84		34		195		126
Total	24		39		166		169
Asia Pacific:
Traditional	134		(73)		302		94
Financial Solutions	(16)		47		(9)		(63)
Total	118		(26)		293		31
Corporate and Other	(11)		(92)		(157)		(173)
Total	$	380	$	(77)	$	996	$	337

Assets:	September 30, 2023		December 31, 2022
U.S. and Latin America:
Traditional	$	22,527	$	22,612
Financial Solutions	24,117		25,203
Total	46,644		47,815
Canada:
Traditional	4,936		4,826
Financial Solutions	221		177
Total	5,157		5,003
Europe, Middle East and Africa:
Traditional	3,649		3,652
Financial Solutions	6,247		5,215
Total	9,896		8,867
Asia Pacific:
Traditional	9,894		9,254
Financial Solutions	13,362		12,023
Total	23,256		21,277
Corporate and Other	2,469		1,942
Total	$	87,422	$	84,904