Segment Information

6 Months Ended

Jun. 30, 2024

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 2023 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 credited 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:	2024		2023		2024		2023
U.S. and Latin America:
Traditional	$	2,044	$	1,932	$	3,958	$	3,744
Financial Solutions	664		278		2,973		793
Total	2,708		2,210		6,931		4,537
Canada:
Traditional	389		373		775		732
Financial Solutions	101		26		128		53
Total	490		399		903		785
Europe, Middle East and Africa:
Traditional	524		451		1,049		911
Financial Solutions	232		130		443		299
Total	756		581		1,492		1,210
Asia Pacific:
Traditional	778		752		1,569		1,481
Financial Solutions	102		136		245		267
Total	880		888		1,814		1,748
Corporate and Other	44		78		75		127
Total	$	4,878	$	4,156	$	11,215	$	8,407

	Three months ended June 30,				Six months ended June 30,
Income (loss) before income taxes:	2024		2023		2024		2023
U.S. and Latin America:
Traditional	$	174	$	62	$	290	$	183
Financial Solutions	83		68		100		182
Total	257		130		390		365
Canada:
Traditional	27		35		74		64
Financial Solutions	6		6		13		16
Total	33		41		87		80
Europe, Middle East and Africa:
Traditional	1		4		29		31
Financial Solutions	72		52		136		111
Total	73		56		165		142
Asia Pacific:
Traditional	100		89		209		168
Financial Solutions	(58)		20		(45)		7
Total	42		109		164		175
Corporate and Other	(136)		(71)		(265)		(146)
Total	$	269	$	265	$	541	$	616

Assets:	June 30, 2024		December 31, 2023
U.S. and Latin America:
Traditional	$	24,618	$	24,320
Financial Solutions	28,950		28,385
Total	53,568		52,705
Canada:
Traditional	5,022		5,111
Financial Solutions	5,892		219
Total	10,914		5,330
Europe, Middle East and Africa:
Traditional	4,566		4,334
Financial Solutions	7,731		5,656
Total	12,297		9,990
Asia Pacific:
Traditional	8,954		9,925
Financial Solutions	20,843		14,680
Total	29,797		24,605
Corporate and Other	3,312		4,993
Total	$	109,888	$	97,623