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Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION
The Company has five geographic-based or function-based operational segments: U.S. and Latin America; Canada; Europe, Middle East and Africa; Asia Pacific; and Corporate and Other. The U.S. and Latin America segment is further segmented into traditional and non-traditional businesses, with the prior years reclassified to conform to the current year presentation. The U.S. and Latin America operations provide individual life, long-term care, group life and health reinsurance, annuity and financial reinsurance products. The Canada operations provide insurers with reinsurance of individual life products as well as creditor reinsurance, group life and health reinsurance, non-guaranteed critical illness products and longevity reinsurance. Europe, Middle East and Africa operations include traditional life reinsurance and critical illness business from Europe, Middle East and Africa, in addition to other markets the Company is developing. Asia Pacific operations provide primarily traditional and group life reinsurance, critical illness and, to a lesser extent, financial reinsurance. Corporate and Other includes results from, among others, RGA Technology Partners, Inc., a wholly-owned subsidiary that develops and markets technology solutions for the insurance industry and the investment income and expense associated with the Company’s collateral finance and securitization notes. The Company measures segment performance based on income before income taxes.
The accounting policies of the segments are the same as those described in Note 2 – “Summary of Significant Accounting Policies.” 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. Investment income is allocated to the segments based upon average assets and related capital levels deemed appropriate to support the segment business volumes.
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 and investment related gains and losses are 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’s reportable segments are strategic business units that are primarily segregated by geographic region. 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 thousands).
For the years ended December 31,
 
2014
 
2013
 
2012
Revenues:
 
 
 
 
 
 
U.S. and Latin America
 
 
 
 
 
 
Traditional
 
$
5,283,268

 
$
5,115,941

 
$
4,881,994

Non-Traditional
 
1,014,143

 
962,818

 
876,119

Canada
 
1,181,865

 
1,185,017

 
1,140,264

Europe, Middle East and Africa
 
1,557,847

 
1,305,012

 
1,275,074

Asia Pacific
 
1,756,718

 
1,610,626

 
1,557,283

Corporate and Other
 
110,353

 
138,939

 
110,177

Total
 
$
10,904,194

 
$
10,318,353

 
$
9,840,911


For the years ended December 31,
 
2014
 
2013
 
2012
Income (loss) before income taxes:
 
 
 
 
 
 
U.S. and Latin America
 
 
 
 
 
 
Traditional
 
$
351,645

 
$
377,586

 
$
374,353

Non-Traditional
 
302,944

 
245,649

 
268,315

Canada
 
101,700

 
164,318

 
186,971

Europe, Middle East and Africa
 
161,642

 
74,553

 
61,095

Asia Pacific
 
102,295

 
(226,665
)
 
51,972

Corporate and Other
 
(11,693
)
 
(187
)
 
(23,483
)
Total
 
$
1,008,533

 
$
635,254

 
$
919,223


The loss before income taxes for the year ended December 31, 2013 in the Asia Pacific segment reflects an increase in Australian group claims liabilities related to total and permanent disability coverage and disability income benefits as well as poor claims experience in the Australian operation's individual lump sum and individual disability businesses.
For the years ended December 31,
 
2014
 
2013
 
2012
Interest expense:
 
 
 
 
 
 
Corporate and Other
 
$
96,700

 
$
124,307

 
$
105,348

Total
 
$
96,700

 
$
124,307

 
$
105,348


For the years ended December 31,
 
2014
 
2013
 
2012
Depreciation and amortization:
 
 
 
 
 
 
U.S. and Latin America
 
 
 
 
 
 
Traditional
 
$
558,404

 
$
564,359

 
$
555,875

Non-Traditional
 
232,348

 
213,745

 
225,910

Canada
 
204,229

 
193,878

 
182,914

Europe, Middle East and Africa
 
57,291

 
55,003

 
69,002

Asia Pacific
 
95,172

 
57,104

 
154,776

Corporate and Other
 
3,644

 
3,490

 
4,040

Total
 
$
1,151,088

 
$
1,087,579

 
$
1,192,517


The table above includes amortization of deferred acquisition costs, including the effect from investment related gains and losses.
For the years ended December 31,
 
2014
 
2013
Assets:
 
 
 
 
U.S. and Latin America
 
 
 
 
Traditional
 
$
14,159,824

 
$
13,285,423

Non-Traditional
 
11,572,251

 
11,716,908

Canada
 
3,996,128

 
4,103,730

Europe, Middle East and Africa
 
4,693,322

 
2,230,568

Asia Pacific
 
3,619,368

 
3,597,456

Corporate and Other
 
6,638,718

 
4,740,388

Total
 
$
44,679,611

 
$
39,674,473


Companies in which RGA 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 subsidiaries 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 on a consolidated basis in 2014, 2013 and 2012. For the purpose of this disclosure, companies that are within the same insurance holding company structure are combined.