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, and financial reinsurance 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 on assisting clients in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position through financial reinsurance 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 from certain wholly-owned subsidiaries, such as RGAx, and joint ventures that, among other activities, develop and market technology, and provide consulting and outsourcing solutions for the insurance and reinsurance industries. In the past two years, the Company has increased its investment and expenditures in this area in an effort to both support its clients and generate new future revenue streams.

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 thousands):



For the years ended December 31,	2018		2017		2016
Revenues:
U.S. and Latin America:
Traditional	$	6,295,733	$	6,100,171	$	5,964,968
Financial Solutions	907,245		1,150,378		840,446
Total	7,202,978		7,250,549		6,805,414
Canada:
Traditional	1,224,404		1,103,520		1,118,004
Financial Solutions	48,588		48,938		46,938
Total	1,272,992		1,152,458		1,164,942
Europe, Middle East and Africa:
Traditional	1,494,605		1,362,075		1,195,149
Financial Solutions	349,886		311,071		340,518
Total	1,844,491		1,673,146		1,535,667
Asia Pacific:
Traditional	2,416,848		2,210,686		1,771,150
Financial Solutions	54,479		73,775		63,382
Total	2,471,327		2,284,461		1,834,532
Corporate and Other	83,876		155,155		180,956
Total	$	12,875,664	$	12,515,769	$	11,521,511



For the years ended December 31,	2018			2017			2016
Income (loss) before income taxes:
U.S. and Latin America:
Traditional	$	286,410		$	373,434		$	371,101
Financial Solutions	250,478			401,584			283,380
Total	536,888			775,018			654,481
Canada:
Traditional	112,308			120,218			134,705
Financial Solutions	9,576			16,643			7,945
Total	121,884			136,861			142,650
Europe, Middle East and Africa:
Traditional	55,119			70,486			30,059
Financial Solutions	196,387			123,514			138,007
Total	251,506			194,000			168,066
Asia Pacific:
Traditional	177,501			148,786			113,928
Financial Solutions	(5,966		)	13,130			4,063
Total	171,535			161,916			117,991
Corporate and Other	(235,993		)	(124,980		)	(39,242		)
Total	$	845,820		$	1,142,815		$	1,043,946



For the years ended December 31,	2018		2017		2016
Interest expense:
Corporate and Other	$	147,355	$	146,025	$	137,623
Total	$	147,355	$	146,025	$	137,623



For the years ended December 31,	2018		2017		2016
Depreciation and amortization:
U.S. and Latin America:
Traditional	$	272,555	$	284,959	$	271,732
Financial Solutions	95,306		208,790		155,560
Total	367,861		493,749		427,292
Canada:
Traditional	22,109		24,057		22,170
Financial Solutions	9		10		11
Total	22,118		24,067		22,181
Europe, Middle East and Africa:
Traditional	45,140		35,000		46,562
Financial Solutions	384		91		72
Total	45,524		35,091		46,634
Asia Pacific:
Traditional	114,870		114,333		45,562
Financial Solutions	1,885		1,448		1,492
Total	116,755		115,781		47,054
Corporate and Other	22,104		37,276		13,894
Total	$	574,362	$	705,964	$	557,055

The table above includes amortization of DAC, including the effect from investment related gains and losses.



For the years ended December 31,	2018		2017
Assets:
U.S. and Latin America:
Traditional	$	19,235,781	$	18,603,423
Financial Solutions	19,870,388		15,959,206
Total	39,106,169		34,562,629
Canada:
Traditional	4,200,792		4,161,452
Financial Solutions	154,000		126,372
Total	4,354,792		4,287,824
Europe, Middle East and Africa:
Traditional	3,643,174		3,099,495
Financial Solutions	4,737,529		5,274,993
Total	8,380,703		8,374,488
Asia Pacific:
Traditional	5,680,978		4,915,442
Financial Solutions	1,180,745		1,198,585
Total	6,861,723		6,114,027
Corporate and Other	5,831,858		7,175,850
Total	$	64,535,245	$	60,514,818

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 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 on a consolidated basis in 2018, 2017 and 2016. For the purpose of this disclosure, companies that are within the same insurance holding company structure are combined.