XML 47 R30.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information 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, financial reinsurance, and capital solutions 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 provides capital solutions to assist clients in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position through financial reinsurance and other capital solutions 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 that, among other activities, develop and market technology, and provide consulting and outsourcing solutions for the insurance and reinsurance industries. The Company invests in this area in an effort to both support its clients and accelerate the development of new solutions and services to increase consumer engagement within the life industry.
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 millions):
For the years ended December 31,202320222021
Revenues:
U.S. and Latin America:
Traditional$7,823 $7,565 $7,157 
Financial Solutions2,624 1,046 1,484 
Total10,447 8,611 8,641 
Canada:
Traditional1,474 1,475 1,458 
Financial Solutions106 110 105 
Total1,580 1,585 1,563 
Europe, Middle East and Africa:
Traditional1,866 1,818 1,810 
Financial Solutions639 626 619 
Total2,505 2,444 2,429 
Asia Pacific:
Traditional3,050 2,882 2,828 
Financial Solutions650 475 417 
Total3,700 3,357 3,245 
Corporate and Other335 230 789 
Total$18,567 $16,227 $16,667 
For the years ended December 31,202320222021
Income (loss) before income taxes:
U.S. and Latin America:
Traditional$318 $195 $133 
Financial Solutions170 145 591 
Total488 340 724 
Canada:
Traditional91 104 121 
Financial Solutions52 31 (11)
Total143 135 110 
Europe, Middle East and Africa:
Traditional(21)46 (150)
Financial Solutions301 182 260 
Total280 228 110 
Asia Pacific:
Traditional372 194 (81)
Financial Solutions113 46 100 
Total485 240 19 
Corporate and Other(236)(225)422 
Total$1,160 $718 $1,385 
For the years ended December 31,202320222021
Interest expense:
Corporate and Other$257 $191 $139 
Total$257 $191 $139 
For the years ended December 31,202320222021
Depreciation and amortization:
U.S. and Latin America:
Traditional$150 $147 $126 
Financial Solutions49 59 65 
Total199 206 191 
Canada:
Traditional18 5 14 
Financial Solutions— — — 
Total18 5 14 
Europe, Middle East and Africa:
Traditional61 25 43 
Financial Solutions1 1 1 
Total62 26 44 
Asia Pacific:
Traditional61 42 81 
Financial Solutions29 12 9 
Total90 54 90 
Corporate and Other18 18 22 
Total$387 $309 $361 
The table above includes amortization of DAC
For the years ended December 31,202320222021
Assets:
U.S. and Latin America:
Traditional$24,320 $22,612 $27,350 
Financial Solutions28,385 25,203 29,931 
Total52,705 47,815 57,281 
Canada:
Traditional5,111 4,826 5,330 
Financial Solutions219 177 28 
Total5,330 5,003 5,358 
Europe, Middle East and Africa:
Traditional4,334 3,652 4,440 
Financial Solutions5,656 5,215 7,782 
Total9,990 8,867 12,222 
Asia Pacific:
Traditional9,925 9,254 7,871 
Financial Solutions14,680 12,023 9,048 
Total24,605 21,277 16,919 
Corporate and Other4,993 1,942 1,161 
Total$97,623 $84,904 $92,941 
Companies in which the Company 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 and other revenues on a consolidated basis in 2023, 2022 and 2021. For the purpose of this disclosure, companies that are within the same insurance holding company structure are combined.