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Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Information [Abstract]  
Segment Information [Text Block]

Note 16 ― Segment Information

 

The Company's Operating segments generally reflect groups of related products, but the International segment is generally based on geography. Beginning with the acquisition of HealthSpring in January 2012, the financial results of the former Health Care operating segment and this newly acquired Medicare operating segment have been aggregated as the Health Care reportable segment reflecting their similar economic characteristics, products and services, customers, distribution methods, operational processes and regulatory environment. Other operating segments that do not require separate disclosure have been combined into Other Operations. The Company measures the financial results of its segments using “segment earnings (loss)”, which is defined as shareholders' net income (loss) excluding after-tax realized investment gains and losses.

 

As discussed in Note 2, in 2012, the Company adopted amended accounting guidance for deferred acquisition costs through retrospective adjustment of prior periods. See Note 2 for the effect of this amended guidance on previously reported segment revenue and earnings amounts.

 

:

Summarized segment financial information was as follows:

 

  Three Months EndedSix Months Ended
  June 30,June 30,
(In millions) 2012201120122011
Premiums and fees, Mail order pharmacy revenues and Other revenues         
Health Care $ 5,466$ 3,711$ 10,403$ 7,430
International   904  740  1,779  1,444
Disability and Life   749  717  1,492  1,405
Run-off Reinsurance   37  10  (53)  (24)
Other Operations   39  42  78  86
Corporate   (17)  (14)  (34)  (29)
Total $ 7,178$ 5,206$ 13,665$ 10,312
Shareholders' net income          
Health Care $ 332$ 280$ 574$ 527
International   65  57  145  118
Disability and Life   89  88  154  170
Run-off Reinsurance   (62)  (22)  (32)  (9)
Other Operations   21  20  41  43
Corporate   (62)  (43)  (140)  (73)
Segment Earnings   383  380  742  776
Realized investment gains (losses), net of taxes   (3)  11  9  28
Shareholders' net income $ 380$ 391$ 751$ 804
          

Concentration of risk. For the Company's International segment, South Korea is the single largest geographic market. South Korea generated 29% of the segment's revenues for the three months ended and six months ended June 30, 2012. South Korea generated 55% and 46% of the segment's earnings for the three months ended and six months ended June 30, 2012. Due to the concentration of business in South Korea, the International segment is exposed to potential losses resulting from economic, regulatory, and geopolitical developments in that country, as well as foreign currency movements affecting the South Korean currency, that could have a significant impact on the segment's results and the Company's consolidated financial results.