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Segment Information
 3 Months Ended
Mar. 31, 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 Ended
  March 31,
(In millions) 20122011
Premiums and fees, Mail order pharmacy revenues and Other revenues     
Health Care $ 4,937$ 3,719
Disability and Life   743  688
International   875  704
Run-off Reinsurance   (90)  (34)
Other Operations   39  44
Corporate   (17)  (15)
Total $ 6,487$ 5,106
Shareholders' net income      
Health Care $ 242$ 247
Disability and Life   65  82
International   80  61
Run-off Reinsurance   30  13
Other Operations   20  23
Corporate   (78)  (30)
Segment Earnings   359  396
Realized investment gains, net of taxes   12  17
Shareholders' net income $ 371$ 413

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 and 40% of the segment's earnings for the three months ended March 31, 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.