Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

Effective January 1, 2014, the Company realigned certain operations and management responsibilities to better fit within its geographic-based segments. Operations in Mexico and Latin America have been moved from Europe & South Africa to the U.S. segment, which has been renamed U.S. and Latin America. Operations in India have been moved from Europe & South Africa to the Asia Pacific segment. The Europe & South Africa segment has been renamed Europe, Middle East and Africa. Prior-period amounts have been adjusted to conform to the new segment reporting structure.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies in Note 2 of the consolidated financial statements accompanying the 2013 Annual Report. 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 and total assets of the Company for each reportable segment are summarized below (dollars in thousands).

	Three months ended September 30,				Nine months ended September 30,
Total revenues:	2014		2013		2014		2013
U.S. and Latin America:
Traditional	$	1,310,879	$	1,258,278	$	3,922,598	$	3,730,533
Non-Traditional	261,128		91,501		843,197		707,592
Canada	297,340		292,504		884,202		884,918
Europe, Middle East and Africa	392,912		329,851		1,150,087		947,607
Asia Pacific	428,432		393,657		1,326,632		1,187,486
Corporate and Other	25,897		24,024		80,065		123,423
Total	$	2,716,588	$	2,389,815	$	8,206,781	$	7,581,559

	Three months ended September 30,						Nine months ended September 30,
Income (loss) before income taxes:	2014			2013			2014			2013
U.S. and Latin America:
Traditional	$	77,833		$	85,038		$	222,793		$	254,794
Non-Traditional	77,500			21,051			256,098			199,611
Canada	25,044			41,869			80,128			113,836
Europe, Middle East and Africa	45,176			39,664			121,703			62,576
Asia Pacific	20,413			18,779			81,652			(250,324		)
Corporate and Other	(14,151		)	(4,706		)	(30,584		)	25,271
Total	$	231,815		$	201,695		$	731,790		$	405,764

Total Assets:	September 30, 2013		December 31, 2013
U.S. and Latin America:
Traditional	$	13,682,559	$	13,285,423
Non-Traditional	11,648,160		11,716,908
Canada	4,120,395		4,103,730
Europe, Middle East and Africa	4,239,282		2,230,568
Asia Pacific	3,712,954		3,597,456
Corporate and Other	5,507,013		4,740,388
Total	$	42,910,363	$	39,674,473