Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Effective January 1, 2015, the Company further refined its reporting of the Canada; Europe, Middle East and Africa; and Asia Pacific segments into traditional and non-traditional businesses to reflect the expanded product offerings within its geographic-based segments. The Company’s traditional and non-traditional segments are now managed separately and have discrete financial information available that is reviewed regularly by the Company’s chief operating decision maker. The Company has recently experienced growth and opportunity in its non-traditional businesses resulting from its efforts to meet the needs of its clients and adapt to the changing regulatory environment within the insurance industry. The non-traditional business primarily consists of asset-intensive, longevity, financial reinsurance and capital-motivated transactions that are sourced and managed by the Company’s Global Financial Solutions unit. Prior periods have been adjusted to conform to the new segment reporting structure.

The accounting policies of the segments are the same as those described in Note 2 – “Summary of Significant Accounting Policies.” 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 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.

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, interest expense, depreciation and amortization, and assets of the Company’s operations are summarized below (dollars in thousands).

For the years ended December 31,	2015		2014		2013
Revenues:
U.S. and Latin America:
Traditional	$	5,465,026	$	5,283,268	$	5,115,941
Non-Traditional	643,865		1,014,143		962,818
Total	6,108,891		6,297,411		6,078,759
Canada:
Traditional	1,023,012		1,153,515		1,158,846
Non-Traditional	45,034		28,350		26,171
Total	1,068,046		1,181,865		1,185,017
Europe, Middle East and Africa:
Traditional	1,190,742		1,235,049		1,129,657
Non-Traditional	286,666		322,798		175,355
Total	1,477,408		1,557,847		1,305,012
Asia Pacific:
Traditional	1,638,357		1,686,436		1,524,543
Non-Traditional	56,581		70,282		86,083
Total	1,694,938		1,756,718		1,610,626
Corporate and Other	68,895		110,353		138,939
Total	$	10,418,178	$	10,904,194	$	10,318,353

For the years ended December 31,	2015			2014			2013
Income (loss) before income taxes:
U.S. and Latin America:
Traditional	$	235,771		$	351,645		$	377,586
Non-Traditional	207,963			302,944			245,649
Total	443,734			654,589			623,235
Canada:
Traditional	124,175			95,435			161,671
Non-Traditional	13,902			6,265			2,647
Total	138,077			101,700			164,318
Europe, Middle East and Africa:
Traditional	48,410			60,305			31,409
Non-Traditional	108,445			101,337			43,144
Total	156,855			161,642			74,553
Asia Pacific:
Traditional	105,654			90,602			(239,016		)
Non-Traditional	19,619			11,693			12,351
Total	125,273			102,295			(226,665		)
Corporate and Other	(119,144		)	(11,693		)	(187		)
Total	$	744,795		$	1,008,533		$	635,254

The loss before income taxes for the year ended December 31, 2013 in the Asia Pacific segment reflects an increase in Australian group claims liabilities related to total and permanent disability coverage and disability income benefits as well as poor claims experience in the Australian operation's individual lump sum and individual disability businesses.

For the years ended December 31,	2015		2014		2013
Interest expense:
Corporate and Other	$	142,863	$	96,700	$	124,307
Total	$	142,863	$	96,700	$	124,307

For the years ended December 31,	2015		2014		2013
Depreciation and amortization:
U.S. and Latin America:
Traditional	$	218,974	$	558,404	$	564,359
Non-Traditional	44,275		232,348		213,745
Total	263,249		790,752		778,104
Canada:
Traditional	23,887		204,229		193,878
Non-Traditional	—		—		—
Total	23,887		204,229		193,878
Europe, Middle East and Africa:
Traditional	60,193		57,291		55,003
Non-Traditional	—		—		—
Total	60,193		57,291		55,003
Asia Pacific:
Traditional	31,955		94,763		56,885
Non-Traditional	217		409		219
Total	32,172		95,172		57,104
Corporate and Other	16,495		3,644		3,490
Total	$	395,996	$	1,151,088	$	1,087,579

The table above includes amortization of DAC, including the effect from investment related gains and losses. During 2015, the Company enhanced its process to track certain DAC components in a more refined manner. See Note 8 - “Deferred Policy Acquisition Costs” for additional information.

For the years ended December 31,	2015		2014(1)
Assets:
U.S. and Latin America:
Traditional	$	16,554,509	$	14,159,824
Non-Traditional	13,405,878		11,572,251
Total	29,960,387		25,732,075
Canada:
Traditional	3,604,344		3,946,942
Non-Traditional	27,543		49,186
Total	3,631,887		3,996,128
Europe, Middle East and Africa:
Traditional	2,757,593		2,514,868
Non-Traditional	4,162,703		2,178,454
Total	6,920,296		4,693,322
Asia Pacific:
Traditional	3,227,530		2,951,723
Non-Traditional	742,528		667,645
Total	3,970,058		3,619,368
Corporate and Other	5,900,524		6,613,407
Total	$	50,383,152	$	44,654,300

(1) Total assets for the Corporate and Other segment have been updated to conform with current period presentation for the adoption of the accounting standard update "Simplifying the Presentation of Debt Issuance Costs."

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 subsidiaries 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 2015, 2014 and 2013. For the purpose of this disclosure, companies that are within the same insurance holding company structure are combined.