Segment Information

9 Months Ended

Sep. 30, 2019

The accounting policies of the segments are the same as those described in the Significant Accounting Policies and Pronouncements in Note 2 of the consolidated financial statements accompanying the 2018 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.

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 has geographic-based and business-based operational segments. Geographic-based operations are further segmented into traditional and financial solutions businesses. 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,
Revenues:	2019		2018		2019		2018
U.S. and Latin America:
Traditional	$	1,609,866	$	1,547,790	$	4,735,208	$	4,601,631
Financial Solutions	382,672		290,848		938,589		734,148
Total	1,992,538		1,838,638		5,673,797		5,335,779
Canada:
Traditional	324,851		295,962		955,326		910,480
Financial Solutions	24,204		12,168		71,707		37,034
Total	349,055		308,130		1,027,033		947,514
Europe, Middle East and Africa:
Traditional	378,110		357,059		1,131,615		1,123,379
Financial Solutions	116,800		91,664		340,207		280,482
Total	494,910		448,723		1,471,822		1,403,861
Asia Pacific:
Traditional	685,886		578,035		1,992,475		1,763,094
Financial Solutions	45,702		16,167		159,788		54,005
Total	731,588		594,202		2,152,263		1,817,099
Corporate and Other	59,474		37,838		190,089		92,893
Total	$	3,627,565	$	3,227,531	$	10,515,004	$	9,597,146



	Three months ended September 30,						Nine months ended September 30,
Income (loss) before income taxes:	2019			2018			2019			2018
U.S. and Latin America:
Traditional	$	112,542		$	116,328		$	179,371		$	191,198
Financial Solutions	118,876			87,073			294,171			236,882
Total	231,418			203,401			473,542			428,080
Canada:
Traditional	43,684			21,149			140,222			66,661
Financial Solutions	3,108			1,646			8,269			8,381
Total	46,792			22,795			148,491			75,042
Europe, Middle East and Africa:
Traditional	25,342			18,370			56,887			40,259
Financial Solutions	61,246			56,205			151,437			160,738
Total	86,588			74,575			208,324			200,997
Asia Pacific:
Traditional	21,453			62,007			92,852			143,756
Financial Solutions	1,886			206			9,887			8,365
Total	23,339			62,213			102,739			152,121
Corporate and Other	(41,047		)	(40,323		)	(109,365		)	(148,366		)
Total	$	347,090		$	322,661		$	823,731		$	707,874



Assets:	September 30, 2019		December 31, 2018
U.S. and Latin America:
Traditional	$	19,035,387	$	19,235,781
Financial Solutions	25,522,131		19,870,388
Total	44,557,518		39,106,169
Canada:
Traditional	4,248,447		4,200,792
Financial Solutions	81,684		154,000
Total	4,330,131		4,354,792
Europe, Middle East and Africa:
Traditional	3,774,565		3,643,174
Financial Solutions	6,094,334		4,737,529
Total	9,868,899		8,380,703
Asia Pacific:
Traditional	6,440,974		5,680,978
Financial Solutions	1,671,502		1,180,745
Total	8,112,476		6,861,723
Corporate and Other	8,904,961		5,831,858
Total	$	75,773,985	$	64,535,245