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Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company has geographic-based and business-based operational segments. Geographic-based operations are further segmented into traditional and financial solutions businesses.
The U.S. and Latin America Traditional segment provides individual and group life and health reinsurance to domestic clients for a variety of products through yearly renewable term agreements, coinsurance, and modified coinsurance. The U.S. and Latin America Financial Solutions segment includes asset-intensive products that concentrate on the investment risk within underlying annuities and corporate-owned life insurance policies, financial reinsurance, and capital solutions that assists ceding companies in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position.
The Canada Traditional segment is primarily engaged in individual life reinsurance, and to a lesser extent creditor, group life and health, critical illness and disability reinsurance, through yearly renewable term and coinsurance agreements. The Canada Financial Solutions segment concentrates on assisting clients with longevity risk transfer structures within underlying annuities and pension benefit obligations, and provides capital solutions to assist clients in meeting applicable regulatory requirements while enhancing their financial strength and regulatory surplus position through financial reinsurance and other capital solutions structures.
The Europe, Middle East and Africa Traditional segment provides individual and group life and health products through yearly renewable term and coinsurance agreements, reinsurance of critical illness coverage that provides a benefit in the event of the diagnosis of a pre-defined critical illness and underwritten annuities. The Europe, Middle East and Africa Financial Solutions segment provides longevity, asset-intensive and financial reinsurance. Longevity reinsurance takes the form of closed block annuity reinsurance and longevity swap structures.
The Asia Pacific Traditional segment provides individual and group life and health reinsurance, critical illness coverage, disability and superannuation through yearly renewable term and coinsurance agreements. The Asia Pacific Financial Solutions segment provides financial reinsurance, asset-intensive and certain disability and life blocks.
Corporate and Other revenues primarily include investment income from unallocated invested assets, investment related gains and losses and service fees. Corporate and Other expenses consist of the offset to capital charges allocated to the operating segments within the policy acquisition costs and other insurance income line item, unallocated overhead and executive costs, interest expense related to debt, and the investment income and expense associated with the Company’s collateral finance and securitization transactions and service business expenses. Additionally, Corporate and Other includes results from certain wholly-owned subsidiaries, such as RGAx, and joint ventures that, among other activities, develop and market technology, and provide consulting and outsourcing solutions for the insurance and reinsurance industries. The Company has increased its investment and expenditures in this area in an effort to both support its clients and accelerate the development of new solutions and services to increase consumer engagement within the life industry.
The accounting policies of the segments are the same as those described in Note 2 – “Significant Accounting Policies and Pronouncements.” 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.
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 millions):
For the years ended December 31,202020192018
Revenues:
U.S. and Latin America:
Traditional$6,560 $6,500 $6,296 
Financial Solutions1,220 1,279 907 
Total7,780 7,779 7,203 
Canada:
Traditional1,260 1,286 1,224 
Financial Solutions92 99 49 
Total1,352 1,385 1,273 
Europe, Middle East and Africa:
Traditional1,633 1,520 1,495 
Financial Solutions471 450 350 
Total2,104 1,970 1,845 
Asia Pacific:
Traditional2,806 2,681 2,417 
Financial Solutions309 228 54 
Total3,115 2,909 2,471 
Corporate and Other245 257 84 
Total$14,596 $14,300 $12,876 
For the years ended December 31,202020192018
Income (loss) before income taxes:
U.S. and Latin America:
Traditional$(298)$265 $286 
Financial Solutions295 398 251 
Total(3)663 537 
Canada:
Traditional134 168 112 
Financial Solutions21 15 10 
Total155 183 122 
Europe, Middle East and Africa:
Traditional27 80 55 
Financial Solutions258 223 197 
Total285 303 252 
Asia Pacific:
Traditional174 105 178 
Financial Solutions59 23 (6)
Total233 128 172 
Corporate and Other(117)(145)(237)
Total$553 $1,132 $846 
For the years ended December 31,202020192018
Interest expense:
Corporate and Other$170 $173 $147 
Total$170 $173 $147 
For the years ended December 31,202020192018
Depreciation and amortization:
U.S. and Latin America:
Traditional$291 $291 $273 
Financial Solutions90 143 95 
Total381 434 368 
Canada:
Traditional24 20 22 
Financial Solutions— — — 
Total24 20 22 
Europe, Middle East and Africa:
Traditional46 56 45 
Financial Solutions1 1 — 
Total47 57 45 
Asia Pacific:
Traditional94 60 115 
Financial Solutions20 16 2 
Total114 76 117 
Corporate and Other23 22 22 
Total$589 $609 $574 
The table above includes amortization of DAC, including the effect from investment related gains and losses.
For the years ended December 31,20202019
Assets:
U.S. and Latin America:
Traditional$20,071 $19,353 
Financial Solutions25,433 25,117 
Total45,504 44,470 
Canada:
Traditional4,682 4,361 
Financial Solutions13 64 
Total4,695 4,425 
Europe, Middle East and Africa:
Traditional4,763 4,032 
Financial Solutions7,292 6,502 
Total12,055 10,534 
Asia Pacific:
Traditional8,197 6,800 
Financial Solutions4,299 2,557 
Total12,496 9,357 
Corporate and Other9,906 7,945 
Total$84,656 $76,731 
Companies in which the Company 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 investments 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 and other revenues on a consolidated basis in 2020, 2019 and 2018. For the purpose of this disclosure, companies that are within the same insurance holding company structure are combined.