Segment Information

6 Months Ended

Jun. 30, 2013

Segment Information Statement [Abstract]

Segment Information

Segment Information

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 2012 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 June 30,				Six months ended June 30,
Total revenues:	2013		2012		2013		2012
U.S.	$	1,564,386	$	1,370,221	$	3,064,650	$	2,694,368
Canada	295,325		276,239		592,414		551,862
Europe & South Africa	338,910		323,943		678,139		632,280
Asia Pacific	368,173		377,733		757,142		737,418
Corporate and Other	23,848		27,617		99,399		52,800
Total	$	2,590,642	$	2,375,753	$	5,191,744	$	4,668,728

	Three months ended June 30,						Six months ended June 30,
Income (loss) before income taxes:	2013			2012			2013			2012
U.S.	$	170,443		$	140,586		$	344,852		$	233,331
Canada	35,659			35,030			71,967			90,093
Europe & South Africa	15,818			19,591			33,203			26,197
Asia Pacific	(290,448		)	23,859			(275,930		)	55,926
Corporate and Other	(6,230		)	(3,174		)	29,977			(8,892		)
Total	$	(74,758	)	$	215,892		$	204,069		$	396,655

The loss before income taxes for the three and six months ended June 30, 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.

Total Assets:	June 30, 2013		December 31, 2012
U.S.	$	24,653,033	$	24,924,363
Canada	4,069,624		3,764,002
Europe & South Africa	2,143,826		2,235,199
Asia Pacific	3,216,175		3,208,732
Corporate and Other	4,707,963		6,228,142
Total	$	38,790,621	$	40,360,438