Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [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 September 30,				Nine months ended September 30,
Total revenues:	2013		2012		2013		2012
U.S.	$	1,337,562	$	1,446,834	$	4,402,212	$	4,141,202
Canada	292,504		287,629		884,918		839,491
Europe & South Africa	358,796		323,225		1,036,935		955,505
Asia Pacific	376,929		364,516		1,134,071		1,101,934
Corporate and Other	24,024		26,877		123,423		79,677
Total	$	2,389,815	$	2,449,081	$	7,581,559	$	7,117,809

	Three months ended September 30,						Nine months ended September 30,
Income (loss) before income taxes:	2013			2012			2013			2012
U.S.	$	105,867		$	156,678		$	450,719		$	390,009
Canada	41,869			37,520			113,836			127,613
Europe & South Africa	41,553			32,166			74,756			58,363
Asia Pacific	17,112			(16,483		)	(258,818		)	39,443
Corporate and Other	(4,706		)	(8,402		)	25,271			(17,294		)
Total	$	201,695		$	201,479		$	405,764		$	598,134

The loss before income taxes for the nine months ended September 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:	September 30, 2013		December 31, 2012
U.S.	$	24,601,693	$	24,924,363
Canada	4,065,475		3,764,002
Europe & South Africa	2,403,094		2,235,199
Asia Pacific	3,396,639		3,208,732
Corporate and Other	5,059,654		6,228,142
Total	$	39,526,555	$	40,360,438