Employee and Agent Benefits (Tables)

12 Months Ended

Dec. 31, 2018

Defined Benefit Plans and Other Postretirement Benefit Plans


					Other
					postretirement
	Pension benefits				benefits
	December 31,				December 31,
	2018		2017		2018		2017
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	(3,383.6)	$	(3,056.2)	$	(109.1)	$	(109.8)
Service cost		(73.0)		(67.1)		(0.1)		(0.1)
Interest cost		(119.5)		(124.4)		(3.5)		(3.9)
Actuarial gain (loss)		220.9		(268.0)		7.9		(1.7)
Participant contributions		—		—		(3.7)		(3.5)
Benefits paid		109.6		109.0		9.7		9.9
Plan amendments		6.4		23.1		—		—
Other		—		—		(0.1)		—
Benefit obligation at end of year	$	(3,239.2)	$	(3,383.6)	$	(98.9)	$	(109.1)
Change in plan assets
Fair value of plan assets at beginning of year	$	2,542.2	$	2,190.8	$	696.8	$	628.6
Actual return on plan assets		(122.2)		368.3		(47.7)		73.9
Employer contribution		187.8		92.1		0.8		0.7
Participant contributions		—		—		3.7		3.5
Benefits paid		(109.6)		(109.0)		(9.7)		(9.9)
Fair value of plan assets at end of year	$	2,498.2	$	2,542.2	$	643.9	$	696.8
Amount recognized in statement of financial position
Other assets	$	—	$	—	$	546.9	$	589.5
Other liabilities		(741.0)		(841.4)		(1.9)		(1.8)
Total	$	(741.0)	$	(841.4)	$	545.0	$	587.7
Amount recognized in accumulated other comprehensive (income) loss
Total net actuarial (gain) loss	$	673.3	$	682.8	$	40.2	$	(34.7)
Prior service benefit		(26.7)		(23.7)		(10.2)		(24.1)
Pre-tax accumulated other comprehensive (income) loss	$	646.6	$	659.1	$	30.0	$	(58.8)

Components of Net Periodic Benefit Cost (Income) (Table)


							Other postretirement
	Pension benefits						benefits
	For the year ended December 31,
	2018		2017		2016		2018		2017		2016
	(in millions)
Service cost	$	73.0	$	67.1	$	65.0	$	0.1	$	0.1	$	2.1
Interest cost		119.5		124.4		134.9		3.5		3.9		6.2
Expected return on plan assets		(157.0)		(144.2)		(155.0)		(33.6)		(27.5)		(32.6)
Amortization of prior service benefit		(3.4)		(2.3)		(2.2)		(13.9)		(34.6)		(25.9)
Recognized net actuarial (gain) loss		67.8		68.0		77.0		(1.5)		—		0.2
Net periodic benefit cost (income)	$	99.9	$	113.0	$	119.7	$	(45.4)	$	(58.1)	$	(50.0)

Amounts Recognized in Net Periodic Benefit Cost and Accumulated Other Comprehensive (Income) Loss (Table)


					Other
	Pension				postretirement
	benefits				benefits
	For the year ended December 31,
	2018		2017		2018		2017
	(in millions)
Other changes recognized in accumulated other comprehensive (income) loss
Net actuarial (gain) loss	$	58.3	$	43.9	$	73.4	$	(44.7)
Prior service benefit		(6.4)		(23.1)		—		—
Amortization of gain (loss)		(67.8)		(68.0)		1.5		—
Amortization of prior service benefit		3.4		2.3		13.9		34.6
Total recognized in pre-tax accumulated other comprehensive (income) loss	$	(12.5)	$	(44.9)	$	88.8	$	(10.1)
Total recognized in net periodic benefit cost and pre-tax accumulated other comprehensive (income) loss	$	87.4	$	68.1	$	43.4	$	(68.2)

Weighted-Average Assumptions Used to Determine Benefit Obligations (Table)


	Pension benefits
	For the year ended December 31,
	2018		2017
Discount rate	4.15	%	3.60	%
Rate of compensation increase:
Cash balance benefit	4.94	%	4.96	%
Traditional benefit	2.73	%	2.77	%

	Other
	postretirement
	benefits
	For the year ended December 31,
	2018		2017
Discount rate	3.95	%	3.35	%
Rate of compensation increase	N/A		2.39	%

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Table)


	Pension benefits
	For the year ended December 31,
	2018		2017		2016
Discount rate	3.60	%	4.15	%	4.50	%
Expected long-term return on plan assets	6.30	%	6.70	%	7.20	%
Rate of compensation increase:
Cash balance benefit	4.96	%	5.02	%	5.24	%
Traditional benefit	2.77	%	2.82	%	3.11	%

	Other
	postretirement
	benefits
	For the year ended December 31,
	2018		2017		2016
Discount rate (1)	3.35	%	3.75	%	3.35	%
Expected long-term return on plan assets	4.85	%	4.40	%	5.24	%
Rate of compensation increase	2.39	%	2.44	%	4.82	%

(1)

The funded statuses of the other postretirement employee benefit (“OPEB”) plans for which subsidies were eliminated in 2016 were remeasured as of October 31, 2016, and a portion of the impact was reflected in the 2016 net periodic postretirement benefit cost. A discount rate of 4.15% was used until the remeasurement date at which time a discount rate of 3.35% was used.

Assumed Health Care Cost Trend Rates (Table)


	December 31,
	2018		2017
Health care cost trend rate assumed for next year under age 65	7.0	%	7.0	%
Health care cost trend rate assumed for next year age 65 and over	6.0	%	7.0	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.5	%	4.5	%
Year that the rate reaches the ultimate trend rate (under age 65)	2026		2024
Year that the rate reaches the ultimate trend rate (65 and older)	2025		2024

Effects of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Table)


	1-percentage		1-percentage
	point increase		point decrease
	(in millions)
Effect on total of service cost and interest cost components	$	0.1	$	(0.1)
Effect on accumulated postretirement benefit obligation		(1.2)		1.2

Estimated Future Benefit Payments (Table)


			Other postretirement
			benefits (gross benefit
			payments, including
	Pension benefits		prescription drug benefits)
	(in millions)
Year ending December 31:
2019	$	154.4	$	14.2
2020		143.3		12.8
2021		149.2		11.8
2022		158.6		11.1
2023		168.1		10.2
2024-2028		939.2		39.7

Defined Benefit Pension Plans Supplemental Information (Table)


	For the year ended December 31,
	2018						2017
	Qualified		Nonqualified				Qualified		Nonqualified
	Plan		Plan		Total		Plan		Plan		Total
	(in millions)
Amount recognized in statement of financial position
Other assets	$	—	$	—	$	—	$	—	$	—	$	—
Other liabilities		(266.3)		(474.7)		(741.0)		(340.0)		(501.4)		(841.4)
Total	$	(266.3)	$	(474.7)	$	(741.0)	$	(340.0)	$	(501.4)	$	(841.4)
Amount recognized in accumulated other comprehensive loss
Total net actuarial loss	$	544.4	$	128.9	$	673.3	$	516.4	$	166.4	$	682.8
Prior service benefit		(11.0)		(15.7)		(26.7)		(12.5)		(11.2)		(23.7)
Pre-tax accumulated other comprehensive loss	$	533.4	$	113.2	$	646.6	$	503.9	$	155.2	$	659.1
Components of net periodic benefit cost
Service cost	$	65.7	$	7.3	$	73.0	$	60.3	$	6.8	$	67.1
Interest cost		102.0		17.5		119.5		106.0		18.4		124.4
Expected return on plan assets		(157.0)		—		(157.0)		(144.2)		—		(144.2)
Amortization of prior service benefit		(1.5)		(1.9)		(3.4)		(1.2)		(1.1)		(2.3)
Recognized net actuarial loss		53.6		14.2		67.8		59.2		8.8		68.0
Net periodic benefit cost	$	62.8	$	37.1	$	99.9	$	80.1	$	32.9	$	113.0
Other changes recognized in accumulated other comprehensive (income) loss
Net actuarial (gain) loss	$	81.7	$	(23.4)	$	58.3	$	(11.9)	$	55.8	$	43.9
Prior service benefit		—		(6.4)		(6.4)		(12.2)		(10.9)		(23.1)
Amortization of net loss		(53.6)		(14.2)		(67.8)		(59.2)		(8.8)		(68.0)
Amortization of prior service benefit		1.5		1.9		3.4		1.2		1.1		2.3
Total recognized in pre-tax accumulated other comprehensive (income) loss	$	29.6	$	(42.1)	$	(12.5)	$	(82.1)	$	37.2	$	(44.9)
Total recognized in net periodic benefit cost and pre-tax accumulated other comprehensive (income) loss	$	92.4	$	(5.0)	$	87.4	$	(2.0)	$	70.1	$	68.1

Pension benefits

Defined Benefit Plans and Other Postretirement Benefit Plans

Accumulated Benefit Obligation in Excess of Plan Assets (Table)


	December 31,
	2018		2017
	(in millions)
Projected benefit obligation	$	3,239.2	$	3,383.6
Accumulated benefit obligation		3,029.0		3,139.3
Fair value of plan assets		2,498.2		2,542.2

Fair Value of Plan Assets (Table)


	December 31, 2018
	Assets		Amount
	measured at		measured at		Fair value hierarchy level
	fair value		net asset value		Level 1		Level 2		Level 3
	(in millions)
Asset category
Pooled separate account investments:
U.S. large cap equity portfolios (1)	$	387.7	$	—	$	—	$	387.7	$	—
U.S. small/mid cap equity portfolios (2)		64.4		—		—		64.4		—
Balanced asset portfolios (3)		116.3		—		—		116.3		—
International equity portfolios (4)		220.9		—		—		220.9		—
Real estate investment portfolios (5)		133.6		—		—		133.6		—
Single client separate account investments:
Fixed income securities:
U.S. government and agencies		418.8		—		418.8		—		—
States and political subdivisions		24.0		—		—		24.0		—
Corporate		934.5		—		—		934.5		—
Commercial mortgage-backed securities		30.7		—		—		30.7		—
Other debt obligations		8.0		—		—		8.0		—
Hedge funds (6)		124.7		124.7		—		—		—
Pooled separate account investment (7)		23.9		—		—		23.9		—
Other (8)		10.7		—		0.3		10.4		—
Total	$	2,498.2	$	124.7	$	419.1	$	1,954.4	$	—


	December 31, 2017
	Assets		Amount
	measured at		measured at		Fair value hierarchy level
	fair value		net asset value		Level 1		Level 2		Level 3
	(in millions)
Asset category
Pooled separate account investments:
U.S. large cap equity portfolios (1)	$	651.2	$	—	$	—	$	651.2	$	—
U.S. small/mid cap equity portfolios (2)		112.2		—		—		112.2		—
Balanced asset portfolios (3)		128.4		—		—		128.4		—
International equity portfolios (4)		325.8		—		—		325.8		—
Real estate investment portfolios (5)		126.2		—		—		126.2		—
Single client separate account investments:
Fixed income securities:
U.S. government and agencies		292.7		—		292.7		—		—
States and political subdivisions		16.9		—		—		16.9		—
Corporate		745.2		—		—		745.2		—
Commercial mortgage-backed securities		21.3		—		—		21.3		—
Other debt obligations		3.4		—		—		3.4		—
Hedge funds (6)		120.4		120.4		—		—		—
Pooled separate account investment (7)		4.6		—		—		4.6		—
Other (8)		(6.1)		—		0.8		(6.9)		—
Total	$	2,542.2	$	120.4	$	293.5	$	2,128.3	$	—

(1)

The portfolios invest primarily in publicly traded equity securities of large U.S. companies.

(2)

The portfolios invest primarily in publicly traded equity securities of mid-sized and small U.S. companies.

(3)

The portfolios are a combination of underlying fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value.

(4)

The portfolios invest primarily in publicly traded equity securities of non-U.S. companies.

(5)

The portfolio invests primarily in U.S. commercial real estate properties through a separate account.

(6)

The hedge funds have varying investment strategies that also have a variety of redemption terms and conditions. We do not have unfunded commitments associated with these hedge funds.

(7)

The single client separate accounts invest in a money market pooled separate account.

(8)

Includes cash and net (payables)/receivables for the single client separate accounts.

Target Asset Allocation (Table)


Asset category	Target allocation
Fixed income security portfolios	25	%	-	80	%
Equity portfolios	5	%	-	60	%
Real estate investment portfolios				10	%
Alternatives				5	%

Other postretirement benefits

Defined Benefit Plans and Other Postretirement Benefit Plans

Accumulated Benefit Obligation in Excess of Plan Assets (Table)

Fair Value of Plan Assets (Table)


	December 31, 2018
	Assets
	measured at		Fair value hierarchy level
	fair value		Level 1		Level 2		Level 3
	(in millions)
Asset category
Cash and cash equivalents	$	0.3	$	0.3	$	—	$	—
Fixed income security portfolios:
Fixed income investment funds (1)		203.7		166.2		37.5		—
U.S. equity portfolios (2)		135.8		101.0		34.8		—
International equity portfolios (3)		61.2		47.4		13.8		—
Alternative mutual fund portfolios (4)		235.4		235.4		—		—
Real estate mutual fund (5)		7.5		7.5		—		—
Total	$	643.9	$	557.8	$	86.1	$	—


	December 31, 2017
	Assets
	measured at		Fair value hierarchy level
	fair value		Level 1		Level 2		Level 3
	(in millions)
Asset category
Cash and cash equivalents	$	0.3	$	0.3	$	—	$	—
Fixed income security portfolios:
Fixed income investment funds (1)		209.8		177.7		32.1		—
U.S. equity portfolios (2)		159.4		108.5		50.9		—
International equity portfolios (3)		67.8		57.7		10.1		—
Alternative mutual fund portfolios (4)		251.4		251.4		—		—
Real estate mutual fund (5)		8.1		8.1		—		—
Total	$	696.8	$	603.7	$	93.1	$	—

(1)

The portfolios invest in various fixed income securities, primarily of U.S. origin. These include, but are not limited to, corporate bonds, residential mortgage-backed securities, commercial mortgage-backed securities, U.S. Treasury securities, agency securities, asset-backed securities and collateralized mortgage obligations.

(2)

The portfolios invest primarily in publicly traded equity securities of large U.S. companies.

(3)

The portfolios invest primarily in publicly traded equity securities of non-U.S. companies.

(4)

The portfolios invest primarily in equities, corporate bonds, foreign currencies, convertible securities and derivatives.

(5)

The mutual fund invests primarily in U.S. commercial real estate properties.

Reconciliation of Plan Assets Measured at Fair Value Using Significant Unobservable Inputs (Table)

For the year ended December 31, 2016

Actual return gains

Beginning

(losses) on plan assets

Ending

assets

Relating to

Net

assets

balance

assets still

Relating to

purchases,

balance

as of

held at the

assets sold

sales,

Transfers

as of

December 31,

reporting

during the

and

into

out of

December 31,

2015

date

period

settlements

Level 3

2016

(in millions)

Asset category

Principal Life general account investment

33.5

(1.7)

(33.6)

1.8

—

Target Asset Allocation (Table)


Asset category	Target allocation
U.S. equity portfolios	24	%
International equity portfolios	15	%
Fixed income security portfolios	32	%
Alternatives	24	%
Real estate	5	%

December 31,

(in millions)

Accumulated postretirement benefit obligation

Fair value of plan assets