Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	September 30, 2013		December 31, 2012
	(in millions)
Assets:
Retirement and Investor Services	$	124,202.2	$	117,399.5
Principal Global Investors	1,273.8		1,282.2
Principal International	53,158.2		19,170.9
U.S. Insurance Solutions	19,754.7		19,017.2
Corporate	3,298.5		4,960.4
Total consolidated assets	$	201,687.4	$	161,830.2

Reconciliation of Operating Revenues and Operating Earnings (Losses) by Segment (Table)

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2013			2012			2013			2012
	(in millions)
Operating revenues by segment:
Retirement and Investor Services	$	1,136.5		$	1,570.7		$	3,387.6		$	3,707.0
Principal Global Investors	160.9			144.0			482.8			423.2
Principal International	303.3			203.8			825.9			676.9
U.S. Insurance Solutions	767.6			766.5			2,318.6			2,215.0
Corporate	(52.5		)	(46.4		)	(149.1		)	(139.8		)
Total segment operating revenues	2,315.8			2,638.6			6,865.8			6,882.3
Net realized capital gains (losses), net of related revenue adjustments	(76.7		)	64.9			(253.4		)	12.8
Exited group medical insurance business	0.5			1.2			4.5			24.1
Total revenues per consolidated statements of operations	$	2,239.6		$	2,704.7		$	6,616.9		$	6,919.2
Operating earnings (loss) by segment, net of related income taxes:
Retirement and Investor Services	$	172.9		$	137.5		$	515.2		$	422.8
Principal Global Investors	23.1			20.6			72.4			55.0
Principal International	50.7			37.0			153.6			112.6
U.S. Insurance Solutions	54.0			(21.6		)	136.9			78.8
Corporate	(31.5		)	(31.2		)	(104.2		)	(100.7		)
Total segment operating earnings, net of related income taxes	269.2			142.3			773.9			568.5
Net realized capital gains (losses), as adjusted (1)	(22.8		)	88.8			(126.8		)	39.6
Other after-tax adjustments (2)	(0.7		)	(43.9		)	(0.8		)	(49.4		)
Net income available to common stockholders per consolidated statements of operations	$	245.7		$	187.2		$	646.3		$	558.7

(1)   Net realized capital gains (losses), as adjusted, is derived as follows:

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2013			2012			2013			2012
	(in millions)
Net realized capital gains (losses):
Net realized capital gains (losses)	$	(50.9	)	$	87.7		$	(181.9	)	$	81.2
Certain derivative and hedging-related adjustments	(25.6		)	(22.7		)	(70.7		)	(68.4		)
Recognition of front-end fee revenue	(0.2		)	(0.1		)	(0.8		)	—
Net realized capital gains (losses), net of related revenue adjustments	(76.7		)	64.9			(253.4		)	12.8
Amortization of deferred acquisition costs and other actuarial balances	26.7			30.5			44.8			34.7
Capital gains distributed	(0.2		)	(6.8		)	(11.1		)	(8.7		)
Certain market value adjustments of embedded derivatives	18.7			—			18.4			(1.4		)
Net realized capital losses associated with exited group medical insurance business	—			—			—			0.2
Noncontrolling interest capital gains	(0.2		)	—			(0.2		)	(8.2		)
Income tax effect	8.9			0.2			74.7			10.2
Net realized capital gains (losses), as adjusted	$	(22.8	)	$	88.8		$	(126.8	)	$	39.6

(2) For the three months ended September 30, 2013, other after-tax adjustments included the negative effect of losses associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP.

For the three months ended September 30, 2012, other after-tax adjustments included the negative effect of (a) a contribution of appreciated stock made to The Principal Financial Group Foundation, Inc. ($39.8 million) and (b) losses associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP ($4.1 million).

For the nine months ended September 30, 2013, other after-tax adjustments included the negative effect of losses associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP.

For the nine months ended September 30, 2012, other after-tax adjustments included the negative effect of (a) a contribution of appreciated stock made to The Principal Financial Group Foundation, Inc. ($39.8 million) and (b) losses associated with our exited group medical insurance business that does not yet qualify for discontinued operations accounting treatment under U.S. GAAP ($9.6 million).

Operating Revenue for Products and Services by Segment (Table)

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2013			2012			2013			2012
	(in millions)
Retirement and Investor Services:
Full service accumulation	$	369.9		$	339.0		$	1,087.7		$	1,006.1
Principal Funds	194.8			156.8			565.9			453.0
Individual annuities	334.5			302.1			881.8			864.0
Bank and trust services	24.4			26.1			74.9			75.9
Eliminations	(38.3		)	(30.4		)	(109.1		)	(88.6		)
Total Accumulation	885.3			793.6			2,501.2			2,310.4
Investment only	83.1			105.2			260.6			328.8
Full service payout	168.1			671.9			625.8			1,067.8
Total Guaranteed	251.2			777.1			886.4			1,396.6
Total Retirement and Investor Services	1,136.5			1,570.7			3,387.6			3,707.0
Principal Global Investors (1)	160.9			144.0			482.8			423.2
Principal International	303.3			203.8			825.9			676.9
U.S. Insurance Solutions:
Individual life insurance	362.7			372.6			1,110.2			1,044.8
Specialty benefits insurance	405.0			393.9			1,208.6			1,170.2
Eliminations	(0.1		)	—			(0.2		)	—
Total U.S. Insurance Solutions	767.6			766.5			2,318.6			2,215.0
Corporate	(52.5		)	(46.4		)	(149.1		)	(139.8		)
Total operating revenues	$	2,315.8		$	2,638.6		$	6,865.8		$	6,882.3
Total operating revenues	$	2,315.8		$	2,638.6		$	6,865.8		$	6,882.3
Net realized capital gains (losses), net of related revenue adjustments	(76.7		)	64.9			(253.4		)	12.8
Exited group medical insurance business	0.5			1.2			4.5			24.1
Total revenues per consolidated statements of operations	$	2,239.6		$	2,704.7		$	6,616.9		$	6,919.2

(1)   Reflects inter-segment revenues of $61.1 million and $54.1 million for the three months ended September 30, 2013 and 2012, respectively, and $179.9 million and $160.0 million for the nine months ended September 30, 2013 and 2012, respectively.