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Segment Information (Tables)
 6 Months Ended
Jun. 30, 2015
Segment Information  
Reconciliation of Assets from Segment to Consolidated (Table)

 

 

 

June 30, 2015

 

December 31, 2014

 

 

 

(in millions)

 

Assets:

 

 

 

 

 

Retirement and Investor Services

 

$
142,053.8 

 

$
138,549.4 

 

Principal Global Investors

 
1,112.0 

 
1,175.1 

 

Principal International

 
52,865.8 

 
53,531.8 

 

U.S. Insurance Solutions

 
22,071.2 

 
21,554.5 

 

Corporate

 
4,167.9 

 
4,276.2 

 

 

 

 

 

 

 

Total consolidated assets

 

$
222,270.7 

 

$
219,087.0 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

For the three months ended

 

For the six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2015 

 

2014 

 

2015 

 

2014 

 

 

 

(in millions)

 

Operating revenues by segment:

 

 

 

 

 

 

 

 

 

Retirement and Investor Services

 

$
2,108.6

 

$
1,265.1

 

$
3,428.0

 

$
2,526.3

 

Principal Global Investors

 
188.4

 
173.2

 
375.0

 
344.3

 

Principal International

 
315.0

 
357.3

 
551.2

 
657.7

 

U.S. Insurance Solutions

 
857.8

 
811.4

 
1,719.5

 
1,615.8

 

Corporate

 
(63.0

)
(64.4

)
(122.3

)
(102.2

)

 

 

 

 

 

 

 

 

 

 

Total segment operating revenues

 
3,406.8

 
2,542.6

 
5,951.4

 
5,041.9

 

Net realized capital gains (losses), net of related revenue adjustments

 
(141.3

)
64.3

 
(95.7

)
43.2

 

Other income on a tax indemnification

 
(6.7

)

—

 
60.2

 

—

 

Exited group medical insurance business

 
0.4

 
(0.2

)
0.6

 
0.2

 

 

 

 

 

 

 

 

 

 

 

Total revenues per consolidated statements of operations

 

$
3,259.2

 

$
2,606.7

 

$
5,916.5

 

$
5,085.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings (loss) by segment, net of related income taxes:

 

 

 

 

 

 

 

 

 

Retirement and Investor Services

 

$
216.7

 

$
212.1

 

$
427.6

 

$
428.6

 

Principal Global Investors

 
31.5

 
27.4

 
62.2

 
54.3

 

Principal International

 
59.3

 
68.0

 
119.2

 
131.3

 

U.S. Insurance Solutions

 
58.8

 
49.0

 
113.9

 
92.4

 

Corporate

 
(42.4

)
(33.4

)
(72.6

)
(66.4

)

 

 

 

 

 

 

 

 

 

 

Total segment operating earnings, net of related income taxes

 
323.9

 
323.1

 
650.3

 
640.2

 

Net realized capital gains (losses), as adjusted (1)

 
(82.8

)
30.8

 
(69.7

)
7.9

 

Other after-tax adjustments (2)

 

—

 
(47.6

)
74.7

 
(48.1

)

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders per consolidated statements of operations

 

$
241.1

 

$
306.3

 

$
655.3

 

$
600.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

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

 

 

 

For the three months ended

 

For the six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2015 

 

2014 

 

2015 

 

2014 

 

 

 

(in millions)

 

Net realized capital gains (losses):

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses)

 

$
(114.6

)

$
86.8

 

$
(48.4

)

$
87.4

 

Certain derivative and hedging-related adjustments

 
(26.4

)
(22.7

)
(46.1

)
(44.5

)

Certain market value adjustments to fee revenues

 

—

 

—

 
(1.1

)

—

 

Recognition of front-end fee (revenue) expense

 
(0.3

)
0.2

 
(0.1

)
0.3

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses), net of related revenue adjustments

 
(141.3

)
64.3

 
(95.7

)
43.2

 

Amortization of deferred acquisition costs and other actuarial balances

 
16.2

 
(13.5

)
0.2

 
(23.2

)

Capital (gains) losses distributed

 
(2.9

)
(6.2

)
1.9

 
(9.3

)

Certain market value adjustments of embedded derivatives

 

—

 
(0.1

)
(0.9

)
0.3

 

Noncontrolling interest capital (gains) losses

 
0.8

 
(0.1

)
(2.0

)
(0.1

)

Income tax effect

 
44.4

 
(13.6

)
26.8

 
(3.0

)

 

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses), as adjusted

 

$
(82.8

)

$
30.8

 

$
(69.7

)

$
7.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

For the three months ended June 30, 2014, other after-tax adjustments included the negative effect of: (a) the impact of a court ruling on some uncertain tax positions ($47.5 million) and (b) losses associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.1 million).

 

For the six months ended June 30, 2015, other after-tax adjustments included the positive effect of a change in deferred tax balances related to the merger of two of our Chilean legal entities ($105.2 million) and the negative effect of:  (1) the impact of a court ruling on some uncertain tax positions ($30.3 million) and (2) losses associated with our exited group medical insurance business that does not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.2 million).

 

For the six months ended June 30, 2014, other after-tax adjustments included the negative effect of (a) the impact of a court ruling on some uncertain tax positions ($47.5 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 ($0.6 million).

Operating Revenue for Products and Services by Segment (Table)

 

 

 

For the three months ended

 

For the six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2015 

 

2014 

 

2015 

 

2014 

 

 

 

(in millions)

 

Retirement and Investor Services:

 

 

 

 

 

 

 

 

 

Full service accumulation

 

$
395.0

 

$
392.7

 

$
770.8

 

$
777.9

 

Principal Funds

 
238.0

 
213.1

 
468.1

 
418.5

 

Individual annuities

 
596.2

 
334.0

 
1,047.3

 
747.3

 

Bank and trust services

 
19.4

 
20.6

 
44.3

 
41.8

 

Eliminations

 
(38.8

)
(38.4

)
(78.1

)
(77.5

)

 

 

 

 

 

 

 

 

 

 

Total Accumulation

 
1,209.8

 
922.0

 
2,252.4

 
1,908.0

 

Investment only

 
67.9

 
79.5

 
136.1

 
161.1

 

Full service payout

 
830.9

 
263.6

 
1,039.5

 
457.2

 

 

 

 

 

 

 

 

 

 

 

Total Guaranteed

 
898.8

 
343.1

 
1,175.6

 
618.3

 

 

 

 

 

 

 

 

 

 

 

Total Retirement and Investor Services

 
2,108.6

 
1,265.1

 
3,428.0

 
2,526.3

 

Principal Global Investors (1)

 
188.4

 
173.2

 
375.0

 
344.3

 

Principal International

 
315.0

 
357.3

 
551.2

 
657.7

 

U.S. Insurance Solutions:

 

 

 

 

 

 

 

 

 

Individual life insurance

 
393.2

 
382.0

 
788.6

 
765.8

 

Specialty benefits insurance

 
464.7

 
429.5

 
931.0

 
850.1

 

Eliminations

 
(0.1

)
(0.1

)
(0.1

)
(0.1

)

 

 

 

 

 

 

 

 

 

 

Total U.S. Insurance Solutions

 
857.8

 
811.4

 
1,719.5

 
1,615.8

 

Corporate

 
(63.0

)
(64.4

)
(122.3

)
(102.2

)

 

 

 

 

 

 

 

 

 

 

Total operating revenues

 

$
3,406.8

 

$
2,542.6

 

$
5,951.4

 

$
5,041.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating revenues

 

$
3,406.8

 

$
2,542.6

 

$
5,951.4

 

$
5,041.9

 

Net realized capital gains (losses), net of related revenue adjustments

 
(141.3

)
64.3

 
(95.7

)
43.2

 

Other income on a tax indemnification

 
(6.7

)

—

 
60.2

 

—

 

Exited group medical insurance business

 
0.4

 
(0.2

)
0.6

 
0.2

 

 

 

 

 

 

 

 

 

 

 

Total revenues per consolidated statements of operations

 

$
3,259.2

 

$
2,606.7

 

$
5,916.5

 

$
5,085.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Reflects inter-segment revenues of $77.6 million and $70.4 million for the three months ended June 30, 2015 and 2014, respectively, and $161.6 million and $143.4 million for the six months ended June 30, 2015 and 2014, respectively.