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Segment Information (Tables)
 6 Months Ended
Jun. 30, 2016
Segment Information  
Reconciliation of Assets from Segment to Consolidated (Table)

 

 

 

June 30, 2016

 

December 31, 2015

 

 

(in millions)

Assets:

 

 

 

 

Retirement and Income Solutions

 

$
148,097.3

 

$
139,678.5

Principal Global Investors

 
1,853.4

 
1,880.4

Principal International

 
45,249.2

 
50,588.6

U.S. Insurance Solutions

 
23,101.3

 
22,156.9

Corporate

 
4,773.0

 
4,355.9

 

 

 

 

 

Total consolidated assets

 

$
223,074.2

 

$
218,660.3

 

 

 

 

 

 

 

 

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

 

 

 

For the three months ended

 

For the six months ended

 

 

June 30,

 

June 30,

 

 

2016

 

2015

 

2016

 

2015

 

 

(in millions)

Operating revenues by segment:

 

 

 

 

 

 

 

 

Retirement and Income Solutions:

 

 

 

 

 

 

 

 

Retirement and Income Solutions – Fee

 

$
428.8

 

$
454.3

 

$
842.1

 

$
892.0

Retirement and Income Solutions – Spread

 
1,045.8

 
1,450.9

 
2,096.5

 
2,137.7

 

 

 

 

 

 

 

 

 

Total Retirement and Income Solutions (1)

 
1,474.6

 
1,905.2

 
2,938.6

 
3,029.7

Principal Global Investors (2)

 
351.3

 
337.8

 
660.8

 
666.7

Principal International

 
318.7

 
328.3

 
605.3

 
579.1

U.S. Insurance Solutions:

 

 

 

 

 

 

 

 

Specialty benefits insurance

 
498.2

 
464.7

 
981.1

 
931.0

Individual life insurance

 
409.9

 
393.2

 
817.9

 
788.6

Eliminations

 
(0.1)

 
(0.1)

 
(0.1)

 
(0.1)

 

 

 

 

 

 

 

 

 

Total U.S. Insurance Solutions

 
908.0

 
857.8

 
1,798.9

 
1,719.5

Corporate

 
(17.5)

 
(9.0)

 
(30.6)

 
(15.7)

 

 

 

 

 

 

 

 

 

Total segment operating revenues

 
3,035.1

 
3,420.1

 
5,973.0

 
5,979.3

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

 
7.5

 
(141.3)

 
121.1

 
(95.7)

Certain adjustments related to equity method investments

 
(16.9)

 
(13.3)

 
(31.8)

 
(27.9)

Other income on a tax indemnification

 

—

 
(6.7)

 

—

 
60.2

Exited group medical insurance business

 

—

 
0.4

 

—

 
0.6

 

 

 

 

 

 

 

 

 

Total revenues per consolidated statements of operations

 

$
3,025.7

 

$
3,259.2

 

$
6,062.3

 

$
5,916.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax operating earnings (losses) by segment:

 

 

 

 

 

 

 

 

Retirement and Income Solutions

 

$
194.7

 

$
216.9

 

$
376.1

 

$
419.8

Principal Global Investors

 
117.5

 
98.5

 
197.2

 
191.1

Principal International

 
69.9

 
72.2

 
137.9

 
153.0

U.S. Insurance Solutions

 
103.6

 
88.1

 
184.1

 
170.0

Corporate

 
(54.5)

 
(46.2)

 
(107.8)

 
(83.5)

 

 

 

 

 

 

 

 

 

Total segment pre-tax operating earnings

 
431.2

 
429.5

 
787.5

 
850.4

Pre-tax net realized capital gains (losses), as adjusted (3)

 
(16.0)

 
(128.0)

 
80.8

 
(94.5)

Pre-tax other adjustments (4)

 

—

 
(1.8)

 

—

 
14.8

Certain adjustments related to equity method investments and noncontrolling interest

 
(15.3)

 
(5.2)

 
(28.6)

 
(18.1)

 

 

 

 

 

 

 

 

 

Income before income taxes per consolidated statements of operations

 

$
399.9

 

$
294.5

 

$
839.7

 

$
752.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Reflects inter-segment revenues of $92.6 million and $112.8 million for the three months ended June 30, 2016 and 2015, respectively, $181.8 million and $218.0 million for the six months December 31, 2016 and 2015, respectively.

(2)

Reflects inter-segment revenues of $57.0 million and $53.5 million for the three months ended June 30, 2016 and 2015, respectively, $111.3 million and $113.9 million for the six months December 31, 2016 and 2015, respectively.

(3)

Pre-tax 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,

 

 

2016

 

2015

 

2016

 

2015

 

 

(in millions)

Net realized capital gains (losses):

 

 

 

 

 

 

 

 

Net realized capital gains (losses)

 

$
33.7

 

$
(114.6)

 

$
170.3

 

$
(48.4)

Certain derivative and hedging-related adjustments

 
(26.0)

 
(26.4)

 
(50.3)

 
(46.1)

Certain adjustments related to equity method investments

 
(0.5)

 

—

 
(0.2)

 

—

Certain market value adjustments to fee revenues

 
(1.6)

 

—

 
(2.3)

 
(1.1)

Certain adjustments related to sponsored investment funds

 
1.9

 

—

 
3.3

 

—

Recognition of front-end fee (revenue) expense

 

—

 
(0.3)

 
0.3

 
(0.1)

 

 

 

 

 

 

 

 

 

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

 
7.5

 
(141.3)

 
121.1

 
(95.7)

Amortization of deferred acquisition costs and other actuarial balances

 
(7.2)

 
16.2

 
(53.5)

 
0.2

Capital (gains) losses distributed

 
(17.1)

 
(2.9)

 
10.0

 
1.9

Certain market value adjustments of embedded derivatives

 
0.8

 

—

 
3.2

 
(0.9)

 

 

 

 

 

 

 

 

 

Pre-tax net realized capital gains (losses), as adjusted (a)

 

$
(16.0)

 

$
(128.0)

 

$
80.8

 

$
(94.5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

As adjusted before noncontrolling interest capital gains (losses) and net realized capital gains (losses) associated with exited group medical insurance business.

 

(4)

For the three months ended June 30, 2015, pre-tax other adjustments included the negative effect of the impact of a court ruling on some uncertain tax positions.

 

For the six months ended June 30, 2015, pre-tax other adjustments included the positive effect of the impact of a court ruling on some uncertain tax positions ($15.1 million) and the negative effect of losses associated with our exited group medical insurance business that did not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.3 million).