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Segment Information (Tables)
 9 Months Ended
Sep. 30, 2017
Segment Information  
Reconciliation of Assets from Segment to Consolidated (Table)

 

 

September 30, 2017

 

December 31, 2016

 

 

 

(in millions)

 

Assets:

 

 

 

 

 

Retirement and Income Solutions

 

$
166,508.0

 

$
152,721.7

 

Principal Global Investors

 
2,417.1

 
1,952.1

 

Principal International

 
49,704.6

 
45,118.3

 

U.S. Insurance Solutions

 
24,496.8

 
23,144.2

 

Corporate

 
4,807.1

 
5,078.0

 

 

 

 

 

 

 

Total consolidated assets

 

$
247,933.6

 

$
228,014.3

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

(in millions)

 

Operating revenues by segment:

 

 

 

 

 

 

 

 

 

Retirement and Income Solutions:

 

 

 

 

 

 

 

 

 

Retirement and Income Solutions – Fee

 

$
455.3

 

$
452.5

 

$
1,357.2

 

$
1,294.6

 

Retirement and Income Solutions – Spread

 
1,915.5

 
791.9

 
4,180.0

 
2,888.4

 

 

 

 

 

 

 

 

 

 

 

Total Retirement and Income Solutions (1)

 
2,370.8

 
1,244.4

 
5,537.2

 
4,183.0

 

Principal Global Investors (2)

 
367.5

 
346.2

 
1,068.9

 
1,007.0

 

Principal International

 
274.7

 
334.4

 
915.4

 
939.7

 

U.S. Insurance Solutions:

 

 

 

 

 

 

 

 

 

Specialty benefits insurance

 
550.1

 
510.9

 
1,615.9

 
1,492.0

 

Individual life insurance

 
435.4

 
399.5

 
1,296.7

 
1,217.4

 

Eliminations

 

—

 

—

 
(0.1)

 
(0.1)

 

 

 

 

 

 

 

 

 

 

 

Total U.S. Insurance Solutions

 
985.5

 
910.4

 
2,912.5

 
2,709.3

 

Corporate

 
(20.3)

 
(21.0)

 
(41.6)

 
(51.6)

 

 

 

 

 

 

 

 

 

 

 

Total segment operating revenues

 
3,978.2

 
2,814.4

 
10,392.4

 
8,787.4

 

Net realized capital gains, net of related revenue adjustments

 
668.7

 
21.7

 
525.5

 
142.8

 

Adjustments related to equity method investments

 
(19.1)

 
(18.1)

 
(62.4)

 
(49.9)

 

 

 

 

 

 

 

 

 

 

 

Total revenues per consolidated statements of operations

 

$
4,627.8

 

$
2,818.0

 

$
10,855.5

 

$
8,880.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax operating earnings (losses) by segment:

 

 

 

 

 

 

 

 

 

Retirement and Income Solutions

 

$
210.1

 

$
206.9

 

$
698.1

 

$
583.0

 

Principal Global Investors

 
130.2

 
112.9

 
345.6

 
310.1

 

Principal International

 
72.4

 
84.2

 
251.7

 
222.1

 

U.S. Insurance Solutions

 
83.2

 
70.2

 
273.8

 
254.3

 

Corporate

 
(43.0)

 
(57.8)

 
(149.0)

 
(165.6)

 

 

 

 

 

 

 

 

 

 

 

Total segment pre-tax operating earnings

 
452.9

 
416.4

 
1,420.2

 
1,203.9

 

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

 
720.7

 
(30.1)

 
570.6

 
50.7

 

Adjustments related to equity method investments and noncontrolling interest

 
(15.8)

 
(15.6)

 
(53.4)

 
(44.2)

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes per consolidated statements of operations

 

$
1,157.8

 

$
370.7

 

$
1,937.4

 

$
1,210.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Reflects inter-segment revenues of $103.7 million and $96.3 million for the three months ended September 30, 2017 and 2016, respectively, $296.6 million and $278.1 million for the nine months ended September 30, 2017 and 2016, respectively.

(2)

Reflects inter-segment revenues of $68.2 million and $59.5 million for the three months ended September 30, 2017 and 2016, respectively, $188.7 million and $170.8 million for the nine months ended September 30, 2017 and 2016, respectively.

(3)

Pre-tax 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,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

(in millions)

 

Net realized capital gains:

 

 

 

 

 

 

 

 

 

Net realized capital gains

 

$
676.6

 

$
44.2

 

$
564.1

 

$
214.5

 

Derivative and hedging-related adjustments

 
(10.8)

 
(24.2)

 
(45.3)

 
(74.5)

 

Adjustments related to equity method investments

 
1.3

 
(0.1)

 
2.4

 
(0.3)

 

Market value adjustments to fee revenues

 
(0.1)

 
(0.1)

 
(0.1)

 
(2.4)

 

Adjustments related to sponsored investment funds

 
1.6

 
1.7

 
4.5

 
5.0

 

Recognition of front-end fee revenue

 
0.1

 
0.2

 
(0.1)

 
0.5

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains, net of related revenue adjustments

 
668.7

 
21.7

 
525.5

 
142.8

 

Amortization of deferred acquisition costs and other actuarial balances

 
23.4

 
(80.8)

 
41.5

 
(134.3)

 

Capital gains distributed

 
(11.5)

 
(17.4)

 
(39.6)

 
(7.4)

 

Market value adjustments of embedded derivatives

 
40.1

 
46.4

 
43.2

 
49.6

 

 

 

 

 

 

 

 

 

 

 

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

 

$
720.7

 

$
(30.1)

 

$
570.6

 

$
50.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

As adjusted before noncontrolling interest capital gains (losses).

 

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

 

 

For the three months ended

 

For the nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

(in millions)

 

Net realized capital gains:

 

 

 

 

 

 

 

 

 

Net realized capital gains

 

$
676.6

 

$
44.2

 

$
564.1

 

$
214.5

 

Derivative and hedging-related adjustments

 
(10.8)

 
(24.2)

 
(45.3)

 
(74.5)

 

Adjustments related to equity method investments

 
1.3

 
(0.1)

 
2.4

 
(0.3)

 

Market value adjustments to fee revenues

 
(0.1)

 
(0.1)

 
(0.1)

 
(2.4)

 

Adjustments related to sponsored investment funds

 
1.6

 
1.7

 
4.5

 
5.0

 

Recognition of front-end fee revenue

 
0.1

 
0.2

 
(0.1)

 
0.5

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains, net of related revenue adjustments

 
668.7

 
21.7

 
525.5

 
142.8

 

Amortization of deferred acquisition costs and other actuarial balances

 
23.4

 
(80.8)

 
41.5

 
(134.3)

 

Capital gains distributed

 
(11.5)

 
(17.4)

 
(39.6)

 
(7.4)

 

Market value adjustments of embedded derivatives

 
40.1

 
46.4

 
43.2

 
49.6

 

 

 

 

 

 

 

 

 

 

 

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

 

$
720.7

 

$
(30.1)

 

$
570.6

 

$
50.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

As adjusted before noncontrolling interest capital gains (losses).