Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	March 31, 2020		December 31, 2019
	(in millions)
Assets:
Retirement and Income Solutions	$	174,996.9	$	192,698.1
Principal Global Investors		2,173.2		2,363.3
Principal International		39,445.7		48,857.6
U.S. Insurance Solutions		27,928.3		28,669.6
Corporate		2,359.8		3,499.2
Total consolidated assets	$	246,903.9	$	276,087.8

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

	For the three months ended
	March 31,
	2020		2019
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions – Fee	$	543.1	$	430.8
Retirement and Income Solutions – Spread		2,062.6		1,461.1
Total Retirement and Income Solutions (1)		2,605.7		1,891.9
Principal Global Investors (2)		390.8		339.0
Principal International		300.5		380.5
U.S. Insurance Solutions:
Specialty Benefits insurance		639.0		601.8
Individual Life insurance		484.3		466.3
Total U.S. Insurance Solutions		1,123.3		1,068.1
Corporate		9.3		1.2
Total segment operating revenues		4,429.6		3,680.7
Net realized capital gains, net of related revenue adjustments		132.3		83.7
Adjustments related to equity method investments		(10.6)		(20.5)
Total revenues per consolidated statements of operations	$	4,551.3	$	3,743.9
Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	205.1	$	240.6
Principal Global Investors		111.7		100.7
Principal International		30.8		111.1
U.S. Insurance Solutions		129.5		110.7
Corporate		(91.1)		(84.4)
Total segment pre-tax operating earnings		386.0		478.7
Pre-tax net realized capital gains (losses), as adjusted (3)		(67.1)		65.6
Adjustments related to equity method investments and noncontrolling interest		9.3		(18.3)
Income before income taxes per consolidated statements of operations	$	328.2	$	526.0

(1) Reflects inter-segment revenues of $84.0 million and $85.7 million for the three months ended March 31, 2020 and 2019, respectively.

(2) Reflects inter-segment revenues of $72.7 million and $61.5 million for the three months ended March 31, 2020 and 2019, respectively.

(3) Pre-tax net realized capital gains (losses), as adjusted, is derived as follows:

	For the three months ended
	March 31,
	2020		2019
	(in millions)
Net realized capital gains:
Net realized capital gains	$	131.4	$	84.5
Derivative and hedging-related revenue adjustments		(13.6)		(11.5)
Adjustments related to equity method investments		(5.1)		(0.4)
Adjustments related to sponsored investment funds		3.9		8.0
Recognition of front-end fee revenue		15.7		3.1
Net realized capital gains, net of related revenue adjustments		132.3		83.7
Amortization of deferred acquisition costs and other actuarial balances		(219.4)		(16.4)
Capital (gains) losses distributed		43.4		(8.7)
Market value adjustments of embedded derivatives		(23.4)		7.0
Pre-tax net realized capital gains (losses), as adjusted (a)	$	(67.1)	$	65.6

(a) As adjusted before noncontrolling interest capital gains (losses).