Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	September 30, 2021		December 31, 2020
	(in millions)
Assets:
Retirement and Income Solutions	$	216,039.3	$	207,288.4
Principal Global Investors		2,358.4		2,294.3
Principal International		43,524.9		51,707.6
U.S. Insurance Solutions		32,702.7		31,438.9
Corporate		4,283.1		3,898.5
Total consolidated assets	$	298,908.4	$	296,627.7

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,
	2021		2020		2021		2020
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions – Fee	$	580.9	$	531.6	$	1,723.9	$	1,584.1
Retirement and Income Solutions – Spread		1,072.0		1,048.3		2,823.9		4,081.5
Total Retirement and Income Solutions (1)		1,652.9		1,579.9		4,547.8		5,665.6
Principal Global Investors (2)		465.2		382.8		1,334.1		1,126.5
Principal International		328.1		225.3		942.3		802.2
U.S. Insurance Solutions:
Specialty Benefits insurance		684.4		618.1		2,007.9		1,884.1
Individual Life insurance		505.7		503.3		1,539.1		1,448.8
Eliminations		—		—		(0.1)		(0.1)
Total U.S. Insurance Solutions		1,190.1		1,121.4		3,546.9		3,332.8
Corporate		(14.3)		(17.0)		(21.8)		(24.0)
Total segment operating revenues		3,622.0		3,292.4		10,349.3		10,903.1
Net realized capital gains (losses), net of related revenue adjustments		(188.2)		31.6		(157.0)		105.4
Adjustments related to equity method investments		(10.1)		(13.3)		(20.7)		(31.9)
Total revenues per consolidated statements of operations	$	3,423.7	$	3,310.7	$	10,171.6	$	10,976.6
Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	243.2	$	281.1	$	811.4	$	700.1
Principal Global Investors		190.1		140.9		515.6		361.0
Principal International		81.0		58.7		203.8		184.0
U.S. Insurance Solutions		151.6		(134.1)		373.4		150.4
Corporate		(97.1)		(69.7)		(273.6)		(244.8)
Total segment pre-tax operating earnings		568.8		276.9		1,630.6		1,150.7
Pre-tax net realized capital gains (losses), as adjusted (3)		(133.5)		9.9		(141.7)		(41.1)
Adjustments related to equity method investments and noncontrolling interest		(7.2)		(11.7)		(14.3)		(7.7)
Income before income taxes per consolidated statements of operations	$	428.1	$	275.1	$	1,474.6	$	1,101.9

(1) Reflects inter-segment revenues of $106.0 million and $87.5 million for the three months ended September 30, 2021 and 2020, respectively, $307.7 million and $249.1 million for the nine months ended September 30, 2021 and 2020, respectively.

(2) Reflects inter-segment revenues of $79.7 million and $65.6 million for the three months ended September 30, 2021 and 2020, respectively, $223.9 million and $200.7 million for the nine months ended September 30, 2021 and 2020, 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,
	2021		2020		2021		2020
	(in millions)
Net realized capital gains (losses):
Net realized capital gains (losses)	$	(152.0)	$	65.5	$	(41.7)	$	169.5
Derivative and hedging-related revenue adjustments		(30.6)		(37.0)		(108.4)		(85.7)
Market value adjustments to fee revenues		(0.2)		—		(0.6)		—
Adjustments related to equity method investments		(10.8)		0.2		(18.3)		(4.9)
Adjustments related to sponsored investment funds		5.8		5.1		15.9		12.5
Recognition of front-end fee revenue		(0.4)		(2.2)		(3.9)		14.0
Net realized capital gains (losses), net of related revenue adjustments		(188.2)		31.6		(157.0)		105.4
Amortization of deferred acquisition costs and other actuarial balances		9.9		62.1		22.8		(67.7)
Capital gains distributed		(33.0)		(43.7)		(86.3)		(15.7)
Market value adjustments of embedded derivatives		77.8		(40.1)		78.8		(63.1)
Pre-tax net realized capital gains (losses), as adjusted (a)	$	(133.5)	$	9.9	$	(141.7)	$	(41.1)

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