Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	June 30, 2022		December 31, 2021
	(in millions)
Assets:
Retirement and Income Solutions	$	208,256.5	$	221,993.8
Principal Global Investors		2,277.2		2,445.1
Principal International		38,889.3		42,812.4
U.S. Insurance Solutions		41,960.8		33,222.6
Corporate		1,836.4		4,183.3
Total consolidated assets	$	293,220.2	$	304,657.2

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,
	2022		2021		2022		2021
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions – Fee	$	563.5	$	579.9	$	1,142.3	$	1,143.0
Retirement and Income Solutions – Spread		773.4		1,091.0		1,477.6		1,751.9
Total Retirement and Income Solutions (1)		1,336.9		1,670.9		2,619.9		2,894.9
Principal Global Investors (2)		463.6		453.7		898.9		868.9
Principal International		439.1		306.2		754.0		614.2
U.S. Insurance Solutions:
Specialty Benefits insurance		751.6		667.9		1,469.3		1,323.5
Individual Life insurance		157.2		514.1		680.6		1,033.4
Eliminations		(0.2)		(0.1)		(0.3)		(0.1)
Total U.S. Insurance Solutions		908.6		1,181.9		2,149.6		2,356.8
Corporate		(7.0)		1.1		(7.3)		(7.5)
Total segment operating revenues		3,141.2		3,613.8		6,415.1		6,727.3
Net realized capital gains (losses), net of related revenue adjustments		(266.1)		(71.8)		(416.4)		31.2
Revenues from exited business (3)		3,793.6		—		3,793.6		—
Adjustments related to equity method investments		(10.0)		(2.6)		(23.6)		(10.6)
Total revenues per consolidated statements of operations	$	6,658.7	$	3,539.4	$	9,768.7	$	6,747.9
Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	255.9	$	280.2	$	573.8	$	568.2
Principal Global Investors		180.0		184.4		323.4		325.5
Principal International		92.1		47.7		150.2		122.8
U.S. Insurance Solutions		151.7		126.6		267.5		221.8
Corporate		(152.9)		(82.7)		(281.9)		(176.5)
Total segment pre-tax operating earnings		526.8		556.2		1,033.0		1,061.8
Pre-tax net realized capital losses, as adjusted (4)		(277.4)		(123.1)		(357.8)		(8.2)
Pre-tax income from exited business (5)		3,618.5		—		3,618.5		—
Adjustments related to equity method investments and noncontrolling interest		29.2		(0.5)		31.4		(7.1)
Income before income taxes per consolidated statements of operations	$	3,897.1	$	432.6	$	4,325.1	$	1,046.5

(1) Reflects inter-segment revenues of $88.6 million and $102.9 million for the three months ended June 30, 2022 and 2021, respectively, $186.0 million and $201.7 million for the six months ended June 30, 2022 and 2021, respectively.

(2) Reflects inter-segment revenues of $89.5 million and $71.1 million for the three months ended June 30, 2022 and 2021, respectively, $170.8 million and $144.2 million for the six months ended June 30, 2022 and 2021, respectively.

(3) Revenues from exited business is derived as follows:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2022		2021		2022		2021
	(in millions)
Revenues from exited business:
Change in fair value of funds withheld embedded derivative	$	3,067.3	$	—	$	3,067.3	$	—
Net realized capital gains on funds withheld assets		689.0		—		689.0		—
Strategic review costs and impacts		32.4		—		32.4		—
Amortization of reinsurance gain		4.9		—		4.9		—
Total revenues from exited business	$	3,793.6	$	—	$	3,793.6	$	—

(4) 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,
	2022		2021		2022		2021
	(in millions)
Net realized capital gains (losses):
Net realized capital gains (losses)	$	(227.9)	$	(41.1)	$	(338.4)	$	110.3
Derivative and hedging-related revenue adjustments		(33.7)		(39.4)		(73.8)		(77.8)
Market value adjustments to fee revenues		0.1		—		0.1		(0.4)
Adjustments related to equity method investments		(9.0)		(0.4)		(12.6)		(7.5)
Adjustments related to sponsored investment funds		5.9		5.1		11.7		10.1
Recognition of front-end fee revenue		(1.5)		4.0		(3.4)		(3.5)
Net realized capital gains (losses), net of related revenue adjustments		(266.1)		(71.8)		(416.4)		31.2
Amortization of deferred acquisition costs and other actuarial balances		(19.4)		(20.9)		(20.7)		12.9
Capital (gains) losses distributed		29.6		(32.9)		120.6		(53.3)
Market value adjustments of embedded derivatives		(21.5)		2.5		(41.3)		1.0
Pre-tax net realized capital losses, as adjusted (a)	$	(277.4)	$	(123.1)	$	(357.8)	$	(8.2)

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

(5) Pre-tax income (loss) from exited business included:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2022		2021		2022		2021
	(in millions)
Pre-tax income (loss) from exited business:
Change in fair value of funds withheld embedded derivative	$	3,067.3	$	—	$	3,067.3	$	—
Net realized capital gains on funds withheld assets		689.0		—		689.0		—
Strategic review costs and impacts		(67.4)		—		(67.4)		—
Amortization of reinsurance loss		(41.4)		—		(41.4)		—
Impacts to actuarial balances of reinsured business		(29.0)		—		(29.0)		—
Total pre-tax income from exited business	$	3,618.5	$	—	$	3,618.5	$	—