Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	September 30, 2022		December 31, 2021
	(in millions)
Assets:
Retirement and Income Solutions	$	201,000.7	$	221,993.8
Principal Global Investors		2,239.1		2,445.1
Principal International		37,535.1		42,812.4
U.S. Insurance Solutions		39,969.5		33,222.6
Corporate		1,836.2		4,183.3
Total consolidated assets	$	282,580.6	$	304,657.2

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,
	2022		2021		2022		2021
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions – Fee	$	551.5	$	580.9	$	1,693.8	$	1,723.9
Retirement and Income Solutions – Spread		1,031.1		1,072.0		2,508.7		2,823.9
Total Retirement and Income Solutions (1)		1,582.6		1,652.9		4,202.5		4,547.8
Principal Global Investors (2)		406.0		465.2		1,304.9		1,334.1
Principal International		376.9		328.1		1,130.9		942.3
U.S. Insurance Solutions:
Specialty Benefits insurance		749.0		684.4		2,218.3		2,007.9
Individual Life insurance		344.0		505.7		1,024.6		1,539.1
Eliminations		(0.1)		—		(0.4)		(0.1)
Total U.S. Insurance Solutions		1,092.9		1,190.1		3,242.5		3,546.9
Corporate		(15.9)		(14.3)		(23.2)		(21.8)
Total segment operating revenues		3,442.5		3,622.0		9,857.6		10,349.3
Net realized capital losses, net of related revenue adjustments		(76.6)		(188.2)		(493.0)		(157.0)
Revenues from exited business (3)		1,249.6		—		5,043.2		—
Adjustments related to equity method investments		(14.6)		(10.1)		(38.2)		(20.7)
Total revenues per consolidated statements of operations	$	4,600.9	$	3,423.7	$	14,369.6	$	10,171.6
Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	278.6	$	243.2	$	852.4	$	811.4
Principal Global Investors		142.0		190.1		465.4		515.6
Principal International		66.7		81.0		216.9		203.8
U.S. Insurance Solutions		135.7		151.6		403.2		373.4
Corporate		(100.8)		(97.1)		(382.7)		(273.6)
Total segment pre-tax operating earnings		522.2		568.8		1,555.2		1,630.6
Pre-tax net realized capital losses, as adjusted (4)		(47.4)		(133.5)		(405.2)		(141.7)
Pre-tax income from exited business (5)		1,268.6		—		4,887.1		—
Adjustments related to equity method investments and noncontrolling interest		(13.3)		(7.2)		18.1		(14.3)
Income before income taxes per consolidated statements of operations	$	1,730.1	$	428.1	$	6,055.2	$	1,474.6

(1) Reflects inter-segment revenues of $89.9 million and $106.0 million for the three months ended September 30, 2022 and 2021, respectively, $275.9 million and $307.7 million for the nine months ended September 30, 2022 and 2021, respectively.

(2) Reflects inter-segment revenues of $73.7 million and $79.7 million for the three months ended September 30, 2022 and 2021, respectively, $244.5 million and $223.9 million for the nine months ended September 30, 2022 and 2021, respectively.

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

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in millions)
Revenues from exited business:
Change in fair value of funds withheld embedded derivative	$	1,237.7	$	—	$	4,305.0	$	—
Net realized capital gains on funds withheld assets		8.5		—		697.5		—
Strategic review costs and impacts		—		—		32.4		—
Amortization of reinsurance gain		3.4		—		8.3		—
Total revenues from exited business	$	1,249.6	$	—	$	5,043.2	$	—

(4) 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,
	2022		2021		2022		2021
	(in millions)
Net realized capital losses:
Net realized capital losses	$	(55.7)	$	(152.0)	$	(394.1)	$	(41.7)
Derivative and hedging-related revenue adjustments		(32.9)		(30.6)		(106.7)		(108.4)
Market value adjustments to fee revenues		—		(0.2)		0.1		(0.6)
Adjustments related to equity method investments		6.6		(10.8)		(6.0)		(18.3)
Adjustments related to sponsored investment funds		5.2		5.8		16.9		15.9
Recognition of front-end fee revenue		0.2		(0.4)		(3.2)		(3.9)
Net realized capital losses, net of related revenue adjustments		(76.6)		(188.2)		(493.0)		(157.0)
Amortization of deferred acquisition costs and other actuarial balances		7.7		9.9		(13.0)		22.8
Capital (gains) losses distributed		25.5		(33.0)		146.1		(86.3)
Market value adjustments of embedded derivatives		(4.0)		77.8		(45.3)		78.8
Pre-tax net realized capital losses, as adjusted (a)	$	(47.4)	$	(133.5)	$	(405.2)	$	(141.7)

(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 nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in millions)
Pre-tax income from exited business
Change in fair value of funds withheld embedded derivative	$	1,237.7	$	—	$	4,305.0	$	—
Net realized capital gains on funds withheld assets		8.5		—		697.5		—
Strategic review costs and impacts		(27.6)		—		(95.0)		—
Amortization of reinsurance loss		(18.8)		—		(60.2)		—
Impacts to actuarial balances of reinsured business		68.8		—		39.8		—
Total pre-tax income from exited business	$	1,268.6	$	—	$	4,887.1	$	—