The separate accounts are legally segregated and are not subject to claims that arise out of any of our other business. The client, rather than us, directs the investments and bears the investment risk of these funds. The separate account assets represent the fair value of funds that are separately administered by us for contracts with equity, real estate and fixed income investments and are presented as a summary total within the consolidated statements of financial position. An equivalent amount is reported as separate account liabilities, which represent the obligation to return the monies to the client. Refer to Note 16, Fair Value Measurements, for further information on the valuation methodologies.

We receive fees for mortality, withdrawal and expense risks, as well as administrative, maintenance and investment advisory services that are included in the consolidated statements of operations. Net deposits, net investment income and realized and unrealized capital gains and losses of the separate accounts are not reflected in the consolidated statements of operations.

The Retirement and Income Solutions segment offers variable annuity contracts that allow the policyholder to allocate deposits into various investment options in a separate account. The variable annuity contracts can also include GMWB riders and guaranteed minimum death benefit (“GMDB”) riders that are accounted for as MRBs. Retirement and Income Solutions also offers certain group annuity contracts that have separate accounts as an investment option.

The Principal Asset Management segment offers retirement pension schemes in Asia that offer various guaranteed and non-guaranteed constituent fund investment options to customers. The retirement pension schemes can include a guaranteed rate of return to the customer or a minimum guarantee on withdrawals under certain qualifying events. The minimum guarantee on withdrawals under certain qualifying events is accounted for as an MRB. Principal Asset Management separate account assets and liabilities also include certain retirement accumulation products in Latin America where the segregated funds and associated obligation to the client are consolidated within the financial statements. We have determined that summary totals are the most meaningful presentation for these funds.

The Benefits and Protection segment offers variable universal life products with separate account investment options.

Refer to Note 9, Market Risk Benefits, for further information on the MRBs associated with the contracts mentioned above.

As of March 31, 2023 and December 31, 2022, the separate accounts included a separate account valued at $88.5 million and $101.4 million, respectively, which primarily included shares of our stock that were allocated and issued to eligible participants of qualified employee benefit plans administered by us as part of the policy credits issued under our 2001 demutualization. These shares are included in both basic and diluted earnings per share calculations. In the consolidated statements of financial position, the separate account shares are recorded at fair value and are reported as separate account assets with a corresponding separate account liability. Changes in fair value of the separate account shares are reflected in both the separate account assets and separate account liabilities and do not impact our results of operations.

The aggregate fair value of assets, by major investment category, supporting separate accounts were as follows:

The following tables summarize disaggregated separate account liability amounts and reconcile the totals to separate account liabilities reported in the consolidated statements of financial position.

(1)	Includes insignificant balances for long-duration contracts.

Retirement and Income Solutions

The balances and the changes in separate account liabilities were as follows:


	For the three months ended				For the year ended
	March 31, 2023				December 31, 2022
	Group		Individual		Group		Individual
	retirement		variable		retirement		variable
	contracts		annuities		contracts		annuities

	(in millions)
Balance at beginning of period	$	107,240.1	$	8,659.0	$	131,188.6	$	11,000.0
Premiums and deposits (1)		2,881.3		94.8		14,859.3		354.1
Policy charges		(77.7)		(51.2)		(383.7)		(211.1)
Surrenders, withdrawals and benefit payments (1)		(2,747.8)		(217.3)		(14,479.4)		(790.1)
Investment performance		5,016.8		417.6		(20,641.3)		(1,723.3)
Net transfers (to) from general account (1)		(1,331.8)		7.4		(2,571.7)		29.4
Other (2)		294.9		—		(731.7)		—
Balance at end of period	$	111,275.8	$	8,910.3	$	107,240.1	$	8,659.0

Cash surrender value (3)	$	109,850.4	$	8,789.3	$	106,125.7	$	8,538.7

(1)	Within the policyholder account balances rollforwards in Note 7, Contractholder Funds, amounts in these lines for Individual variable annuities and Workplace savings and retirement solutions included in Group retirement contracts are reflected in net transfers from (to) separate account.

(2)	Includes amounts to be settled between the separate account and general account due to the timing of trade settlements as of the reporting date.

(3)	Cash surrender value represents the amount of the contractholders’ account balances distributable at the end of the reporting period less surrender charges.

Principal Asset Management – Principal International

The balances and the changes in separate account liabilities were as follows:


	For the three months ended				For the year ended
	March 31, 2023				December 31, 2022
	Latin America		Asia		Latin America		Asia
			Guaranteed				Guaranteed
	Pension		pension		Pension		pension

	(in millions)
Balance at beginning of period	$	33,316.7	$	915.0	$	33,030.6	$	971.3
Premiums and deposits		812.7		66.1		3,620.4		276.2
Policy charges		(4.7)		(4.7)		(18.2)		(19.8)
Surrenders, withdrawals and benefit payments		(988.9)		(66.7)		(3,984.6)		(247.0)
Investment performance		(303.8)		24.5		498.8		(64.0)
Other		(28.7)		(0.1)		(0.8)		(0.4)
Foreign currency translation adjustment		2,582.5		(5.3)		170.5		(1.3)
Balance at end of period	$	35,385.8	$	928.8	$	33,316.7	$	915.0

Cash surrender value	$	35,385.8	$	928.8	$	33,316.7	$	915.0

Benefits and Protection

The balances and the changes in separate account liabilities for Life Insurance – Universal life were as follows:


	For the three months ended		For the year ended
	March 31, 2023		December 31, 2022

	(in millions)
Balance at beginning of period	$	5,011.0	$	5,886.1
Premiums and deposits (1)		126.5		514.7
Policy charges		(31.9)		(122.1)
Surrenders, withdrawals and benefit payments (1)		(115.7)		(208.6)
Investment performance		262.0		(1,054.5)
Net transfers (to) from general account (1)		2.3		(4.6)
Balance at end of period	$	5,254.2	$	5,011.0

Cash surrender value (2)	$	5,308.6	$	5,055.8

(1)	Within the policyholder account balances rollforwards in Note 7, Contractholder Funds, amounts in these lines are reflected in net transfers from (to) separate account.

(2)	Cash surrender value represents the amount of the contractholders’ account balances distributable at the end of the reporting period less surrender charges. Certain products include surrender value enhancement riders that result in cash surrender values greater than account balances.