Segment Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	September 30, 2023		December 31, 2022
	(in millions)
Assets:
Retirement and Income Solutions	$	201,802.1	$	202,294.2
Principal Asset Management		43,789.9		45,950.7
Benefits and Protection		41,707.7		40,048.3
Corporate		648.3		2,285.1
Total consolidated assets	$	287,948.0	$	290,578.3

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,
	2023		2022		2023		2022
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions (1)	$	1,651.1	$	1,563.8	$	4,940.9	$	4,144.6
Principal Asset Management:
Principal Global Investors		424.6		406.0		1,207.4		1,304.9
Principal International		249.6		382.7		857.0		1,154.7
Eliminations		(5.4)		(5.7)		(16.2)		(18.3)
Total Principal Asset Management (2)		668.8		783.0		2,048.2		2,441.3
Benefits and Protection:
Specialty Benefits		816.6		749.0		2,391.0		2,218.3
Life Insurance		335.0		336.9		989.6		1,014.6
Eliminations		(0.2)		(0.1)		(0.5)		(0.4)
Total Benefits and Protection		1,151.4		1,085.8		3,380.1		3,232.5
Corporate		6.7		(10.2)		48.9		(4.9)
Total segment operating revenues		3,478.0		3,422.4		10,418.1		9,813.5
Net realized capital gains (losses), net of related revenue adjustments		226.2		(21.2)		141.6		(365.9)
Revenues from exited business (3)		924.9		1,249.6		508.2		5,010.8
Adjustments related to equity method investments		(18.5)		(16.9)		(57.9)		(47.7)
Market risk benefit derivative settlements		(11.9)		(8.6)		(35.0)		(25.4)
Total revenues per consolidated statements of operations	$	4,598.7	$	4,625.3	$	10,975.0	$	14,385.3
Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	304.7	$	206.3	$	786.8	$	755.1
Principal Asset Management		222.4		206.0		598.4		686.4
Benefits and Protection		169.0		181.8		393.2		432.2
Corporate		(114.8)		(100.8)		(308.3)		(382.7)
Total segment pre-tax operating earnings		581.3		493.3		1,470.1		1,491.0
Pre-tax net realized capital gains (losses), as adjusted (4)		155.5		(16.2)		70.1		(413.6)
Pre-tax income from exited business (5)		879.2		1,178.9		352.3		4,903.4
Adjustments related to equity method investments and noncontrolling interest		(11.1)		(15.6)		(46.5)		8.6
Income before income taxes per consolidated statements of operations	$	1,604.9	$	1,640.4	$	1,846.0	$	5,989.4

(1) Reflects inter-segment revenues of $101.8 million and $89.9 million for the three months ended September 30, 2023 and 2022, respectively, $293.6 million and $275.9 million for the nine months ended September 30, 2023 and 2022, respectively.

(2) Reflects inter-segment revenues of $79.9 million and $69.4 million for the three months ended September 30, 2023 and 2022, respectively, $220.5 million and $231.1 million for the nine months ended September 30, 2023 and 2022, respectively.

Revenues from exited business (Table)

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
	(in millions)
Revenues from exited business:
Change in fair value of funds withheld embedded derivative	$	925.6	$	1,237.7	$	392.9	$	4,305.0
Net realized capital gains on funds withheld assets		1.0		8.5		119.8		697.5
Amortization of reinsurance gain		1.6		3.4		4.5		8.3
Other impacts of reinsured business		(3.3)		—		(9.0)		—
Total revenues from exited business	$	924.9	$	1,249.6	$	508.2	$	5,010.8

Pre-tax net realized capital gains (losses), as adjusted from exited business (Table)

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
	(in millions)
Net realized capital gains (losses):
Net realized capital gains (losses)	$	179.3	$	(27.4)	$	40.5	$	(353.4)
Derivative and hedging-related revenue adjustments		26.6		(24.3)		23.7		(81.3)
Market value adjustments to fee revenues		0.1		—		0.3		0.1
Certain variable annuity fees		18.5		18.7		55.3		57.8
Adjustments related to equity method investments		(4.1)		6.6		4.2		(6.0)
Adjustments related to sponsored investment funds		5.8		5.2		17.6		16.9
Net realized capital gains (losses), net of related revenue adjustments		226.2		(21.2)		141.6		(365.9)
Amortization of deferred acquisition costs and other actuarial balances		(0.3)		0.1		(0.2)		—
Capital (gains) losses distributed		(31.8)		25.5		(30.2)		146.1
Derivative and hedging-related expense adjustments		0.8		—		0.9		—
Market value adjustments of market risk benefits		(30.1)		(16.1)		(41.0)		(152.7)
Market value adjustments of embedded derivatives		(9.3)		(4.5)		(1.0)		(41.1)
Pre-tax net realized capital gains (losses), as adjusted (a)	$	155.5	$	(16.2)	$	70.1	$	(413.6)

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

Pre-tax income (loss) from exited business (Table)

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
	(in millions)
Pre-tax income from exited business
Change in fair value of funds withheld embedded derivative	$	925.6	$	1,237.7	$	392.9	$	4,305.0
Net realized capital gains on funds withheld assets		1.0		8.5		119.8		697.5
Strategic review costs and impacts		—		(27.6)		—		36.4
Amortization of reinsurance loss		(8.1)		(7.7)		(50.5)		(38.2)
Other impacts of reinsured business		(39.3)		(32.0)		(109.9)		(97.3)
Total pre-tax income from exited business	$	879.2	$	1,178.9	$	352.3	$	4,903.4