Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Measurements

Fair Value (Table)

	June 30, 2019
	Assets/		Amount
	(liabilities)		measured at
	measured at		net asset		Fair value hierarchy level
	fair value		value (4)		Level 1		Level 2		Level 3
	(in millions)
Assets
Fixed maturities, available-for-sale:
U.S. government and agencies	$	1,536.4	$	—	$	1,125.6	$	410.8	$	—
Non-U.S. governments		1,000.7		—		2.0		994.8		3.9
States and political subdivisions		6,968.6		—		—		6,968.6		—
Corporate		38,171.3		—		19.1		38,107.5		44.7
Residential mortgage-backed securities		2,437.0		—		—		2,437.0		—
Commercial mortgage-backed securities		4,569.9		—		—		4,556.8		13.1
Collateralized debt obligations (1)		2,759.4		—		—		2,724.6		34.8
Other debt obligations		7,824.8		—		—		7,764.9		59.9
Total fixed maturities, available-for-sale		65,268.1		—		1,146.7		63,965.0		156.4
Fixed maturities, trading		686.8		—		—		686.3		0.5
Equity securities		1,895.2		—		633.5		1,261.7		—
Derivative assets (2)		291.5		—		—		261.3		30.2
Other investments		812.5		84.2		201.7		497.5		29.1
Cash equivalents		2,123.6		—		36.6		2,087.0		—
Sub-total excluding separate account assets		71,077.7		84.2		2,018.5		68,758.8		216.2
Separate account assets		162,848.6		129.7		91,789.6		62,239.5		8,689.8
Total assets	$	233,926.3	$	213.9	$	93,808.1	$	130,998.3	$	8,906.0
Liabilities
Investment contracts (3)	$	(118.7)	$	—	$	—	$	—	$	(118.7)
Derivative liabilities (2)		(168.0)		—		—		(153.6)		(14.4)
Other liabilities (3)		(96.0)		—		—		(96.0)		—
Total liabilities	$	(382.7)	$	—	$	—	$	(249.6)	$	(133.1)
Net assets	$	233,543.6	$	213.9	$	93,808.1	$	130,748.7	$	8,772.9

	December 31, 2018
	Assets/		Amount
	(liabilities)		measured at
	measured at		net asset		Fair value hierarchy level
	fair value		value (4)		Level 1		Level 2		Level 3
	(in millions)
Assets
Fixed maturities, available-for-sale:
U.S. government and agencies	$	1,441.0	$	—	$	1,027.8	$	413.2	$	—
Non-U.S. governments		890.5		—		2.7		883.2		4.6
States and political subdivisions		6,225.7		—		—		6,225.7		—
Corporate		35,539.3		—		19.2		35,462.2		57.9
Residential mortgage-backed securities		2,460.6		—		—		2,460.6		—
Commercial mortgage-backed securities		3,945.6		—		—		3,936.1		9.5
Collateralized debt obligations (1)		2,420.8		—		—		2,412.5		8.3
Other debt obligations		7,185.0		—		—		7,126.5		58.5
Total fixed maturities, available-for-sale		60,108.5		—		1,049.7		58,920.0		138.8
Fixed maturities, trading		636.1		—		—		636.1		—
Equity securities		1,843.7		—		661.2		1,182.5		—
Derivative assets (2)		194.0		—		—		175.4		18.6
Other investments		828.6		75.4		125.9		610.1		17.2
Cash equivalents		1,775.9		—		46.3		1,729.6		—
Sub-total excluding separate account assets		65,386.8		75.4		1,883.1		63,253.7		174.6
Separate account assets		144,987.9		124.6		79,572.0		56,675.8		8,615.5
Total assets	$	210,374.7	$	200.0	$	81,455.1	$	119,929.5	$	8,790.1
Liabilities
Investment contracts (3)	$	(45.2)	$	—	$	—	$	—	$	(45.2)
Derivative liabilities (2)		(157.1)		—		—		(141.6)		(15.5)
Other liabilities (3)		(91.5)		—		—		(91.5)		—
Total liabilities	$	(293.8)	$	—	$	—	$	(233.1)	$	(60.7)
Net assets	$	210,080.9	$	200.0	$	81,455.1	$	119,696.4	$	8,729.4

(1) Primarily consists of collateralized loan obligations backed by secured corporate loans.

(2) Within the consolidated statements of financial position, derivative assets are reported with other investments and derivative liabilities are reported with other liabilities. The amounts are presented gross in the tables above to reflect the presentation on the consolidated statements of financial position; however, are presented net for purposes of the rollforward in the Changes in Level 3 Fair Value Measurements tables. Refer to Note 4, Derivative Financial Instruments, for further information on fair value by class of derivative instruments.

(3) Includes bifurcated embedded derivatives that are reported at net asset (liability) fair value within the same line item in the consolidated statements of financial position in which the host contract is reported.

(4) Certain investments are measured at fair value using the NAV per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. Other investments using the NAV practical expedient consist of certain fund interests that are restricted until maturity with unfunded commitments totaling $24.7 million and $32.0 million as of June 30, 2019 and December 31, 2018, respectively. Separate account assets using the NAV practical expedient consist of hedge funds with varying investment strategies that also have a variety of redemption terms and conditions. We do not have unfunded commitments associated with these hedge funds.

Reconciliation for All Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Table)

	For the three months ended June 30, 2019
															Changes in
	Beginning						Net						Ending		unrealized
	asset/		Total realized/unrealized				purchases,						asset/		gains (losses)
	(liability)		gains (losses)				sales,						(liability)		included in
	balance		Included in		Included in		issuances						balance		net income
	as of		net		other		and		Transfers		Transfers		as of		relating to
	April 1,		income		comprehensive		settlements		into		out of		June 30,		positions still
	2019		(1)		income (3)		(4)		Level 3		Level 3		2019		held (1)
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	4.2	$	—	$	—	$	(0.3)	$	—	$	—	$	3.9	$	—
Corporate		58.5		—		—		(13.8)		—		—		44.7		—
Commercial mortgage-backed securities		12.0		(3.2)		2.9		—		3.7		(2.3)		13.1		(2.1)
Collateralized debt obligations		5.9		—		0.5		(1.6)		30.0		—		34.8		—
Other debt obligations		43.4		—		0.5		16.0		—		—		59.9		—
Total fixed maturities, available-for-sale		124.0		(3.2)		3.9		0.3		33.7		(2.3)		156.4		(2.1)
Fixed maturities,trading		—		—		—		0.5		—		—		0.5		—
Equity securities		0.4		—		(0.4)		—		—		—		—		—
Other investments		29.4		0.1		—		(0.4)		—		—		29.1		0.1
Separate account assets (2)		8,718.7		138.9		0.5		4.2		—		(172.5)		8,689.8		126.4
Liabilities
Investment contracts		(40.5)		(76.2)		(0.2)		(1.8)		—		—		(118.7)		(75.5)
Derivatives
Net derivative assets (liabilities)		3.4		6.6		—		5.8		—		—		15.8		11.2

	For the three months ended June 30, 2018
															Changes in
	Beginning						Net						Ending		unrealized
	asset/		Total realized/unrealized				purchases,						asset/		gains (losses)
	(liability)		gains (losses)				sales,						(liability)		included in
	balance		Included in		Included in		issuances						balance		net income
	as of		net		other		and		Transfers		Transfers		as of		relating to
	April 1,		income		comprehensive		settlements		into		out of		June 30,		positions still
	2018		(1)		income (3)		(4)		Level 3		Level 3		2018		held (1)
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	7.0	$	—	$	—	$	(0.4)	$	—	$	—	$	6.6	$	—
Corporate		103.8		—		(0.7)		(6.0)		0.4		(11.5)		86.0		—
Commercial mortgage-backed securities		11.1		—		(0.1)		—		—		(0.9)		10.1		—
Collateralized debt obligations		80.7		—		(0.4)		27.8		12.0		(39.9)		80.2		—
Other debt obligations		2.1		(0.1)		0.3		92.5		—		—		94.8		—
Total fixed maturities, available-for-sale		204.7		(0.1)		(0.9)		113.9		12.4		(52.3)		277.7		—
Fixed maturities, trading		—		—		—		3.7		—		—		3.7		—
Equity securities		14.9		0.7		—		(15.6)		—		—		—		—
Other investments		9.3		0.3		—		3.6		—		—		13.2		0.3
Separate account assets (2)		7,991.9		245.4		0.1		54.5		—		(0.4)		8,291.5		257.9
Liabilities
Investment contracts		(96.2)		52.0		(0.1)		1.5		—		—		(42.8)		51.6
Derivatives
Net derivative assets (liabilities)		16.8		(11.1)		—		(0.3)		—		—		5.4		(12.4)

	For the six months ended June 30, 2019
															Changes in
	Beginning						Net						Ending		unrealized
	asset/		Total realized/unrealized				purchases,						asset/		gains (losses)
	(liability)		gains (losses)				sales,						(liability)		included in
	balance		Included		Included in		issuances						balance		net income
	as of		in net		other		and		Transfers		Transfers		as of		relating to
	January 1,		income		comprehensive		settlements		into		out of		June 30,		positions still
	2019		(1)		income (3)		(4)		Level 3		Level 3		2019		held (1)
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	4.6	$	—	$	—	$	(0.7)	$	—	$	—	$	3.9	$	—
Corporate		57.9		—		0.4		(13.6)		—		—		44.7		—
Commercial mortgage-backed securities		9.5		(3.2)		3.2		2.2		3.7		(2.3)		13.1		(2.1)
Collateralized debt obligations		8.3		(2.5)		0.3		(1.3)		30.0		—		34.8		(2.5)
Other debt obligations		58.5		—		1.6		25.8		—		(26.0)		59.9		—
Total fixed maturities, available-for-sale		138.8		(5.7)		5.5		12.4		33.7		(28.3)		156.4		(4.6)
Fixed maturities, trading		—		—		—		0.5		—		—		0.5		—
Other investments		17.2		2.3		—		(0.4)		10.0		—		29.1		2.3
Separate account assets (2)		8,615.5		313.5		0.1		(66.1)		—		(173.2)		8,689.8		327.2
Liabilities
Investment contracts		(45.2)		(71.9)		(0.1)		(1.5)		—		—		(118.7)		(70.3)
Derivatives
Net derivative assets (liabilities)		3.1		5.0		—		7.7		—		—		15.8		8.9

	For the six months ended June 30, 2018
															Changes in
	Beginning						Net						Ending		unrealized
	asset/		Total realized/unrealized				purchases,						asset/		gains (losses)
	(liability)		gains (losses)				sales,						(liability)		included in
	balance		Included		Included in		issuances						balance		net income
	as of		in net		other		and		Transfers		Transfers		as of		relating to
	January 1,		income		comprehensive		settlements		into		out of		June 30,		positions still
	2018		(1)		income (3)		(4)		Level 3		Level 3		2018		held (1)
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	7.4	$	—	$	(0.1)	$	(0.7)	$	—	$	—	$	6.6	$	—
Corporate		128.0		1.1		(0.3)		(3.6)		1.0		(40.2)		86.0		—
Commercial mortgage-backed securities		10.6		(2.5)		0.5		(0.1)		2.5		(0.9)		10.1		—
Collateralized debt obligations		125.0		(0.6)		0.6		2.3		12.1		(59.2)		80.2		(0.6)
Other debt obligations		2.3		—		0.2		92.3		—		—		94.8		—
Total fixed maturities, available-for-sale		273.3		(2.0)		0.9		90.2		15.6		(100.3)		277.7		(0.6)
Fixed maturities, trading		—		—		—		3.7		—		—		3.7		—
Equity securities		2.7		12.9		—		(15.6)		—		—		—		—
Other investments		6.5		1.8		—		4.9		—		—		13.2		1.8
Separate account assets (2)		7,651.4		409.8		(0.6)		231.3		—		(0.4)		8,291.5		402.6
Liabilities
Investment contracts		(160.3)		115.7		0.1		1.7		—		—		(42.8)		115.3
Derivatives
Net derivative assets (liabilities)		18.1		(16.1)		—		3.4		—		—		5.4		(16.0)

(1) Both realized gains (losses) and mark-to-market unrealized gains (losses) are generally reported in net realized capital gains (losses) within the consolidated statements of operations. Realized and unrealized gains (losses) on certain securities with an investment objective to realize economic value through mark-to-market changes are reported in net investment income within the consolidated statements of operations.

(2) Gains and losses for separate account assets do not impact net income as the change in value of separate account assets is offset by a change in value of separate account liabilities. Foreign currency translation adjustments related to the Principal International segment separate account assets are recorded in AOCI and are offset by foreign currency translation adjustments of the corresponding separate account liabilities.

(3) Includes foreign currency translation adjustments related to our Principal International segment.

(4) Gross purchases, sales, issuances and settlements were:

	For the three months ended June 30, 2019
									Net purchases,
									sales, issuances
	Purchases		Sales		Issuances		Settlements		and settlements
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	—	$	—	$	—	$	(0.3)	$	(0.3)
Corporate		5.2		(0.2)		—		(18.8)		(13.8)
Collateralized debt obligations		—		—		—		(1.6)		(1.6)
Other debt obligations		16.8		—		—		(0.8)		16.0
Total fixed maturities, available-for-sale		22.0		(0.2)		—		(21.5)		0.3
Fixed maturities, trading		0.5		—		—		—		0.5
Other investments		4.5		(4.9)		—		—		(0.4)
Separate account assets (5)		41.0		(112.8)		(156.5)		232.5		4.2
Liabilities
Investment contracts		—		—		(3.5)		1.7		(1.8)
Derivatives
Net derivative assets (liabilities)		—		5.8		—		—		5.8

	For the three months ended June 30, 2018
									Net purchases,
									sales, issuances
	Purchases		Sales		Issuances		Settlements		and settlements
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	—	$	—	$	—	$	(0.4)	$	(0.4)
Corporate		0.7		—		—		(6.7)		(6.0)
Collateralized debt obligations		28.1		—		—		(0.3)		27.8
Other debt obligations		94.4		—		—		(1.9)		92.5
Total fixed maturities, available-for-sale		123.2		—		—		(9.3)		113.9
Fixed maturities, trading		3.7		—		—		—		3.7
Equity securities		—		(15.6)		—		—		(15.6)
Other investments		3.6		—		—		—		3.6
Separate account assets (5)		231.4		(124.1)		(60.0)		7.2		54.5
Liabilities
Investment contracts		—		—		0.7		0.8		1.5
Derivatives
Net derivative assets (liabilities)		(1.2)		0.9		—		—		(0.3)

	For the six months ended June 30, 2019
									Net purchases,
									sales, issuances
	Purchases		Sales		Issuances		Settlements		and settlements
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	—	$	—	$	—	$	(0.7)	$	(0.7)
Corporate		5.7		(0.4)		—		(18.9)		(13.6)
Commercial mortgage-backed securities		2.4		—		—		(0.2)		2.2
Collateralized debt obligations		—		—		—		(1.3)		(1.3)
Other debt obligations		26.8		—		—		(1.0)		25.8
Total fixed maturities, available-for-sale		34.9		(0.4)		—		(22.1)		12.4
Fixed maturities, trading		0.5		—		—		—		0.5
Other investments		4.5		(4.9)		—		—		(0.4)
Separate account assets (5)		120.0		(214.5)		(203.8)		232.2		(66.1)
Liabilities
Investment contracts		—		—		(4.8)		3.3		(1.5)
Derivatives
Net derivative assets (liabilities)		—		7.7		—		—		7.7

	For the six months ended June 30, 2018
									Net purchases,
									sales, issuances
	Purchases		Sales		Issuances		Settlements		and settlements
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	—	$	—	$	—	$	(0.7)	$	(0.7)
Corporate		12.0		(4.2)		—		(11.4)		(3.6)
Commercial mortgage-backed securities		—		—		—		(0.1)		(0.1)
Collateralized debt obligations		28.1		—		—		(25.8)		2.3
Other debt obligations		94.4		—		—		(2.1)		92.3
Total fixed maturities, available-for-sale		134.5		(4.2)		—		(40.1)		90.2
Fixed maturities, trading		3.7		—		—		—		3.7
Equity securities		—		(15.6)		—		—		(15.6)
Other investments		4.9		—		—		—		4.9
Separate account assets (5)		571.8		(228.5)		(105.5)		(6.5)		231.3
Liabilities
Investment contracts		—		—		0.2		1.5		1.7
Derivatives
Net derivative assets (liabilities)		1.9		1.5		—		—		3.4

(5) Issuances and settlements include amounts related to mortgage encumbrances associated with real estate in our separate accounts.

Transfers (Table)

	For the three months ended June 30, 2019
	Transfers out		Transfers out		Transfers out		Transfers out		Transfers out		Transfers out
	of Level 1 into		of Level 1 into		of Level 2 into		of Level 2 into		of Level 3 into		of Level 3 into
	Level 2		Level 3		Level 1		Level 3		Level 1		Level 2
	(in millions)
Assets
Fixed maturities, available-for-sale:
Commercial mortgage-backed securities	$	—	$	—	$	—	$	3.7	$	—	$	2.3
Collateralized debt obligations		—		—		—		30.0		—		—
Total fixed maturities, available-for-sale		—		—		—		33.7		—		2.3
Separate account assets		102.7		—		—		—		—		172.5

	For the three months ended June 30, 2018
	Transfers out		Transfers out		Transfers out		Transfers out		Transfers out		Transfers out
	of Level 1 into		of Level 1 into		of Level 2 into		of Level 2 into		of Level 3 into		of Level 3 into
	Level 2		Level 3		Level 1		Level 3		Level 1		Level 2
	(in millions)
Assets
Fixed maturities, available-for-sale:
Corporate	$	—	$	—	$	—	$	0.4	$	—	$	11.5
Commercial mortgage-backed securities		—		—		—		—		—		0.9
Collateralized debt obligations		—		—		—		12.0		—		39.9
Total fixed maturities, available-for-sale		—		—		—		12.4		—		52.3
Separate account assets		0.1		—		0.1		—		0.2		0.2

	For the six months ended June 30, 2019
	Transfers out		Transfers out		Transfers out		Transfers out		Transfers out		Transfers out
	of Level 1 into		of Level 1 into		of Level 2 into		of Level 2 into		of Level 3 into		of Level 3 into
	Level 2		Level 3		Level 1		Level 3		Level 1		Level 2
	(in millions)
Assets
Fixed maturities, available-for-sale:
U.S. government and agencies	$	—	$	—	$	1.1	$	—	$	—	$	—
Commercial mortgage-backed securities		—		—		—		3.7		—		2.3
Collateralized debt obligations		—		—		—		30.0		—		—
Other debt obligations		—		—		1.1		—		—		26.0
Total fixed maturities, available-for-sale		—		—		2.2		33.7		—		28.3
Other investments		—		—		—		10.0		—		—
Separate account assets		102.7		—		—		—		—		173.2

	For the six months ended June 30, 2018
	Transfers out		Transfers out		Transfers out		Transfers out		Transfers out		Transfers out
	of Level 1 into		of Level 1 into		of Level 2 into		of Level 2 into		of Level 3 into		of Level 3 into
	Level 2		Level 3		Level 1		Level 3		Level 1		Level 2
	(in millions)
Assets
Fixed maturities, available-for-sale:
Corporate	$	—	$	—	$	—	$	1.0	$	—	$	40.2
Commercial mortgage-backed securities		—		—		—		2.5		—		0.9
Collateralized debt obligations		—		—		—		12.1		—		59.2
Total fixed maturities, available-for-sale		—		—		—		15.6		—		100.3
Separate account assets		292.5		—		0.8		—		0.2		0.2

Quantitative Information about Level 3 Fair Value Measurements (Table)

	June 30, 2019
	Assets /
	(liabilities)
	measured at		Valuation	Unobservable	Input/range of			Weighted
	fair value		technique(s)	input description	inputs			average
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	3.9	Discounted cash flow	Discount rate (1)			2.6%	2.6%
				Illiquidity premium	50 basis points ("bps")			50bps
				Comparability adjustment			(25)bps	(25)bps
Corporate		30.9	Discounted cash flow	Discount rate (1)	2.3%	-	6.0%	3.1%
				Illiquidity premium	0bps	-	60bps	31bps
				Comparability adjustment	0bps	-	130bps	21bps
Commercial mortgage-backed securities		2.8	Discounted cash flow	Discount rate (1)			35.0%	35.0%
				Probability of default			100.0%	100.0%
				Potential loss severity			44.8%	44.8%
Other debt obligations		1.9	Discounted cash flow	Discount rate (1)			5.0%	5.0%
				Illiquidity premium			500bps	500bps
Separate account assets		8,689.0	Discounted cash flow - mortgage loans	Discount rate (1)			3.2%	3.2%
				Illiquidity premium			60bps	60bps
				Credit spread rate			138bps	138bps
			Discounted cash flow - real estate	Discount rate (1)	5.6%	-	14.0%	6.7%
				Terminal capitalization rate	4.3%	-	9.3%	5.7%
				Average market rent growth rate	1.8%	-	4.6%	2.9%
			Discounted cash flow - real estate debt	Loan to value	11.0%	-	68.6%	46.2%
				Market interest rate	3.2%	-	6.0%	3.7%

Liabilities
Investment contracts (5)	(118.7)	Discounted cash flow	Long duration interest rate	2.2%	-	2.3%	(2)
			Long-term equity market volatility	15.0%	-	26.6%
			Non-performance risk	0.4%	-	1.4%
			Utilization rate	See note (3)
			Lapse rate	1.3%	-	16.0%
			Mortality rate	See note (4)

	December 31, 2018
	Assets /
	(liabilities)
	measured at		Valuation	Unobservable	Input/range of			Weighted
	fair value		technique(s)	input description	inputs			average
	(in millions)
Assets
Fixed maturities, available-for-sale:
Non-U.S. governments	$	4.6	Discounted cash flow	Discount rate (1)			3.2%	3.2%
				Illiquidity premium			50bps	50bps
				Comparability adjustment			(25)bps	(25)bps
Corporate		25.4	Discounted cash flow	Discount rate (1)	3.3%	-	4.5%	3.9%
				Illiquidity premium	0bps	-	60bps	36bps
Other debt obligations		1.7	Discounted cash flow	Discount rate (1)			5.0%	5.0%
				Illiquidity premium			500bps	500bps
Separate account assets		8,440.8	Discounted cash flow - mortgage loans	Discount rate (1)	3.3%	-	4.7%	4.2%
				Illiquidity premium	0bps	-	60bps	56bps
				Credit spread rate	85bps	-	172bps	168bps
			Discounted cash flow - real estate	Discount rate (1)	5.6%	-	11.5%	6.7%
				Terminal capitalization rate	4.3%	-	9.3%	5.8%
				Average market rent growth rate	2.0%	-	4.7%	2.9%
			Discounted cash flow - real estate debt	Loan to value	11.0%	-	69.3%	45.9%
				Market interest rate	3.9%	-	6.0%	4.3%

Liabilities
Investment contracts (5)	(45.2)	Discounted cash flow	Long duration interest rate	2.8%	-	2.9%	(2)
			Long-term equity market volatility	16.7%	-	27.8%
			Non-performance risk	0.6%	-	1.6%
			Utilization rate			See note (3)
			Lapse rate	1.3%	-	16.0%
			Mortality rate	See note (4)

(1) Represents market comparable interest rate or an index adjusted rate used as the base rate in the discounted cash flow analysis prior to any illiquidity or other adjustments, where applicable.

(2) Represents the range of rate curves used in the valuation analysis that we have determined market participants would use when pricing the instrument. Derived from interpolation between various observable swap rates.

(3) This input factor is the number of contractholders taking withdrawals as well as the amount and timing of the withdrawals and a range does not provide a meaningful presentation.

(4) This input is based on an appropriate industry mortality table and a range does not provide a meaningful presentation.

(5) Includes bifurcated embedded derivatives that are reported at net asset (liability) fair value within the same line item in the consolidated statements of financial position in which the host contract is reported.

Fair Value Option (Table)

	June 30, 2019		December 31, 2018
	(in millions)
Commercial mortgage loans of consolidated VIEs (1) (2)
Fair value	$	5.4	$	6.4
Aggregate contractual principal		5.4		6.5
Real estate ventures (1)
Fair value		19.1		17.2

(1) Reported with other investments in the consolidated statements of financial position.

(2) None of the loans were more than 90 days past due or in non-accrual status.

	For the three months ended June 30,				For the six months ended June 30,
	2019		2018		2019		2018
	(in millions)
Commercial mortgage loans of consolidated VIEs
Change in fair value pre-tax loss (1) (2)	$	—	$	—	$	—	$	(0.1)
Interest income (3)		0.1		0.2		0.2		0.4
Real estate ventures
Change in fair value pre-tax gain (4)		0.1		0.3		2.3		1.8

(1) None of the change in fair value related to instrument-specific credit risk.

(2) Reported in net realized capital gains (losses) on the consolidated statements of operations.

(3) Reported in net investment income on the consolidated statements of operations and recorded based on the effective interest rates as determined at the closing of the loan.

(4) Reported in net investment income on the consolidated statements of operations.

Financial Instruments Not Reported at Fair Value (Table)

	June 30, 2019
					Fair value hierarchy level
	Carrying amount		Fair value		Level 1		Level 2		Level 3
	(in millions)
Assets (liabilities)
Mortgage loans	$	16,136.8	$	16,805.7	$	—	$	—	$	16,805.7
Policy loans		800.9		1,038.1		—		—		1,038.1
Other investments		261.8		266.1		—		175.0		91.1
Cash and cash equivalents		1,192.3		1,192.3		1,117.7		74.6		—
Investment contracts		(32,386.1)		(32,182.8)		—		(3,880.9)		(28,301.9)
Short-term debt		(76.8)		(76.8)		—		(76.8)		—
Long-term debt		(3,762.4)		(4,023.6)		—		(3,887.4)		(136.2)
Separate account liabilities		(149,038.5)		(147,848.3)		—		—		(147,848.3)
Bank deposits (1)		(485.1)		(481.3)		—		(481.3)		—
Cash collateral payable		(116.1)		(116.1)		(116.1)		—		—

	December 31, 2018
					Fair value hierarchy level
	Carrying amount		Fair value		Level 1		Level 2		Level 3
	(in millions)
Assets (liabilities)
Mortgage loans	$	15,336.9	$	15,383.6	$	—	$	—	$	15,383.6
Policy loans		801.4		965.5		—		—		965.5
Other investments		247.4		239.8		—		157.5		82.3
Cash and cash equivalents		1,201.6		1,201.6		1,148.6		53.0		—
Investment contracts		(32,572.1)		(31,428.2)		—		(4,085.7)		(27,342.5)
Short-term debt		(42.9)		(42.9)		—		(42.9)		—
Long-term debt		(3,259.6)		(3,257.1)		—		(3,129.3)		(127.8)
Separate account liabilities		(132,562.9)		(131,491.4)		—		—		(131,491.4)
Bank deposits (1)		(500.0)		(489.1)		—		(489.1)		—
Cash collateral payable		(79.5)		(79.5)		(79.5)		—		—

(1) Excludes deposit liabilities without defined or contractual maturities.