Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Reconciliation of Assets from Segment to Consolidated (Table)


	September 30, 2020		December 31, 2019

	(in millions)
Assets:
Retirement and Income Solutions	$	196,631.2	$	192,698.1
Principal Global Investors		2,228.3		2,363.3
Principal International		45,833.6		48,857.6
U.S. Insurance Solutions		30,375.9		28,669.6
Corporate		3,415.8		3,499.2
Total consolidated assets	$	278,484.8	$	276,087.8

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,
	2020		2019		2020		2019

	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions – Fee	$	531.6	$	559.4	$	1,584.1	$	1,440.7
Retirement and Income Solutions – Spread		1,048.3		2,013.7		4,081.5		5,183.9
Total Retirement and Income Solutions (1)		1,579.9		2,573.1		5,665.6		6,624.6
Principal Global Investors (2)		382.8		369.9		1,126.5		1,068.4
Principal International		225.3		404.6		802.2		1,196.7
U.S. Insurance Solutions:
Specialty Benefits insurance		618.1		629.8		1,884.1		1,857.4
Individual Life insurance		503.3		562.8		1,448.8		1,490.7
Eliminations		—		—		(0.1)		(0.1)
Total U.S. Insurance Solutions		1,121.4		1,192.6		3,332.8		3,348.0
Corporate		(17.0)		(16.4)		(24.0)		(31.0)
Total segment operating revenues		3,292.4		4,523.8		10,903.1		12,206.7
Net realized capital gains (losses), net of related revenue adjustments		31.6		(46.6)		105.4		23.9
Adjustments related to equity method investments		(13.3)		(18.8)		(31.9)		(55.7)
Total revenues per consolidated statements of operations	$	3,310.7	$	4,458.4	$	10,976.6	$	12,174.9

Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	281.1	$	169.7	$	700.1	$	666.5
Principal Global Investors		140.9		123.0		361.0		339.3
Principal International		58.7		108.9		184.0		313.2
U.S. Insurance Solutions		(134.1)		120.1		150.4		377.1
Corporate		(69.7)		(102.1)		(244.8)		(284.6)
Total segment pre-tax operating earnings		276.9		419.6		1,150.7		1,411.5
Pre-tax net realized capital gains (losses), as adjusted (3)		9.9		(60.2)		(41.1)		(43.2)
Adjustments related to equity method investments and noncontrolling interest		(11.7)		(13.7)		(7.7)		(46.3)
Income before income taxes per consolidated statements of operations	$	275.1	$	345.7	$	1,101.9	$	1,322.0

(1)	Reflects inter-segment revenues of $87.5 million and $92.2 million for the three months ended September 30, 2020 and 2019, respectively, $249.1 million and $266.4 million for the nine months ended September 30, 2020 and 2019, respectively.

(2)	Reflects inter-segment revenues of $65.6 million and $67.5 million for the three months ended September 30, 2020 and 2019, respectively, $200.7 million and $195.2 million for the nine months ended September 30, 2020 and 2019, respectively.

(3)	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,
	2020		2019		2020		2019

	(in millions)
Net realized capital gains (losses):
Net realized capital gains (losses)	$	65.5	$	(42.4)	$	169.5	$	38.1
Derivative and hedging-related revenue adjustments		(37.0)		(17.9)		(85.7)		(50.8)
Adjustments related to equity method investments		0.2		1.7		(4.9)		2.5
Adjustments related to sponsored investment funds		5.1		6.2		12.5		21.0
Recognition of front-end fee revenue		(2.2)		5.8		14.0		13.1
Net realized capital gains (losses), net of related revenue adjustments		31.6		(46.6)		105.4		23.9
Amortization of deferred acquisition costs and other actuarial balances		62.1		(34.6)		(67.7)		(80.1)
Capital gains distributed		(43.7)		(30.0)		(15.7)		(53.9)
Market value adjustments of embedded derivatives		(40.1)		51.0		(63.1)		66.9
Pre-tax net realized capital gains (losses), as adjusted (a)	$	9.9	$	(60.2)	$	(41.1)	$	(43.2)

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