Major components of contractholder funds in the consolidated statements of financial position were as follows:

Our GICs and funding agreements contain provisions limiting or prohibiting early surrenders, which typically include penalties for early surrenders, minimum notice requirements or, in the case of funding agreements with survivor options, minimum pre-death holding periods and specific maximum amounts.

Funding agreements include those issued directly to nonqualified institutional investors and those issued to the FHLB Des Moines under their membership funding programs. As of December 31, 2021 and 2020, $4,252.4 million and $4,252.5 million, respectively, of liabilities were outstanding with respect to issuances under the program with FHLB Des Moines. In addition, we have five separate programs where the funding agreements have been issued directly or indirectly to unconsolidated special purpose entities. Claims for principal and interest under funding agreements are afforded equal priority to claims of life insurance and annuity policyholders under insolvency provisions of Iowa Insurance Laws.

Principal Life was authorized to issue up to $4.0 billion of funding agreements under a program established in 1998 to support the prospective issuance of medium term notes by an unaffiliated entity in non-U.S. markets. As of both December 31, 2021 and 2020, $75.0 million of liabilities were outstanding with respect to the issuance outstanding under this program. Principal Life was also authorized to issue up to Euro 4.0 billion (approximately USD$5.3 billion) of funding agreements under a program established in 2006 to support the prospective issuance of medium term notes by an unaffiliated entity in non-U.S. markets. The unaffiliated entity is an unconsolidated special purpose entity. As of December 31, 2021 and 2020, $0.0 million and $122.4 million, respectively, of liabilities were outstanding with respect to issuances outstanding under this program. Principal Life does not anticipate any new issuance activity under either of these programs due to the existence of the program established in 2011 described below.

In addition, Principal Life was authorized to issue up to $7.0 billion of funding agreements under a program established in 2001 to support the prospective issuance of medium term notes by an unaffiliated entity in both domestic and international markets. The unaffiliated entity is an unconsolidated special purpose entity. As of both December 31, 2021 and 2020, $201.8 million of liabilities were being held with respect to issuances outstanding under this program. Principal Life does not anticipate any new issuance activity under this program, given our December 2005 termination of the dealership agreement for this program and the availability of the program established in 2011 described below.

Additionally, Principal Life was authorized to issue up to $5.0 billion of funding agreements under a program that was originally established in 2011 to support the prospective issuance of medium term notes by an unaffiliated entity in both domestic and international markets. The unaffiliated entity is an unconsolidated special purpose entity. In June 2015, this program was amended to authorize issuance of up to an additional $4.0 billion in recognition of the use of nearly all $5.0 billion of existing issuance authorization. In November 2017, this program was amended to authorize issuance of up to an additional $4.0 billion. In February 2021, this program was amended to authorize issuance of up to an additional $4.0 billion. As of December 31, 2021 and 2020, $7,156.3 million and $4,755.8 million, respectively, of liabilities were being held with respect to issuances outstanding under this program. Principal Life’s payment obligations on each funding agreement issued under this program are guaranteed by PFG. The program established in 2011 is not registered with the United States Securities and Exchange Commission (“SEC”).

The liability for unpaid claims is reported in future policy benefits and claims within our consolidated statements of financial position. Activity associated with unpaid claims was as follows:

Incurred liability adjustments relating to prior years, which affected current operations during 2021, 2020 and 2019, resulted in part from developed claims for prior years being different than were anticipated when the liabilities for unpaid claims were originally estimated. These trends have been considered in establishing the current year liability for unpaid claims.

The following tables present undiscounted information about claims development by incurral year, including separate information about incurred claims and paid claims net of reinsurance for the periods indicated. The tables also include information on incurred but not reported claims and the cumulative number of reported claims.

The tables present information for the number of years for which claims incurred typically remain outstanding, but do not exceed ten years. The data is disaggregated into groupings of claims with similar characteristics, such as duration of the claim payment period and average claim amount, and with consideration to the overall size of the groupings. Outstanding liabilities equal total net incurred claims less total net paid claims plus outstanding liabilities for net unpaid claims of prior years.

(1)	2012-2020 unaudited.

Dental, Vision, STD, Critical Illness and Accident Claims

Incurred

Cumulative

but not

number of

reported

Net incurred claims (1)

claims

December 31,

2020

2021

($ in millions)

Incurral year

2020

679.8

663.7

—

3,079,517

2021

826.0

49.2

3,564,753

Total net incurred claims

1,489.7

Net cumulative

paid claims (1)

December 31,

2020

2021

(in millions)

Incurral year

2020

609.5

663.2

2021

753.4

Total net paid claims

1,416.6

All outstanding liabilities for unpaid claims prior to 2020 net of reinsurance

—

Total outstanding liabilities for unpaid claims net of reinsurance

73.1

(1)	2020 unaudited.

Group Life Claims

Incurred

Cumulative

but not

number of

reported

Net incurred claims (1)

claims

December 31,

2020

2021

($ in millions)

Incurral year

2020

270.6

278.2

0.9

6,251

2021

317.6

27.3

6,274

Total net incurred claims

595.8

Net cumulative

paid claims (1)

December 31,

2020

2021

(in millions)

Incurral year

2020

219.3

276.5

2021

243.9

Total net paid claims

520.4

All outstanding liabilities for unpaid claims prior to 2020 net of reinsurance

4.8

Total outstanding liabilities for unpaid claims net of reinsurance

80.2

(1)	2020 unaudited.

Reconciliation of Unpaid Claims to Liability for Unpaid Claims

Our reconciliation of net outstanding liabilities for unpaid claims of short-duration contracts to the liability for unpaid claims follows:

December 31, 2021

Dental, Vision, STD,

LTD and Group Life

Critical Illness and

Waiver

Accident

Group Life

Consolidated

(in millions)

Net outstanding liabilities for unpaid claims

1,219.0

73.1

80.2

1,372.3

Reconciling items:

Reinsurance recoverable on unpaid claims

46.5

—

46.5

Impact of discounting

(208.0)

—

(208.0)

Liability for unpaid claims - short-duration contracts

1,057.5

73.1

80.2

1,210.8

Insurance contracts other than short-duration

1,448.6

Liability for unpaid claims

2,659.4

Claim Duration and Payout

Our historical average percentage of claims paid in each year from incurral was as follows:


	December 31, 2021 (1)
			Dental, Vision, STD,
	LTD and Group Life		Critical Illness and
Year	Waiver		Accident		Group Life
1	7.9	%	91.8	%	80.3	%
2	24.6		8.0		17.7
3	15.3
4	8.3
5	5.8
6	5.0
7	4.2
8	3.4
9	3.3
10	2.7

(1)	Unaudited.

Discounting

The following table provides the carrying amount of liabilities reported at present value for short-duration contract unpaid claims. We use a range of discount rates to derive the present value of the unpaid claims. The ranges of discount rates as well as the aggregate amount of discount deducted to derive the liabilities for unpaid claims and interest accretion recognized are also disclosed. Interest accretion is included in benefits, claims and settlement expenses within our consolidated statements of operations.


						Dental, Vision, STD,
	LTD and Group Life					Critical Illness and
	Waiver					Accident					Group Life

	($ in millions)
Carrying amount of liabilities for unpaid claims
December 31, 2021	$			1,057.5		$			73.1		$			80.2
December 31, 2020				1,047.6					70.4					54.1
Range of discount rates
December 31, 2021		2.8	-	7.0	%		—	-	—	%		—	-	—	%
December 31, 2020		2.8	-	7.0			—	-	—			—	-	—
Aggregate amount of discount
December 31, 2021	$			208.0		$			—		$			—
December 31, 2020				214.5					—					—
Interest accretion
For the year ended:
December 31, 2021	$			33.8		$			—		$			—
December 31, 2020				33.9					—					—
December 31, 2019				34.2					—					—