Disaggregated Future Policy Benefits and Claims amounts and reconciliation (Table)


	December 31, 2023		December 31, 2022

	(in millions)
Liability for future policy benefits by segment (1):
Retirement and Income Solutions:
Pension risk transfer	$	23,855.8	$	21,211.4
Individual fixed income annuities		4,914.1		5,019.4
Total Retirement and Income Solutions		28,769.9		26,230.8
Principal Asset Management – Principal International:
Latin America:
Individual fixed income annuities		4,593.7		5,042.3
Benefits and Protection:
Specialty Benefits:
Individual disability		1,898.4		1,698.8
Life Insurance:
Term life		1,085.9		909.0
Total Benefits and Protection		2,984.3		2,607.8
Corporate:
Long-term care insurance		166.7		183.5
Total liability for future policy benefits		36,514.6		34,064.4

Additional liability for certain benefit features by segment (2):
Benefits and Protection – Life Insurance:
Universal life		5,326.5		4,095.2
Total additional liability for certain benefit features		5,326.5		4,095.2

Reconciling items:
Participating contracts		3,060.5		3,207.2
Short-duration contracts		1,283.4		1,295.6
Cost of reinsurance liability		424.6		479.8
Reinsurance recoverable liability		45.2		39.4
Other (3)		171.7		132.4
Future policy benefits and claims per consolidated statements of financial position	$	46,826.5	$	43,314.0

(1)	Amounts include the deferred profit liability.

(2)	Includes reserves on certain long-duration contracts where benefit features result in gains in early years followed by losses in later years.

(3)	Includes other miscellaneous reserves and the impact of unrealized gains (losses) on the additional liability for certain benefit features.

Schedule of Liability for Unpaid Claims (Table)


	For the year ended December 31,
	2023		2022		2021

	(in millions)
Balance at beginning of year	$	1,395.0	$	1,370.9	$	1,686.0
Less: reinsurance recoverable		68.6		68.7		436.9
Net balance at beginning of year		1,326.4		1,302.2		1,249.1
Incurred:
Current year		1,650.4		1,581.8		1,505.1
Prior years		(95.4)		(44.4)		(35.4)
Total incurred		1,555.0		1,537.4		1,469.7
Payments:
Current year		1,189.2		1,138.0		1,067.8
Prior years		354.1		375.2		348.8
Total payments		1,543.3		1,513.2		1,416.6
Net balance at end of year		1,338.1		1,326.4		1,302.2
Plus: reinsurance recoverable		67.8		68.6		68.7
Balance at end of year	$	1,405.9	$	1,395.0	$	1,370.9

Claim Duration and Payout (Table)


	December 31, 2023 (1)
			Dental, Vision, STD,
			Critical Illness,
	LTD and Group Life		Accident, Hospital
Year	Waiver		Indemnity and PFML		Group Life
1	8.1	%	92.1	%	78.9	%
2	25.0		7.9		18.8
3	15.4
4	8.2
5	5.8
6	5.2
7	4.5
8	3.5
9	3.0
10	2.6

(1)	Unaudited.

Summary of gross premiums or assessments and interest accretion recognized by segment (Table)


	Gross premiums or assessments (1)						Interest accretion (2)
	For the year ended						For the year ended
	December 31,						December 31,
	2023		2022		2021		2023		2022		2021

	(in millions)
Retirement and Income Solutions:
Pension risk transfer	$	2,905.9	$	1,941.0	$	1,800.1	$	1,008.6	$	935.7	$	916.7
Individual fixed income annuities		42.5		30.1		83.5		219.1		229.7		240.5
Total Retirement and Income Solutions		2,948.4		1,971.1		1,883.6		1,227.7		1,165.4		1,157.2
Principal Asset Management – Principal International:
Latin America:
Individual fixed income annuities (3)		29.7		78.8		128.9		385.8		662.0		444.3
Benefits and Protection:
Specialty Benefits:
Individual disability		624.6		601.0		574.1		94.5		90.2		85.6
Life Insurance:
Universal life		681.8		577.7		621.0		209.2		171.2		158.3
Term life		649.1		630.5		619.4		48.2		43.9		43.2
Total Benefits and Protection		1,955.5		1,809.2		1,814.5		351.9		305.3		287.1
Corporate:
Long-term care insurance		5.1		5.2		5.2		9.6		9.8		9.5
Total per consolidated statements of operations	$	4,938.7	$	3,864.3	$	3,832.2	$	1,975.0	$	2,142.5	$	1,898.1

(1)

Gross premiums are included within premiums and other considerations on the consolidated statements of operations. Assessments, which are only applicable to the Life Insurance – Universal life level of aggregation, are included within fees and other revenues on the consolidated statements of operations.

(2)	Interest accretion is included within benefits, claims and settlement expenses on the consolidated statements of operations.

(3)	Includes inflation adjustments included within the liability for future policy benefits rollforward for interest accretion.

Summary of balances and the changes in the additional liability for certain benefits features (Table)

Benefits and Protection

The balances and changes in the additional liability for certain benefits features for 2021 for Life Insurance – Universal life were as follows:


	For the year ended,
	December 31, 2021
	(in millions)
Balance at beginning of period	$	3,463.9
Effect of changes in cash flow assumptions		(11.1)
Effect of actual variances from expected experience		18.1
Interest accrual		158.3
Net assessments collected		324.7
Benefit payments		(83.1)
Other (1)		(56.6)
Balance at end of period	$	3,814.2

(1)	Reflects model refinements accounted for as a change in accounting estimate.

Summary of weighted-average rates of interest accretion and current discount (Table)


	Interest accretion rate				Current discount rate
	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Retirement and Income Solutions:
Pension risk transfer	4.52	%	4.38	%	4.99	%	5.31	%
Individual fixed income annuities	4.22	%	4.22	%	4.97	%	5.30	%
Principal Asset Management – Principal
International (1):
Latin America:
Individual fixed income annuities	4.22	%	4.24	%	3.23	%	2.43	%
Benefits and Protection:
Specialty Benefits:
Individual disability	3.96	%	4.03	%	5.05	%	5.36	%
Life Insurance:
Universal life	4.75	%	4.73	%	See note (2)		See note (2)
Term life	4.83	%	4.89	%	4.90	%	5.22	%
Corporate:
Long-term care insurance	6.16	%	6.16	%	5.01	%	5.34	%

(1)	The interest accretion rate and current discount rate are Chilean real rates, excluding inflation, in the local currency.

(2)	The additional liability for certain benefit features for Life Insurance – Universal life is measured using the discount rate at contract inception. Therefore, the current discount rate is not applicable for this product.

Future Policy Benefits and Claims

Claims Development (Table)

Incurred

Cumulative

but not

number of

reported

Net incurred claims (1)

claims

December 31,

2022

2023

($ in millions)

Incurral year

2022

$

924.4

$

910.6

$

—

4,317,802

2023

1,032.3

57.1

4,566,920

Total net incurred claims

$

1,942.9

Net cumulative

paid claims (1)

December 31,

2022

2023

(in millions)

Incurral year

2022

$

845.5

$

909.8

2023

954.0

Total net paid claims

1,863.8

All outstanding liabilities for unpaid claims prior to 2022 net of reinsurance

—

Total outstanding liabilities for unpaid claims net of reinsurance

$

79.1

(1)	2022 unaudited.

Future Policy Benefits and Claims

Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits expected future policy benefits (Table)

For the year ended

December 31, 2023

December 31, 2022

Pension

Individual

Pension

Individual

risk

fixed income

risk

fixed income

transfer

annuities

transfer

annuities

($ in millions)

Present value of expected future policy benefit payments

Balance at beginning of period

$

21,211.4

$

5,019.4

$

25,365.8

$

6,535.0

Effect of changes in discount rate assumptions at beginning of period

1,799.6

439.0

(3,386.5)

(812.6)

Balance at beginning of period at original discount rate

23,011.0

5,458.4

21,979.3

5,722.4

Effect of changes in cash flow assumptions

(53.4)

(1.3)

(7.9)

(3.0)

Effect of actual variances from expected experience

(14.6)

(0.1)

(3.2)

—

Adjusted beginning of period balance at original discount rate

22,943.0

5,457.0

21,968.2

5,719.4

Interest accrual

1,008.6

219.1

935.7

229.7

Benefit payments

(1,981.4)

(507.3)

(1,841.7)

(520.4)

Issuances

2,921.7

42.0

1,948.8

29.7

Balance at end of period at original discount rate

24,891.9

5,210.8

23,011.0

5,458.4

Effect of changes in discount rate assumptions at end of period

(1,036.1)

(296.7)

(1,799.6)

(439.0)

Future policy benefits

23,855.8

4,914.1

21,211.4

5,019.4

Reinsurance impact

—

(4,869.1)

—

(5,002.7)

Future policy benefits after reinsurance

$

23,855.8

$

45.0

$

21,211.4

$

16.7

Weighted-average duration for future policy benefits (years) (1)

8.5

7.9

8.5

7.9

(1)	Represents the average of the cohort-level duration of the benefit cash flows weighted by the reserve balance for each cohort.

Future Policy Benefits and Claims

Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits expected future policy benefits (Table)


	For the year ended		For the year ended
	December 31, 2023		December 31, 2022

	($ in millions)
Present value of expected future policy benefit payments
Balance at beginning of period	$	5,042.3	$	4,336.8
Effect of changes in discount rate assumptions at beginning of period		(754.6)		(478.5)
Balance at beginning of period at original discount rate		4,287.7		3,858.3
Effect of actual variances from expected experience		0.9		(4.7)
Adjusted beginning of period balance at original discount rate		4,288.6		3,853.6
Interest accrual (1)		385.8		662.0
Benefit payments		(355.9)		(325.8)
Issuances		30.0		86.4
Foreign currency translation adjustment		(106.6)		11.5
Balance at end of period at original discount rate		4,241.9		4,287.7
Effect of changes in discount rate assumptions at end of period		351.8		754.6
Future policy benefits	$	4,593.7	$	5,042.3

Weighted-average duration for future policy benefits (years) (2)		9.9		10.9

(1)	Includes inflation adjustments.

(2)	Represents the average of the cohort-level duration of the benefit cash flows weighted by the reserve balance for each cohort.

Future Policy Benefits and Claims