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

For the three months ended March 31, 2025

Beginning

Net

Ending

asset/

Total realized/unrealized

purchases,

asset/

(liability)

gains (losses)

sales,

(liability)

balance

Included in

issuances

balance

as of

Included in

other

and

Transfers

as of

January 1,

net income

comprehensive

settlements

into

out of

March 31,

2025

(2)

income (3)

(4)

Level 3

2025

(in millions)

Assets

Fixed maturities, available-for-sale:

States and political subdivisions

$

66.8

$

—

$

2.3

$

(0.5)

$

—

$

—

$

68.6

Corporate

2,350.4

2.9

(5.2)

71.2

—

2,419.3

Commercial mortgage-backed securities

2.7

—

0.1

(0.2)

—

2.6

Other debt obligations

1,478.3

0.1

2.9

3.2

—

(24.8)

1,459.7

Total fixed maturities, available-for-sale

3,898.2

3.0

0.1

73.7

—

(24.8)

3,950.2

Fixed maturities, trading

562.6

(0.7)

—

14.0

—

(4.8)

571.1

Mortgage loans

140.6

—

(140.6)

—

Other investments

131.2

2.7

—

(15.3)

—

118.6

Separate account assets (1)

726.7

11.5

—

738.2

Liabilities

Investment and universal life contracts

(578.4)

193.4

—

(137.7)

—

(522.7)

Funds withheld payable embedded derivative

3,014.5

(209.7)

—

2,804.8

Derivatives

Net derivative assets (liabilities)

13.5

(16.7)

—

1.3

—

0.1

(1.8)


	For the three months ended March 31, 2024
	Beginning						Net						Ending
	asset/		Total realized/unrealized				purchases,						asset/
	(liability)		gains (losses)				sales,						(liability)
	balance				Included in		issuances						balance
	as of		Included in		other		and		Transfers		Transfers		as of
	January 1,		net income		comprehensive		settlements		into		out of		March 31,
	2024		(2)		income (3)		(4)		Level 3		Level 3		2024

	(in millions)
Assets
Fixed maturities, available-for-sale:
States and political subdivisions	$	69.9	$	—	$	(1.3)	$	(0.4)	$	—	$	—	$	68.2
Corporate		2,305.9		(5.2)		(11.2)		(126.4)		39.5		—		2,202.6
Commercial mortgage-backed securities		3.0		—		—		(0.1)		—		—		2.9
Collateralized debt obligations		75.4		—		(1.7)		25.7		—		—		99.4
Other debt obligations		1,182.6		—		(7.3)		22.7		80.0		(111.6)		1,166.4
Total fixed maturities, available-for-sale		3,636.8		(5.2)		(21.5)		(78.5)		119.5		(111.6)		3,539.5
Fixed maturities, trading		415.8		(3.5)		—		57.9		—		—		470.2
Other investments		165.1		(5.3)		—		6.0		—		—		165.8
Separate account assets (1)		752.8		(26.3)		—		(0.9)		—		—		725.6

Liabilities
Investment and universal life contracts		(115.5)		(43.4)		—		(15.8)		—		—		(174.7)
Funds withheld payable embedded derivative		2,567.1		197.0		—		—		—		—		2,764.1

Derivatives
Net derivative assets (liabilities)		5.5		(5.0)		—		0.4		—		—		0.9

(1)

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 Asset Management separate account assets are recorded in AOCI and are offset by foreign currency translation adjustments of the corresponding separate account liabilities.

(2)

Both realized gains (losses) and mark-to-market unrealized gains (losses) are generally reported in net realized capital gains (losses), net realized capital gains (losses) on funds withheld assets or change in fair value of funds withheld embedded derivative 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. Changes in unrealized gains (losses) included in net income relating to positions still held were:


	For the three months ended March 31,
	2025		2024

	(in millions)
Assets
Fixed maturities, available-for-sale:
Corporate	$	6.4	$	(3.6)
Total fixed maturities, available-for-sale		6.4		(3.6)
Fixed maturities, trading		(0.2)		(3.7)
Other investments		4.6		(3.4)
Separate account assets		(6.6)		(33.3)

Liabilities
Investment and universal life contracts		193.6		(44.5)
Funds withheld payable embedded derivative		(209.7)		197.0

Derivatives
Net derivative assets (liabilities)		(18.5)		(4.5)

(3)	Changes in unrealized gains (losses) included in OCI, including foreign currency translation adjustments related to Principal Asset Management, relating to positions still held were:


	For the three months ended March 31,
	2025		2024

	(in millions)
Assets
Fixed maturities, available-for-sale:
States and political subdivisions	$	2.3	$	(1.3)
Corporate		(5.2)		(12.6)
Commercial mortgage-backed securities		0.1		—
Collateralized debt obligations		—		(1.7)
Other debt obligations		3.1		(7.3)
Total fixed maturities, available-for-sale		0.3		(22.9)

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

For the three months ended March 31, 2025

Net purchases,

sales, issuances

Purchases

Sales

Issuances

Settlements

and settlements

(in millions)

Assets

Fixed maturities, available-for-sale:

States and political subdivisions

$

—

$

—

$

—

$

(0.5)

$

(0.5)

Corporate

235.2

(130.0)

—

(34.0)

71.2

Commercial mortgage-backed securities

—

(0.2)

Other debt obligations

224.7

(177.7)

—

(43.8)

3.2

Total fixed maturities, available-for-sale

459.9

(307.7)

—

(78.5)

73.7

Fixed maturities, trading

64.3

(44.8)

—

(5.5)

14.0

Mortgage loans

—

(140.6)

Other investments

21.3

(1.5)

—

(35.1)

(15.3)

Liabilities

Investment and universal life contracts

—

(153.9)

16.2

(137.7)

Derivatives

Net derivative assets (liabilities)

0.7

0.6

—

1.3


	For the three months ended March 31, 2024
									Net purchases,
									sales, issuances
	Purchases		Sales		Issuances		Settlements		and settlements

	(in millions)
Assets
Fixed maturities, available-for-sale:
States and political subdivisions	$	—	$	—	$	—	$	(0.4)	$	(0.4)
Corporate		135.5		(221.1)		—		(40.8)		(126.4)
Commercial mortgage-backed securities		—		—		—		(0.1)		(0.1)
Collateralized debt obligations		25.7		—		—		—		25.7
Other debt obligations		105.3		(59.1)		—		(23.5)		22.7
Total fixed maturities, available-for-sale		266.5		(280.2)		—		(64.8)		(78.5)
Fixed maturities, trading		187.3		(97.0)		—		(32.4)		57.9
Other investments		51.9		—		—		(45.9)		6.0
Separate account assets (5)		—		(30.3)		(9.6)		39.0		(0.9)

Liabilities
Investment and universal life contracts		—		—		(33.8)		18.0		(15.8)

Derivatives
Net derivative assets (liabilities)		0.2		0.2		—		—		0.4

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

Quantitative Information about Level 3 Fair Value Measurements (Table)


	March 31, 2025
	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:
Corporate	$	1,802.6	Discounted cash flow	Discount rate (1)	3.3	% -	13.7	%	8.0	%
				Earnings before interest, taxes, depreciation and amortization multiple	1.1	x -	1.5	x	1.2	x
				Illiquidity premium	30	basis points (“bps”) -	791	bps	146	bps
				Comparability adjustment	(68)	bps -	1,984	bps	109	bps
Other debt obligations		1,457.1	Discounted cash flow	Discount rate (1)	3.7	% -	8.5	%	4.6	%
				Illiquidity premium	(83)	bps -	260	bps	140	bps
				Comparability adjustment	(19)	bps -	415	bps	139	bps
Fixed maturities, trading		301.7	Discounted cash flow	Discount rate (1)	9.4	% -	13.0	%	10.0	%
				Earnings before interest, taxes, depreciation and amortization multiple			1.1	x	1.1	x
				Comparability adjustment	(68)	bps -	457	bps	89	bps
Other investments		116.8	Discounted cash flow	Discount rate (1)	11.5	% -	13.5	%	12.3	%
				Probability of default	6.0	% -	10.0	%	8.1	%
				Potential loss severity	87.0	% -	100.0	%	92.2	%
Separate account assets		738.2	Discounted cash flow - real estate	Discount rate (1)	7.0	% -	10.5	%	7.2	%
				Terminal capitalization rate	5.5	% -	9.5	%	6.0	%
				Average market rent growth rate	1.8	% -	5.9	%	2.8	%
			Discounted cash flow - real estate debt	Loan to value	46.4	% -	69.5	%	57.5	%
				Market interest rate	5.1	% -	6.8	%	5.7	%


Liabilities
Investment and universal life contracts (4)	(522.7)	Discounted cash flow	Long duration interest rate	3.1	% -	4.6	%	(2)	4.6	%
			Long-term equity market volatility	14.3	% -	28.3	%		18.3	%
			Nonperformance risk	0.5	% -	1.2	%		1.0	%
			Lapse rate	0.0	% -	55.0	%		8.5	%
			Mortality rate	See note (3)


	December 31, 2024
	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:
Corporate	$	1,817.8	Discounted cash flow	Discount rate (1)		2.1	% -	12.7	%	8.0	%
				Earnings before interest, taxes, depreciation and amortization multiple		1.1	x -	1.7	x	1.3	x
				Illiquidity premium		30	bps -	791	bps	142	bps
				Comparability adjustment		(42)	bps -	2,947	bps	149	bps
Other debt obligations		1,343.1	Discounted cash flow	Discount rate (1)		4.9	% -	7.7	%	5.4	%
				Illiquidity premium		(83)	bps -	260	bps	120	bps
				Comparability adjustment		(19)	bps -	415	bps	128	bps
Fixed maturities, trading		289.6	Discounted cash flow	Discount rate (1)		9.5	% -	13.0	%	9.9	%
				Earnings before interest, taxes, depreciation and amortization multiple				1.1	x	1.1	x
				Comparability adjustment		(32)	bps -	2,947	bps	152	bps
Other investments		129.0	Discounted cash flow	Discount rate (1)		11.5	% -	13.5	%	12.4	%
				Probability of default		6.0	% -	10.0	%	8.1	%
				Potential loss severity		87.0	% -	100.0	%	92.0	%
Separate account assets		726.7	Discounted cash flow - real estate	Discount rate (1)		7.0	% -	11.0	%	7.2	%
				Terminal capitalization rate		5.5	% -	9.5	%	6.0	%
				Average market rent growth rate		2.0	% -	4.5	%	2.7	%
			Discounted cash flow - real estate debt	Loan to value		46.4	% -	69.5	%	59.2	%
				Market interest rate		4.9	% -	7.2	%	6.1	%


Liabilities
Investment and universal life contracts (4)	(578.4)	Discounted cash flow	Long duration interest rate	3.0	% -	4.9	%	(2)	4.8	%
			Long-term equity market volatility	14.5	% -	49.3	%		21.4	%
			Nonperformance risk	0.4	% -	1.1	%		0.8	%
			Lapse rate	0.0	% -	55.0	%		8.5	%
			Mortality rate	See note (3)

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

(4)	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.

Financial Instruments Not Reported at Fair Value (Table)

March 31, 2025

Fair value hierarchy level

Carrying amount

Fair value

Level 1

Level 2

Level 3

(in millions)

Assets (liabilities)

Mortgage loans

$

20,260.6

$

18,726.8

$

—

$

—

$

18,726.8

Policy loans

875.7

915.2

—

915.2

Other investments

292.3

286.6

—

119.3

167.3

Cash and cash equivalents

1,285.9

1,263.1

22.8

—

Reinsurance deposit receivable

4,699.9

4,313.1

—

4,313.1

Cash collateral receivable

7.4

—

Investment contracts

(34,030.4)

(33,136.1)

—

(8,300.0)

(24,836.1)

Short-term debt

(28.9)

—

(28.9)

—

Long-term debt

(4,321.3)

(4,134.6)

—

(4,132.1)

(2.5)

Separate account liabilities

(156,544.1)

(155,640.1)

—

(155,640.1)

Bank deposits (1)

(440.9)

(442.0)

—

(442.0)

—

Cash collateral payable

(402.8)

—


	December 31, 2024
					Fair value hierarchy level
	Carrying amount		Fair value		Level 1		Level 2		Level 3

	(in millions)
Assets (liabilities)
Mortgage loans	$	20,343.6	$	18,466.5	$	—	$	—	$	18,466.5
Policy loans		867.5		879.3		—		—		879.3
Other investments		294.9		292.4		—		127.5		164.9
Cash and cash equivalents		1,261.4		1,261.4		1,238.5		22.9		—
Reinsurance deposit receivable		4,897.5		4,401.9		—		—		4,401.9
Cash collateral receivable		3.0		3.0		3.0		—		—
Investment contracts		(34,140.3)		(32,922.2)		—		(8,306.5)		(24,615.7)
Short-term debt		(152.7)		(152.7)		—		(152.7)		—
Long-term debt		(3,933.5)		(3,715.7)		—		(3,713.2)		(2.5)
Separate account liabilities		(157,939.3)		(157,010.7)		—		—		(157,010.7)
Bank deposits (1)		(440.4)		(442.1)		—		(442.1)		—
Cash collateral payable		(428.9)		(428.9)		(428.9)		—		—

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