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Separate Account Balances | 9 Months Ended
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Sep. 30, 2025
Separate Account Balances |
Separate Account Balances | 7. Separate Account Balances The separate accounts are legally segregated and are not subject to claims that arise out of any of our other business. The client, rather than us, directs the investments and bears the investment risk of these funds. The separate account assets represent the fair value of funds that are separately administered by us for contracts with equity, real estate and fixed income investments and are presented as a summary total within the consolidated statements of financial position. An equivalent amount is reported as separate account liabilities, which represent the obligation to return the monies to the client. Refer to Note 17, Fair Value Measurements, for further information on the valuation methodologies. We receive fees for mortality, withdrawal and expense risks, as well as administrative, maintenance and investment advisory services that are included in the consolidated statements of operations. Net deposits, net investment income and realized and unrealized capital gains and losses of the separate accounts are not reflected in the consolidated statements of operations. The Retirement and Income Solutions segment offers variable annuity contracts that allow the policyholder to allocate deposits into various investment options in a separate account. The variable annuity contracts can also include GMWB riders and guaranteed minimum death benefit (“GMDB”) riders that are accounted for as MRBs. Retirement and Income Solutions also offers certain group annuity contracts that have separate accounts as an investment option. The Principal Asset Management segment offers certain retirement accumulation products in Latin America where the segregated funds and associated obligation to the client are consolidated as separate account assets and liabilities within the financial statements. We have determined that summary totals are the most meaningful presentation for these funds. The Benefits and Protection segment offers variable universal life products with separate account investment options. Refer to Note 10, Market Risk Benefits, for further information on the MRBs associated with the contracts mentioned above. As of September 30, 2025 and December 31, 2024, the separate accounts included a separate account valued at $78.9 million and $79.8 million, respectively, which primarily included shares of our stock that were allocated and issued to eligible participants of qualified employee benefit plans administered by us as part of the policy credits issued under our 2001 demutualization. These shares are included in both basic and diluted earnings per share calculations. In the consolidated statements of financial position, the separate account shares are recorded at fair value and are reported as separate account assets with a corresponding separate account liability. Changes in fair value of the separate account shares are reflected in both the separate account assets and separate account liabilities and do not impact our results of operations. Separate Account Assets The aggregate fair value of assets, by major investment category, supporting separate accounts were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, 2025 | ​ | December 31, 2024
​ | ​ | (in millions)
Fixed maturities: |  | ​ |  |  | ​ |
U.S. government and agencies | ​ | $ | 8,860.0 | ​ | $ | 7,537.1
Non-U.S. governments | ​ |  | 8,890.8 | ​ |  | 8,461.5
States and political subdivisions | ​ |  | 165.4 | ​ |  | 170.1
Corporate | ​ |  | 12,827.4 | ​ |  | 12,590.9
Residential mortgage-backed pass-through securities | ​ |  | 4,244.6 | ​ |  | 3,746.0
Commercial mortgage-backed securities | ​ |  | 305.0 | ​ |  | 201.4
Other debt obligations | ​ |  | 449.5 | ​ |  | 594.1
Total fixed maturities | ​ |  | 35,742.7 | ​ |  | 33,301.1
Equity securities | ​ |  | 138,191.3 | ​ |  | 126,575.0
Real estate | ​ |  | 444.9 | ​ |  | 441.3
Other investments | ​ |  | 8,886.4 | ​ |  | 8,160.2
Cash and cash equivalents | ​ |  | 4,812.1 | ​ |  | 4,021.7
Other assets | ​ |  | 1,174.1 | ​ |  | 827.8
Total separate account assets per consolidated statements of financial position | ​ | $ | 189,251.5 | ​ | $ | 173,327.1
​ Separate Account Liabilities The following tables summarize disaggregated separate account liability amounts and reconcile the totals to separate account liabilities reported in the consolidated statements of financial position. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2025 |  | December 31, 2024
​ | ​ | (in millions)
Retirement and Income Solutions: |  | ​ |  |  | ​ |
Group retirement contracts | ​ | $ | 135,296.5 | ​ | $ | 125,103.1
Individual variable annuities | ​ |  | 7,676.2 | ​ |  | 8,334.9
Total Retirement and Income Solutions | ​ |  | 142,972.7 | ​ |  | 133,438.0
Principal Asset Management – International Pension: | ​ |  | ​ | ​ |  |
Latin America: | ​ |  | ​ | ​ |  |
Pension | ​ |  | 38,300.6 | ​ |  | 32,802.2
Benefits and Protection - Life Insurance: | ​ |  | ​ | ​ |  |
Universal life | ​ |  | 7,668.9 | ​ |  | 6,806.7
Other balances (1) | ​ |  | 309.3 | ​ |  | 280.2
Total separate account liabilities per consolidated statements of financial position | ​ | $ | 189,251.5 | ​ | $ | 173,327.1
(1) | Includes insignificant balances for long-duration contracts.
Retirement and Income Solutions The balances and the changes in separate account liabilities were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | For the nine months ended |  | For the year ended
​ | ​ | September 30, 2025 | ​ | December 31, 2024
​ | ​ | Group | ​ | Individual | ​ | Group | ​ | Individual
​ | ​ | retirement | ​ | variable | ​ | retirement | ​ | variable
​ |  | contracts |  | annuities |  | contracts |  | annuities
​ | ​ | (in millions)
Balance at beginning of period | ​ | $ | 125,103.1 | ​ | $ | 8,334.9 | ​ | $ | 117,518.5 | ​ | $ | 9,131.9
Premiums and deposits (1) | ​ |  | 11,249.3 | ​ | ​ | 122.9 | ​ |  | 16,573.1 | ​ |  | 344.5
Policy charges | ​ |  | (261.4) | ​ | ​ | (126.7) | ​ |  | (365.6) | ​ |  | (197.6)
Surrenders, withdrawals and benefit payments (1) | ​ |  | (12,155.7) | ​ | ​ | (1,357.0) | ​ |  | (19,191.4) | ​ |  | (1,977.7)
Investment performance | ​ |  | 13,266.6 | ​ | ​ | 721.2 | ​ |  | 14,632.1 | ​ |  | 1,079.0
Net transfers (to) from general account (1) | ​ |  | (1,870.7) | ​ | ​ | (19.1) | ​ |  | (4,148.3) | ​ |  | (2.1)
Other (2) | ​ |  | (34.7) | ​ | ​ | — | ​ |  | 84.7 | ​ |  | (43.1)
Balance at end of period | ​ | $ | 135,296.5 | ​ | $ | 7,676.2 | ​ | $ | 125,103.1 | ​ | $ | 8,334.9
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash surrender value (3) | ​ | $ | 134,152.0 | ​ | $ | 7,571.7 | ​ | $ | 123,965.4 | ​ | $ | 8,219.1
(1) | Within the policyholder account balances rollforwards in Note 8, Contractholder Funds, amounts in these lines for Individual variable annuities and Workplace savings and retirement solutions included in Group retirement contracts are reflected in net transfers from (to) separate account.
(2) | Includes amounts to be settled between the separate account and general account due to the timing of trade settlements as of the reporting date.
(3) | Cash surrender value represents the amount of the contractholders’ account balances distributable at the end of the reporting period less surrender charges.
Principal Asset Management – International Pension The balances and the changes in separate account liabilities for Latin America – Pension were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | For the nine months ended | ​ | For the year ended
​ |  | September 30, 2025 |  | December 31, 2024
​ |  | (in millions)
Balance at beginning of period | ​ | $ | 32,802.2 | ​ | $ | 34,580.6
Premiums and deposits | ​ |  | 2,573.5 | ​ |  | 3,347.7
Policy charges | ​ |  | (13.0) | ​ |  | (16.6)
Surrenders, withdrawals and benefit payments | ​ |  | (2,934.7) | ​ |  | (3,638.0)
Investment performance | ​ |  | 4,751.9 | ​ |  | 2,890.1
Other | ​ |  | 7.3 | ​ |  | 22.8
Foreign currency translation adjustment | ​ |  | 1,113.4 | ​ |  | (4,384.4)
Balance at end of period | ​ | $ | 38,300.6 | ​ | $ | 32,802.2
​ | ​ | ​ | ​ | ​ | ​ | ​
Cash surrender value | ​ | $ | 38,300.6 | ​ | $ | 32,802.2
​ Benefits and Protection The balances and the changes in separate account liabilities for Life Insurance – Universal life were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the nine months ended | ​ | For the year ended
​ |  | September 30, 2025 |  | December 31, 2024
​ | ​ | (in millions)
Balance at beginning of period | ​ | $ | 6,806.7 |  | $ | 5,982.5
Premiums and deposits (1) | ​ | ​ | 455.1 | ​ |  | 557.2
Policy charges | ​ | ​ | (101.6) | ​ |  | (132.7)
Surrenders, withdrawals and benefit payments (1) | ​ | ​ | (306.5) | ​ |  | (492.2)
Investment performance | ​ | ​ | 814.2 | ​ |  | 880.5
Net transfers (to) from general account (1) | ​ | ​ | 1.0 | ​ |  | 11.4
Balance at end of period | ​ | $ | 7,668.9 | ​ | $ | 6,806.7
​ | ​ | ​ | ​ | ​ | ​ | ​
Cash surrender value (2) | ​ | $ | 7,742.2 | ​ | $ | 6,869.5
(1) | Within the policyholder account balances rollforwards in Note 8, Contractholder Funds, amounts in these lines are reflected in net transfers from (to) separate account.
(2) | Cash surrender value represents the amount of the contractholders’ account balances distributable at the end of the reporting period less surrender charges. Certain products include surrender value enhancement riders that result in cash surrender values greater than account balances.

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- Definition The entire disclosure for separate account. Includes, but is not limited to, extent and terms of minimum guarantee. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 80 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480109/944-80-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -SubTopic 80 -Topic 944 -Publisher FASB -URI https://asc.fasb.org/944-80/tableOfContent + Details
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