Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

Segment Information

Reconciliation of Assets from Segment to Consolidated (Table)

	June 30, 2020		December 31, 2019
	(in millions)
Assets:
Retirement and Income Solutions	$	191,053.8	$	192,698.1
Principal Global Investors		2,197.2		2,363.3
Principal International		45,381.9		48,857.6
U.S. Insurance Solutions		29,745.6		28,669.6
Corporate		2,930.9		3,499.2
Total consolidated assets	$	271,309.4	$	276,087.8

Reconciliation of Operating Revenues and Pre-tax Operating Earnings (Losses) by Segment (Table)

	For the three months ended				For the six months ended
	June 30,				June 30,
	2020		2019		2020		2019
	(in millions)
Operating revenues by segment:
Retirement and Income Solutions:
Retirement and Income Solutions – Fee	$	509.4	$	450.5	$	1,052.5	$	881.3
Retirement and Income Solutions – Spread		970.6		1,709.1		3,033.2		3,170.2
Total Retirement and Income Solutions (1)		1,480.0		2,159.6		4,085.7		4,051.5
Principal Global Investors (2)		352.9		359.5		743.7		698.5
Principal International		276.4		411.6		576.9		792.1
U.S. Insurance Solutions:
Specialty Benefits insurance		627.0		625.8		1,266.0		1,227.6
Individual Life insurance		461.2		461.6		945.5		927.9
Eliminations		(0.1)		(0.1)		(0.1)		(0.1)
Total U.S. Insurance Solutions		1,088.1		1,087.3		2,211.4		2,155.4
Corporate		(16.3)		(15.8)		(7.0)		(14.6)
Total segment operating revenues		3,181.1		4,002.2		7,610.7		7,682.9
Net realized capital gains (losses), net of related revenue adjustments		(56.2)		(13.2)		73.8		70.5
Adjustments related to equity method investments		(10.3)		(16.4)		(18.6)		(36.9)
Total revenues per consolidated statements of operations	$	3,114.6	$	3,972.6	$	7,665.9	$	7,716.5
Pre-tax operating earnings (losses) by segment:
Retirement and Income Solutions	$	213.9	$	256.2	$	419.0	$	496.8
Principal Global Investors		108.4		115.6		220.1		216.3
Principal International		94.5		93.2		125.3		204.3
U.S. Insurance Solutions		155.0		146.3		284.5		257.0
Corporate		(84.0)		(98.1)		(175.1)		(182.5)
Total segment pre-tax operating earnings		487.8		513.2		873.8		991.9
Pre-tax net realized capital gains (losses), as adjusted (3)		18.4		(48.6)		(51.0)		17.0
Adjustments related to equity method investments and noncontrolling interest		(7.6)		(14.3)		4.0		(32.6)
Income before income taxes per consolidated statements of operations	$	498.6	$	450.3	$	826.8	$	976.3

(1) Reflects inter-segment revenues of $77.6 million and $88.5 million for the three months ended June 30, 2020 and 2019, respectively, $161.6 million and $174.2 million for the six months ended June 30, 2020 and 2019, respectively.

(2) Reflects inter-segment revenues of $62.4 million and $66.2 million for the three months ended June 30, 2020 and 2019, respectively, $135.1 million and $127.7 million for the six months ended June 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 six months ended
	June 30,				June 30,
	2020		2019		2020		2019
	(in millions)
Net realized capital gains (losses):
Net realized capital gains (losses)	$	(27.4)	$	(4.0)	$	104.0	$	80.5
Derivative and hedging-related revenue adjustments		(35.1)		(21.4)		(48.7)		(32.9)
Adjustments related to equity method investments		2.3		1.2		(5.1)		0.8
Adjustments related to sponsored investment funds		3.5		6.8		7.4		14.8
Recognition of front-end fee revenue		0.5		4.2		16.2		7.3
Net realized capital gains (losses), net of related revenue adjustments		(56.2)		(13.2)		73.8		70.5
Amortization of deferred acquisition costs and other actuarial balances		89.6		(29.1)		(129.8)		(45.5)
Capital (gains) losses distributed		(15.4)		(15.2)		28.0		(23.9)
Market value adjustments of embedded derivatives		0.4		8.9		(23.0)		15.9
Pre-tax net realized capital gains (losses), as adjusted (a)	$	18.4	$	(48.6)	$	(51.0)	$	17.0

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