|
| For the three months ended March 31, |
| ||||
|
| 2016 |
| 2015 |
| ||
|
| (in millions) |
| ||||
Operating revenues by segment: |
|
|
|
|
| ||
Retirement and Income Solutions: |
|
|
|
|
| ||
Retirement and Income Solutions – Fee |
| $ | 413.3 |
| $ | 437.7 |
|
Retirement and Income Solutions – Spread |
| 1,050.7 |
| 686.8 |
| ||
|
|
|
|
|
| ||
Total Retirement and Income Solutions (1) |
| 1,464.0 |
| 1,124.5 |
| ||
Principal Global Investors (2) |
| 309.5 |
| 328.9 |
| ||
Principal International |
| 286.6 |
| 250.8 |
| ||
U.S. Insurance Solutions: |
|
|
|
|
| ||
Specialty benefits insurance |
| 482.9 |
| 466.3 |
| ||
Individual life insurance |
| 408.0 |
| 395.4 |
| ||
|
|
|
|
|
| ||
Total U.S. Insurance Solutions |
| 890.9 |
| 861.7 |
| ||
Corporate |
| (13.1) |
| (6.7) |
| ||
|
|
|
|
|
| ||
Total segment operating revenues |
| 2,937.9 |
| 2,559.2 |
| ||
Net realized capital gains, net of related revenue adjustments |
| 113.6 |
| 45.6 |
| ||
Certain adjustments related to equity method investments |
| (14.9) |
| (14.6) |
| ||
Other income on a tax indemnification |
| — |
| 66.9 |
| ||
Exited group medical insurance business |
| — |
| 0.2 |
| ||
|
|
|
|
|
| ||
Total revenues per consolidated statements of operations |
| $ | 3,036.6 |
| $ | 2,657.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Pre-tax operating earnings (losses) by segment: |
|
|
|
|
| ||
Retirement and Income Solutions |
| $ | 181.4 |
| $ | 202.9 |
|
Principal Global Investors |
| 79.7 |
| 92.6 |
| ||
Principal International |
| 68.0 |
| 80.8 |
| ||
U.S. Insurance Solutions |
| 80.5 |
| 81.9 |
| ||
Corporate |
| (53.3) |
| (37.3) |
| ||
|
|
|
|
|
| ||
Total segment pre-tax operating earnings |
| 356.3 |
| 420.9 |
| ||
Pre-tax net realized capital gains, as adjusted (3) |
| 96.8 |
| 33.5 |
| ||
Pre-tax other adjustments (4) |
| — |
| 16.6 |
| ||
Certain adjustments related to equity method investments and noncontrolling interest |
| (13.3) |
| (12.9) |
| ||
|
|
|
|
|
| ||
Income before income taxes per consolidated statements of operations |
| $ | 439.8 |
| $ | 458.1 |
|
|
|
|
|
|
|
|
|
(1) | Reflects inter-segment revenues of $89.2 million and $105.2 million for the three months ended March 31, 2016 and 2015, respectively. |
(2) | Reflects inter-segment revenues of $54.3 million and $60.4 million for the three months ended March 31, 2016 and 2015, respectively. |
(3) | Pre-tax net realized capital gains (losses), as adjusted, is derived as follows: |
|
| For the three months ended March 31, |
| ||||
|
| 2016 |
| 2015 |
| ||
|
| (in millions) |
| ||||
Net realized capital gains: |
|
|
|
|
| ||
Net realized capital gains |
| $ | 136.6 |
| $ | 66.2 |
|
Certain derivative and hedging-related adjustments |
| (24.3) |
| (19.7) |
| ||
Certain market value adjustments to fee revenues |
| (0.7) |
| (1.1) |
| ||
Certain adjustments related to equity method investments |
| 0.3 |
| — |
| ||
Certain adjustments related to sponsored investment funds |
| 1.4 |
| — |
| ||
Recognition of front-end fee expense |
| 0.3 |
| 0.2 |
| ||
|
|
|
|
|
| ||
Net realized capital gains, net of related revenue adjustments |
| 113.6 |
| 45.6 |
| ||
Amortization of deferred acquisition costs and other actuarial balances |
| (46.3) |
| (16.0) |
| ||
Capital losses distributed |
| 27.1 |
| 4.8 |
| ||
Certain market value adjustments of embedded derivatives |
| 2.4 |
| (0.9) |
| ||
|
|
|
|
|
| ||
Pre-tax net realized capital gains, as adjusted (a) |
| $ | 96.8 |
| $ | 33.5 |
|
|
|
|
|
|
|
|
|
(a) | As adjusted before noncontrolling interest capital gains (losses) and net realized capital gains (losses) associated with exited group medical insurance business. |
(4) | For the three months ended March 31, 2015, pre-tax other adjustments included the positive effect of the impact of a court ruling on some uncertain tax positions ($16.9 million) and the negative effect of losses associated with our exited group medical insurance business that did not qualify for discontinued operations accounting treatment under U.S. GAAP ($0.3 million). |