| Iowa (State or other jurisdiction of incorporation or organization) | | | 6311 (Primary Standard Industrial Classification Code Number) | | | 42-0127290 (I.R.S. Employer Identification Number) | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☐ | |
| | | | Emerging growth company ☐ | |
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Segment Options Available | | | Segment Terms Available ( Guaranteed Minimum Interest Rate) | | ||||||||||||
Crediting Method | | | Indices | | | Limits of Upside Gain (Rates) | | | 1-year Segment Term | | | 2-year Segment Term | | | 6-year Segment Term | |
Point-to-Point | | | S&P 500 (Price Return Index; SPX) | | | Participation Rate & Cap Rate* | | | 10% Buffer 20% Buffer 0% Floor 10% Floor | | | 10% Buffer | | | 10% Buffer 20% Buffer | |
Point-to-Point | | | Russell 2000 (Price Return Index; RTY) | | | Participation Rate & Cap Rate* | | | 10% Buffer | | | Not Available | | | 10% Buffer | |
Point-to-Point | | | MSCI EAFE (Price Return Index; MXEA) | | | Participation Rate & Cap Rate* | | | 10% Buffer | | | Not Available | | | 10% Buffer | |
Point-to-Point | | | SG Smart Climate Index (SGIXSMAC) | | | Participation Rate & Cap Rate* | | | Not Available | | | Not Available | | | 10% Buffer | |
Point-to-Point | | | S&P 500 (Price Return Index; SPX) | | | Participation Rate & Cap Rate* | | | 20% Buffer (Peak Buffer, with 10% Peak Buffer Midpoint) | | | Not Available | | | 20% Buffer (Peak Buffer, with 10% Peak Buffer Midpoint) | |
Fixed | | | Fixed Segment | | | Fixed Rate | | | 0.05% Guaranteed Minimum Interest Rate | | | Not Available | | | Not Available | |
Contract Year | | | Surrender Charge | | |||
1 | | | | | 8.00% | | |
2 | | | | | 8.00% | | |
3 | | | | | 7.00% | | |
4 | | | | | 6.00% | | |
5 | | | | | 5.00% | | |
6 | | | | | 4.00% | | |
7+ | | | | | 0.00% | | |
| Crediting Base | | | $ | 100,000.00 | | | Crediting Base | | | $ | 100,000.00 | | | ||
| Accumulated Value prior to withdrawal | | | $ | 100,000.00 | | | Accumulated Value prior to withdrawal | | | $ | 100,000.00 | | | ||
| Free Surrender Amount | | | $ | 10,000.00(1) | | | Free Surrender Amount | | | $ | 10,000.00(1) | | | ||
| Withdrawal Amount | | | $ | 20,000.00 | | | Withdrawal Amount | | | $ | 20,000.00 | | | ||
| Portion of Crediting Base Surrendered | | | $ | 20,000.00(2) | | | Portion of Crediting Base Surrendered | | | $ | 20,000.00(2) | | | ||
| Bond Adjustment Percentage | | | | -2.50% | | | Bond Adjustment Percentage | | | | -2.50% | | | ||
| Bond Adjustment Amount | | | -$ | 500.00(3) | | | Bond Adjustment Amount | | | $ | -500.00(3) | | | ||
| Withdrawal Amount after Bond Adjustment | | | $ | 19,500.00(4) | | | Withdrawal Amount after Bond Adjustment | | | $ | 19,500.00(4) | | | ||
| Surrender Charge Percentage | | | | 8.00% | | | Surrender Charge Percentage | | | | 8.00% | | | ||
| Surrender Charge | | | $ | 760.00(5) | | | Surrender Charge | | | $ | 760.00(5) | | | ||
| Withdrawal Amount after Surrender Charge (excluding any tax withholding) | | | $ | 18,740.00(6) | | | Withdrawal Amount after Surrender Charge (excluding any tax withholding) | | | $ | 18,740.00(6) | | | ||
| Accumulated Value after Withdrawal | | | $ | 80,000.00(7) | | | Accumulated Value after Withdrawal | | | $ | 80,000.00(7) | | |
| Premium Payment | | | | $ | 100,000.00 | | |
| Crediting Base | | | | $ | 100,000.00 | | |
| Equity Adjustment Percentage | | | | | 0.00% | | |
| Equity Adjustment Amount | | | | $ | 0.00 | | |
| Accumulated Value prior to withdrawal | | | | $ | 100,000.00 | | |
| Free Withdrawal Amount | | | $ | 10,000.00(1) | | | Free Surrender Amount | | | $ | 10,000.00(1) | | | ||
| Withdrawal Amount | | | $ | 10,000.00 | | | Withdrawal Amount | | | $ | 10,000.00 | | | ||
| Portion of Crediting Base Surrendered | | | $ | 10,000(2) | | | Portion of Crediting Base Surrendered | | | $ | 10,000(2) | | | ||
| Bond Adjustment Percentage | | | | -1.56% | | | Bond Adjustment Percentage | | | | -1.56% | | | ||
| Bond Adjustment Amount | | | -$ | 156.00(3) | | | Bond Adjustment Amount | | | $ | -156.00(3) | | | ||
| Withdrawal Amount after Bond Adjustment | | | $ | 9,844.00(4) | | | Withdrawal Amount after Bond Adjustment | | | $ | 9,844.00(4) | | | ||
| Surrender Charge Percentage | | | | 8.00% | | | Surrender Charge Percentage | | | | 8.00% | | | ||
| Surrender Charge | | | $ | 0.00(5) | | | Surrender Charge | | | $ | 0.00(5) | | | ||
| Withdrawal Amount after Surrender Charges | | | $ | 9,844.00(6) | | | Withdrawal Amount after Surrender Charges | | | $ | 9,844.00(6) | | | ||
| Accumulated Value after Withdrawal | | | $ | 90,000.00(7)(4) | | | Accumulated Value after Withdrawal | | | $ | 90,000.00(7)(4) | | |
| Segment Options Available | | | Segment Terms Available ( | | ||||||||||||
| Crediting Method | | | Indices | | | Limits of Upside Gain (Rates) | | | 1-year Segment Term | | | 2-year Segment Term | | | 6-year Segment Term | |
| Point-to- Point | | | S&P 500 (Price Return Index; SPX) | | | Participation Rate & Cap Rate* | | | 10% Buffer 20% Buffer 0% Floor 10% Floor | | | 10% Buffer | | | 10% Buffer 20% Buffer | |
| Point-to-Point | | | Russell 2000 (Price Return Index; RTY) | | | Participation Rate & Cap Rate* | | | 10% Buffer | | | Not Available | | | 10% Buffer | |
| Point-to-Point | | | MSCI EAFE (Price Return Index; MXEA) | | | Participation Rate & Cap Rate* | | | 10% Buffer | | | Not Available | | | 10% Buffer | |
| Point-to-Point | | | SG Smart Climate Index (SGIXSMAC) | | | Participation Rate & Cap Rate* | | | Not Available | | | Not Available | | | 10% Buffer | |
| Point-to-Point | | | S&P 500 (Price Return Index; SPX) | | | Participation Rate & Cap Rate* | | | 20% Buffer (Peak Buffer, with 10% Peak Buffer Midpoint) | | | Not Available | | | 20% Buffer (Peak Buffer, with 10% Peak Buffer Midpoint) | |
| Fixed | | | Fixed Segment | | | Fixed Rate | | | 0.05% Guaranteed Minimum Interest Rate | | | Not Available | | | Not Available | |
Scenario | | Beginning Index Value | | Ending Index Value | | Index Change | | Segment Credit percentage | | | Beginning Index Value | | Ending Index Value | | Index Change | | Segment Credit percentage | | Segment Credit dollar amount ($10,000 Crediting Base) | | ||||||||||||||||||||||||||||||||||||
1 | | | | 100 | | | | | 125 | | | | | 25% | | | | | 5% | | | | | | 100 | | | | | 125 | | | | | 25% | | | | | 5% | | | | $ | 500 | | | |||||||||
2 | | | | 100 | | | | | 105 | | | | | 5% | | | | | 3.75% | | | | | | 100 | | | | | 105 | | | | | 5% | | | | | 3.75% | | | | $ | 375 | | | |||||||||
3 | | | | 100 | | | | | 100 | | | | | 0% | | | | | 0% | | | | | | 100 | | | | | 100 | | | | | 0% | | | | | 0% | | | | $ | 0 | | | |||||||||
4 | | | | 100 | | | | | 95 | | | | | -5% | | | | | 0% | | | | | | 100 | | | | | 95 | | | | | -5% | | | | | 0% | | | | $ | 0 | | | |||||||||
5 | | | | 100 | | | | | 85 | | | | | -15% | | | | | 0% | | | | | | 100 | | | | | 85 | | | | | -15% | | | | | 0% | | | | $ | 0 | | |
Scenario | | Beginning Index Value | | Ending Index Value | | Index Change | | Segment Credit percentage | | | Beginning Index Value | | Ending Index Value | | Index Change | | Segment Credit percentage | | Segment Credit dollar amount ($10,000 Crediting Base) | | ||||||||||||||||||||||||||||||||||||
1 | | | | 100 | | | | | 125 | | | | | 25% | | | | | 15% | | | | | | 100 | | | | | 125 | | | | | 25% | | | | | 10% | | | | $ | 1,000 | | | |||||||||
2 | | | | 100 | | | | | 105 | | | | | 5% | | | | | 5% | | | | | | 100 | | | | | 105 | | | | | 5% | | | | | 5% | | | | $ | 500 | | | |||||||||
3 | | | | 100 | | | | | 100 | | | | | 0% | | | | | 0% | | | | | | 100 | | | | | 100 | | | | | 0% | | | | | 0% | | | | $ | 0 | | | |||||||||
4 | | | | 100 | | | | | 95 | | | | | -5% | | | | | -5% | | | | | | 100 | | | | | 95 | | | | | -5% | | | | | -5% | | | | -$ | 500 | | | |||||||||
5 | | | | 100 | | | | | 85 | | | | | -15% | | | | | -10% | | | | | | 100 | | | | | 85 | | | | | -15% | | | | | -10% | | | | -$ | 1,000 | | |
Scenario | | Beginning Index Value | | Ending Index Value | | Index Change | | Segment Credit percentage | | | Beginning Index Value | | Ending Index Value | | Index Change | | Segment Credit percentage | | Segment Credit dollar amount ($10,000 Crediting Base) | | ||||||||||||||||||||||||||||||||||||
1 | | | | 100 | | | | | 200 | | | | | 100% | | | | | 110% | | | | | | 100 | | | | | 160 | | | | | 60% | | | | | 50% | | | | $ | 5,000 | | | |||||||||
2 | | | | 100 | | | | | 125 | | | | | 25% | | | | | 27.5% | | | | | | 100 | | | | | 125 | | | | | 25% | | | | | 27.5% | | | | $ | 2,750 | | | |||||||||
3 | | | | 100 | | | | | 100 | | | | | 0% | | | | | 0% | | | | | | 100 | | | | | 100 | | | | | 0% | | | | | 0% | | | | $ | 0 | | | |||||||||
4 | | | | 100 | | | | | 95 | | | | | -5% | | | | | 0% | | | | | | 100 | | | | | 95 | | | | | -5% | | | | | 0% | | | | $ | 0 | | | |||||||||
5 | | | | 100 | | | | | 75 | | | | | -25% | | | | | -15% | | | | | | 100 | | | | | 30 | | | | | -70% | | | | | -50% | | | | -$ | 5,000 | | |
Scenario | | | Beginning Index Value | | | Ending Index Value | | | Index Change | | | Segment Credit percentage | | | Segment Credit dollar amount ($10,000 Crediting Base) | | |||||||||||||||
1 | | | | | 100 | | | | | | 125 | | | | | | 25% | | | | | | 5% | | | | | $ | 500 | | |
2 | | | | | 100 | | | | | | 102 | | | | | | 2% | | | | | | 2% | | | | | $ | 200 | | |
3 | | | | | 100 | | | | | | 100 | | | | | | 0% | | | | | | 0 | | | | | $ | 0 | | |
4 | | | | | 100 | | | | | | 95 | | | | | | -5% | | | | | | 5% | | | | | $ | 500 | | |
5 | | | | | 100 | | | | | | 90 | | | | | | -10% | | | | | | 10% | | | | | $ | 1,000 | | |
6 | | | | | 100 | | | | | | 88 | | | | | | -12% | | | | | | 8% | | | | | $ | 800 | | |
7 | | | | | 100 | | | | | | 75 | | | | | | -25% | | | | | | -5% | | | | | -$ | 500 | | |
Scenario | | | Beginning Index Value | | | Ending Index Value | | | Index Change | | | Segment Credit percentage | | | Segment Credit dollar amount ($10,000 Crediting Base) | | |||||||||||||||
1 | | | | | 100 | | | | | | 160 | | | | | | 60% | | | | | | 50% | | | | | $ | 5,000 | | |
2 | | | | | 100 | | | | | | 125 | | | | | | 25% | | | | | | 25% | | | | | $ | 2,500 | | |
3 | | | | | 100 | | | | | | 100 | | | | | | 0% | | | | | | 0 | | | | | $ | 0 | | |
4 | | | | | 100 | | | | | | 95 | | | | | | -5% | | | | | | 5% | | | | | $ | 500 | | |
6 | | | | | 100 | | | | | | 88 | | | | | | -12% | | | | | | 8% | | | | | $ | 800 | | |
7 | | | | | 100 | | | | | | 30 | | | | | | -70% | | | | | | -50% | | | | | -$ | 5,000 | | |
| • Cred BasePrev | | | is the Segment Crediting Base on the previous day | |
| • Seg Fee | | | is the Segment Fee amount applied to the Segment Option on this date | |
| • Seg Credit | | | is the amount of Segment Credits credited to the Segment Option on this date | |
| • TransfersIn | | | is the amount transferred from other Segment Options to this Segment Option on this date | |
| • TransfersOut | | | is the amount transferred to other Segment Options from this Segment Option on this date | |
| • Surrenders | | | is the Surrender amount deducted from this Segment Option on this date | |
Contract Year | | | Beginning Crediting Base | | | Segment Credit | | | Crediting Base After Segment Credit | | |||||||||
1 | | | | $ | 100,000.00 | | | | | $ | 5,000.00 | | | | | $ | 105,000.00 | | |
2 | | | | $ | 105,000.00 | | | | | -$ | 15,000.00 | | | | | $ | 90,000.00 | | |
3 | | | | $ | 90,000.00 | | | | | $ | 2,000.00 | | | | | $ | 92,000.00 | | |
| Premium Payment | | | | $ | 100,000.00 | | |
| Crediting Base | | | | $ | 100,000.00 | | |
| Equity Adjustment Percentage | | | | | 0.00% | | |
| Equity Adjustment Amount | | | | $ | 0.00 | | |
| Accumulated Value prior to Withdrawal | | | | $ | 100,000.00 | | |
| Required Minimum Distribution | | | | $ | 0.00 | | |
| Free Surrender Amount | | | | $ | 10,000.00(1) | | |
| Withdrawal Amount | | | | $ | 20,000.00 | | |
| Portion of Crediting Base Surrendered | | | | $ | 20,000.00(2) | | |
| Bond Adjustment Percentage | | | | | -2.05% | | |
| Bond Adjustment Amount | | | | -$ | 410.00(3) | | |
| Withdrawal Amount after Bond Adjustment | | | | $ | 19,590.00(4) | | |
| Surrender Charge Percentage | | | | | 8.00% | | |
| Surrender Charge | | | | $ | 767.20(5) | | |
| Withdrawal Amount after Surrender Charges | | | | $ | 18,822.80(6) | | |
| Crediting Base after Withdrawal | | | | $ | 80,000.00(7) | | |
| Accumulated Value after Withdrawal | | | | $ | 80,000.00(8) | | |
| Premium Payment | | | | $ | 100,000.00 | | |
| Crediting Base | | | | $ | 100,000.00 | | |
| Index Change | | | | | 0.00% | | |
| Segment Credit | | | | $ | 0.00 | | |
| Accumulated Value prior to Withdrawal | | | | $ | 100,000.00 | | |
| Required Minimum Distribution | | | | $ | 0.00 | | |
| Free Surrender Amount | | | | $ | 10,000.00(1) | | |
| Withdrawal Amount | | | | $ | 20,000.00 | | |
| Portion of Crediting Base Surrendered | | | | $ | 20,000.00(2) | | |
| Bond Adjustment Percentage | | | | | -2.05% | | |
| Bond Adjustment Amount | | | | $ | -410.00(3) | | |
| Withdrawal Amount after Bond Adjustment | | | | $ | 19,590.00(4) | | |
| Surrender Charge Percentage | | | | | 8.00% | | |
| Surrender Charge | | | | $ | 767.20(5) | | |
| Withdrawal Amount after Surrender Charges | | | | $ | 18,822.80(6) | | |
| Crediting Base after Withdrawal | | | | $ | 80,000.00(7) | | |
| Accumulated Value after Withdrawal | | | | $ | 80,000.00(8) | | |
| Premium Payment | | | $ | 100,000.00 | | | Premium Payment | | | $ | 100,000.00 | | | ||
| Crediting Base | | | $ | 100,000.00 | | | Crediting Base | | | $ | 100,000.00 | | | ||
| Equity Adjustment Percentage | | | | 5.22% | | | Equity Adjustment Percentage | | | | -5.22% | | | ||
| Equity Adjustment Amount | | | $ | 5,220.00 | | | Equity Adjustment Amount | | | $ | -5,220.00 | | | ||
| Accumulated Value (Segment Interim Value)(1) prior to Withdrawal | | | $ | 105,220.00 | | | Accumulated Value (Segment Interim Value)(1) prior to Withdrawal | | | $ | 94,780.00 | | | ||
| Required Minimum Distribution | | | $ | 0.00 | | | Required Minimum Distribution | | | $ | 0.00 | | | ||
| Free Surrender Amount | | | $ | 10,000.00(2) | | | Free Surrender Amount | | | $ | 10,000.00(2) | | | ||
| Withdrawal Amount | | | $ | 20,000.00 | | | Withdrawal Amount | | | $ | 20,000.00 | | | ||
| Portion of Crediting Base Surrendered | | | $ | 19,007.79(3) | | | Portion of Crediting Base Surrendered | | | $ | 21,101.50(3) | | | ||
| Bond Adjustment Percentage | | | | -1.56% | | | Bond Adjustment Percentage | | | | -1.56% | | | ||
| Bond Adjustment Amount | | | -$ | 296.52(4) | | | Bond Adjustment Amount | | | $ | -329.18(4) | | | ||
| Withdrawal Amount after Bond Adjustment | | | $ | 19,703.48(5) | | | Withdrawal Amount after Bond Adjustment | | | $ | 19,670.82(5) | | | ||
| Surrender Charge Percentage | | | | 8.00% | | | Surrender Charge Percentage | | | | 8.00% | | | ||
| Surrender Charge | | | $ | 776.28(6) | | | Surrender Charge | | | $ | 773.67(6) | | | ||
| Withdrawal Amount after Surrender Charges | | | $ | 18,927.20(7) | | | Withdrawal Amount after Surrender Charges | | | $ | 18,912.96(7) | | | ||
| Crediting Base after Withdrawal | | | $ | 80,992.21(8) | | | Crediting Base after Withdrawal | | | $ | 78,898.50(8) | | | ||
| Accumulated Value after Withdrawal | | | $ | 85,220.00(9) | | | Accumulated Value after Withdrawal | | | $ | 74,780.00(9) | | |
| Premium Payment | | | $ | 100,000.00 | | | Premium Payment | | | $ | 100,000.00 | | | ||
| Crediting Base | | | $ | 100,000.00 | | | Crediting Base | | | $ | 100,000.00 | | | ||
| Equity Adjustment Percentage | | | | -12.83% | | | Equity Adjustment Percentage | | | | -12.83% | | | ||
| Equity Adjustment Amount | | | -$ | 12,830.00 | | | Equity Adjustment Amount | | | -$ | 12,830.00 | | | ||
| Accumulated Value (Segment Interim Value)(1) prior to withdrawal | | | $ | 87,170.00 | | | Accumulated Value (Segment Interim Value)(1) prior to withdrawal | | | $ | 87,170.00 | | | ||
| Required Minimum Distribution | | | $ | 4,500.00 | | | Required Minimum Distribution | | | $ | 4,500.00 | | | ||
| Free Surrender Amount | | | $ | 10,000.00(2) | | | Free Surrender Amount | | | $ | 4,500(2) | | | ||
| Withdrawal Amount | | | $ | 4,500.00 | | | Withdrawal Amount | | | $ | 4,500.00 | | | ||
| Portion of Crediting Base Surrendered | | | $ | 5,162.33(3) | | | Portion of Crediting Base Surrendered | | | $ | 5,162.33(3) | | | ||
| Bond Adjustment Percentage | | | | 2.34% | | | Bond Adjustment Percentage | | | | 2.34% | | | ||
| Bond Adjustment Amount | | | $ | 120.80(4) | | | Bond Adjustment Amount | | | $ | 120.80(4) | | | ||
| Withdrawal Amount after Bond Adjustment | | | $ | 4,620.80(5) | | | Withdrawal Amount after Bond Adjustment | | | $ | 4,620.80(5) | | | ||
| Surrender Charge Percentage | | | | 8.00% | | | Surrender Charge Percentage | | | | 8.00% | | | ||
| Surrender Charge | | | $ | 0.00(6) | | | Surrender Charge | | | $ | 0.00(6) | | | ||
| Withdrawal Amount after Surrender Charges | | | $ | 4,620.80(7) | | | Withdrawal Amount after Surrender Charges | | | $ | 4,620.80(7) | | | ||
| Reduction to Crediting Base | | | $ | 4,500.00(8) | | | Reduction to Crediting Base | | | $ | 4,500.00(8) | | | ||
| Crediting Base after Withdrawal | | | $ | 95,500.00(9) | | | Crediting Base after Withdrawal | | | $ | 95,500.00(9) | | | ||
| Accumulated Value after Withdrawal | | | $ | 83,247.35(10) | | | Accumulated Value after Withdrawal | | | $ | 83,247.35(10) | | |
Named Executive Officer | | | 2020 Attributed to Company | | | 2021 Attributed to Company | | | 2022 Attributed to Company | | | Percent increase 2021 – 2022 | | ||||||||||||
Houston | | | | $ | 1,000,000 | | | | | $ | 1,000,000 | | | | | $ | 1,000,000 | | | | | | 0% | | |
Strable | | | | $ | 645,000 | | | | | $ | 661,000 | | | | | $ | 694,000 | | | | | | 5% | | |
Littlefield | | | | | | | | | | | | | | | | $ | 406,250 | | | | | | NA | | |
Friedrich | | | | | | | | | | $ | 341,610 | | | | | $ | 375,830 | | | | | | 10% | | |
Hassara | | | | | | | | | | | | | | | | $ | 508,800 | | | | | | NA | | |
| | | Threshold | | | Target | | | Maximum | | | Actual 2022 Performance | | ||||||||||||
Non-GAAP Operating Earnings1 ($Mil.) | | | | $ | 1,328 | | | | | $ | 1,770 | | | | | $ | 2,213 | | | | | $ | 1,633 | | |
Payout | | | | | 50% | | | | | | 100% | | | | | | 200% | | | | | | 84% | | |
Name | | | 2022 Eligible Earnings Attributed to Company | | | 2022 Target Attributed to Company | | | PrinPay Score | | | Individual Modifier | | | Final Award Attributed to Company | | |||||||||||||||
Houston | | | | $ | 1,000,000 | | | | | | 375% | | | | | | 84% | | | | | | 100% | | | | | $ | 3,150,000 | | |
Strable | | | | $ | 686,385 | | | | | | 175% | | | | | | 84% | | | | | | 100% | | | | | $ | 1,008,985 | | |
Littlefield | | | | $ | 397,250 | | | | | | 150% | | | | | | 84% | | | | | | 95% | | | | | $ | 431,127 | | |
Friedrich | | | | $ | 367,933 | | | | | | 150% | | | | | | 84% | | | | | | 110% | | | | | $ | 509,955 | | |
Hassara | | | | $ | 195,692 | | | | | | 125% | | | | | | 84% | | | | | | 95% | | | | | $ | 507,528 | | |
Named Executive Officer | | | Award Granted Attributed to Company | | |||
Houston | | | | $ | 8,287,330 | | |
Strable | | | | $ | 2,255,500 | | |
Littlefield | | | | $ | 1,218,750 | | |
Friedrich | | | | $ | 1,127,490 | | |
Hassara | | | | $ | 1,920,000 | | |
Performance Level | | | Threshold Award | | | Target Award | | | Maximum Award (150% of Target) | | |||||||||
Payout (% of Target)(4) | | | | | 50% | | | | | | 100% | | | | | | 150% | | |
Average Non-GAAP ROE(5) | | | | | 7.6% | | | | | | 15.2% | | | | | | 19.8% | | |
Operating Margin | | | | | 15.8% | | | | | | 31.5% | | | | | | 41.0% | | |
Name and Principal Position | | | Year | | | Salary Attributed to Company(1) | | | Bonus Attrib. to Co. | | | Stock Awards Attributed to Company(2)(3) | | | Option Awards Attributed to Company(2) | | | Non Equity Incentive Plan Compensation Attributed to Company(4) | | | Changes in Pension Value and Non- Qualified Deferred Compensation Earnings Attributed to Company(5) | | | All Other Compensation Attributed to Company(6) | | | Total Attributed to Company(7) | | |||||||||||||||||||||||||||
Daniel J. Houston, Chairmen, President and Chief Executive Officer | | | | | 2022 | | | | | $ | 1,000,000 | | | | | $ | 0 | | | | | $ | 8,540,764 | | | | | $ | 0 | | | | | $ | 3,150,000 | | | | | $ | 598,475 | | | | | $ | 514,910 | | | | | $ | 13,804,149 | | |
| | | 2021 | | | | | $ | 1,000,000 | | | | | $ | 0 | | | | | $ | 4,275,014 | | | | | $ | 4,275,011 | | | | | $ | 6,075,000 | | | | | $ | 1,699,323 | | | | | $ | 241,815 | | | | | $ | 17,566,163 | | | ||
| | | 2020 | | | | | $ | 890,385 | | | | | $ | 0 | | | | | $ | 3,874,991 | | | | | $ | 3,874,991 | | | | | $ | 2,671,154 | | | | | $ | 4,010,196 | | | | | | 292,701 | | | | | $ | 15,614,418 | | | ||
Deanna D. Strable-Soethout, Executive Vice President and Chief Financial Officer | | | | | 2022 | | | | | $ | 686,385 | | | | | $ | 0 | | | | | $ | 2,323,577 | | | | | $ | 0 | | | | | $ | 1,008,985 | | | | | $ | 0 | | | | | $ | 196,651 | | | | | $ | 4,215,598 | | |
| | | 2021 | | | | | $ | 657,308 | | | | | $ | 0 | | | | | $ | 1,008,005 | | | | | $ | 1,008,051 | | | | | $ | 2,236,161 | | | | | $ | 670,792 | | | | | $ | 110,389 | | | | | $ | 5,690,706 | | | ||
| | | 2020 | | | | | $ | 588,923 | | | | | $ | 0 | | | | | $ | 886,859 | | | | | $ | 886,880 | | | | | $ | 824,492 | | | | | $ | 1,944,503 | | | | | $ | 102,767 | | | | | $ | 5,234,424 | | | ||
Christopher J. Littlefield, President – Retirement Income Solutions | | | | | 2022 | | | | | $ | 397,250 | | | | | $ | 0 | | | | | $ | 1,255,527 | | | | | $ | 0 | | | | | $ | 431,127 | | | | | $ | 36,869 | | | | | $ | 52,693 | | | | | $ | 2,173,467 | | |
Amy C. Friedrich, President U.S. Insurance Solutions | | | | | 2022 | | | | | $ | 367,933 | | | | | $ | 0 | | | | | $ | 1,161,498 | | | | | $ | 0 | | | | | $ | 509,955 | | | | | $ | 0 | | | | | $ | 27,688 | | | | | $ | 2,067,074 | | |
| | | 2021 | | | | | $ | 339,704 | | | | | $ | 0 | | | | | $ | 418,466 | | | | | $ | 418,489 | | | | | $ | 605,352 | | | | | $ | 301,950 | | | | | $ | 33,318 | | | | | $ | 2,117,279 | | | ||
Teresa Hassara, Senior Vice President, Workplace Savings and Retirement Solutions | | | | | 2022 | | | | | $ | 195,692 | | | | | $ | 0 | | | | | $ | 1,920,000 | | | | | $ | 0 | | | | | $ | 507,528 | | | | | $ | 11,758 | | | | | $ | 9,231 | | | | | $ | 2,644,209 | | |
Named Executive Officer | | | 401(k) Employee Contribution Attributed to Company | | | Excess Plan Employee Contributions Attributed to Company | | | Total Employee Contributions Attributed to Company | | |||||||||
Houston | | | | $ | 21,385 | | | | | $ | 80,000 | | | | | $ | 101,385 | | |
Strable | | | | $ | 32,407 | | | | | $ | 68,639 | | | | | $ | 101,046 | | |
Littlefield | | | | $ | 16,164 | | | | | $ | 31,780 | | | | | $ | 47,944 | | |
Friedrich | | | | $ | 8,943 | | | | | $ | 29,435 | | | | | $ | 38,378 | | |
Hassara | | | | $ | 12,309 | | | | | $ | 0 | | | | | $ | 12,309 | | |
Named Executive Officer | | | Grant Date Values Attributed to Company Assuming Payout at Maximum | | |||
Houston | | | | $ | 4,704,005 | | |
Strable | | | | $ | 1,263,094 | | |
Littlefield | | | | $ | 682,502 | | |
Friedrich | | | | $ | 631,382 | | |
Hassara | | | | $ | 0 | | |
Named Executive Officer | | | Employee Contributions on Incentive Pay Attributed to Company | | |||
Houston | | | | $ | 259,615 | | |
Strable | | | | $ | 308,194 | | |
Littlefield | | | | $ | 43,076 | | |
Friedrich | | | | $ | 7,663 | | |
Hassara | | | | $ | 624 | | |
Named Executive Officer | | | Perquisites & Other Personal Benefits Attributed to Company(a) | | | Principal Contributions to Defined Contribution Plans Attributed to Company(b) | | | Total Attributed to Company | | |||||||||
Houston | | | | $ | 90,410 | | | | | $ | 424,500 | | | | | $ | 514,910 | | |
Strable | | | | $ | 21,298 | | | | | $ | 175,353 | | | | | $ | 196,651 | | |
Littlefield | | | | $ | 300 | | | | | $ | 52,393 | | | | | $ | 52,693 | | |
Friedrich | | | | $ | 483 | | | | | $ | 27,205 | | | | | $ | 27,688 | | |
Hassara | | | | $ | 0 | | | | | $ | 9,231 | | | | | $ | 9,231 | | |
Named Executive Officer | | | 401(k)Matching Contribution Made by Principal (Attributed to Company) | | | Excess Plan Matching Contribution Made by Principal (Attributed to Company) | | | Total | | |||||||||
Houston | | | | $ | 15,375 | | | | | $ | 409,125 | | | | | $ | 424,500 | | |
Strable | | | | $ | 15,375 | | | | | $ | 159,978 | | | | | $ | 175,353 | | |
Littlefield | | | | $ | 9,994 | | | | | $ | 42,399 | | | | | $ | 52,393 | | |
Friedrich | | | | $ | 9,071 | | | | | $ | 18,134 | | | | | $ | 27,205 | | |
Hassara | | | | $ | 9,231 | | | | | $ | 0 | | | | | $ | 9,231 | | |
| | | | | | | | | Estimated Future Payouts Attributed to Company Under Non-Equity Incentive Plan Awards | | | Estimated Future Payouts Attributed to Company Under Equity Incentive Plan Awards(2) | | | All Other Stock Awards: Number of Shares of Stock Attrib. to Co. | | | All Other Option Awards: Number of Securities Underlying Options Attributed to Company(3) | | | Exercise Price or Base Price of Option Awards ($/Sh)(4) | | | Grant Date Fair Value of Stock and Option Awards Attributed to Company(5) | | ||||||||||||||||||||||||||||||||||||||||||
Name | | | Grant Date | | | Threshold | | | Target | | | Maximum(1) | | | Threshold | | | Target | | | Maximum | | |||||||||||||||||||||||||||||||||||||||||||||
Houston | | | | | | | | | | | n/a | | | | | $ | 3,750,000 | | | | | $ | 11,250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 18,269 | | | | | | 91,347 | | | | | | 164,425 | | | | | | | | | | | | | | | | | | | | | | | $ | 8,287,336 | | | ||
| | | 03/01/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 35,680 | | | | | | 0 | | | | | $ | 0 | | | | | $ | 0 | | | ||
Strable | | | | | | | | | | | n/a | | | | | $ | 1,201,173 | | | | | $ | 3,603,520 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 4,906 | | | | | | 24,528 | | | | | | 44,150 | | | | | | | | | | | | | | | | | | | | | | | $ | 2,255,528 | | | ||
| | | 02/28/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 9,579 | | | | | | 0 | | | | | $ | 0 | | | | | $ | 0 | | | ||
Littlefield | | | | | | | | | | | n/a | | | | | $ | 595,875 | | | | | $ | 1,787,625 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 2,651 | | | | | | 13,254 | | | | | | 23,856 | | | | | | | | | | | | | | | | | | | | | | | $ | 1,218,757 | | | ||
| | | 02/28/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,176 | | | | | | 0 | | | | | $ | 0 | | | | | $ | 0 | | | ||
Friedrich | | | | | | | | | | | n/a | | | | | $ | 551,900 | | | | | $ | 1,655,699 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 2,452 | | | | | | 12,261 | | | | | | 22,069 | | | | | | | | | | | | | | | | | | | | | | | $ | 1,127,482 | | | ||
| | | 02/28/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,788 | | | | | | 0 | | | | | $ | 0 | | | | | $ | 0 | | | ||
Hassara | | | | | | | | | | | n/a | | | | | $ | 636,000 | | | | | $ | 1,908,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 24,778 | | | | | | | | | | | | | | | | | $ | 1,549,343 | | |
| | | Option Awards | | | Stock Awards | | ||||||||||||||||||||||||||||||||||||||||||
Name | | | Number of Securities Underlying Unexercised Options (#) Exercisable Attributed to Company(1) | | | Number of Securities Underlying Unexercised Options (#) Unexercisable Attributed to Company | | | Option Exercise Price | | | Option Expiration Date | | | Number of Shares or Units of Stock That Have Not Vested Attrib. to Co.(2) | | | Market Value of Shares or Units of Stock That Have Not Vested Attributed to Company | | | Equity Incentive Plan Awards: Number of Unearned Shares, Units, or Other Rights That Have Not Vested Attributed to Company(3) | | | Equity Incentive Plan Awards: Market or payout value of Unearned Shares, Units, or Other Rights That Have Not Vested Attributed to Company(4) | | ||||||||||||||||||||||||
Houston | | | | | 227,275 | | | | | | 0 | | | | | $ | 63.98 | | | | | | 02/26/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0 | | | | | | 133,990 | | | | | $ | 51.73 | | | | | | 02/24/2030 | | | | | | | | | | | | | | | | | | 74,151 | | | | | $ | 6,222,780 | | | ||
| | | 90,938 | | | | | | 181,877 | | | | | $ | 58.68 | | | | | | 03/05/2031 | | | | | | | | | | | | | | | | | | 88,415 | | | | | $ | 7,419,747 | | | ||
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 36,927 | | | | | $ | 3,098,889 | | | | | | 94,539 | | | | | $ | 7,933,694 | | | ||
Strable | | | | | 21,780 | | | | | | 0 | | | | | $ | 51.33 | | | | | | 02/23/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 68,040 | | | | | | 0 | | | | | $ | 37.38 | | | | | | 02/22/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 50,475 | | | | | | 0 | | | | | $ | 62.78 | | | | | | 02/27/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 55,140 | | | | | | 0 | | | | | $ | 63.98 | | | | | | 02/26/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 81,880 | | | | | | 0 | | | | | $ | 53.09 | | | | | | 02/25/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 61,333 | | | | | | 30,667 | | | | | $ | 51.73 | | | | | | 02/24/2030 | | | | | | | | | | | | | | | | | | 16,971 | | | | | $ | 1,424,192 | | | ||
| | | 21,443 | | | | | | 42,887 | | | | | $ | 58.68 | | | | | | 03/05/2031 | | | | | | | | | | | | | | | | | | 20,847 | | | | | $ | 1,749,501 | | | ||
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,914 | | | | | $ | 831,958 | | | | | | 25,385 | | | | | $ | 2,130,312 | | | ||
Littlefield | | | | | 22,224 | | | | | | 11,112 | | | | | $ | 51.73 | | | | | | 02/24/2030 | | | | | | | | | | | | | | | | | | 6,149 | | | | | $ | 516,049 | | |
| | | 6,836 | | | | | | 13,671 | | | | | $ | 58.68 | | | | | | 03/05/2031 | | | | | | | | | | | | | | | | | | 6,646 | | | | | $ | 557,731 | | | ||
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,357 | | | | | $ | 449,543 | | | | | | 13,717 | | | | | $ | 1,151,097 | | | ||
Friedrich | | | | | 3,770 | | | | | | 0 | | | | | $ | 51.33 | | | | | | 02/23/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 7,000 | | | | | | 0 | | | | | $ | 37.38 | | | | | | 02/22/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 6,909 | | | | | | 0 | | | | | $ | 62.78 | | | | | | 02/27/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 21,051 | | | | | | 0 | | | | | $ | 63.98 | | | | | | 02/26/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 38,203 | | | | | | 0 | | | | | $ | 53.09 | | | | | | 02/25/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 28,816 | | | | | | 14,408 | | | | | $ | 51.73 | | | | | | 02/24/2030 | | | | | | | | | | | | | | | | | | 7,974 | | | | | $ | 669,170 | | | ||
| | | 8,902 | | | | | | 17,804 | | | | | $ | 58.68 | | | | | | 03/05/2031 | | | | | | | | | | | | | | | | | | 8,655 | | | | | $ | 726,294 | | | ||
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,956 | | | | | $ | 415,887 | | | | | | 12,689 | | | | | $ | 1,064,877 | | | ||
Hassara | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,187 | | | | | $ | 2,113,705 | | | | | | — | | | | | $ | 0 | | |
Name | | | Option Awards Number of Shares Acquired on Exercise Attributed to Company | | | Value Realized on Exercise Attributed to Company(1) | | | Stock Awards Number of Shares Acquired on Vesting Attributed to Company | | | Value Realized on Vesting Attributed to Company(2) | | ||||||||||||
Houston | | | | | 1,132,125 | | | | | $ | 38,178,876 | | | | | | 74,151 | | | | | $ | 6,575,741 | | |
Strable | | | | | 26,800 | | | | | $ | 1,147,445 | | | | | | 16,971 | | | | | $ | 1,504,973 | | |
Littlefield | | | | | 156,513 | | | | | $ | 3,136,477 | | | | | | 6,149 | | | | | $ | 545,320 | | |
Friedrich | | | | | 0 | | | | | $ | 0 | | | | | | 7,974 | | | | | $ | 707,121 | | |
Hassara | | | | | 0 | | | | | $ | 0 | | | | | | 0 | | | | | $ | 0 | | |
| Participant Group | | | Pension Benefit Formula | | ||||||
| Grandfathered Participants Grandfathered Participants were age 47 or older with at least ten years of service on December 31, 2005 and elected to retain the prior benefit provisions under the Defined Benefit (“DB”) Plan and the NQDB and to forego receipt of the additional matching contributions offered under the 401(k) and Excess Plans. • Currently, no Named Executive Officer is a Grandfathered Participant. | | | Defined Benefit Plan (Traditional Formula) 39.2% of Average Compensation (the highest five consecutive years’ total Payout of the past ten years of Pay. “Pay” is the Named Executive Officer’s base salary and annual incentive bonus up to the Tax Code limits) below the Integration Level(1) plus 61.25% of Average Compensation above the Integration Level. Cash Balance Plan — The Annual Pay Credits are calculated using the table below. | | ||||||
| | | | Annual Pay Credit | | ||||||
| Age+ Service Years (Points) | | | Contribution on All Pay | | | Contribution on Pay Above Taxable Wage Base(2) | | |||
| < 40 | | | 4.00% | | | 2.00% | | |||
| 40 – 49 | | | 5.50% | | | 2.75% | | |||
| 50 – 59 | | | 7.00% | | | 3.50% | | |||
| 60 – 69 | | | 9.00% | | | 4.50% | | |||
| 70 – 79 | | | 11.50% | | | 5.75% | | |||
| 80 or more | | | 14.00% | | | 7.00% | | |||
| NQ Defined Benefit The NQDB benefit formula for Grandfathered Participants hired before January 1, 2002, is the greater of: • 65% of Average Compensation, offset by Social Security and DB Plan benefits; or • The greater of the traditional or cash balance DB Plan benefit for Grandfathered Participants without regard to Tax Code limits, offset by the benefit that can be provided under the DB Plan. | |
| Participant Group | | | Pension Benefit Formula | | ||||||
| Non-Grandfathered Participants Non-Grandfathered Participants will receive the greater of the benefit provided under the Traditional Benefit Formula or the Cash Balance Formula through December 31, 2022. Effective January 1, 2023, will earn benefits under only the Cash Balance Formula. | | | Defined Benefit Plan Traditional Formula — 35% of Average Compensation below the Integration Level plus 55% of Average Compensation above the Integration Level. Cash Balance Formula — The Annual Pay Credits are calculated using the table below | | ||||||
| | | | Annual Pay Credit | | ||||||
| Age+ Service Years (Points) | | | Contribution on All Pay | | | Contribution on Pay Above Taxable Wage Base(2) | | |||
| < 40 | | | 3.00% | | | 1.50% | | |||
| 40 – 59 | | | 4.00% | | | 2.00% | | |||
| 60 – 79 | | | 5.50% | | | 2.75% | | |||
| 80 or more | | | 7.00% | | | 3.50% | | |||
| | | | Non-Qualified Defined Benefit The NQDB benefit formula for Non-Grandfathered Participants hired before January 1, 2002, is: • The traditional or cash balance pension plan benefit for Non-Grandfathered Choice Participants (whichever is greater) without regard to Tax Code limits, offset by the benefit that can be provided under the DB Plan. For employees who were active participants in the plan on December 31, 2005, their accrued benefit will not be less than their accrued benefit determined as of that date. There is a reduction for benefits paid under the Traditional Formula that begin prior to the Named Executive Officers attaining Normal Retirement Age: • Principal subsidizes early retirement if the Named Executive Officer remains employed until Early Retirement Age (age 57 with 10 years of service), which is the earliest date an employee may begin receiving retirement benefits. • The early retirement benefits for Grandfathered Choice Participants (and Non-Grandfathered Choice Participants for benefits accrued prior to January 1, 2006) range from 75% at age 57 to 100% at age 62. The early retirement benefits for Non-Grandfathered Choice Participants for benefits accrued after December 31, 2005, range from 75% at age 57 to 97% at age 64. • If the Named Executive Officer terminates employment before reaching Early Retirement Age, Principal does not subsidize early retirement. The early retirement benefits range from 58.6% at age 57 to 92.8% at age 64. • Benefits under the Traditional Formula are eligible for a Cost-of-Living Adjustment (COLA) after retirement benefits begin. For Non-Grandfathered Participants, only benefits accrued as of December 31, 2005, receive this adjustment. The COLA is based on the Consumer Price Index. | |
Named Executive Officer | | | Plan Name | | | Number of years Credited Service(1) | | | Present Value of Accumulated Benefit at Normal Retirement Age Attributed to Company(2) | | | Payments During Last Fiscal Year Attributed to Company | |
Houston | | | Qualified Plan NQDB Plan | | | 38 | | | $1,394,083 $17,536,040 | | | $0 | |
Strable | | | Qualified Plan NQDB Plan | | | 32 | | | $810,054 $4,681,986 | | | $0 | |
Littlefield | | | Qualified Plan NQDB Plan | | | 2 | | | $27,201 $65,678 | | | $0 | |
Friedrich | | | Qualified Plan NQDB Plan | | | 22 | | | $349,387 $1,183,997 | | | $0 | |
Hassara | | | Qualified Plan NQDB Plan | | | <1 | | | $11,758 $0 | | | $0 | |
Named Executive Officer | | | Executive Contributions in Last Fiscal Year Attributed to Company(1) | | | Principal Contributions in Last Fiscal Year Attributed to Company(2) | | | Aggregate Earnings in Last Fiscal Year Attributed to Company | | | Aggregate Withdrawals/ Distributions Attributed to Company | | | Aggregate Balance at Last Fiscal Year End Attributed to Company(3) | | |||||||||||||||
Houston | | | | $ | 566,000 | | | | | $ | 409,125 | | | | | $ | (1,957,789) | | | | | $ | 0 | | | | | $ | 8,596,874 | | |
Strable | | | | $ | 1,186,719 | | | | | $ | 159,978 | | | | | $ | (1,196,596) | | | | | $ | 0 | | | | | $ | 5,235,237 | | |
Littlefield | | | | $ | 69,857 | | | | | $ | 42,399 | | | | | $ | (32,965) | | | | | $ | 0 | | | | | $ | 201,503 | | |
Friedrich | | | | $ | 29,435 | | | | | $ | 18,134 | | | | | $ | (64,696) | | | | | $ | 0 | | | | | $ | 312,030 | | |
Hassara | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Named Executive Officer | | | Employee Deferral Attributed to the Company Prior to 1/1/2022 | | | Principal Match Attributed to the Company Prior to 1/1/2022 | | | Total Attributed to Company | | |||||||||
Houston | | | | $ | 2,608,202 | | | | | $ | 1,763,980 | | | | | $ | 4,372,182 | | |
Strable | | | | $ | 2,647,106 | | | | | $ | 637,227 | | | | | $ | 3,284,333 | | |
Littlefield | | | | $ | 66,740 | | | | | $ | 34,094 | | | | | $ | 100,834 | | |
Friedrich | | | | $ | 129,884 | | | | | $ | 87,573 | | | | | $ | 217,457 | | |
Hassara | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Named Executive Officer | | | Severance Attributed to Company | | | Outplacement Services Attributed to Company | | | COBRA Reimbursement Attributed to Company | | | Total Attributed to Company | | ||||||||||||
Houston | | | | $ | 10,080,769 | | | | | $ | 40,000 | | | | | $ | 34,124 | | | | | $ | 10,154,893 | | |
Strable | | | | $ | 3,066,336 | | | | | $ | 40,000 | | | | | $ | 21,779 | | | | | $ | 3,128,115 | | |
Littlefield | | | | $ | 1,113,197 | | | | | $ | 26,000 | | | | | $ | 23,649 | | | | | $ | 1,162,846 | | |
Friedrich | | | | $ | 1,165,283 | | | | | $ | 23,600 | | | | | $ | 21,466 | | | | | $ | 1,210,349 | | |
Hassara | | | | $ | 1,144,800 | | | | | $ | 38,400 | | | | | $ | 21,149 | | | | | $ | 1,204,349 | | |
Named Executive Officer | | | Cash Severance Attributed to Company(1) | | | Spread on Previously Unvested Options | | | Value of Previously Unvested Restricted Stock & Performance Shares Attributed to Company(2) | | | Benefits Continuation Attributed to Company(3) | | | Accelerated Pension Benefit Attributed to Company(4) | | | Total Termination Benefits Attributed to Company (before taxes) | | ||||||||||||||||||
Houston | | | | $ | 9,500,000 | | | | | $ | 8,903,705 | | | | | $ | 21,576,222 | | | | | $ | 79,631 | | | | | $ | 0 | | | | | $ | 40,059,557 | | |
Strable | | | | $ | 3,817,000 | | | | | $ | 2,069,619 | | | | | $ | 5,304,005 | | | | | $ | 76,312 | | | | | $ | 0 | | | | | $ | 11,266,937 | | |
Littlefield | | | | $ | 2,031,250 | | | | | $ | 702,760 | | | | | $ | 2,224,877 | | | | | $ | 62,001 | | | | | $ | 92,879 | | | | | $ | 5,113,767 | | |
Friedrich | | | | $ | 1,879,150 | | | | | $ | 913,166 | | | | | $ | 2,460,341 | | | | | $ | 56,278 | | | | | $ | 0 | | | | | $ | 5,308,935 | | |
Hassara | | | | $ | 2,289,600 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 71,366 | | | | | $ | 11,758 | | | | | $ | 2,372,724 | | |
| | | For the year ended Dec. 31 | | |||||||||||||||||||||||||||
(in millions, except as indicated) | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
Net income attributable to PFG | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to PFG | | | | $ | 4,811.6 | | | | | $ | 1,710.6 | | | | | $ | 1,395.8 | | | | | $ | 1,394.2 | | | | | $ | 1,546.5 | | |
Net realized capital (gains) losses, as adjusted(1) | | | | | 193.3 | | | | | | 137.0 | | | | | | (29.4) | | | | | | 174.9 | | | | | | 51.0 | | |
(Income) loss from exited business | | | | | (3,304.0) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-GAAP operating earnings | | | | $ | 1,700.9 | | | | | $ | 1,847.6 | | | | | $ | 1,366.4 | | | | | $ | 1,569.1 | | | | | $ | 1,597.5 | | |
Net realized capital gains (losses) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP net realized capital gains (losses) | | | | $ | (258.4) | | | | | $ | 2.5 | | | | | $ | 302.6 | | | | | $ | (52.8) | | | | | $ | (75.4) | | |
Recognition of front-end fee revenues | | | | | (4.7) | | | | | | (2.9) | | | | | | 11.4 | | | | | | 8.5 | | | | | | 0.4 | | |
Market value adjustments to fee revenues | | | | | 0.7 | | | | | | (0.6) | | | | | | (1.6) | | | | | | — | | | | | | 0.1 | | |
Net realized capital gains (losses) related to equity method investments | | | | | (15.0) | | | | | | (24.0) | | | | | | (1.5) | | | | | | 2.6 | | | | | | (5.4) | | |
Derivative and hedging-related revenue adjustments | | | | | (126.3) | | | | | | (160.3) | | | | | | (132.9) | | | | | | (80.4) | | | | | | (64.9) | | |
Sponsored investment fund adjustments | | | | | 22.2 | | | | | | 21.3 | | | | | | 17.3 | | | | | | 23.6 | | | | | | 12.9 | | |
Amortization of deferred acquisition costs | | | | | 6.5 | | | | | | (0.2) | | | | | | (0.5) | | | | | | (15.7) | | | | | | (25.6) | | |
Capital gains distributed – operating expenses | | | | | 102.9 | | | | | | (69.4) | | | | | | (41.7) | | | | | | (31.6) | | | | | | 15.7 | | |
Amortization of other actuarial balances | | | | | (4.0) | | | | | | 11.3 | | | | | | (26.3) | | | | | | (25.1) | | | | | | (1.4) | | |
Market value adjustments of embedded derivatives | | | | | (44.1) | | | | | | 79.8 | | | | | | (55.0) | | | | | | 66.6 | | | | | | 18.5 | | |
Capital gains distributed – cost of interest credited | | | | | 33.5 | | | | | | (37.3) | | | | | | (8.2) | | | | | | (36.6) | | | | | | (1.3) | | |
Net realized capital gains (losses) tax adjustments | | | | | 64.2 | | | | | | 56.2 | | | | | | (28.2) | | | | | | (1.3) | | | | | | 71.4 | | |
Net realized capital gains (losses) attributable to noncontrolling interest, after-tax | | | | | 29.2 | | | | | | (13.4) | | | | | | (6.0) | | | | | | (32.7) | | | | | | 4.0 | | |
Total net realized capital gains (losses) after-tax adjustments | | | | | 65.1 | | | | | | (139.5) | | | | | | (273.2) | | | | | | (122.1) | | | | | | 24.4 | | |
Net realized capital gains (losses), as adjusted | | | | $ | (193.3) | | | | | $ | (137.0) | | | | | $ | 29.4 | | | | | $ | (174.9) | | | | | $ | (51.0) | | |
Diluted earnings per common share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | | $ | 18.85 | | | | | $ | 6.27 | | | | | $ | 5.05 | | | | | $ | 4.96 | | | | | $ | 5.36 | | |
Net realized capital (gains) losses, as adjusted | | | | | 0.76 | | | | | | 0.50 | | | | | | (0.11) | | | | | | 0.62 | | | | | | 0.17 | | |
(Income) loss from exited business | | | | | (12.95) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-GAAP operating earnings | | | | $ | 6.66 | | | | | $ | 6.77 | | | | | $ | 4.94 | | | | | $ | 5.58 | | | | | $ | 5.53 | | |
Stockholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity | | | | $ | 10,042.8 | | | | | $ | 16,125.8 | | | | | $ | 16,617.3 | | | | | $ | 14,685.8 | | | | | $ | 11,456.0 | | |
Noncontrolling interest | | | | | (41.1) | | | | | | (56.4) | | | | | | (58.4) | | | | | | (67.8) | | | | | | (66.0) | | |
Stockholders’ equity attributable to Principal Financial Group, Inc. | | | | | 10,001.7 | | | | | | 16,069.4 | | | | | | 16,558.9 | | | | | | 14,618.0 | | | | | | 11,390.0 | | |
Net unrealized capital (gains) losses | | | | | 5,357.6 | | | | | | (3,519.2) | | | | | | (4,156.5) | | | | | | (2,815.3) | | | | | | (207.3) | | |
Net unrecognized postretirement benefit obligation | | | | | 254.1 | | | | | | 344.7 | | | | | | 460.5 | | | | | | 435.6 | | | | | | 512.9 | | |
Cumulative change in fair value of funds withheld embedded derivative | | | | | (2,885.7) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | For the year ended Dec. 31 | | |||||||||||||||||||||||||||
(in millions, except as indicated) | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
Stockholders’ equity, excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment (FCTA) | | | | $ | 12,727.7 | | | | | $ | 12,894.9 | | | | | $ | 12,862.9 | | | | | $ | 12,238.3 | | | | | $ | 11,695.6 | | |
Net income ROE available to common stockholders (including AOCI) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income ROE available to common stockholders (including AOCI) | | | | | 36.9% | | | | | | 10.5% | | | | | | 9.0% | | | | | | 10.7% | | | | | | 12.8% | | |
Cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA | | | | | 0.7% | | | | | | 2.8% | | | | | | 2.1% | | | | | | 1.0% | | | | | | 0.4% | | |
Net income ROE available to common stockholders (x-cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA) | | | | | 37.6% | | | | | | 13.3% | | | | | | 11.1% | | | | | | 11.7% | | | | | | 13.2% | | |
Net realized capital (gains) losses | | | | | 1.5% | | | | | | 1.0% | | | | | | -0.2% | | | | | | 1.4% | | | | | | 0.4% | | |
(Income) loss from exited business | | | | | -25.8% | | | | | | 0.0% | | | | | | 0.0% | | | | | | 0.0% | | | | | | 0.0% | | |
Non-GAAP operating earnings ROE (x-cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA) | | | | | 13.3% | | | | | | 14.3% | | | | | | 10.9% | | | | | | 13.1% | | | | | | 13.6% | | |
Book value per common share including AOCI | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per common share including AOCI | | | | $ | 41.07 | | | | | $ | 61.40 | | | | | $ | 60.59 | | | | | $ | 52.85 | | | | | $ | 40.75 | | |
Cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA | | | | | 11.20 | | | | | | (12.13) | | | | | | (13.52) | | | | | | (8.60) | | | | | | 1.09 | | |
Book value excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA | | | | | 52.27 | | | | | | 49.27 | | | | | | 47.07 | | | | | | 44.25 | | | | | | 41.84 | | |
Foreign currency translation | | | | | 6.52 | | | | | | 5.98 | | | | | | 4.80 | | | | | | 4.85 | | | | | | 4.51 | | |
Book value per common share excluding cumulative change in fair value of funds withheld embedded derivative and AOCI | | | | $ | 58.79 | | | | | $ | 55.25 | | | | | $ | 51.87 | | | | | $ | 49.10 | | | | | $ | 46.35 | | |
Total revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues | | | | $ | 17,491.6 | | | | | $ | 14,262.7 | | | | | $ | 14,741.7 | | | | | $ | 16,222.1 | | | | | $ | 14,237.2 | | |
Net realized capital (gains) losses, net of related revenue adjustments | | | | | 381.5 | | | | | | 164.0 | | | | | | (195.3) | | | | | | 98.5 | | | | | | 132.3 | | |
Revenues from exited business | | | | | (4,447.2) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjustments related to equity method investments | | | | | 49.1 | | | | | | 31.5 | | | | | | 33.5 | | | | | | 72.5 | | | | | | 55.3 | | |
Operating revenues | | | | $ | 13,475.0 | | | | | $ | 14,458.2 | | | | | $ | 14,579.9 | | | | | $ | 16,393.1 | | | | | $ | 14,424.8 | | |
Gross profit | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | | $ | 6,060.1 | | | | | $ | 2,083.6 | | | | | $ | 1,693.5 | | | | | $ | 1,693.3 | | | | | $ | 1,784.4 | | |
Operating expenses | | | | | 4,825.4 | | | | | | 4,917.7 | | | | | | 4,604.3 | | | | | | 4,456.6 | | | | | | 4,126.8 | | |
Non-GAAP pre-tax operating earnings (losses) attributable to noncontrolling interest(1) | | | | | 70.1 | | | | | | 33.5 | | | | | | 26.5 | | | | | | 17.4 | | | | | | 11.6 | | |
Pre-tax net realized capital (gains) losses | | | | | 286.7 | | | | | | 179.8 | | | | | | (63.6) | | | | | | 140.9 | | | | | | 126.4 | | |
Pre-tax (income) loss from exited business | | | | | (4,260.5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | For the year ended Dec. 31 | | |||||||||||||||||||||||||||
(in millions, except as indicated) | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
Certain adjustments related to equity method investments and noncontrolling interest | | | | | (21.0) | | | | | | (2.0) | | | | | | 7.0 | | | | | | 55.1 | | | | | | 43.7 | | |
Non-GAAP gross profit | | | | $ | 6,960.8 | | | | | $ | 7,212.6 | | | | | $ | 6,267.7 | | | | | $ | 6,363.3 | | | | | $ | 6,092.9 | | |
Income before income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | | $ | 6,060.1 | | | | | $ | 2,083.6 | | | | | $ | 1,693.5 | | | | | $ | 1,693.3 | | | | | $ | 1,784.4 | | |
Net realized capital (gains) losses | | | | | 258.4 | | | | | | (2.5) | | | | | | (302.6) | | | | | | 52.8 | | | | | | 75.4 | | |
Net realized capital (gains) losses pre-tax adjustments | | | | | 28.3 | | | | | | 182.3 | | | | | | 239.0 | | | | | | 88.1 | | | | | | 51.0 | | |
Non-GAAP pre-tax operating (earnings) losses attributable to noncontrolling interest(1) | | | | | (70.1) | | | | | | (33.5) | | | | | | (26.5) | | | | | | (17.4) | | | | | | (11.6) | | |
Income taxes related to equity method investments | | | | | 49.1 | | | | | | 31.5 | | | | | | 33.5 | | | | | | 72.5 | | | | | | 55.3 | | |
Pre-tax (income) loss from exited business | | | | | (4,260.5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-GAAP pre-tax operating earnings | | | | $ | 2,065.3 | | | | | $ | 2,261.4 | | | | | $ | 1,636.9 | | | | | $ | 1,889.3 | | | | | $ | 1,954.5 | | |
Income from continuing operations before income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | | $ | 6,060.1 | | | | | $ | 2,083.6 | | | | | $ | 1,693.5 | | | | | $ | 1,693.3 | | | | | $ | 1,784.4 | | |
Net realized capital (gains) losses | | | | | 258.4 | | | | | | (2.5) | | | | | | (302.6) | | | | | | 52.8 | | | | | | 75.4 | | |
Non-GAAP pre-tax operating income | | | | $ | 6,318.5 | | | | | $ | 2,081.1 | | | | | $ | 1,390.9 | | | | | $ | 1,746.1 | | | | | $ | 1,859.8 | | |
Net income attributable to noncontrolling interest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to noncontrolling interest | | | | $ | 40.6 | | | | | $ | 46.8 | | | | | $ | 32.7 | | | | | $ | 49.9 | | | | | $ | 7.2 | | |
Income taxes attributable to noncontrolling interest | | | | | 0.3 | | | | | | 0.1 | | | | | | (0.2) | | | | | | 0.2 | | | | | | 0.4 | | |
Net realized capital gains (losses) attributable to noncontrolling interest, after-tax | | | | | 29.2 | | | | | | (13.4) | | | | | | (6.0) | | | | | | (32.7) | | | | | | 4.0 | | |
Non-GAAP pre-tax operating earnings losses attributable to noncontrolling interest | | | | $ | 70.1 | | | | | $ | 33.5 | | | | | $ | 26.5 | | | | | $ | 17.4 | | | | | $ | 11.6 | | |
Income (loss) from exited business | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Strategic review costs and impacts | | | | $ | (91.0) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Amortization of reinsurance losses | | | | | (82.5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Impacts to actuarial balances of reinsured business | | | | | 31.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net realized capital gains (losses) on funds withheld assets | | | | | 749.4 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Change in fair value of funds withheld embedded derivative | | | | | 3,652.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Pre-tax income (loss) from exited business | | | | | 4,260.5 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tax impacts of exited business | | | | | (956.5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Income (loss) from exited business | | | | $ | 3,304.0 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Name of Beneficial Owner | | | Number of Shares Beneficially Owned(1) | | | Percent of Common Stock Outstanding | | ||||||
Jonathan S. Auerbach | | | | | 10,127 | | | | | | * | | |
Mary E. “Maliz” Beams | | | | | 3,364 | | | | | | * | | |
Jocelyn Carter-Miller | | | | | 69,154 | | | | | | * | | |
Michael T. Dan | | | | | 52,223 | | | | | | * | | |
H Elizabeth Mitchell | | | | | 0 | | | | | | * | | |
Roger C. Hochschild | | | | | 25,044 | | | | | | * | | |
Scott M. Mills | | | | | 20,323 | | | | | | * | | |
Claudio N. Muruzabal | | | | | 2,407 | | | | | | * | | |
Diane C. Nordin | | | | | 16,095 | | | | | | * | | |
Blair C. Pickerell | | | | | 23,583 | | | | | | * | | |
Clare S. Richer | | | | | 7,300 | | | | | | * | | |
Alfredo Rivera | | | | | 4,323 | | | | | | * | | |
Amy C. Friedrich | | | | | 258,105 | | | | | | * | | |
Patrick G. Halter | | | | | 115,926 | | | | | | * | | |
Daniel J. Houston | | | | | 462,509 | | | | | | * | | |
Natalie Lamarque | | | | | 0 | | | | | | * | | |
Deanna D. Strable-Soethout(2) | | | | | 517,256 | | | | | | * | | |
All Directors and Executive Officers as a group (23 persons) | | | | | 1,968,130 | | | | | | 0.81 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Retirement and Income Solutions | | | | $ | 67.3 | | | | | $ | (67.3) | | | | | $ | 70.1 | | |
U.S. Insurance Solutions | | | | | 18.8 | | | | | | 34.6 | | | | | | (215.1) | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums and other considerations | | | | $ | 5,264.3 | | | | | $ | 4,714.0 | | | | | $ | 5,880.8 | | | | | $ | 550.3 | | | | | $ | (1,166.8) | | |
Fees and other revenues | | | | | 2,207.9 | | | | | | 2,679.6 | | | | | | 2,353.6 | | | | | | (471.7) | | | | | | 326.0 | | |
Net investment income | | | | | 2,852.3 | | | | | | 3,633.7 | | | | | | 3,324.9 | | | | | | (781.4) | | | | | | 308.8 | | |
Net realized capital gains (losses) | | | | | (1.2) | | | | | | (18.5) | | | | | | 105.6 | | | | | | 17.3 | | | | | | (124.1) | | |
Net realized capital gains on funds withheld assets | | | | | 749.4 | | | | | | — | | | | | | — | | | | | | 749.4 | | | | | | — | | |
Change in fair value of funds withheld embedded derivative | | | | | 3,652.8 | | | | | | — | | | | | | — | | | | | | 3,652.8 | | | | | | — | | |
Total revenues | | | | | 14,725.5 | | | | | | 11,008.8 | | | | | | 11,664.9 | | | | | | 3,716.7 | | | | | | (656.1) | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Benefits, claims and settlement expenses | | | | | 5,650.7 | | | | | | 6,482.6 | | | | | | 7,837.5 | | | | | | (831.9) | | | | | | (1,354.9) | | |
Dividends to policyholders | | | | | 94.8 | | | | | | 94.8 | | | | | | 120.2 | | | | | | — | | | | | | (25.4) | | |
Operating expenses | | | | | 3,139.2 | | | | | | 2,744.6 | | | | | | 2,479.7 | | | | | | 394.6 | | | | | | 264.9 | | |
Total expenses | | | | | 8,884.7 | | | | | | 9,322.0 | | | | | | 10,437.4 | | | | | | (437.3) | | | | | | (1,115.4) | | |
Income before income taxes | | | | | 5,840.8 | | | | | | 1,686.8 | | | | | | 1,227.5 | | | | | | 4,154.0 | | | | | | 459.3 | | |
Income taxes | | | | | 1,117.6 | | | | | | 233.2 | | | | | | 160.1 | | | | | | 884.4 | | | | | | 73.1 | | |
Net income | | | | | 4,723.2 | | | | | | 1,453.6 | | | | | | 1,067.4 | | | | | | 3,269.6 | | | | | | 386.2 | | |
Net income attributable to noncontrolling interest | | | | | 62.2 | | | | | | 24.3 | | | | | | 19.4 | | | | | | 37.9 | | | | | | 4.9 | | |
Net income attributable to Principal Life Insurance Company | | | | $ | 4,661.0 | | | | | $ | 1,429.3 | | | | | $ | 1,048.0 | | | | | $ | 3,231.7 | | | | | $ | 381.3 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Retirement and Income Solutions – Fee | | | | $ | 2,005.5 | | | | | $ | 1,856.9 | | | | | $ | 1,646.7 | | | | | $ | 148.6 | | | | | $ | 210.2 | | |
Retirement and Income Solutions – Spread | | | | | 748.2 | | | | | | 928.1 | | | | | | 664.8 | | | | | | (179.9) | | | | | | 263.3 | | |
Total Retirement and Income Solutions | | | | $ | 2,753.7 | | | | | $ | 2,785.0 | | | | | $ | 2,311.5 | | | | | $ | (31.3) | | | | | $ | 473.5 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Operating revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums and other considerations | | | | $ | 1,959.7 | | | | | $ | 1,883.6 | | | | | $ | 3,220.9 | | | | | $ | 76.1 | | | | | $ | (1,337.3) | | |
Fees and other revenues | | | | | 1,723.5 | | | | | | 1,716.7 | | | | | | 1,399.0 | | | | | | 6.8 | | | | | | 317.7 | | |
Net investment income | | | | | 2,274.3 | | | | | | 2,728.7 | | | | | | 2,542.6 | | | | | | (454.4) | | | | | | 186.1 | | |
Total operating revenues | | | | | 5,957.5 | | | | | | 6,329.0 | | | | | | 7,162.5 | | | | | | (371.5) | | | | | | (833.5) | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Benefits, claims and settlement expenses, including dividends to policyholders | | | | | 3,203.8 | | | | | | 3,544.0 | | | | | | 4,851.0 | | | | | | (340.2) | | | | | | (1,307.0) | | |
Operating expenses | | | | | 1,593.8 | | | | | | 1,492.6 | | | | | | 1,245.8 | | | | | | 101.2 | | | | | | 246.8 | | |
Total expenses | | | | | 4,797.6 | | | | | | 5,036.6 | | | | | | 6,096.8 | | | | | | (239.0) | | | | | | (1,060.2) | | |
Pre-tax operating earnings | | | | $ | 1,159.9 | | | | | $ | 1,292.4 | | | | | $ | 1,065.7 | | | | | $ | (132.5) | | | | | $ | 226.7 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Premium and fees: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Specialty Benefits insurance | | | | $ | 2,801.8 | | | | | $ | 2,527.5 | | | | | $ | 2,362.0 | | | | | $ | 274.3 | | | | | $ | 165.5 | | |
Individual Life insurance | | | | | 933.5 | | | | | | 1,252.9 | | | | | | 1,227.0 | | | | | | (319.4) | | | | | | 25.9 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Operating revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums and other considerations | | | | $ | 3,306.8 | | | | | $ | 2,830.4 | | | | | $ | 2,659.9 | | | | | $ | 476.4 | | | | | $ | 170.5 | | |
Fees and other revenues | | | | | 428.2 | | | | | | 949.9 | | | | | | 929.1 | | | | | | (521.7) | | | | | | 20.8 | | |
Net investment income | | | | | 572.2 | | | | | | 973.5 | | | | | | 879.4 | | | | | | (401.3) | | | | | | 94.1 | | |
Total operating revenues | | | | | 4,307.2 | | | | | | 4,753.8 | | | | | | 4,468.4 | | | | | | (446.6) | | | | | | 285.4 | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Benefits, claims and settlement expenses | | | | | 2,461.7 | | | | | | 3,028.6 | | | | | | 2,904.5 | | | | | | (566.9) | | | | | | 124.1 | | |
Dividends to policyholders | | | | | 94.7 | | | | | | 94.6 | | | | | | 120.0 | | | | | | 0.1 | | | | | | (25.4) | | |
Operating expenses | | | | | 1,224.0 | | | | | | 1,168.8 | | | | | | 1,211.8 | | | | | | 55.2 | | | | | | (43.0) | | |
Total expenses | | | | | 3,780.4 | | | | | | 4,292.0 | | | | | | 4,236.3 | | | | | | (511.6) | | | | | | 55.7 | | |
Pre-tax operating earnings | | | | $ | 526.8 | | | | | $ | 461.8 | | | | | $ | 232.1 | | | | | $ | 65.0 | | | | | $ | 229.7 | | |
Name | | | Title | | | Allocation Percentage* | |
Daniel Houston | | | President and Chief Executive Officer | | | 100% | |
Deanna D. Strable-Soethout | | | Executive Vice President and Chief Financial Officer | | | 100% | |
Christopher J. Littlefield | | | President – Retirement and Income Solutions | | | 65% | |
Amy C. Friedrich | | | President-U.S. Insurance Solutions | | | 59% | |
Teresa Hassara | | | Senior Vice President – Workplace Savings and Retirement Solutions | | | 96% | |
Compensation Component | | | Objective | | | Description and 2022 Highlights | |
Base Salary | | | Provides fixed income based on the size, scope, and complexity of the Named Executive Officers’ role, performance, and relative position compared to market pay information. | | | In 2022, the Committee increased Executives’ base salaries, as detailed on page 94. | |
Annual Incentive Compensation | | | Motivates and rewards overall corporate objectives as well as the Named Executive Officers’ contribution to achieving our annual objectives. | | | A range of earnings opportunity, expressed as a percentage of base salary, is established for each Named Executive Officer. Actual bonuses depend on individual employee results and overall PFG (inclusive of Company) performance and profitability, as outlined on page 95. Based on the Committee’s assessment of our 2022 PrinPay score, bonuses were earned at 84% of target and the individual modifiers for our Named Executive Officers ranged between 95% and 110%, as detailed on pages 96-97. | |
Long-Term Incentive Compensation | | | Motivates and rewards long-term corporate performance as well as the Named Executive Officers’ contribution to achieving our long-term objectives. Reinforces the link between the interests of the Named Executive Officers and shareholders. Encourages retention. | | | Each year, the Committee establishes the long-term award opportunity for each Named Executive Officer. Through 2021, one half of the award was granted in stock options and the other half in PSUs. Commencing in 2022, awards are granted 70% in PSUs and 30% in time-based RSUs. Using a mix of PSUs and time-based RSUs creates a balance between achieving operating performance objectives and increasing retention aspects of the LTI program. PSUs are intended to incentivize participants to deliver on the Company’s defined financial goals. The value to participants varies based on the degree of achievement against those goals. PSUs typically have a 3-year performance period and are measured on 50% average non-GAAP ROE(1) and 50% Operating Margin. Through 2021 the non-GAAP ROE portion of the award was also subject to a non-GAAP Book Value per Share(1) threshold. Commencing in 2022 PSUs are subject | |
Compensation Component | | | Objective | | | Description and 2022 Highlights | |
| | | | | | to a Relative Total Shareholder Return Factor with a range of 80% to 120%. We believe these are important metrics because Operating Margin measures profitability across our businesses and non-GAAP ROE measures our efficiency in managing capital. Non-GAAP ROE is also a key measure for our shareholders. Time-based RSUs are intended to align participants with the Company’s long term value appreciation. RSUs have a 3-year cliff vesting. The performance periods for the 2020 – 2022 and 2021 – 2023 PSUs were modified from three years to two years due to a change in accounting rules for publicly traded companies with significant life insurance and annuity businesses that was intended to take effect on January 1, 2022, but the implementation was delayed by the Financial Accounting Standards Board (FASB) until 2023. As a result, for the 2020 – 2022 and 2021 – 2023 Performance Cycle, PSUs will continue to vest at the end of the three-year cycle. The change may result in significant variability of reported earnings each year for companies with significant life insurance and annuity businesses such as PFG and the Company. As stated above, the PSUs granted in 2020 for the 2020 – 2022 Performance Cycle were based on two-year average non-GAAP ROE and Operating Margin, each weighted 50%. Payout on the non-GAAP ROE metric is modified based on two-year non-GAAP Book Value per Share compared to certain threshold goals. For the 2020 – 2022 Performance Cycle, the awards vested at 87% of the target number of PSUs based on PFG’s non-GAAP ROE performance of 12.6%, Operating Margin of 28.7%, and non-GAAP Book Value per Share of $53.70. The PSUs granted in 2020 are subject to an additional year of service-based vesting. As stated above, the PSUs granted in 2021 for the 2021 – 2023 Performance Cycle were based on two-year average non-GAAP ROE and Operating Margin, each weighted 50%. Payout on the non-GAAP ROE metric is modified based on two-year non-GAAP Book Value per Share compared to certain threshold goals. For the 2021 – 2023 Performance Cycle, the awards vested at 114% of the target number of PSUs based on our non-GAAP ROE performance of 13.9%, Operating Margin of 30.5%, and non-GAAP Book Value per Share of $51.96. The PSUs | |
Compensation Component | | | Objective | | | Description and 2022 Highlights | |
| | | | | | granted in 2021 are subject to an additional year of service-based vesting. Details of the program are outlined on pages 98-99. | |
Benefits | | | Protects against catastrophic expenses and provides retirement savings opportunities. | | | Named Executive Officers participate in most of the same benefit plans as Principal Workforce’s other U.S.-based employees, including health, life, disability income, vision and dental insurance, an employee stock purchase plan, 401(k) plan, and pension plan. Certain of the Named Executive Officers also participate in non-qualified retirement plans (defined benefit and defined contribution). | |
Perquisites | | | Modest additional benefits to help attract and retain Executive talent and enable Named Executive Officers to focus on Principal’s business with minimal disruption. | | | Named Executive Officers are eligible for one physical examination per year, business spousal travel, and gifts of nominal value given to all sales conference attendees. The Committee approved the ability of Named Executive Officers to participate in Principal Asset Management investment products on a reduced or no-fee basis. The Committee also approved our CEO’s use of our corporate aircraft for limited personal travel. | |
Termination Benefits | | | Provides temporary income following a Named Executive Officer’s involuntary termination of employment, and, in the case of a change of control, helps ensure the continuity of management through the transition. | | | Refer to page 115 for a discussion of our change of control and separation benefits. These benefits do not include excise tax gross ups. | |
| Financial Service and Insurance | | | Asset Managers | | ||||||
| • Ameriprise Financial • Equitable Holdings • Lincoln National • MetLife | | | • Prudential Financial • Unum Group • Voya Financial | | | • Affiliated Managers Group • Bank of New York Mellon • Franklin Resources • Invesco | | | • State Street • T. Rowe Price | |
Named Executive Officer | | | 2020 Attributed to Company | | | 2021 Attributed to Company | | | 2022 Attributed to Company | | | Percent increase 2021 – 2022 | | ||||||||||||
Houston | | | | $ | 1,000,000 | | | | | $ | 1,000,000 | | | | | $ | 1,000,000 | | | | | | 0% | | |
Strable | | | | $ | 645,000 | | | | | $ | 661,000 | | | | | $ | 694,000 | | | | | | 5% | | |
Littlefield | | | | | | | | | | | | | | | | $ | 406,250 | | | | | | NA | | |
Friedrich | | | | | | | | | | $ | 341,610 | | | | | $ | 375,830 | | | | | | 10% | | |
Hassara | | | | | | | | | | | | | | | | $ | 508,800 | | | | | | NA | | |
Named Executive Officer | | | 2022 | | |||
Houston | | | | | 375% | | |
Strable | | | | | 175% | | |
Littlefield | | | | | 150% | | |
Friedrich | | | | | 150% | | |
Hassara | | | | | 125% | | |
| | | Threshold | | | Target | | | Maximum | | | Actual 2022 Performance | | ||||||||||||
Non-GAAP Operating Earnings1 ($Mil.) | | | | $ | 1,328 | | | | | $ | 1,770 | | | | | $ | 2,213 | | | | | $ | 1,633 | | |
Payout | | | | | 50% | | | | | | 100% | | | | | | 200% | | | | | | 84% | | |
Named Executive Officer | | | Individual Performance Modifier | | | Individual Performance Objectives | |
Houston | | | 100% | | | • Enterprise financial goals (including profit margin, assets under management, net cash flows, revenue, and others); • Enterprise operational effectiveness and efficiency goals; • Capital efficiency and re-allocation objectives; • Business Unit earnings growth strategies; • Enterprise digitalization capabilities with specific digital modernization and optimization targets, among other measures; • Diversity and inclusion objectives; and • Other Company-wide strategic priorities. | |
Strable | | | 100% | | | • Enterprise financial goals (including profit margin, assets under management, net cash flows, revenue, and others); • Enterprise operational effectiveness and efficiency goals; • Capital efficiency and re-allocation objectives; • Enterprise strategy objectives; • Business Unit earnings growth strategies; and • Other Company wide strategic priorities. | |
Littlefield | | | 95% | | | • Enterprise financial goals (including profit margin, assets under management, net cash flows, revenue, and others); • Retirement and Income Solutions financial goals (including business operating earnings, non-GAAP ROE1, margin, cash flow, investment performance, and others); • Retirement and Income Solutions operating model objectives; • Capital efficiency objectives; • Business unit technology and agility solutions; • Enhancement of core performance of Retirement and Income Solutions; and • Other Company wide strategic priorities. | |
Named Executive Officer | | | Individual Performance Modifier | | | Individual Performance Objectives | |
Friedrich | | | 110% | | | • Enterprise financial goals (including profit margin, assets under management, net cash flows, revenue, and others); • U.S. Insurance Solutions financial goals (including business operating earnings, non-GAAP ROE1, margin, cash flow, investment performance, and others); • U.S. Insurance Solutions operating model transformation strategies; • Capital efficiency objectives; • Business unit technology and agility solutions; • Enhancement of core performance of USIS; and • Other Company wide strategic priorities. | |
Hassara | | | 95% | | | Enterprise financial goals (including profit margin, assets under management, net cash flows, revenue, and others); • Workplace Savings and Retirement Solutions financial goals (including business operating earnings, non-GAAP ROE1, margin, cash flow, investment performance, and others); • Workplace Savings and Retirement Solutions operating model transformation strategies; • Enhancement of core performance of Workplace Savings and Retirement Solutions; and • Other Company wide strategic priorities. | |
Name | | | 2022 Eligible Earnings Attributed to Company | | | 2022 Target Attributed to Company | | | PrinPay Score | | | Individual Modifier | | | Final Award Attributed to Company | | |||||||||||||||
Houston | | | | $ | 1,000,000 | | | | | | 375% | | | | | | 84% | | | | | | 100% | | | | | $ | 3,150,000 | | |
Strable | | | | $ | 686,385 | | | | | | 175% | | | | | | 84% | | | | | | 100% | | | | | $ | 1,008,985 | | |
Littlefield | | | | $ | 397,250 | | | | | | 150% | | | | | | 84% | | | | | | 95% | | | | | $ | 431,127 | | |
Friedrich | | | | $ | 367,933 | | | | | | 150% | | | | | | 84% | | | | | | 110% | | | | | $ | 509,955 | | |
Hassara | | | | $ | 195,692 | | | | | | 125% | | | | | | 84% | | | | | | 95% | | | | | $ | 507,528 | | |
Named Executive Officer | | | Award Granted Attributed to Company | | |||
Houston | | | | $ | 8,287,330 | | |
Strable | | | | $ | 2,255,500 | | |
Littlefield | | | | $ | 1,218,750 | | |
Friedrich | | | | $ | 1,127,490 | | |
Hassara | | | | $ | 1,920,000 | | |
Performance Level | | | Threshold Award | | | Target Award | | | Maximum Award (150% of Target) | | |||||||||
Payout (% of Target)(4) | | | | | 50% | | | | | | 100% | | | | | | 150% | | |
Average Non-GAAP ROE(5) | | | | | 7.6% | | | | | | 15.2% | | | | | | 19.8% | | |
Operating Margin | | | | | 15.8% | | | | | | 31.5% | | | | | | 41.0% | | |
Executive Level | | | Retention Ratio | | | Multiple of Base Salary | | |||
Chairman | | | | | 75% | | | | 7 times | |
Division Presidents and Executive Vice Presidents | | | | | 50% | | | | 4 times | |
Name and Principal Position | | | Year | | | Salary Attributed to Company(1) | | | Bonus Attrib. to Co. | | | Stock Awards Attributed to Company(2)(3) | | | Option Awards Attributed to Company(2) | | | Non Equity Incentive Plan Compensation Attributed to Company(4) | | | Changes in Pension Value and Non- Qualified Deferred Compensation Earnings Attributed to Company(5) | | | All Other Compensation Attributed to Company(6) | | | Total Attributed to Company(7) | | |||||||||||||||||||||||||||
Daniel J. Houston, Chairmen, President and Chief Executive Officer | | | | | 2022 | | | | | $ | 1,000,000 | | | | | $ | 0 | | | | | $ | 8,540,764 | | | | | $ | 0 | | | | | $ | 3,150,000 | | | | | $ | 598,475 | | | | | $ | 514,910 | | | | | $ | 13,804,149 | | |
| | | 2021 | | | | | $ | 1,000,000 | | | | | $ | 0 | | | | | $ | 4,275,014 | | | | | $ | 4,275,011 | | | | | $ | 6,075,000 | | | | | $ | 1,699,323 | | | | | $ | 241,815 | | | | | $ | 17,566,163 | | | ||
| | | 2020 | | | | | $ | 890,385 | | | | | $ | 0 | | | | | $ | 3,874,991 | | | | | $ | 3,874,991 | | | | | $ | 2,671,154 | | | | | $ | 4,010,196 | | | | | | 292,701 | | | | | $ | 15,614,418 | | | ||
Deanna D. Strable-Soethout, Executive Vice President and Chief Financial Officer | | | | | 2022 | | | | | $ | 686,385 | | | | | $ | 0 | | | | | $ | 2,323,577 | | | | | $ | 0 | | | | | $ | 1,008,985 | | | | | $ | 0 | | | | | $ | 196,651 | | | | | $ | 4,215,598 | | |
| | | 2021 | | | | | $ | 657,308 | | | | | $ | 0 | | | | | $ | 1,008,005 | | | | | $ | 1,008,051 | | | | | $ | 2,236,161 | | | | | $ | 670,792 | | | | | $ | 110,389 | | | | | $ | 5,690,706 | | | ||
| | | 2020 | | | | | $ | 588,923 | | | | | $ | 0 | | | | | $ | 886,859 | | | | | $ | 886,880 | | | | | $ | 824,492 | | | | | $ | 1,944,503 | | | | | $ | 102,767 | | | | | $ | 5,234,424 | | | ||
Christopher J. Littlefield, President – Retirement Income Solutions | | | | | 2022 | | | | | $ | 397,250 | | | | | $ | 0 | | | | | $ | 1,255,527 | | | | | $ | 0 | | | | | $ | 431,127 | | | | | $ | 36,869 | | | | | $ | 52,693 | | | | | $ | 2,173,467 | | |
Amy C. Friedrich, President U.S. Insurance Solutions | | | | | 2022 | | | | | $ | 367,933 | | | | | $ | 0 | | | | | $ | 1,161,498 | | | | | $ | 0 | | | | | $ | 509,955 | | | | | $ | 0 | | | | | $ | 27,688 | | | | | $ | 2,067,074 | | |
| | | 2021 | | | | | $ | 339,704 | | | | | $ | 0 | | | | | $ | 418,466 | | | | | $ | 418,489 | | | | | $ | 605,352 | | | | | $ | 301,950 | | | | | $ | 33,318 | | | | | $ | 2,117,279 | | | ||
Teresa Hassara, Senior Vice President, Workplace Savings and Retirement Solutions | | | | | 2022 | | | | | $ | 195,692 | | | | | $ | 0 | | | | | $ | 1,920,000 | | | | | $ | 0 | | | | | $ | 507,528 | | | | | $ | 11,758 | | | | | $ | 9,231 | | | | | $ | 2,644,209 | | |
Named Executive Officer | | | 401(k) Employee Contribution Attributed to Company | | | Excess Plan Employee Contributions Attributed to Company | | | Total Employee Contributions Attributed to Company | | |||||||||
Houston | | | | $ | 21,385 | | | | | $ | 80,000 | | | | | $ | 101,385 | | |
Strable | | | | $ | 32,407 | | | | | $ | 68,639 | | | | | $ | 101,046 | | |
Littlefield | | | | $ | 16,164 | | | | | $ | 31,780 | | | | | $ | 47,944 | | |
Friedrich | | | | $ | 8,943 | | | | | $ | 29,435 | | | | | $ | 38,378 | | |
Hassara | | | | $ | 12,309 | | | | | $ | 0 | | | | | $ | 12,309 | | |
Named Executive Officer | | | Grant Date Values Attributed to Company Assuming Payout at Maximum | | |||
Houston | | | | $ | 4,704,005 | | |
Strable | | | | $ | 1,263,094 | | |
Littlefield | | | | $ | 682,502 | | |
Friedrich | | | | $ | 631,382 | | |
Hassara | | | | $ | 0 | | |
Named Executive Officer | | | Employee Contributions on Incentive Pay Attributed to Company | | |||
Houston | | | | $ | 259,615 | | |
Strable | | | | $ | 308,194 | | |
Littlefield | | | | $ | 43,076 | | |
Friedrich | | | | $ | 7,663 | | |
Hassara | | | | $ | 624 | | |
Named Executive Officer | | | Perquisites & Other Personal Benefits Attributed to Company(a) | | | Principal Contributions to Defined Contribution Plans Attributed to Company(b) | | | Total Attributed to Company | | |||||||||
Houston | | | | $ | 90,410 | | | | | $ | 424,500 | | | | | $ | 514,910 | | |
Strable | | | | $ | 21,298 | | | | | $ | 175,353 | | | | | $ | 196,651 | | |
Littlefield | | | | $ | 300 | | | | | $ | 52,393 | | | | | $ | 52,693 | | |
Friedrich | | | | $ | 483 | | | | | $ | 27,205 | | | | | $ | 27,688 | | |
Hassara | | | | $ | 0 | | | | | $ | 9,231 | | | | | $ | 9,231 | | |
Named Executive Officer | | | 401(k)Matching Contribution Made by Principal (Attributed to Company) | | | Excess Plan Matching Contribution Made by Principal (Attributed to Company) | | | Total | | |||||||||
Houston | | | | $ | 15,375 | | | | | $ | 409,125 | | | | | $ | 424,500 | | |
Strable | | | | $ | 15,375 | | | | | $ | 159,978 | | | | | $ | 175,353 | | |
Littlefield | | | | $ | 9,994 | | | | | $ | 42,399 | | | | | $ | 52,393 | | |
Friedrich | | | | $ | 9,071 | | | | | $ | 18,134 | | | | | $ | 27,205 | | |
Hassara | | | | $ | 9,231 | | | | | $ | 0 | | | | | $ | 9,231 | | |
| | | | | | | | | Estimated Future Payouts Attributed to Company Under Non-Equity Incentive Plan Awards | | | Estimated Future Payouts Attributed to Company Under Equity Incentive Plan Awards(2) | | | All Other Stock Awards: Number of Shares of Stock Attrib. to Co. | | | All Other Option Awards: Number of Securities Underlying Options Attributed to Company(3) | | | Exercise Price or Base Price of Option Awards ($/Sh)(4) | | | Grant Date Fair Value of Stock and Option Awards Attributed to Company(5) | | ||||||||||||||||||||||||||||||||||||||||||
Name | | | Grant Date | | | Threshold | | | Target | | | Maximum(1) | | | Threshold | | | Target | | | Maximum | | |||||||||||||||||||||||||||||||||||||||||||||
Houston | | | | | | | | | | | n/a | | | | | $ | 3,750,000 | | | | | $ | 11,250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 18,269 | | | | | | 91,347 | | | | | | 164,425 | | | | | | | | | | | | | | | | | | | | | | | $ | 8,287,336 | | | ||
| | | 03/01/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 35,680 | | | | | | 0 | | | | | $ | 0 | | | | | $ | 0 | | | ||
Strable | | | | | | | | | | | n/a | | | | | $ | 1,201,173 | | | | | $ | 3,603,520 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 4,906 | | | | | | 24,528 | | | | | | 44,150 | | | | | | | | | | | | | | | | | | | | | | | $ | 2,255,528 | | | ||
| | | 02/28/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 9,579 | | | | | | 0 | | | | | $ | 0 | | | | | $ | 0 | | | ||
Littlefield | | | | | | | | | | | n/a | | | | | $ | 595,875 | | | | | $ | 1,787,625 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 2,651 | | | | | | 13,254 | | | | | | 23,856 | | | | | | | | | | | | | | | | | | | | | | | $ | 1,218,757 | | | ||
| | | 02/28/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,176 | | | | | | 0 | | | | | $ | 0 | | | | | $ | 0 | | | ||
Friedrich | | | | | | | | | | | n/a | | | | | $ | 551,900 | | | | | $ | 1,655,699 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 2,452 | | | | | | 12,261 | | | | | | 22,069 | | | | | | | | | | | | | | | | | | | | | | | $ | 1,127,482 | | | ||
| | | 02/28/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,788 | | | | | | 0 | | | | | $ | 0 | | | | | $ | 0 | | | ||
Hassara | | | | | | | | | | | n/a | | | | | $ | 636,000 | | | | | $ | 1,908,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 03/07/2022 | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 24,778 | | | | | | | | | | | | | | | | | $ | 1,549,343 | | |
| | | Option Awards | | | Stock Awards | | ||||||||||||||||||||||||||||||||||||||||||
Name | | | Number of Securities Underlying Unexercised Options (#) Exercisable Attributed to Company(1) | | | Number of Securities Underlying Unexercised Options (#) Unexercisable Attributed to Company | | | Option Exercise Price | | | Option Expiration Date | | | Number of Shares or Units of Stock That Have Not Vested Attrib. to Co.(2) | | | Market Value of Shares or Units of Stock That Have Not Vested Attributed to Company | | | Equity Incentive Plan Awards: Number of Unearned Shares, Units, or Other Rights That Have Not Vested Attributed to Company(3) | | | Equity Incentive Plan Awards: Market or payout value of Unearned Shares, Units, or Other Rights That Have Not Vested Attributed to Company(4) | | ||||||||||||||||||||||||
Houston | | | | | 227,275 | | | | | | 0 | | | | | $ | 63.98 | | | | | | 02/26/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 0 | | | | | | 133,990 | | | | | $ | 51.73 | | | | | | 02/24/2030 | | | | | | | | | | | | | | | | | | 74,151 | | | | | $ | 6,222,780 | | | ||
| | | 90,938 | | | | | | 181,877 | | | | | $ | 58.68 | | | | | | 03/05/2031 | | | | | | | | | | | | | | | | | | 88,415 | | | | | $ | 7,419,747 | | | ||
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 36,927 | | | | | $ | 3,098,889 | | | | | | 94,539 | | | | | $ | 7,933,694 | | | ||
Strable | | | | | 21,780 | | | | | | 0 | | | | | $ | 51.33 | | | | | | 02/23/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 68,040 | | | | | | 0 | | | | | $ | 37.38 | | | | | | 02/22/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 50,475 | | | | | | 0 | | | | | $ | 62.78 | | | | | | 02/27/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 55,140 | | | | | | 0 | | | | | $ | 63.98 | | | | | | 02/26/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 81,880 | | | | | | 0 | | | | | $ | 53.09 | | | | | | 02/25/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 61,333 | | | | | | 30,667 | | | | | $ | 51.73 | | | | | | 02/24/2030 | | | | | | | | | | | | | | | | | | 16,971 | | | | | $ | 1,424,192 | | | ||
| | | 21,443 | | | | | | 42,887 | | | | | $ | 58.68 | | | | | | 03/05/2031 | | | | | | | | | | | | | | | | | | 20,847 | | | | | $ | 1,749,501 | | | ||
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,914 | | | | | $ | 831,958 | | | | | | 25,385 | | | | | $ | 2,130,312 | | | ||
Littlefield | | | | | 22,224 | | | | | | 11,112 | | | | | $ | 51.73 | | | | | | 02/24/2030 | | | | | | | | | | | | | | | | | | 6,149 | | | | | $ | 516,049 | | |
| | | 6,836 | | | | | | 13,671 | | | | | $ | 58.68 | | | | | | 03/05/2031 | | | | | | | | | | | | | | | | | | 6,646 | | | | | $ | 557,731 | | | ||
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,357 | | | | | $ | 449,543 | | | | | | 13,717 | | | | | $ | 1,151,097 | | | ||
Friedrich | | | | | 3,770 | | | | | | 0 | | | | | $ | 51.33 | | | | | | 02/23/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 7,000 | | | | | | 0 | | | | | $ | 37.38 | | | | | | 02/22/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 6,909 | | | | | | 0 | | | | | $ | 62.78 | | | | | | 02/27/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 21,051 | | | | | | 0 | | | | | $ | 63.98 | | | | | | 02/26/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 38,203 | | | | | | 0 | | | | | $ | 53.09 | | | | | | 02/25/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 28,816 | | | | | | 14,408 | | | | | $ | 51.73 | | | | | | 02/24/2030 | | | | | | | | | | | | | | | | | | 7,974 | | | | | $ | 669,170 | | | ||
| | | 8,902 | | | | | | 17,804 | | | | | $ | 58.68 | | | | | | 03/05/2031 | | | | | | | | | | | | | | | | | | 8,655 | | | | | $ | 726,294 | | | ||
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,956 | | | | | $ | 415,887 | | | | | | 12,689 | | | | | $ | 1,064,877 | | | ||
Hassara | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,187 | | | | | $ | 2,113,705 | | | | | | — | | | | | $ | 0 | | |
Name | | | Option Awards Number of Shares Acquired on Exercise Attributed to Company | | | Value Realized on Exercise Attributed to Company(1) | | | Stock Awards Number of Shares Acquired on Vesting Attributed to Company | | | Value Realized on Vesting Attributed to Company(2) | | ||||||||||||
Houston | | | | | 1,132,125 | | | | | $ | 38,178,876 | | | | | | 74,151 | | | | | $ | 6,575,741 | | |
Strable | | | | | 26,800 | | | | | $ | 1,147,445 | | | | | | 16,971 | | | | | $ | 1,504,973 | | |
Littlefield | | | | | 156,513 | | | | | $ | 3,136,477 | | | | | | 6,149 | | | | | $ | 545,320 | | |
Friedrich | | | | | 0 | | | | | $ | 0 | | | | | | 7,974 | | | | | $ | 707,121 | | |
Hassara | | | | | 0 | | | | | $ | 0 | | | | | | 0 | | | | | $ | 0 | | |
| Participant Group | | | Pension Benefit Formula | | ||||||
| Grandfathered Participants Grandfathered Participants were age 47 or older with at least ten years of service on December 31, 2005 and elected to retain the prior benefit provisions under the Defined Benefit (“DB”) Plan and the NQDB and to forego receipt of the additional matching contributions offered under the 401(k) and Excess Plans. • Currently, no Named Executive Officer is a Grandfathered Participant. | | | Defined Benefit Plan (Traditional Formula) 39.2% of Average Compensation (the highest five consecutive years’ total Payout of the past ten years of Pay. “Pay” is the Named Executive Officer’s base salary and annual incentive bonus up to the Tax Code limits) below the Integration Level(1) plus 61.25% of Average Compensation above the Integration Level. Cash Balance Plan — The Annual Pay Credits are calculated using the table below. | | ||||||
| | | | Annual Pay Credit | | ||||||
| Age+ Service Years (Points) | | | Contribution on All Pay | | | Contribution on Pay Above Taxable Wage Base(2) | | |||
| < 40 | | | 4.00% | | | 2.00% | | |||
| 40 – 49 | | | 5.50% | | | 2.75% | | |||
| 50 – 59 | | | 7.00% | | | 3.50% | | |||
| 60 – 69 | | | 9.00% | | | 4.50% | | |||
| 70 – 79 | | | 11.50% | | | 5.75% | | |||
| 80 or more | | | 14.00% | | | 7.00% | | |||
| NQ Defined Benefit The NQDB benefit formula for Grandfathered Participants hired before January 1, 2002, is the greater of: • 65% of Average Compensation, offset by Social Security and DB Plan benefits; or • The greater of the traditional or cash balance DB Plan benefit for Grandfathered Participants without regard to Tax Code limits, offset by the benefit that can be provided under the DB Plan. | |
| Participant Group | | | Pension Benefit Formula | | ||||||
| Non-Grandfathered Participants Non-Grandfathered Participants will receive the greater of the benefit provided under the Traditional Benefit Formula or the Cash Balance Formula through December 31, 2022. Effective January 1, 2023, will earn benefits under only the Cash Balance Formula. | | | Defined Benefit Plan Traditional Formula — 35% of Average Compensation below the Integration Level plus 55% of Average Compensation above the Integration Level. Cash Balance Formula — The Annual Pay Credits are calculated using the table below | | ||||||
| | | | Annual Pay Credit | | ||||||
| Age+ Service Years (Points) | | | Contribution on All Pay | | | Contribution on Pay Above Taxable Wage Base(2) | | |||
| < 40 | | | 3.00% | | | 1.50% | | |||
| 40 – 59 | | | 4.00% | | | 2.00% | | |||
| 60 – 79 | | | 5.50% | | | 2.75% | | |||
| 80 or more | | | 7.00% | | | 3.50% | | |||
| | | | Non-Qualified Defined Benefit The NQDB benefit formula for Non-Grandfathered Participants hired before January 1, 2002, is: • The traditional or cash balance pension plan benefit for Non-Grandfathered Choice Participants (whichever is greater) without regard to Tax Code limits, offset by the benefit that can be provided under the DB Plan. For employees who were active participants in the plan on December 31, 2005, their accrued benefit will not be less than their accrued benefit determined as of that date. There is a reduction for benefits paid under the Traditional Formula that begin prior to the Named Executive Officers attaining Normal Retirement Age: • Principal subsidizes early retirement if the Named Executive Officer remains employed until Early Retirement Age (age 57 with 10 years of service), which is the earliest date an employee may begin receiving retirement benefits. • The early retirement benefits for Grandfathered Choice Participants (and Non-Grandfathered Choice Participants for benefits accrued prior to January 1, 2006) range from 75% at age 57 to 100% at age 62. The early retirement benefits for Non-Grandfathered Choice Participants for benefits accrued after December 31, 2005, range from 75% at age 57 to 97% at age 64. • If the Named Executive Officer terminates employment before reaching Early Retirement Age, Principal does not subsidize early retirement. The early retirement benefits range from 58.6% at age 57 to 92.8% at age 64. • Benefits under the Traditional Formula are eligible for a Cost-of-Living Adjustment (COLA) after retirement benefits begin. For Non-Grandfathered Participants, only benefits accrued as of December 31, 2005, receive this adjustment. The COLA is based on the Consumer Price Index. | |
| Participant Group | | | Pension Benefit Formula | | ||||||
| Changes Effective January 1, 2023 | | | Principal has announced participant benefit accruals under the Grandfathered and Non-Grandfathered Traditional Formulas in the Defined Benefit and Non-Qualified Defined Benefit Plans will stop effective December 31, 2022. Effective January 1, 2023, participants will begin accruing benefits solely under the Non-Grandfathered Cash Balance Formula. For participants impacted by this change, benefits earned prior to January 1, 2023, will continue to be paid based on the greater of the Traditional or Cash Balance benefit. Benefits earned after December 31, 2022, will be payable as an additional Cash Balance benefit. | |
Named Executive Officer | | | Plan Name | | | Number of years Credited Service(1) | | | Present Value of Accumulated Benefit at Normal Retirement Age Attributed to Company(2) | | | Payments During Last Fiscal Year Attributed to Company | |
Houston | | | Qualified Plan NQDB Plan | | | 38 | | | $1,394,083 $17,536,040 | | | $0 | |
Strable | | | Qualified Plan NQDB Plan | | | 32 | | | $810,054 $4,681,986 | | | $0 | |
Littlefield | | | Qualified Plan NQDB Plan | | | 2 | | | $27,201 $65,678 | | | $0 | |
Friedrich | | | Qualified Plan NQDB Plan | | | 22 | | | $349,387 $1,183,997 | | | $0 | |
Hassara | | | Qualified Plan NQDB Plan | | | <1 | | | $11,758 $0 | | | $0 | |
Named Executive Officer | | | Executive Contributions in Last Fiscal Year Attributed to Company(1) | | | Principal Contributions in Last Fiscal Year Attributed to Company(2) | | | Aggregate Earnings in Last Fiscal Year Attributed to Company | | | Aggregate Withdrawals/ Distributions Attributed to Company | | | Aggregate Balance at Last Fiscal Year End Attributed to Company(3) | | |||||||||||||||
Houston | | | | $ | 566,000 | | | | | $ | 409,125 | | | | | $ | (1,957,789) | | | | | $ | 0 | | | | | $ | 8,596,874 | | |
Strable | | | | $ | 1,186,719 | | | | | $ | 159,978 | | | | | $ | (1,196,596) | | | | | $ | 0 | | | | | $ | 5,235,237 | | |
Littlefield | | | | $ | 69,857 | | | | | $ | 42,399 | | | | | $ | (32,965) | | | | | $ | 0 | | | | | $ | 201,503 | | |
Friedrich | | | | $ | 29,435 | | | | | $ | 18,134 | | | | | $ | (64,696) | | | | | $ | 0 | | | | | $ | 312,030 | | |
Hassara | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Named Executive Officer | | | Employee Deferral Attributed to the Company Prior to 1/1/2022 | | | Principal Match Attributed to the Company Prior to 1/1/2022 | | | Total Attributed to Company | | |||||||||
Houston | | | | $ | 2,608,202 | | | | | $ | 1,763,980 | | | | | $ | 4,372,182 | | |
Strable | | | | $ | 2,647,106 | | | | | $ | 637,227 | | | | | $ | 3,284,333 | | |
Littlefield | | | | $ | 66,740 | | | | | $ | 34,094 | | | | | $ | 100,834 | | |
Friedrich | | | | $ | 129,884 | | | | | $ | 87,573 | | | | | $ | 217,457 | | |
Hassara | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Plan Feature | | | Qualified 401(k) Plan | | | Excess Plan | |
Deferrals | | | 1-50% of base salary and up to 100% of annual incentive compensation awards (1-100% of base pay if not contributing to the Excess Plan) up to the limits imposed by the Tax Code. Additionally, up to $20,000 in voluntary after-tax contributions can be contributed in each calendar year. | | | 1-50% of base salary and up to 100% of annual incentive compensation awards. | |
Investment Options | | | There are numerous investment options. Investment and investment returns are based on the participant’s direction. | | | The investment options represent “phantom” units tied to the results of the reference funds listed on page 113. Investment and investment return is based on the participant’s direction. | |
Distributions | | | Allowed at various times including termination, death, and disability. | | | Allowed at various times including termination, death, specified date, change of control, unforeseen emergency, and mandatory payment at age 65. | |
Vesting | | | 3-year cliff | | | Immediate | |
Investment Option | | | 1 Year Rate Of Return (12/31/2022) | | |||
Principal Blue Chip Fund (R6) | | | | | -31.08% | | |
Principal Equity Income Fund (Institutional) | | | | | -10.42% | | |
Principal LargeCap S&P 500 Index Fund (Institutional) | | | | | -18.46% | | |
Principal LargeCap Growth Fund I (R6) | | | | | -34.41% | | |
Principal MidCap Fund (R6) | | | | | -23.04% | | |
Principal MidCap S&P 400 Index Fund (R6) | | | | | -13.10% | | |
Principal SmallCap Value II Fund (R6) | | | | | -9.07% | | |
Principal SmallCap S&P 600 Index Fund (R6) | | | | | -16.33% | | |
Principal SmallCap Growth I Fund (R6) | | | | | -28.56% | | |
Principal Real Estate Securities Fund (R6) | | | | | -25.14% | | |
Principal Origin Emerging Markets Fund (R6) | | | | | -29.72% | | |
Principal Diversified International Fund (R6) | | | | | -19.56% | | |
Principal International Equity Index Fund (R6) | | | | | -14.25% | | |
Principal LifeTime Hybrid 2015 Fund (R6) | | | | | -13.66% | | |
Principal LifeTime Hybrid 2020 Fund (R6) | | | | | -14.37% | | |
Principal LifeTime Hybrid 2025 Fund (R6) | | | | | -15.24% | | |
Principal LifeTime Hybrid 2030 Fund (R6) | | | | | -16.77% | | |
Principal LifeTime Hybrid 2035 Fund (R6) | | | | | -17.34% | | |
Principal LifeTime Hybrid 2040 Fund (R6) | | | | | -17.95% | | |
Principal LifeTime Hybrid 2045 Fund (R6) | | | | | -18.32% | | |
Principal LifeTime Hybrid 2050 Fund (R6) | | | | | -18.53% | | |
Principal LifeTime Hybrid 2055 Fund (R6) | | | | | -18.53% | | |
Principal LifeTime Hybrid 2060 Fund (R6) | | | | | -18.54% | | |
Principal LifeTime Hybrid 2065 Fund (R6) | | | | | -18.53% | | |
Principal LifeTime Hybrid Income Fund (R6) | | | | | -13.17% | | |
Principal Core Plus Bond Fund (Institutional) | | | | | -14.16% | | |
Principal Inflation Protection Fund (Institutional) | | | | | -12.08% | | |
Principal Government & High-Quality Bond Fund (Institutional) | | | | | -11.87% | | |
Principal Bond Market Index Fund (Institutional) | | | | | -13.27% | | |
Principal Financial Group, Inc. Employer Stock Fund | | | | | 19.56% | | |
Principal Diversified Real Asset Fund (R6) | | | | | -5.96% | | |
Principal Select Stable Value Fund | | | | | 1.48% | | |
Named Executive Officer | | | Lump sum severance payment calculated as follows: | |
Houston | | | The sum of the following three components: an amount equal to two times annual base salary; an amount equal to two times the average amount of the bonuses paid for the last three complete calendar years; and an amount equal to two years of health benefits premiums, intended to compensate the CEO for COBRA premiums. | |
Strable | | | The sum of the following three components: an amount equal to one and a half times the participant’s annual base salary; an amount equal to one and a half times the average amount of the bonuses paid the participant for the last three complete calendar years; and an amount equal to one and a half years of health benefits premiums, intended to compensate for COBRA premiums. | |
Littlefield | | | The sum of the following three components: an amount equal to one and a half times the participant’s annual base salary; an amount equal to one and a half times the average amount of the bonuses paid the participant for the last three complete calendar years; and an amount equal to one and a half years of health benefits premiums, intended to compensate for COBRA premiums. | |
Friedrich | | | The sum of the following three components: an amount equal to one and a half times the participant’s annual base salary; an amount equal to one and a half times the average amount of the bonuses paid the participant for the last three complete calendar years; and an amount equal to one and a half years of health benefits premiums, intended to compensate for COBRA premiums. | |
Hassara | | | The sum of the following three components: an amount equal to one times the participant’s annual base salary; an amount equal to one times the average amount of the bonuses paid the participant for the last three complete calendar years; and an amount equal to one year of health benefits premiums, intended to compensate for COBRA premiums. | |
Named Executive Officer | | | Severance Attributed to Company | | | Outplacement Services Attributed to Company | | | COBRA Reimbursement Attributed to Company | | | Total Attributed to Company | | ||||||||||||
Houston | | | | $ | 10,080,769 | | | | | $ | 40,000 | | | | | $ | 34,124 | | | | | $ | 10,154,893 | | |
Strable | | | | $ | 3,066,336 | | | | | $ | 40,000 | | | | | $ | 21,779 | | | | | $ | 3,128,115 | | |
Littlefield | | | | $ | 1,113,197 | | | | | $ | 26,000 | | | | | $ | 23,649 | | | | | $ | 1,162,846 | | |
Friedrich | | | | $ | 1,165,283 | | | | | $ | 23,600 | | | | | $ | 21,466 | | | | | $ | 1,210,349 | | |
Hassara | | | | $ | 1,144,800 | | | | | $ | 38,400 | | | | | $ | 21,149 | | | | | $ | 1,204,349 | | |
Named Executive Officer | | | Cash Severance Attributed to Company(1) | | | Spread on Previously Unvested Options | | | Value of Previously Unvested Restricted Stock & Performance Shares Attributed to Company(2) | | | Benefits Continuation Attributed to Company(3) | | | Accelerated Pension Benefit Attributed to Company(4) | | | Total Termination Benefits Attributed to Company (before taxes) | | ||||||||||||||||||
Houston | | | | $ | 9,500,000 | | | | | $ | 8,903,705 | | | | | $ | 21,576,222 | | | | | $ | 79,631 | | | | | $ | 0 | | | | | $ | 40,059,557 | | |
Strable | | | | $ | 3,817,000 | | | | | $ | 2,069,619 | | | | | $ | 5,304,005 | | | | | $ | 76,312 | | | | | $ | 0 | | | | | $ | 11,266,937 | | |
Littlefield | | | | $ | 2,031,250 | | | | | $ | 702,760 | | | | | $ | 2,224,877 | | | | | $ | 62,001 | | | | | $ | 92,879 | | | | | $ | 5,113,767 | | |
Friedrich | | | | $ | 1,879,150 | | | | | $ | 913,166 | | | | | $ | 2,460,341 | | | | | $ | 56,278 | | | | | $ | 0 | | | | | $ | 5,308,935 | | |
Hassara | | | | $ | 2,289,600 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 71,366 | | | | | $ | 11,758 | | | | | $ | 2,372,724 | | |
| Advisor Group | | | Capital One Financial | | | Federal Reserve Bank of Chicago | |
| AFLAC | | | CardWorks | | | Federal Reserve Bank of Minneapolis | |
| AgFirst | | | CareFirst BlueCross BlueShield | | | Federal Reserve Bank of Richmond | |
| AIG | | | Caterpillar Financial Services | | | Federal Reserve Bank of | |
| Alerus Financial Allianz Global Corporate & Specialty North America | | | CBOE Global Markets CBRE Group CFA Institute | | | San Francisco Federal Reserve Bank of St. Louis Federal Reserve Board | |
| Allianz Life Insurance | | | Chubb | | | Fifth Third Bancorp | |
| Allianz Worldwide Partners | | | Cigna | | | FINRA | |
| Allied Solutions | | | Citigroup | | | First American | |
| Allstate | | | Citizens Property Insurance | | | First Citizens Bank | |
| Ally Financial | | | City National Bank | | | First Financial Bancorp | |
| Alter Domus | | | CME Group | | | First National of Nebraska | |
| American Enterprise | | | CNA Financial Corporation | | | Fiserv | |
| American Express | | | CNO Financial | | | Florida Credit Union | |
| American National Insurance | | | Cobank | | | Fortitude Re | |
| American Property Casualty Insurance | | | Coface | | | GATX | |
| Association | | | Comerica | | | Genworth Financial | |
| Ameritas Life | | | Commerce Bancshares | | | Global Payments | |
| AmTrust | | | Compeer Financial | | | GM Financial | |
| Anthem | | | Computershare | | | GNY Insurance | |
| Aon | | | Country Financial | | | Great American Insurance | |
| Arthur J Gallagher & Company | | | Coverys | | | GreenStone | |
| Ascot Group | | | CPP Investment Board | | | Guardian Life | |
| Aspen Insurance Associated Banc-Corp | | | CTBC Bank Cullen Frost Bankers | | | Hartford Financial Services Group HealthEquity | |
| Assurant | | | Delta Dental of California | | | Hiscox | |
| Athene | | | Deutsche Bank | | | Horace Mann Educators | |
| Atradius | | | Discover Financial Services | | | Horizon Blue Cross Blue Shield of | |
| Auto Club Group | | | Donnelley Financial Solutions | | | New Jersey | |
| AXA XL AXIS Specialty U.S. Services | | | DWS Investments East West Bank | | | HSBC Bank Hub International | |
| Banco Itau S.A. | | | Eaton Vance | | | Huntington Bancshares | |
| Bar Plan Mutual Insurance Company | | | Edelman Financial Engines | | | ICW Group | |
| Barclays | | | Edward Jones | | | IMT Insurance | |
| BECU | | | Element Fleet Management | | | Independence Blue Cross | |
| Blue Cross Blue Shield of Florida Blue Cross Blue Shield of Louisiana Blue Cross Blue Shield of North Carolina Blue Shield of California Bread Financial Bremer Financial | | | Emblem Health Employers Mutual Casualty Company Empower Encore Capital Enova International Equitable Erie Insurance | | | Intact Insurance IQ-EQ Irvine Jackson National Life Kemper Services Group KeyCorp Legal & General America | |
| Brighthouse Financial | | | Experian Americas | | | Liberty Mutual Insurance | |
| Brookfield Asset Management Brotherhood Mutual Insurance | | | Farm Credit Bank of Texas Farm Credit Foundations | | | Lincoln Financial London Stock Exchange Group | |
| Caliber Home Loans | | | Farmers Group | | | LPL Financial | |
| California Casualty Management Cambridge Associates Canadian Imperial Bank of Commerce | | | FCCI Insurance Federal Reserve Bank of Atlanta Federal Reserve Bank of Boston | | | M&T Bank Manulife Asset Management Manulife Financial | |
| MAPFRE U.S.A. Marsh Massachusetts Mutual | | | Pacific Premier Bancorp PartnerRe Pinnacol Assurance | | | State Teachers Retirement System of Ohio Sun Life Financial | |
| MasterCard | | | Plymouth Rock Assurance | | | SVB Financial | |
| Medical Mutual of Ohio Mercury Insurance | | | PMA Companies Popular | | | SWBC Symetra Financial | |
| MetLife | | | PRA Group | | | Synchrony | |
| MidFirst Bank | | | Primerica Life | | | Synovus Financial Corporation | |
| Mitsubishi International | | | Principal Financial Group | | | T. Rowe Price Group | |
| Mitsui Sumitomo Marine Management (U.S.A.), Inc Moody’s Morgan Stanley Investment | | | Progressive Progressive Leasing Protective Life Prudential Financial | | | Teacher Retirement System of Texas Texas Life Thrivent Financial for Lutherans Tokio Marine HCC | |
| Management | | | Putnam Investments | | | Transamerica | |
| Mortgage Guaranty Insurance Mr. Cooper Munich American Reassurance | | | QBE Insurance Group R&Q Insurance Services Rabobank | | | Transatlantic Holdings TransUnion Travelers | |
| Company | | | Radian Group | | | Two Harbors Investment Corp | |
| Munich Re Group | | | Realogy | | | Unite Here Health | |
| Mutual of Omaha Nasdaq | | | Regions Financial Reinsurance Group of America (RGA) | | | Unum USAA | |
| Nationwide | | | Reliance Standard Life | | | Visa | |
| Navient | | | Ryan LLC | | | Voya Financial Services | |
| Navy Federal Credit Union | | | SchoolsFirst FCU | | | Voya Investment Management | |
| NCCI Holdings | | | Schroders | | | Webster Bank | |
| NCMIC | | | SCOR SE | | | Wellington Management | |
| New York Life | | | Securian Financial Group | | | Wellmark BlueCross BlueShield | |
| NJM Insurance Group | | | Society Insurance | | | Western Alliance Bancorporation | |
| Northern Trust | | | Sompo International Holdings | | | Western Asset Management | |
| Northwestern Mutual | | | Southern Farm Bureau Life | | | Western Union | |
| Ohio National Financial Services | | | Standard Insurance | | | Westfield | |
| OneAmerica Financial Partners | | | State Farm Insurance | | | Wintrust Financial Corporation | |
| Pacific Life | | | State Street | | | Zurich North America | |
| AFLAC | | | New York Life | |
| AIG | | | Northwestern Mutual | |
| Allianz Life Insurance | | | OneAmerica Financial Partners | |
| Allstate | | | Pacific Life | |
| Brighthouse Financial | | | Principal Financial Group | |
| Cigna | | | Protective Life | |
| CNO Financial | | | Prudential Financial | |
| Equitable | | | Securian Financial Group | |
| Genworth Financial | | | Sun Life Financial | |
| Guardian Life | | | Symetra Financial | |
| Hartford Financial Services Group | | | Thrivent Financial for Lutherans | |
| John Hancock | | | Transamerica | |
| Lincoln Financial | | | Unum | |
| Massachusetts Mutual | | | USAA | |
| Met Life | | | Voya Financial Services | |
| Nationwide | | | | |
| abrdn plc | | | DuPont Capital Management | |
| Acadian Asset Management | | | DWS | |
| Adams Funds | | | Eagle Capital Management, LLC | |
| Advisor Group | | | Edelman Financial Engines | |
| AGF Management | | | Empower Retirement | |
| AllianceBernstein | | | Federated Hermes, Inc. | |
| Allianz Global Investors | | | Fidelity Investments | |
| American Century Investments | | | Fiera Capital Corporation | |
| Ameriprise Financial | | | First Eagle Investment Management | |
| AMG Funds | | | First Sentier Investors | |
| Amherst Capital | | | Fort Washington Investment Advisors | |
| Amundi Pioneer | | | Franklin Templeton Investments | |
| Annaly Capital Management | | | Fred Alger Management | |
| Apollo Global Management | | | Fund Evaluation Group | |
| Ares Management | | | GAM | |
| Artisan Partners Limited Partnership | | | Geode Capital Management | |
| AssetMark | | | Glenmede Trust Company | |
| Bank of New York Mellon | | | GMO | |
| Barings | | | Goldman Sachs & Co. | |
| Bessemer Trust Company | | | Gresham Investment Management LLC | |
| BlackRock | | | Harding Loevner | |
| BlueBay Asset Management | | | Hardman Johnston Global Advisors LLC | |
| BNP Paribas Asset Management Holding | | | Hennessy Advisors | |
| Brandes Investment Partners | | | IFM Investors | |
| Brandywine Global Investment Management | | | Impax Group | |
| Bridgewater Associates | | | Insight Investment | |
| Bridgeway Capital Management | | | Intact | |
| Brown Advisory | | | Invesco | |
| Brown Brothers Harriman | | | J O Hambro Capital Management | |
| Calamos Investments | | | Jacobs Levy Equity Management | |
| Capital Group | | | Janus Henderson Investors | |
| Cardinal Capital Management | | | Jefferies | |
| Causeway Capital Management | | | Jennison Associates | |
| Ceredex Value Advisors LLC | | | Jensen Investment Management | |
| Chandler Asset Management | | | JPMorgan Asset & Wealth Management | |
| Clark Capital Management Group | | | Jupiter Asset Management | |
| ClearBridge Investments | | | Kayne Anderson Rudnick Investment Mgmt | |
| Cohen & Steers | | | KKR & Co. | |
| Coho Partners Ltd. | | | LaSalle Investment Management | |
| Conning and Company | | | Lazard Asset Management | |
| Credit Suisse | | | Loomis, Sayles & Company | |
| Diamond Hill Capital Management | | | Lord, Abbett & Co. | |
| Dimensional Fund Advisors | | | M&G Investments | |
| Direxion | | | MacKay Shields | |
| DoubleLine Group | | | Mackenzie Financial Corporation | |
| Duff & Phelps Investment Management Co. | | | Macquarie Bank | |
| Makena Capital | | | Seix Investment Advisors LLC | |
| Manning & Napier Advisors | | | Silvant Capital Management LLC | |
| Manulife | | | State Street Corporation | |
| Mariner Wealth Advisors | | | Stone Harbor Investment Partners LP | |
| Mercer | | | Sustainable Growth Advisers, LP | |
| MFS Investment Management | | | Symphony Asset Management | |
| Morgan Stanley | | | T. Rowe Price Associates | |
| Natixis Investment Managers | | | TCW Group | |
| Neuberger Berman Group | | | TD Securities | |
| Newfleet Asset Management | | | Thornburg Investment Management | |
| NFJ Investment Group L.P. | | | Thrivent Financial | |
| Nikko Asset Management | | | UBS Asset Management | |
| Ninety One | | | Van Eck Associates | |
| NN Investment Partners | | | Vanguard Group, Inc. | |
| Nomura Securities | | | Vaughan Nelson Investment Management | |
| Northern Trust Corporation | | | Virtus Investment Partners | |
| Numeric Investors LLC | | | Voya Financial | |
| Nuveen Investments | | | Wellington Management Company | |
| NWQ Investment Management Company | | | Westchester Capital Management | |
| Oaktree Capital Management | | | Western Asset Management Company | |
| Orbis Investment Management | | | Westwood Holdings Group | |
| Pacific Investment Management Company | | | William Blair & Company | |
| PanAgora Asset Management | | | WisdomTree Investments | |
| Parametric Portfolio Associates | | | | |
| Parnassus Investments | | | | |
| Performance Trust Investment Advisors, L | | | | |
| Perpetual Limited | | | | |
| PineBridge Investments | | | | |
| Polar Capital | | | | |
| Polen Capital | | | | |
| PPM America | | | | |
| Principal Financial Group | | | | |
| ProFund Advisors LLC | | | | |
| Prudential Financial | | | | |
| Putnam Investments | | | | |
| Pzena Investment Management | | | | |
| Quantitative Management Associates | | | | |
| Raymond, James & Associates | | | | |
| Resolute Investment Managers, Inc. | | | | |
| Robeco Group | | | | |
| Rockefeller Capital Management L.P. | | | | |
| Rothschild & Co. | | | | |
| Russell Investments | | | | |
| Sands Capital Management | | | | |
| Santa Barbara Asset Management | | | | |
| Schroder Investment Management | | | | |
| | | For the year ended Dec. 31 | | |||||||||||||||||||||||||||
(in millions, except as indicated) | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
Net income attributable to PFG | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to PFG | | | | $ | 4,811.6 | | | | | $ | 1,710.6 | | | | | $ | 1,395.8 | | | | | $ | 1,394.2 | | | | | $ | 1,546.5 | | |
Net realized capital (gains) losses, as adjusted(1) | | | | | 193.3 | | | | | | 137.0 | | | | | | (29.4) | | | | | | 174.9 | | | | | | 51.0 | | |
(Income) loss from exited business | | | | | (3,304.0) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-GAAP operating earnings | | | | $ | 1,700.9 | | | | | $ | 1,847.6 | | | | | $ | 1,366.4 | | | | | $ | 1,569.1 | | | | | $ | 1,597.5 | | |
Net realized capital gains (losses) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP net realized capital gains (losses) | | | | $ | (258.4) | | | | | $ | 2.5 | | | | | $ | 302.6 | | | | | $ | (52.8) | | | | | $ | (75.4) | | |
Recognition of front-end fee revenues | | | | | (4.7) | | | | | | (2.9) | | | | | | 11.4 | | | | | | 8.5 | | | | | | 0.4 | | |
Market value adjustments to fee revenues | | | | | 0.7 | | | | | | (0.6) | | | | | | (1.6) | | | | | | — | | | | | | 0.1 | | |
Net realized capital gains (losses) related to equity method investments | | | | | (15.0) | | | | | | (24.0) | | | | | | (1.5) | | | | | | 2.6 | | | | | | (5.4) | | |
Derivative and hedging-related revenue adjustments | | | | | (126.3) | | | | | | (160.3) | | | | | | (132.9) | | | | | | (80.4) | | | | | | (64.9) | | |
Sponsored investment fund adjustments | | | | | 22.2 | | | | | | 21.3 | | | | | | 17.3 | | | | | | 23.6 | | | | | | 12.9 | | |
Amortization of deferred acquisition costs | | | | | 6.5 | | | | | | (0.2) | | | | | | (0.5) | | | | | | (15.7) | | | | | | (25.6) | | |
Capital gains distributed – operating expenses | | | | | 102.9 | | | | | | (69.4) | | | | | | (41.7) | | | | | | (31.6) | | | | | | 15.7 | | |
Amortization of other actuarial balances | | | | | (4.0) | | | | | | 11.3 | | | | | | (26.3) | | | | | | (25.1) | | | | | | (1.4) | | |
Market value adjustments of embedded derivatives | | | | | (44.1) | | | | | | 79.8 | | | | | | (55.0) | | | | | | 66.6 | | | | | | 18.5 | | |
Capital gains distributed – cost of interest credited | | | | | 33.5 | | | | | | (37.3) | | | | | | (8.2) | | | | | | (36.6) | | | | | | (1.3) | | |
Net realized capital gains (losses) tax adjustments | | | | | 64.2 | | | | | | 56.2 | | | | | | (28.2) | | | | | | (1.3) | | | | | | 71.4 | | |
Net realized capital gains (losses) attributable to noncontrolling interest, after-tax | | | | | 29.2 | | | | | | (13.4) | | | | | | (6.0) | | | | | | (32.7) | | | | | | 4.0 | | |
Total net realized capital gains (losses) after-tax adjustments | | | | | 65.1 | | | | | | (139.5) | | | | | | (273.2) | | | | | | (122.1) | | | | | | 24.4 | | |
Net realized capital gains (losses), as adjusted | | | | $ | (193.3) | | | | | $ | (137.0) | | | | | $ | 29.4 | | | | | $ | (174.9) | | | | | $ | (51.0) | | |
Diluted earnings per common share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | | $ | 18.85 | | | | | $ | 6.27 | | | | | $ | 5.05 | | | | | $ | 4.96 | | | | | $ | 5.36 | | |
Net realized capital (gains) losses, as adjusted | | | | | 0.76 | | | | | | 0.50 | | | | | | (0.11) | | | | | | 0.62 | | | | | | 0.17 | | |
(Income) loss from exited business | | | | | (12.95) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-GAAP operating earnings | | | | $ | 6.66 | | | | | $ | 6.77 | | | | | $ | 4.94 | | | | | $ | 5.58 | | | | | $ | 5.53 | | |
Stockholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity | | | | $ | 10,042.8 | | | | | $ | 16,125.8 | | | | | $ | 16,617.3 | | | | | $ | 14,685.8 | | | | | $ | 11,456.0 | | |
Noncontrolling interest | | | | | (41.1) | | | | | | (56.4) | | | | | | (58.4) | | | | | | (67.8) | | | | | | (66.0) | | |
Stockholders’ equity attributable to Principal Financial Group, Inc. | | | | | 10,001.7 | | | | | | 16,069.4 | | | | | | 16,558.9 | | | | | | 14,618.0 | | | | | | 11,390.0 | | |
Net unrealized capital (gains) losses | | | | | 5,357.6 | | | | | | (3,519.2) | | | | | | (4,156.5) | | | | | | (2,815.3) | | | | | | (207.3) | | |
Net unrecognized postretirement benefit obligation | | | | | 254.1 | | | | | | 344.7 | | | | | | 460.5 | | | | | | 435.6 | | | | | | 512.9 | | |
Cumulative change in fair value of funds withheld embedded derivative | | | | | (2,885.7) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | For the year ended Dec. 31 | | |||||||||||||||||||||||||||
(in millions, except as indicated) | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
Stockholders’ equity, excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment (FCTA) | | | | $ | 12,727.7 | | | | | $ | 12,894.9 | | | | | $ | 12,862.9 | | | | | $ | 12,238.3 | | | | | $ | 11,695.6 | | |
Net income ROE available to common stockholders (including AOCI) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income ROE available to common stockholders (including AOCI) | | | | | 36.9% | | | | | | 10.5% | | | | | | 9.0% | | | | | | 10.7% | | | | | | 12.8% | | |
Cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA | | | | | 0.7% | | | | | | 2.8% | | | | | | 2.1% | | | | | | 1.0% | | | | | | 0.4% | | |
Net income ROE available to common stockholders (x-cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA) | | | | | 37.6% | | | | | | 13.3% | | | | | | 11.1% | | | | | | 11.7% | | | | | | 13.2% | | |
Net realized capital (gains) losses | | | | | 1.5% | | | | | | 1.0% | | | | | | -0.2% | | | | | | 1.4% | | | | | | 0.4% | | |
(Income) loss from exited business | | | | | -25.8% | | | | | | 0.0% | | | | | | 0.0% | | | | | | 0.0% | | | | | | 0.0% | | |
Non-GAAP operating earnings ROE (x-cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA) | | | | | 13.3% | | | | | | 14.3% | | | | | | 10.9% | | | | | | 13.1% | | | | | | 13.6% | | |
Book value per common share including AOCI | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per common share including AOCI | | | | $ | 41.07 | | | | | $ | 61.40 | | | | | $ | 60.59 | | | | | $ | 52.85 | | | | | $ | 40.75 | | |
Cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA | | | | | 11.20 | | | | | | (12.13) | | | | | | (13.52) | | | | | | (8.60) | | | | | | 1.09 | | |
Book value excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than FCTA | | | | | 52.27 | | | | | | 49.27 | | | | | | 47.07 | | | | | | 44.25 | | | | | | 41.84 | | |
Foreign currency translation | | | | | 6.52 | | | | | | 5.98 | | | | | | 4.80 | | | | | | 4.85 | | | | | | 4.51 | | |
Book value per common share excluding cumulative change in fair value of funds withheld embedded derivative and AOCI | | | | $ | 58.79 | | | | | $ | 55.25 | | | | | $ | 51.87 | | | | | $ | 49.10 | | | | | $ | 46.35 | | |
Total revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues | | | | $ | 17,491.6 | | | | | $ | 14,262.7 | | | | | $ | 14,741.7 | | | | | $ | 16,222.1 | | | | | $ | 14,237.2 | | |
Net realized capital (gains) losses, net of related revenue adjustments | | | | | 381.5 | | | | | | 164.0 | | | | | | (195.3) | | | | | | 98.5 | | | | | | 132.3 | | |
Revenues from exited business | | | | | (4,447.2) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjustments related to equity method investments | | | | | 49.1 | | | | | | 31.5 | | | | | | 33.5 | | | | | | 72.5 | | | | | | 55.3 | | |
Operating revenues | | | | $ | 13,475.0 | | | | | $ | 14,458.2 | | | | | $ | 14,579.9 | | | | | $ | 16,393.1 | | | | | $ | 14,424.8 | | |
Gross profit | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | | $ | 6,060.1 | | | | | $ | 2,083.6 | | | | | $ | 1,693.5 | | | | | $ | 1,693.3 | | | | | $ | 1,784.4 | | |
Operating expenses | | | | | 4,825.4 | | | | | | 4,917.7 | | | | | | 4,604.3 | | | | | | 4,456.6 | | | | | | 4,126.8 | | |
Non-GAAP pre-tax operating earnings (losses) attributable to noncontrolling interest(1) | | | | | 70.1 | | | | | | 33.5 | | | | | | 26.5 | | | | | | 17.4 | | | | | | 11.6 | | |
Pre-tax net realized capital (gains) losses | | | | | 286.7 | | | | | | 179.8 | | | | | | (63.6) | | | | | | 140.9 | | | | | | 126.4 | | |
Pre-tax (income) loss from exited business | | | | | (4,260.5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | For the year ended Dec. 31 | | |||||||||||||||||||||||||||
(in millions, except as indicated) | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | |||||||||||||||
Certain adjustments related to equity method investments and noncontrolling interest | | | | | (21.0) | | | | | | (2.0) | | | | | | 7.0 | | | | | | 55.1 | | | | | | 43.7 | | |
Non-GAAP gross profit | | | | $ | 6,960.8 | | | | | $ | 7,212.6 | | | | | $ | 6,267.7 | | | | | $ | 6,363.3 | | | | | $ | 6,092.9 | | |
Income before income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | | $ | 6,060.1 | | | | | $ | 2,083.6 | | | | | $ | 1,693.5 | | | | | $ | 1,693.3 | | | | | $ | 1,784.4 | | |
Net realized capital (gains) losses | | | | | 258.4 | | | | | | (2.5) | | | | | | (302.6) | | | | | | 52.8 | | | | | | 75.4 | | |
Net realized capital (gains) losses pre-tax adjustments | | | | | 28.3 | | | | | | 182.3 | | | | | | 239.0 | | | | | | 88.1 | | | | | | 51.0 | | |
Non-GAAP pre-tax operating (earnings) losses attributable to noncontrolling interest(1) | | | | | (70.1) | | | | | | (33.5) | | | | | | (26.5) | | | | | | (17.4) | | | | | | (11.6) | | |
Income taxes related to equity method investments | | | | | 49.1 | | | | | | 31.5 | | | | | | 33.5 | | | | | | 72.5 | | | | | | 55.3 | | |
Pre-tax (income) loss from exited business | | | | | (4,260.5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-GAAP pre-tax operating earnings | | | | $ | 2,065.3 | | | | | $ | 2,261.4 | | | | | $ | 1,636.9 | | | | | $ | 1,889.3 | | | | | $ | 1,954.5 | | |
Income from continuing operations before income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | | $ | 6,060.1 | | | | | $ | 2,083.6 | | | | | $ | 1,693.5 | | | | | $ | 1,693.3 | | | | | $ | 1,784.4 | | |
Net realized capital (gains) losses | | | | | 258.4 | | | | | | (2.5) | | | | | | (302.6) | | | | | | 52.8 | | | | | | 75.4 | | |
Non-GAAP pre-tax operating income | | | | $ | 6,318.5 | | | | | $ | 2,081.1 | | | | | $ | 1,390.9 | | | | | $ | 1,746.1 | | | | | $ | 1,859.8 | | |
Net income attributable to noncontrolling interest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to noncontrolling interest | | | | $ | 40.6 | | | | | $ | 46.8 | | | | | $ | 32.7 | | | | | $ | 49.9 | | | | | $ | 7.2 | | |
Income taxes attributable to noncontrolling interest | | | | | 0.3 | | | | | | 0.1 | | | | | | (0.2) | | | | | | 0.2 | | | | | | 0.4 | | |
Net realized capital gains (losses) attributable to noncontrolling interest, after-tax | | | | | 29.2 | | | | | | (13.4) | | | | | | (6.0) | | | | | | (32.7) | | | | | | 4.0 | | |
Non-GAAP pre-tax operating earnings losses attributable to noncontrolling interest | | | | $ | 70.1 | | | | | $ | 33.5 | | | | | $ | 26.5 | | | | | $ | 17.4 | | | | | $ | 11.6 | | |
Income (loss) from exited business | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Strategic review costs and impacts | | | | $ | (91.0) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Amortization of reinsurance losses | | | | | (82.5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Impacts to actuarial balances of reinsured business | | | | | 31.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net realized capital gains (losses) on funds withheld assets | | | | | 749.4 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Change in fair value of funds withheld embedded derivative | | | | | 3,652.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Pre-tax income (loss) from exited business | | | | | 4,260.5 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tax impacts of exited business | | | | | (956.5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Income (loss) from exited business | | | | $ | 3,304.0 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Name of Beneficial Owner | | | Number of Shares Beneficially Owned(1) | | | Percent of Common Stock Outstanding | | ||||||
Jonathan S. Auerbach | | | | | 10,127 | | | | | | * | | |
Mary E. “Maliz” Beams | | | | | 3,364 | | | | | | * | | |
Jocelyn Carter-Miller | | | | | 69,154 | | | | | | * | | |
Michael T. Dan | | | | | 52,223 | | | | | | * | | |
H Elizabeth Mitchell | | | | | 0 | | | | | | * | | |
Roger C. Hochschild | | | | | 25,044 | | | | | | * | | |
Scott M. Mills | | | | | 20,323 | | | | | | * | | |
Claudio N. Muruzabal | | | | | 2,407 | | | | | | * | | |
Diane C. Nordin | | | | | 16,095 | | | | | | * | | |
Blair C. Pickerell | | | | | 23,583 | | | | | | * | | |
Clare S. Richer | | | | | 7,300 | | | | | | * | | |
Alfredo Rivera | | | | | 4,323 | | | | | | * | | |
Amy C. Friedrich | | | | | 258,105 | | | | | | * | | |
Patrick G. Halter | | | | | 115,926 | | | | | | * | | |
Daniel J. Houston | | | | | 462,509 | | | | | | * | | |
Natalie Lamarque | | | | | 0 | | | | | | * | | |
Deanna D. Strable-Soethout(2) | | | | | 517,256 | | | | | | * | | |
All Directors and Executive Officers as a group (23 persons) | | | | | 1,968,130 | | | | | | 0.81 | | |
| | | Estimated impact to net income(1) | | |||
| | | (in millions) | | |||
Reducing the future separate account equity return assumption by 1% | | | | $ | (10) | | |
Reducing the long-term general account fixed income investment yield assumption by 0.5% | | | | | (50) | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Retirement and Income Solutions | | | | $ | 67.3 | | | | | $ | (67.3) | | | | | $ | 70.1 | | |
U.S. Insurance Solutions | | | | | 18.8 | | | | | | 34.6 | | | | | | (215.1) | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums and other considerations | | | | $ | 5,264.3 | | | | | $ | 4,714.0 | | | | | $ | 5,880.8 | | | | | $ | 550.3 | | | | | $ | (1,166.8) | | |
Fees and other revenues | | | | | 2,207.9 | | | | | | 2,679.6 | | | | | | 2,353.6 | | | | | | (471.7) | | | | | | 326.0 | | |
Net investment income | | | | | 2,852.3 | | | | | | 3,633.7 | | | | | | 3,324.9 | | | | | | (781.4) | | | | | | 308.8 | | |
Net realized capital gains (losses) | | | | | (1.2) | | | | | | (18.5) | | | | | | 105.6 | | | | | | 17.3 | | | | | | (124.1) | | |
Net realized capital gains on funds withheld assets | | | | | 749.4 | | | | | | — | | | | | | — | | | | | | 749.4 | | | | | | — | | |
Change in fair value of funds withheld embedded derivative | | | | | 3,652.8 | | | | | | — | | | | | | — | | | | | | 3,652.8 | | | | | | — | | |
Total revenues | | | | | 14,725.5 | | | | | | 11,008.8 | | | | | | 11,664.9 | | | | | | 3,716.7 | | | | | | (656.1) | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Benefits, claims and settlement expenses | | | | | 5,650.7 | | | | | | 6,482.6 | | | | | | 7,837.5 | | | | | | (831.9) | | | | | | (1,354.9) | | |
Dividends to policyholders | | | | | 94.8 | | | | | | 94.8 | | | | | | 120.2 | | | | | | — | | | | | | (25.4) | | |
Operating expenses | | | | | 3,139.2 | | | | | | 2,744.6 | | | | | | 2,479.7 | | | | | | 394.6 | | | | | | 264.9 | | |
Total expenses | | | | | 8,884.7 | | | | | | 9,322.0 | | | | | | 10,437.4 | | | | | | (437.3) | | | | | | (1,115.4) | | |
Income before income taxes | | | | | 5,840.8 | | | | | | 1,686.8 | | | | | | 1,227.5 | | | | | | 4,154.0 | | | | | | 459.3 | | |
Income taxes | | | | | 1,117.6 | | | | | | 233.2 | | | | | | 160.1 | | | | | | 884.4 | | | | | | 73.1 | | |
Net income | | | | | 4,723.2 | | | | | | 1,453.6 | | | | | | 1,067.4 | | | | | | 3,269.6 | | | | | | 386.2 | | |
Net income attributable to noncontrolling interest | | | | | 62.2 | | | | | | 24.3 | | | | | | 19.4 | | | | | | 37.9 | | | | | | 4.9 | | |
Net income attributable to Principal Life Insurance Company | | | | $ | 4,661.0 | | | | | $ | 1,429.3 | | | | | $ | 1,048.0 | | | | | $ | 3,231.7 | | | | | $ | 381.3 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Retirement and Income Solutions – Fee | | | | $ | 2,005.5 | | | | | $ | 1,856.9 | | | | | $ | 1,646.7 | | | | | $ | 148.6 | | | | | $ | 210.2 | | |
Retirement and Income Solutions – Spread | | | | | 748.2 | | | | | | 928.1 | | | | | | 664.8 | | | | | | (179.9) | | | | | | 263.3 | | |
Total Retirement and Income Solutions | | | | $ | 2,753.7 | | | | | $ | 2,785.0 | | | | | $ | 2,311.5 | | | | | $ | (31.3) | | | | | $ | 473.5 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Operating revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums and other considerations | | | | $ | 1,959.7 | | | | | $ | 1,883.6 | | | | | $ | 3,220.9 | | | | | $ | 76.1 | | | | | $ | (1,337.3) | | |
Fees and other revenues | | | | | 1,723.5 | | | | | | 1,716.7 | | | | | | 1,399.0 | | | | | | 6.8 | | | | | | 317.7 | | |
Net investment income | | | | | 2,274.3 | | | | | | 2,728.7 | | | | | | 2,542.6 | | | | | | (454.4) | | | | | | 186.1 | | |
Total operating revenues | | | | | 5,957.5 | | | | | | 6,329.0 | | | | | | 7,162.5 | | | | | | (371.5) | | | | | | (833.5) | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Benefits, claims and settlement expenses, including dividends to policyholders | | | | | 3,203.8 | | | | | | 3,544.0 | | | | | | 4,851.0 | | | | | | (340.2) | | | | | | (1,307.0) | | |
Operating expenses | | | | | 1,593.8 | | | | | | 1,492.6 | | | | | | 1,245.8 | | | | | | 101.2 | | | | | | 246.8 | | |
Total expenses | | | | | 4,797.6 | | | | | | 5,036.6 | | | | | | 6,096.8 | | | | | | (239.0) | | | | | | (1,060.2) | | |
Pre-tax operating earnings | | | | $ | 1,159.9 | | | | | $ | 1,292.4 | | | | | $ | 1,065.7 | | | | | $ | (132.5) | | | | | $ | 226.7 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Premium and fees: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Specialty Benefits insurance | | | | $ | 2,801.8 | | | | | $ | 2,527.5 | | | | | $ | 2,362.0 | | | | | $ | 274.3 | | | | | $ | 165.5 | | |
Individual Life insurance | | | | | 933.5 | | | | | | 1,252.9 | | | | | | 1,227.0 | | | | | | (319.4) | | | | | | 25.9 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Operating revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums and other considerations | | | | $ | 3,306.8 | | | | | $ | 2,830.4 | | | | | $ | 2,659.9 | | | | | $ | 476.4 | | | | | $ | 170.5 | | |
Fees and other revenues | | | | | 428.2 | | | | | | 949.9 | | | | | | 929.1 | | | | | | (521.7) | | | | | | 20.8 | | |
Net investment income | | | | | 572.2 | | | | | | 973.5 | | | | | | 879.4 | | | | | | (401.3) | | | | | | 94.1 | | |
Total operating revenues | | | | | 4,307.2 | | | | | | 4,753.8 | | | | | | 4,468.4 | | | | | | (446.6) | | | | | | 285.4 | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Benefits, claims and settlement expenses | | | | | 2,461.7 | | | | | | 3,028.6 | | | | | | 2,904.5 | | | | | | (566.9) | | | | | | 124.1 | | |
Dividends to policyholders | | | | | 94.7 | | | | | | 94.6 | | | | | | 120.0 | | | | | | 0.1 | | | | | | (25.4) | | |
Operating expenses | | | | | 1,224.0 | | | | | | 1,168.8 | | | | | | 1,211.8 | | | | | | 55.2 | | | | | | (43.0) | | |
Total expenses | | | | | 3,780.4 | | | | | | 4,292.0 | | | | | | 4,236.3 | | | | | | (511.6) | | | | | | 55.7 | | |
Pre-tax operating earnings | | | | $ | 526.8 | | | | | $ | 461.8 | | | | | $ | 232.1 | | | | | $ | 65.0 | | | | | $ | 229.7 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Operating revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total operating revenues | | | | $ | 60.5 | | | | | $ | 67.4 | | | | | $ | 37.9 | | | | | $ | (6.9) | | | | | $ | 29.5 | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | | | 115.5 | | | | | | 83.8 | | | | | | 22.3 | | | | | | 31.7 | | | | | | 61.5 | | |
Pre-tax operating earnings attributable to noncontrolling interest | | | | | 62.2 | | | | | | 24.3 | | | | | | 19.5 | | | | | | 37.9 | | | | | | 4.8 | | |
Pre-tax operating losses | | | | $ | (117.2) | | | | | $ | (40.7) | | | | | $ | (3.9) | | | | | $ | (76.5) | | | | | $ | (36.8) | | |
| | | Contractholder funds | | | Percentage | | ||||||
| | | (in millions) | | |||||||||
Not subject to discretionary withdrawal | | | | $ | 15,962.2 | | | | | | 46.3% | | |
Subject to discretionary withdrawal with adjustments: | | | | | | | | | | | | | |
Specified Surrender Charges | | | | | 9,689.3 | | | | | | 28.1 | | |
Market value adjustments | | | | | 4,302.2 | | | | | | 12.5 | | |
Subject to discretionary withdrawal without adjustments | | | | | 4,535.0 | | | | | | 13.1 | | |
Total investment contracts | | | | $ | 34,488.7 | | | | | | 100.0% | | |
Obligor/Applicant | | | Financing structure | | | Maturity | | | Capacity | | | Amount outstanding | | | | ||||||||||
| | | | | | | | | (in millions) | | | | |||||||||||||
Principal Life(1) | | | Credit facility | | | October 2027 | | | | $ | 800.0 | | | | | $ | — | | | | | ||||
Total | | | | | | | | | | $ | 800.0 | | | | | $ | — | | | | | | | | |
| | | December 31, 2022 | | | December 31, 2021 | | ||||||
| | | ($ in millions) | | |||||||||
Debt: | | | | | | | | | | | | | |
Long-term debt | | | | $ | 67.8 | | | | | $ | 54.0 | | |
Total debt | | | | | 67.8 | | | | | | 54.0 | | |
Total stockholder’s equity attributable to PLIC(1) | | | | | 7,175.9 | | | | | | 12,690.9 | | |
Total capitalization | | | | $ | 7,243.7 | | | | | $ | 12,744.9 | | |
Debt to equity | | | | | 1% | | | | | | —% | | |
Debt to capitalization | | | | | 1% | | | | | | —% | | |
| | | A.M. Best | | | Fitch | | | Moody’s | | | S&P | |
Last review date | | | March 2022 | | | June 2022 | | | January 2022 | | | June 2022 | |
Current outlook | | | Stable | | | Stable | | | Stable | | | Stable | |
Principal Life Insurance Company | | | | | | | | | | | | | |
Insurer Financial Strength | | | A+ | | | AA- | | | A1 | | | A+ | |
Issuer Credit Rating | | | aa | | | | | | | | | | |
Commercial Paper | | | AMB-1+ | | | | | | P-1 | | | A-1+ | |
| | | December 31, 2022 | | |||||||||||||||
| | | Investments excluding funds withheld | | | Funds withheld | | | Total | | |||||||||
| | | (in millions) | | |||||||||||||||
Fixed maturities | | | | $ | 44,471.0 | | | | | $ | 15,794.3 | | | | | $ | 60,265.3 | | |
Equity securities | | | | | 42.1 | | | | | | 11.0 | | | | | | 53.1 | | |
Mortgage loans | | | | | 16,911.6 | | | | | | 2,810.8 | | | | | | 19,722.4 | | |
Real estate | | | | | 2,237.4 | | | | | | — | | | | | | 2,237.4 | | |
Policy loans | | | | | 770.2 | | | | | | — | | | | | | 770.2 | | |
Other investments | | | | | 3,081.5 | | | | | | 179.8 | | | | | | 3,261.3 | | |
Total invested assets | | | | | 67,513.8 | | | | | | 18,795.9 | | | | | | 86,309.7 | | |
Cash and cash equivalents | | | | | 1,566.4 | | | | | | 1,762.9 | | | | | | 3,329.3 | | |
Total invested assets and cash | | | | $ | 69,080.2 | | | | | $ | 20,558.8 | | | | | $ | 89,639.0 | | |
| | | December 31, 2021 | | |||||||||||||||
| | | Investments excluding funds withheld | | | Funds withheld | | | Total | | |||||||||
| | | (in millions) | | |||||||||||||||
Fixed maturities | | | | $ | 74,130.2 | | | | | $ | — | | | | | $ | 74,130.2 | | |
Equity securities | | | | | 508.2 | | | | | | — | | | | | | 508.2 | | |
Mortgage loans | | | | | 18,908.3 | | | | | | — | | | | | | 18,908.3 | | |
Real estate | | | | | 2,060.6 | | | | | | — | | | | | | 2,060.6 | | |
Policy loans | | | | | 705.0 | | | | | | — | | | | | | 705.0 | | |
Other investments | | | | | 2,836.7 | | | | | | — | | | | | | 2,836.7 | | |
Total invested assets | | | | | 99,149.0 | | | | | | — | | | | | | 99,149.0 | | |
Cash and cash equivalents | | | | | 1,228.6 | | | | | | — | | | | | | 1,228.6 | | |
Total invested assets and cash | | | | $ | 100,377.6 | | | | | $ | — | | | | | $ | 100,377.6 | | |
| | | December 31, 2020 | | |||||||||||||||
| | | Investments excluding funds withheld | | | Funds withheld | | | Total | | |||||||||
| | | (in millions) | | |||||||||||||||
Fixed maturities | | | | $ | 73,800.8 | | | | | $ | — | | | | | $ | 73,800.8 | | |
Equity securities | | | | | 71.2 | | | | | | — | | | | | | 71.2 | | |
Mortgage loans | | | | | 16,506.1 | | | | | | — | | | | | | 16,506.1 | | |
Real estate | | | | | 1,796.1 | | | | | | — | | | | | | 1,796.1 | | |
Policy loans | | | | | 723.8 | | | | | | — | | | | | | 723.8 | | |
Other investments | | | | | 2,500.7 | | | | | | — | | | | | | 2,500.7 | | |
Total invested assets | | | | | 95,398.7 | | | | | | — | | | | | | 95,398.7 | | |
Cash and cash equivalents | | | | | 1,648.5 | | | | | | — | | | | | | 1,648.5 | | |
Total invested assets and cash | | | | $ | 97,047.2 | | | | | $ | — | | | | | $ | 97,047.2 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Yield(1) | | | Amount | | | Yield | | | Amount | | | Yield | | | Amount | | | Yield | | | Amount | | | Yield | | | Amount | | ||||||||||||||||||||||||||||||
| | | ($ in millions) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | | | | | 3.6% | | | | | $ | 1,754.0 | | | | | | 3.7% | | | | | $ | 2,492.5 | | | | | | 3.9% | | | | | $ | 2,478.2 | | | | | | (0.1)% | | | | | $ | (738.5) | | | | | | (0.2)% | | | | | $ | 14.3 | | |
Equity securities | | | | | (12.9) | | | | | | (35.4) | | | | | | 0.6 | | | | | | 1.7 | | | | | | 4.7 | | | | | | 3.3 | | | | | | (13.5) | | | | | | (37.1) | | | | | | (4.1) | | | | | | (1.6) | | |
Mortgage loans – commercial | | | | | 4.0 | | | | | | 535.6 | | | | | | 4.2 | | | | | | 646.3 | | | | | | 4.3 | | | | | | 637.6 | | | | | | (0.2) | | | | | | (110.7) | | | | | | (0.1) | | | | | | 8.7 | | |
Mortgage loans – residential | | | | | 2.7 | | | | | | 84.3 | | | | | | 2.1 | | | | | | 46.1 | | | | | | 2.5 | | | | | | 32.2 | | | | | | 0.6 | | | | | | 38.2 | | | | | | (0.4) | | | | | | 13.9 | | |
Real estate | | | | | 12.9 | | | | | | 276.2 | | | | | | 10.1 | | | | | | 194.4 | | | | | | 10.3 | | | | | | 180.8 | | | | | | 2.8 | | | | | | 81.8 | | | | | | (0.2) | | | | | | 13.6 | | |
Policy loans | | | | | 4.7 | | | | | | 34.4 | | | | | | 5.1 | | | | | | 36.2 | | | | | | 5.2 | | | | | | 38.2 | | | | | | (0.4) | | | | | | (1.8) | | | | | | (0.1) | | | | | | (2.0) | | |
Cash and cash equivalents | | | | | 2.7 | | | | | | 37.6 | | | | | | 0.1 | | | | | | 1.7 | | | | | | 0.6 | | | | | | 9.5 | | | | | | 2.6 | | | | | | 35.9 | | | | | | (0.5) | | | | | | (7.8) | | |
Other investments | | | | | 12.4 | | | | | | 366.0 | | | | | | 14.6 | | | | | | 390.2 | | | | | | 4.5 | | | | | | 104.9 | | | | | | (2.2) | | | | | | (24.2) | | | | | | 10.1 | | | | | | 285.3 | | |
Total | | | | | 4.2 | | | | | | 3,052.7 | | | | | | 4.1 | | | | | | 3,809.1 | | | | | | 4.0 | | | | | | 3,484.7 | | | | | | 0.1 | | | | | | (756.4) | | | | | | 0.1 | | | | | | 324.4 | | |
Investment expenses | | | | | (0.3) | | | | | | (200.4) | | | | | | (0.2) | | | | | | (175.4) | | | | | | (0.2) | | | | | | (159.8) | | | | | | (0.1) | | | | | | (25.0) | | | | | | — | | | | | | (15.6) | | |
Net investment income | | | | | 3.9% | | | | | $ | 2,852.3 | | | | | | 3.9% | | | | | $ | 3,633.7 | | | | | | 3.8% | | | | | $ | 3,324.9 | | | | | | —% | | | | | $ | (781.4) | | | | | | 0.1% | | | | | $ | 308.8 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross gains | | | | $ | 38.9 | | | | | $ | 50.4 | | | | | $ | 118.7 | | | | | $ | (11.5) | | | | | $ | (68.3) | | |
Gross losses | | | | | (120.7) | | | | | | (26.9) | | | | | | (45.0) | | | | | | (93.8) | | | | | | 18.1 | | |
Net credit losses(1) | | | | | (11.5) | | | | | | (34.5) | | | | | | (22.6) | | | | | | 23.0 | | | | | | (11.9) | | |
Hedging, net | | | | | (0.7) | | | | | | (9.5) | | | | | | (9.7) | | | | | | 8.8 | | | | | | 0.2 | | |
Fixed maturities, trading | | | | | (25.3) | | | | | | (6.6) | | | | | | 6.2 | | | | | | (18.7) | | | | | | (12.8) | | |
Equity securities | | | | | (7.4) | | | | | | (0.5) | | | | | | 1.8 | | | | | | (6.9) | | | | | | (2.3) | | |
Mortgage loans | | | | | (74.1) | | | | | | 5.3 | | | | | | (14.3) | | | | | | (79.4) | | | | | | 19.6 | | |
Derivatives | | | | | 86.9 | | | | | | (4.2) | | | | | | 28.5 | | | | | | 91.1 | | | | | | (32.7) | | |
Other | | | | | 112.7 | | | | | | 8.0 | | | | | | 42.0 | | | | | | 104.7 | | | | | | (34.0) | | |
Net realized capital gains (losses) | | | | $ | (1.2) | | | | | $ | (18.5) | | | | | $ | 105.6 | | | | | $ | 17.3 | | | | | $ | (124.1) | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (in millions) | | |||||||||
Assets | | | | | | | | | | | | | |
Fixed maturities, available-for-sale | | | | $ | 59,631.3 | | | | | $ | 73,896.9 | | |
Fixed maturities, trading | | | | | 634.0 | | | | | | 233.3 | | |
Equity securities | | | | | 53.1 | | | | | | 508.2 | | |
Mortgage loans (2022 and 2021 include $1,179.7 million and $1,260.1 million related to consolidated variable interest entities) | | | | | 19,722.4 | | | | | | 18,908.3 | | |
Real estate (2022 and 2021 include $649.0 million and $672.0 million related to consolidated variable interest entities) | | | | | 2,237.4 | | | | | | 2,060.6 | | |
Policy loans | | | | | 770.2 | | | | | | 705.0 | | |
Other investments | | | | | 3,261.3 | | | | | | 2,836.7 | | |
Total investments | | | | | 86,309.7 | | | | | | 99,149.0 | | |
Cash and cash equivalents (2022 and 2021 include $14.2 million and $30.1 million related to consolidated variable interest entities) | | | | | 3,329.3 | | | | | | 1,228.6 | | |
Accrued investment income | | | | | 728.5 | | | | | | 678.4 | | |
Reinsurance recoverable and deposit receivable | | | | | 22,029.3 | | | | | | 1,186.3 | | |
Premiums due and other receivables | | | | | 4,196.5 | | | | | | 611.8 | | |
Deferred acquisition costs | | | | | 4,679.4 | | | | | | 3,749.1 | | |
Property and equipment | | | | | 831.7 | | | | | | 862.2 | | |
Goodwill | | | | | 48.2 | | | | | | 75.1 | | |
Other intangibles | | | | | 11.6 | | | | | | 14.4 | | |
Separate account assets | | | | | 120,279.6 | | | | | | 147,529.0 | | |
Other assets | | | | | 770.4 | | | | | | 264.4 | | |
Total assets | | | | $ | 243,214.2 | | | | | $ | 255,348.3 | | |
Liabilities | | | | | | | | | | | | | |
Contractholder funds | | | | $ | 42,242.1 | | | | | $ | 42,957.3 | | |
Future policy benefits and claims | | | | | 40,609.0 | | | | | | 40,141.6 | | |
Other policyholder funds | | | | | 966.1 | | | | | | 1,026.0 | | |
Long-term debt | | | | | 67.8 | | | | | | 54.0 | | |
Deferred income taxes | | | | | 1,166.4 | | | | | | 2,273.5 | | |
Separate account liabilities | | | | | 120,279.6 | | | | | | 147,529.0 | | |
Funds withheld payable | | | | | 20,436.1 | | | | | | — | | |
Other liabilities (2022 and 2021 include $83.8 million and $56.1 million related to consolidated variable interest entities) | | | | | 10,267.4 | | | | | | 8,658.2 | | |
Total liabilities | | | | | 236,034.5 | | | | | | 242,639.6 | | |
Stockholder’s equity | | | | | | | | | | | | | |
Common stock, par value $1.00 per share; 5.0 million shares authorized; 2.5 million shares issued and outstanding (wholly owned indirectly by Principal Financial Group, Inc.) | | | | | 2.5 | | | | | | 2.5 | | |
Additional paid-in capital | | | | | 6,331.1 | | | | | | 6,340.9 | | |
Retained earnings | | | | | 6,209.9 | | | | | | 2,976.6 | | |
Accumulated other comprehensive income (loss) | | | | | (5,367.6) | | | | | | 3,370.9 | | |
Total stockholder’s equity attributable to Principal Life Insurance Company | | | | | 7,175.9 | | | | | | 12,690.9 | | |
Noncontrolling interest | | | | | 3.8 | | | | | | 17.8 | | |
Total stockholder’s equity | | | | | 7,179.7 | | | | | | 12,708.7 | | |
Total liabilities and stockholder’s equity | | | | $ | 243,214.2 | | | | | $ | 255,348.3 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | |
Premiums and other considerations | | | | $ | 5,264.3 | | | | | $ | 4,714.0 | | | | | $ | 5,880.8 | | |
Fees and other revenues | | | | | 2,207.9 | | | | | | 2,679.6 | | | | | | 2,353.6 | | |
Net investment income | | | | | 2,852.3 | | | | | | 3,633.7 | | | | | | 3,324.9 | | |
Net realized capital gains (losses)(1) | | | | | (1.2) | | | | | | (18.5) | | | | | | 105.6 | | |
Net realized capital gains on funds withheld assets(1) | | | | | 749.4 | | | | | | — | | | | | | — | | |
Change in fair value of funds withheld embedded derivative | | | | | 3,652.8 | | | | | | — | | | | | | — | | |
Total revenues | | | | | 14,725.5 | | | | | | 11,008.8 | | | | | | 11,664.9 | | |
Expenses | | | | | | | | | | | | | | | | | | | |
Benefits, claims and settlement expenses | | | | | 5,650.7 | | | | | | 6,482.6 | | | | | | 7,837.5 | | |
Dividends to policyholders | | | | | 94.8 | | | | | | 94.8 | | | | | | 120.2 | | |
Operating expenses | | | | | 3,139.2 | | | | | | 2,744.6 | | | | | | 2,479.7 | | |
Total expenses | | | | | 8,884.7 | | | | | | 9,322.0 | | | | | | 10,437.4 | | |
Income before income taxes | | | | | 5,840.8 | | | | | | 1,686.8 | | | | | | 1,227.5 | | |
Income taxes | | | | | 1,117.6 | | | | | | 233.2 | | | | | | 160.1 | | |
Net income | | | | | 4,723.2 | | | | | | 1,453.6 | | | | | | 1,067.4 | | |
Net income attributable to noncontrolling interest | | | | | 62.2 | | | | | | 24.3 | | | | | | 19.4 | | |
Net income attributable to Principal Life Insurance Company | | | | $ | 4,661.0 | | | | | $ | 1,429.3 | | | | | $ | 1,048.0 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Net income | | | | $ | 4,723.2 | | | | | $ | 1,453.6 | | | | | $ | 1,067.4 | | |
Other comprehensive income (loss), net: | | | | | | | | | | | | | | | | | | | |
Net unrealized gains (losses) on available-for-sale securities | | | | | (8,848.4) | | | | | | (653.1) | | | | | | 1,396.7 | | |
Net unrealized gains (losses) on derivative instruments | | | | | (19.8) | | | | | | 33.6 | | | | | | (35.2) | | |
Net unrecognized postretirement benefit obligation | | | | | (2.1) | | | | | | 1.5 | | | | | | 4.7 | | |
Other comprehensive income (loss) | | | | | (8,870.3) | | | | | | (618.0) | | | | | | 1,366.2 | | |
Comprehensive income (loss) | | | | | (4,147.1) | | | | | | 835.6 | | | | | | 2,433.6 | | |
Comprehensive income attributable to noncontrolling interest | | | | | 62.2 | | | | | | 24.3 | | | | | | 19.4 | | |
Comprehensive income (loss) attributable to Principal Life Insurance Company | | | | $ | (4,209.3) | | | | | $ | 811.3 | | | | | $ | 2,414.2 | | |
| | | Common stock | | | Additional paid-in capital | | | Retained earnings | | | Accumulated other comprehensive income (loss) | | | Noncontrolling interest | | | Total stockholder’s equity | | ||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||
Balances as of January 1, 2020 | | | | $ | 2.5 | | | | | $ | 6,331.5 | | | | | $ | 2,410.8 | | | | | $ | 2,620.7 | | | | | $ | 23.2 | | | | | $ | 11,388.7 | | |
Capital distributions to parent | | | | | — | | | | | | (14.1) | | | | | | — | | | | | | — | | | | | | — | | | | | | (14.1) | | |
Stock-based compensation | | | | | — | | | | | | 26.8 | | | | | | (2.4) | | | | | | — | | | | | | — | | | | | | 24.4 | | |
Dividends to parent | | | | | — | | | | | | — | | | | | | (650.0) | | | | | | — | | | | | | — | | | | | | (650.0) | | |
Distributions to noncontrolling interest | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (33.4) | | | | | | (33.4) | | |
Contributions from noncontrolling interest | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6.0 | | | | | | 6.0 | | |
Effects of implementation of accounting change related to credit losses, net | | | | | — | | | | | | — | | | | | | (6.7) | | | | | | — | | | | | | — | | | | | | (6.7) | | |
Net income | | | | | — | | | | | | — | | | | | | 1,048.0 | | | | | | — | | | | | | 19.4 | | | | | | 1,067.4 | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,366.2 | | | | | | — | | | | | | 1,366.2 | | |
Balances as of December 31, 2020 | | | | | 2.5 | | | | | | 6,344.2 | | | | | | 2,799.7 | | | | | | 3,986.9 | | | | | | 15.2 | | | | | | 13,148.5 | | |
Capital distributions to parent | | | | | — | | | | | | (16.3) | | | | | | — | | | | | | — | | | | | | — | | | | | | (16.3) | | |
Stock-based compensation | | | | | — | | | | | | 27.6 | | | | | | (2.4) | | | | | | — | | | | | | 0.1 | | | | | | 25.3 | | |
Dividends to parent | | | | | — | | | | | | — | | | | | | (1,250.0) | | | | | | — | | | | | | — | | | | | | (1,250.0) | | |
Distributions to noncontrolling interest | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (27.5) | | | | | | (27.5) | | |
Contributions from noncontrolling interest | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7.4 | | | | | | 7.4 | | |
Purchase of subsidiary shares from noncontrolling interest | | | | | — | | | | | | (14.9) | | | | | | — | | | | | | — | | | | | | (1.7) | | | | | | (16.6) | | |
Net liabilities transferred to affiliate due to change in benefit plan sponsorship | | | | | — | | | | | | 0.3 | | | | | | — | | | | | | 2.0 | | | | | | — | | | | | | 2.3 | | |
Net income | | | | | — | | | | | | — | | | | | | 1,429.3 | | | | | | — | | | | | | 24.3 | | | | | | 1,453.6 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | (618.0) | | | | | | — | | | | | | (618.0) | | |
Balances as of December 31, 2021 | | | | | 2.5 | | | | | | 6,340.9 | | | | | | 2,976.6 | | | | | | 3,370.9 | | | | | | 17.8 | | | | | | 12,708.7 | | |
Capital distributions to parent | | | | | — | | | | | | (30.3) | | | | | | — | | | | | | — | | | | | | — | | | | | | (30.3) | | |
Stock-based compensation | | | | | — | | | | | | 24.8 | | | | | | (2.7) | | | | | | — | | | | | | — | | | | | | 22.1 | | |
Dividends to parent | | | | | — | | | | | | — | | | | | | (1,425.0) | | | | | | — | | | | | | — | | | | | | (1,425.0) | | |
Distributions to noncontrolling interest | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (81.1) | | | | | | (81.1) | | |
Contributions from noncontrolling interest | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7.3 | | | | | | 7.3 | | |
Purchase of subsidiary shares from noncontrolling interest | | | | | — | | | | | | (4.3) | | | | | | — | | | | | | — | | | | | | (2.4) | | | | | | (6.7) | | |
Adjustment for reinsurance | | | | | — | | | | | | — | | | | | | — | | | | | | 131.8 | | | | | | — | | | | | | 131.8 | | |
Net income | | | | | — | | | | | | — | | | | | | 4,661.0 | | | | | | — | | | | | | 62.2 | | | | | | 4,723.2 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | (8,870.3) | | | | | | — | | | | | | (8,870.3) | | |
Balances as of December 31, 2022 | | | | $ | 2.5 | | | | | $ | 6,331.1 | | | | | $ | 6,209.9 | | | | | $ | (5,367.6) | | | | | $ | 3.8 | | | | | $ | 7,179.7 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Operating activities | | | | | | | | | | | | | | | | | | | |
Net income | | | | $ | 4,723.2 | | | | | $ | 1,453.6 | | | | | $ | 1,067.4 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | |
Net realized capital (gains) losses | | | | | 1.2 | | | | | | 18.5 | | | | | | (105.6) | | |
Net realized capital gains on funds withheld assets | | | | | (749.4) | | | | | | — | | | | | | — | | |
Change in fair value of funds withheld embedded derivative | | | | | (3,652.8) | | | | | | — | | | | | | — | | |
Depreciation and amortization expense | | | | | 175.1 | | | | | | 149.5 | | | | | | 128.6 | | |
Amortization of deferred acquisition costs and contract costs | | | | | 391.0 | | | | | | 291.5 | | | | | | 394.1 | | |
Additions to deferred acquisition costs and contract costs | | | | | (387.7) | | | | | | (469.4) | | | | | | (462.6) | | |
Amortization of reinsurance (gain) loss | | | | | 84.5 | | | | | | (18.0) | | | | | | 67.4 | | |
Stock-based compensation | | | | | 22.1 | | | | | | 25.2 | | | | | | 24.9 | | |
(Income) loss from equity method investments, net of dividends received | | | | | (42.9) | | | | | | (54.2) | | | | | | 30.3 | | |
Changes in: | | | | | | | | | | | | | | | | | | | |
Accrued investment income | | | | | (50.1) | | | | | | 9.3 | | | | | | (21.2) | | |
Net cash flows for trading securities and equity securities with operating intent | | | | | (389.0) | | | | | | (7.9) | | | | | | 9.3 | | |
Premiums due and other receivables | | | | | (3,587.4) | | | | | | 7.3 | | | | | | 101.0 | | |
Contractholder and policyholder liabilities and dividends | | | | | 1,472.9 | | | | | | 1,709.6 | | | | | | 1,968.8 | | |
Current and deferred income taxes | | | | | 905.2 | | | | | | 161.5 | | | | | | 423.1 | | |
Real estate acquired through operating activities | | | | | (164.4) | | | | | | (73.7) | | | | | | (16.5) | | |
Real estate sold through operating activities | | | | | — | | | | | | 1.4 | | | | | | 195.4 | | |
Funds withheld, net of reinsurance recoverable and deposit receivable | | | | | 3,750.3 | | | | | | (105.5) | | | | | | (75.3) | | |
Other assets and liabilities | | | | | 420.6 | | | | | | 17.9 | | | | | | (218.7) | | |
Other | | | | | 548.4 | | | | | | 428.2 | | | | | | 454.2 | | |
Net adjustments | | | | | (1,252.4) | | | | | | 2,091.2 | | | | | | 2,897.2 | | |
Net cash provided by operating activities | | | | | 3,470.8 | | | | | | 3,544.8 | | | | | | 3,964.6 | | |
Investing activities | | | | | | | | | | | | | | | | | | | |
Fixed maturities available-for-sale and equity securities with intent to hold: | | | | | | | | | | | | | | | | | | | |
Purchases | | | | | (18,288.2) | | | | | | (15,068.4) | | | | | | (13,769.2) | | |
Sales | | | | | 12,685.1 | | | | | | 1,701.7 | | | | | | 1,969.3 | | |
Maturities | | | | | 6,566.9 | | | | | | 10,475.1 | | | | | | 8,398.4 | | |
Mortgage loans acquired or originated | | | | | (3,633.2) | | | | | | (5,016.8) | | | | | | (3,006.9) | | |
Mortgage loans sold or repaid | | | | | 2,513.2 | | | | | | 2,626.6 | | | | | | 2,297.3 | | |
Real estate acquired | | | | | (245.2) | | | | | | (281.4) | | | | | | (230.6) | | |
Real estate sold | | | | | 373.9 | | | | | | 133.7 | | | | | | 2.3 | | |
Net purchases of property and equipment | | | | | (68.4) | | | | | | (91.9) | | | | | | (60.8) | | |
Net change in other investments | | | | | (218.1) | | | | | | (149.4) | | | | | | (295.0) | | |
Net cash used in investing activities | | | | | (314.0) | | | | | | (5,670.8) | | | | | | (4,695.2) | | |
Financing activities | | | | | | | | | | | | | | | | | | | |
Payments for financing element derivatives | | | | | (50.6) | | | | | | (39.9) | | | | | | (30.9) | | |
Purchase of subsidiary shares from noncontrolling interest | | | | | (6.7) | | | | | | (16.6) | | | | | | — | | |
Dividends paid to parent | | | | | (1,425.0) | | | | | | (1,250.0) | | | | | | (650.0) | | |
Distributions to parent | | | | | (30.3) | | | | | | (16.3) | | | | | | (14.1) | | |
Issuance of long-term debt | | | | | 15.4 | | | | | | — | | | | | | 13.7 | | |
Principal repayments of long-term debt | | | | | (2.1) | | | | | | (1.8) | | | | | | (65.8) | | |
Investment contract deposits | | | | | 6,881.3 | | | | | | 8,868.3 | | | | | | 9,817.3 | | |
Investment contract withdrawals | | | | | (7,524.6) | | | | | | (8,760.5) | | | | | | (8,786.0) | | |
Net increase in banking operation deposits | | | | | 1,086.3 | | | | | | 2,922.9 | | | | | | 569.7 | | |
Other | | | | | 0.2 | | | | | | — | | | | | | 0.2 | | |
Net cash provided by (used in) financing activities | | | | | (1,056.1) | | | | | | 1,706.1 | | | | | | 854.1 | | |
Net increase (decrease) in cash and cash equivalents | | | | | 2,100.7 | | | | | | (419.9) | | | | | | 123.5 | | |
Cash and cash equivalents at beginning of period | | | | | 1,228.6 | | | | | | 1,648.5 | | | | | | 1,525.0 | | |
Cash and cash equivalents at end of period | | | | $ | 3,329.3 | | | | | $ | 1,228.6 | | | | | $ | 1,648.5 | | |
Supplemental information: | | | | | | | | | | | | | | | | | | | |
Cash paid for interest | | | | $ | 2.6 | | | | | $ | 2.2 | | | | | $ | 2.2 | | |
Cash paid for (received from) income taxes | | | | | 43.5 | | | | | | 46.3 | | | | | | (202.8) | | |
Supplemental disclosure of non-cash activities: | | | | | | | | | | | | | | | | | | | |
Asset changes resulting from deconsolidation of residential whole loan securitizations: | | | | | | | | | | | | | | | | | | | |
Decrease in mortgage loans | | | | $ | (220.7) | | | | | $ | — | | | | | $ | — | | |
Increase in fixed maturities, available-for-sale | | | | | 167.6 | | | | | | — | | | | | | — | | |
Assets transferred in kind for settlement to reinsurer | | | | | (428.5) | | | | | | — | | | | | | — | | |
Changes from re-designation of other postretirement employee benefits (“OPEB”) plan assets to cover non-retiree benefits: | | | | | | | | | | | | | | | | | | | |
Increases in equity securities re-designated from funded status of OPEB plan | | | | | — | | | | | | 548.1 | | | | | | — | | |
Increases in other investments re-designated from funded status of OPEB plan | | | | | — | | | | | | 117.5 | | | | | | — | | |
Decrease in tax receivable re-designated from funded status of OPEB plan | | | | | — | | | | | | (9.1) | | | | | | — | | |
Decrease in accumulated other comprehensive income (“AOCI”) due to reclassifying excess assets out of funded status of OPEB plan | | | | | — | | | | | | 9.1 | | | | | | — | | |
Decrease in other assets due to reclassifying excess assets out of funded status of OPEB plan | | | | | — | | | | | | (665.6) | | | | | | — | | |
Assets received in kind from pension risk transfer transactions | | | | | — | | | | | | 109.5 | | | | | | 1,325.2 | | |
| | | For the year ended December 31, 2022 | | |||
| | | (in millions) | | |||
Increase to income before taxes | | | | | | | |
Deferred acquisition costs amortization(1) | | | | $ | (106.6) | | |
Cost of reinsurance amortization(2) | | | | | 4.2 | | |
Unearned revenue liability amortization(3) | | | | | 32.4 | | |
Change in additional liability for certain benefit features(2) | | | | | 139.7 | | |
Total increase to income before income taxes | | | | | 69.7 | | |
Increase to pre-tax other comprehensive income | | | | | | | |
Deferred acquisition cost unrealized losses | | | | | (5.6) | | |
Cost of reinsurance unrealized gains | | | | | 8.7 | | |
Unearned revenue liability unrealized gains | | | | | 8.5 | | |
Change in additional liability for certain benefit features unrealized gains | | | | | 24.3 | | |
Total increase to pre-tax other comprehensive income | | | | | 35.9 | | |
Total increase to pre-tax comprehensive income | | | | $ | 105.6 | | |
| | | Retirement and Income Solutions | | | U.S. Insurance Solutions | | | Corporate | | | Consolidated | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Balance as of January 1, 2022 | | | | $ | 18.8 | | | | | $ | 56.3 | | | | | $ | — | | | | | $ | 75.1 | | |
Impairment(1) | | | | | — | | | | | | (26.9) | | | | | | — | | | | | | (26.9) | | |
Balance as of December 31, 2022 | | | | $ | 18.8 | | | | | $ | 29.4 | | | | | $ | — | | | | | $ | 48.2 | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (in millions) | | |||||||||
Gross carrying value | | | | $ | 34.9 | | | | | $ | 41.4 | | |
Accumulated amortization | | | | | 23.3 | | | | | | 27.0 | | |
Net carrying value | | | | $ | 11.6 | | | | | $ | 14.4 | | |
| Year ending December 31: | | | | | | | |
| 2023 | | | | $ | 1.0 | | |
| 2024 | | | | | 1.0 | | |
| 2025 | | | | | 1.0 | | |
| 2026 | | | | | 1.0 | | |
| 2027 | | | | | 1.0 | | |
| | | December 31, 2022 | | | December 31, 2021 | | ||||||||||||||||||
| | | Total assets | | | Total liabilities | | | Total assets | | | Total liabilities | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Real estate(1) | | | | $ | 689.6 | | | | | $ | 42.2 | | | | | $ | 709.6 | | | | | $ | 36.1 | | |
Residential mortgage loans(2) | | | | | 1,182.6 | | | | | | 41.8 | | | | | | 1,263.2 | | | | | | 20.3 | | |
Total | | | | $ | 1,872.2 | | | | | $ | 84.0 | | | | | $ | 1,972.8 | | | | | $ | 56.4 | | |
| | | Asset carrying value | | | Maximum exposure to loss(1) | | ||||||
| | | (in millions) | | |||||||||
December 31, 2022 | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | |
Corporate | | | | $ | 111.8 | | | | | $ | 127.2 | | |
Residential mortgage-backed pass-through securities | | | | | 2,170.9 | | | | | | 2,362.1 | | |
Commercial mortgage-backed securities | | | | | 4,827.5 | | | | | | 5,529.7 | | |
Collateralized debt obligations(2) | | | | | 4,560.2 | | | | | | 4,813.4 | | |
Other debt obligations | | | | | 6,483.3 | | | | | | 7,537.2 | | |
Fixed maturities, trading: | | | | | | | | | | | | | |
Residential mortgage-backed pass-through securities | | | | | 5.4 | | | | | | 5.4 | | |
Commercial mortgage-backed securities | | | | | 83.4 | | | | | | 83.4 | | |
Collateralized debt obligations(2) | | | | | 5.7 | | | | | | 5.7 | | |
Other debt obligations | | | | | 80.0 | | | | | | 80.0 | | |
Other investments: | | | | | | | | | | | | | |
Other limited partnership and fund interests | | | | | 1,088.5 | | | | | | 1,765.4 | | |
December 31, 2021 | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | |
Corporate | | | | $ | 142.1 | | | | | $ | 136.9 | | |
Residential mortgage-backed pass-through securities | | | | | 2,342.3 | | | | | | 2,296.9 | | |
Commercial mortgage-backed securities | | | | | 5,513.7 | | | | | | 5,388.7 | | |
Collateralized debt obligations(2) | | | | | 3,533.5 | | | | | | 3,539.1 | | |
Other debt obligations | | | | | 7,441.8 | | | | | | 7,368.3 | | |
Fixed maturities, trading: | | | | | | | | | | | | | |
Residential mortgage-backed pass-through securities | | | | | 8.4 | | | | | | 8.4 | | |
Commercial mortgage-backed securities | | | | | 24.6 | | | | | | 24.6 | | |
Collateralized debt obligations(2) | | | | | 7.5 | | | | | | 7.5 | | |
Other debt obligations | | | | | 8.2 | | | | | | 8.2 | | |
Other investments: | | | | | | | | | | | | | |
Other limited partnership and fund interests | | | | | 862.6 | | | | | | 1,447.0 | | |
| | | Amortized cost(1) | | | Gross unrealized gains | | | Gross unrealized losses | | | Allowance for credit loss | | | Fair value | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
December 31, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agencies | | | | $ | 1,964.6 | | | | | $ | 0.1 | | | | | $ | 248.8 | | | | | $ | — | | | | | $ | 1,715.9 | | |
Non-U.S. governments | | | | | 565.3 | | | | | | 18.9 | | | | | | 63.8 | | | | | | — | | | | | | 520.4 | | |
States and political subdivisions | | | | | 7,280.1 | | | | | | 14.8 | | | | | | 1,126.6 | | | | | | — | | | | | | 6,168.3 | | |
Corporate | | | | | 37,495.4 | | | | | | 219.5 | | | | | | 4,530.1 | | | | | | — | | | | | | 33,184.8 | | |
Residential mortgage-backed pass-through securities | | | | | 2,362.1 | | | | | | 6.0 | | | | | | 197.2 | | | | | | — | | | | | | 2,170.9 | | |
Commercial mortgage-backed securities | | | | | 5,529.7 | | | | | | 0.9 | | | | | | 703.1 | | | | | | — | | | | | | 4,827.5 | | |
Collateralized debt obligations(2) | | | | | 4,698.9 | | | | | | 4.5 | | | | | | 143.2 | | | | | | — | | | | | | 4,560.2 | | |
Other debt obligations | | | | | 7,207.8 | | | | | | 6.0 | | | | | | 730.4 | | | | | | 0.1 | | | | | | 6,483.3 | | |
Total fixed maturities, available-for-sale | | | | $ | 67,103.9 | | | | | $ | 270.7 | | | | | $ | 7,743.2 | | | | | $ | 0.1 | | | | | $ | 59,631.3 | | |
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agencies | | | | $ | 1,826.8 | | | | | $ | 144.5 | | | | | $ | 34.3 | | | | | $ | — | | | | | $ | 1,937.0 | | |
Non-U.S. governments | | | | | 821.6 | | | | | | 127.5 | | | | | | 2.0 | | | | | | — | | | | | | 947.1 | | |
States and political subdivisions | | | | | 8,210.3 | | | | | | 1,022.4 | | | | | | 16.3 | | | | | | — | | | | | | 9,216.4 | | |
Corporate | | | | | 39,345.7 | | | | | | 3,750.2 | | | | | | 126.3 | | | | | | 4.5 | | | | | | 42,965.1 | | |
Residential mortgage-backed pass-through securities | | | | | 2,296.9 | | | | | | 57.6 | | | | | | 12.2 | | | | | | — | | | | | | 2,342.3 | | |
Commercial mortgage-backed securities | | | | | 5,388.6 | | | | | | 156.3 | | | | | | 30.9 | | | | | | 0.3 | | | | | | 5,513.7 | | |
Collateralized debt obligations(2) | | | | | 3,539.1 | | | | | | 4.0 | | | | | | 9.6 | | | | | | — | | | | | | 3,533.5 | | |
Other debt obligations | | | | | 7,368.3 | | | | | | 130.6 | | | | | | 57.0 | | | | | | 0.1 | | | | | | 7,441.8 | | |
Total fixed maturities, available-for-sale | | | | $ | 68,797.3 | | | | | $ | 5,393.1 | | | | | $ | 288.6 | | | | | $ | 4.9 | | | | | $ | 73,896.9 | | |
| | | Amortized cost | | | Fair value | | ||||||
| | | (in millions) | | |||||||||
Due in one year or less | | | | $ | 1,606.3 | | | | | $ | 1,593.4 | | |
Due after one year through five years | | | | | 8,297.6 | | | | | | 7,950.4 | | |
Due after five years through ten years | | | | | 11,046.5 | | | | | | 10,029.5 | | |
Due after ten years | | | | | 26,355.0 | | | | | | 22,016.1 | | |
Subtotal | | | | | 47,305.4 | | | | | | 41,589.4 | | |
Mortgage-backed and other asset-backed securities | | | | | 19,798.5 | | | | | | 18,041.9 | | |
Total | | | | $ | 67,103.9 | | | | | $ | 59,631.3 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Fixed maturities, available-for-sale | | | | $ | 1,734.4 | | | | | $ | 2,483.8 | | | | | $ | 2,469.0 | | |
Fixed maturities, trading | | | | | 19.6 | | | | | | 8.7 | | | | | | 9.2 | | |
Equity securities | | | | | (35.4) | | | | | | 1.7 | | | | | | 3.3 | | |
Mortgage loans | | | | | 619.9 | | | | | | 692.4 | | | | | | 669.8 | | |
Real estate | | | | | 276.2 | | | | | | 194.4 | | | | | | 180.8 | | |
Policy loans | | | | | 34.4 | | | | | | 36.2 | | | | | | 38.2 | | |
Cash and cash equivalents | | | | | 37.6 | | | | | | 1.7 | | | | | | 9.5 | | |
Derivatives | | | | | 171.3 | | | | | | 28.2 | | | | | | (1.9) | | |
Other | | | | | 194.7 | | | | | | 362.0 | | | | | | 106.8 | | |
Total | | | | | 3,052.7 | | | | | | 3,809.1 | | | | | | 3,484.7 | | |
Investment expenses | | | | | (200.4) | | | | | | (175.4) | | | | | | (159.8) | | |
Net investment income | | | | $ | 2,852.3 | | | | | $ | 3,633.7 | | | | | $ | 3,324.9 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | |
Gross gains | | | | $ | 38.9 | | | | | $ | 50.4 | | | | | $ | 118.7 | | |
Gross losses | | | | | (120.7) | | | | | | (26.9) | | | | | | (45.0) | | |
Net credit losses(1) | | | | | (11.5) | | | | | | (34.5) | | | | | | (22.6) | | |
Hedging, net | | | | | (0.7) | | | | | | (9.5) | | | | | | (9.7) | | |
Fixed maturities, trading(2) | | | | | (25.3) | | | | | | (6.6) | | | | | | 6.2 | | |
Equity securities(3) | | | | | (7.4) | | | | | | (0.5) | | | | | | 1.8 | | |
Mortgage loans | | | | | (74.1) | | | | | | 5.3 | | | | | | (14.3) | | |
Derivatives | | | | | 86.9 | | | | | | (4.2) | | | | | | 28.5 | | |
Other | | | | | 112.7 | | | | | | 8.0 | | | | | | 42.0 | | |
Net realized capital gains (losses) | | | | $ | (1.2) | | | | | $ | (18.5) | | | | | $ | 105.6 | | |
| | | For the year ended December 31, 2022 | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | U.S. government and agencies | | | Non-U.S. governments | | | States and political subdivisions | | | Corporate | | | Residential mortgage- backed pass- through securities | | | Commercial mortgage- backed securities | | | Collateralized debt obligations(1) | | | Other debt obligations | | | Total | | |||||||||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 4.5 | | | | | $ | — | | | | | $ | 0.3 | | | | | $ | — | | | | | $ | 0.1 | | | | | $ | 4.9 | | |
Reductions for securities sold during the period | | | | | — | | | | | | — | | | | | | — | | | | | | (8.7) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8.7) | | |
Additional increases (decreases) for credit losses on securities with an allowance recorded in the previous period | | | | | — | | | | | | — | | | | | | — | | | | | | 4.2 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4.2 | | |
Write-offs charged against allowance | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (0.3) | | | | | | — | | | | | | — | | | | | | (0.3) | | |
Ending balance | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.1 | | | | | $ | 0.1 | | |
| | | For the year ended December 31, 2021 | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | U.S. government and agencies | | | Non-U.S. governments | | | States and political subdivisions | | | Corporate | | | Residential mortgage- backed pass- through securities | | | Commercial mortgage- backed securities | | | Collateralized debt obligations(1) | | | Other debt obligations | | | Total | | |||||||||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 4.3 | | | | | $ | 2.2 | | | | | $ | — | | | | | $ | 6.5 | | |
Additions for credit losses not previously recorded | | | | | — | | | | | | — | | | | | | — | | | | | | 16.9 | | | | | | — | | | | | | 0.4 | | | | | | — | | | | | | 0.1 | | | | | | 17.4 | | |
Reductions for securities sold during the period | | | | | — | | | | | | — | | | | | | — | | | | | | (12.4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (12.4) | | |
Additional increases (decreases) for credit losses on securities with an allowance recorded in the previous period | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2.4 | | | | | | 0.4 | | | | | | — | | | | | | 2.8 | | |
Write-offs charged against allowance | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6.8) | | | | | | (2.6) | | | | | | — | | | | | | (9.4) | | |
Ending balance | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 4.5 | | | | | $ | — | | | | | $ | 0.3 | | | | | $ | — | | | | | $ | 0.1 | | | | | $ | 4.9 | | |
Accrued interest written off to net investment income | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.2 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.2 | | |
| | | For the year ended December 31, 2020 | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | U.S. government and agencies | | | Non-U.S. governments | | | States and political subdivisions | | | Corporate | | | Residential mortgage- backed pass- through securities | | | Commercial mortgage- backed securities | | | Collateralized debt obligations(1) | | | Other debt obligations | | | Total | | |||||||||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance(2) | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Additions for credit losses not previously recorded | | | | | — | | | | | | — | | | | | | — | | | | | | 7.0 | | | | | | — | | | | | | 2.9 | | | | | | 0.1 | | | | | | — | | | | | | 10.0 | | |
Reductions for securities sold during the period | | | | | — | | | | | | — | | | | | | — | | | | | | (7.0) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7.0) | | |
Additional increases (decreases) for credit losses on securities with an allowance recorded in the previous period | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4.0 | | | | | | 2.1 | | | | | | — | | | | | | 6.1 | | |
Write-offs charged against allowance | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2.6) | | | | | | — | | | | | | — | | | | | | (2.6) | | |
Ending balance | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 4.3 | | | | | $ | 2.2 | | | | | $ | — | | | | | $ | 6.5 | | |
| | | December 31, 2022 | | |||||||||||||||||||||||||||||||||
| | | Less than twelve months | | | Greater than or equal to twelve months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agencies | | | | $ | 1,505.5 | | | | | $ | 207.0 | | | | | $ | 180.4 | | | | | $ | 41.8 | | | | | $ | 1,685.9 | | | | | $ | 248.8 | | |
Non-U.S. governments | | | | | 373.0 | | | | | | 56.7 | | | | | | 19.9 | | | | | | 7.1 | | | | | | 392.9 | | | | | | 63.8 | | |
States and political subdivisions | | | | | 5,243.6 | | | | | | 999.7 | | | | | | 387.8 | | | | | | 126.9 | | | | | | 5,631.4 | | | | | | 1,126.6 | | |
Corporate | | | | | 26,668.2 | | | | | | 3,875.1 | | | | | | 2,625.4 | | | | | | 654.9 | | | | | | 29,293.6 | | | | | | 4,530.0 | | |
Residential mortgage-backed pass-through securities | | | | | 1,201.7 | | | | | | 97.6 | | | | | | 574.8 | | | | | | 104.7 | | | | | | 1,776.5 | | | | | | 202.3 | | |
Commercial mortgage-backed securities | | | | | 3,622.3 | | | | | | 480.7 | | | | | | 1,113.9 | | | | | | 220.9 | | | | | | 4,736.2 | | | | | | 701.6 | | |
Collateralized debt obligations(2) | | | | | 2,830.1 | | | | | | 88.8 | | | | | | 1,327.2 | | | | | | 54.4 | | | | | | 4,157.3 | | | | | | 143.2 | | |
Other debt obligations | | | | | 3,412.6 | | | | | | 290.7 | | | | | | 2,266.7 | | | | | | 434.4 | | | | | | 5,679.3 | | | | | | 725.1 | | |
Total fixed maturities, available-for-sale | | | | $ | 44,857.0 | | | | | $ | 6,096.3 | | | | | $ | 8,496.1 | | | | | $ | 1,645.1 | | | | | $ | 53,353.1 | | | | | $ | 7,741.4 | | |
| | | December 31, 2021 | | |||||||||||||||||||||||||||||||||
| | | Less than twelve months | | | Greater than or equal to twelve months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agencies | | | | $ | 128.2 | | | | | $ | 3.4 | | | | | $ | 386.3 | | | | | $ | 30.9 | | | | | $ | 514.5 | | | | | $ | 34.3 | | |
Non-U.S. governments | | | | | 57.5 | | | | | | 2.0 | | | | | | — | | | | | | — | | | | | | 57.5 | | | | | | 2.0 | | |
States and political subdivisions | | | | | 681.0 | | | | | | 10.3 | | | | | | 100.3 | | | | | | 6.0 | | | | | | 781.3 | | | | | | 16.3 | | |
Corporate | | | | | 4,538.4 | | | | | | 59.0 | | | | | | 1,252.3 | | | | | | 67.1 | | | | | | 5,790.7 | | | | | | 126.1 | | |
Residential mortgage-backed pass-through securities | | | | | 945.6 | | | | | | 10.0 | | | | | | 76.7 | | | | | | 2.2 | | | | | | 1,022.3 | | | | | | 12.2 | | |
Commercial mortgage-backed securities | | | | | 1,293.3 | | | | | | 15.4 | | | | | | 289.8 | | | | | | 15.3 | | | | | | 1,583.1 | | | | | | 30.7 | | |
Collateralized debt obligations(2) | | | | | 1,571.0 | | | | | | 2.8 | | | | | | 423.9 | | | | | | 6.7 | | | | | | 1,994.9 | | | | | | 9.5 | | |
Other debt obligations | | | | | 3,837.3 | | | | | | 48.0 | | | | | | 211.0 | | | | | | 8.9 | | | | | | 4,048.3 | | | | | | 56.9 | | |
Total fixed maturities, available-for-sale | | | | $ | 13,052.3 | | | | | $ | 150.9 | | | | | $ | 2,740.3 | | | | | $ | 137.1 | | | | | $ | 15,792.6 | | | | | $ | 288.0 | | |
| | | December 31, 2022 | | | December 31, 2021 | | ||||||
| | | (in millions) | | |||||||||
Net unrealized gains (losses) on fixed maturities, available-for-sale(1) | | | | $ | (7,552.8) | | | | | $ | 5,094.3 | | |
Net unrealized gains on derivative instruments | | | | | 50.8 | | | | | | 80.1 | | |
Adjustments for assumed changes in amortization patterns | | | | | 649.7 | | | | | | (266.1) | | |
Adjustments for assumed changes in policyholder liabilities | | | | | 3.4 | | | | | | (664.8) | | |
Net unrealized gains on other investments and noncontrolling interest adjustments | | | | | 2.9 | | | | | | 2.9 | | |
Provision for deferred income tax benefits (taxes) | | | | | 1,464.1 | | | | | | (891.9) | | |
Net unrealized gains (losses) on available-for-sale securities and derivative instruments | | | | $ | (5,381.9) | | | | | $ | 3,354.5 | | |
| | | As of December 31, 2022 | | |||||||||||||||||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | Prior | | | Total | | |||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
A- and above | | | | $ | 995.9 | | | | | $ | 2,182.5 | | | | | $ | 1,753.8 | | | | | $ | 2,177.2 | | | | | $ | 2,130.8 | | | | | $ | 4,555.1 | | | | | $ | 13,795.3 | | |
BBB+ thru BBB- | | | | | 371.8 | | | | | | 412.8 | | | | | | 149.7 | | | | | | 391.6 | | | | | | 222.6 | | | | | | 676.4 | | | | | | 2,224.9 | | |
BB+ thru BB- | | | | | 104.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8.9 | | | | | | 66.5 | | | | | | 179.4 | | |
B+ and below | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8.3 | | | | | | 35.5 | | | | | | 43.8 | | |
Total | | | | $ | 1,471.7 | | | | | $ | 2,595.3 | | | | | $ | 1,903.5 | | | | | $ | 2,568.8 | | | | | $ | 2,370.6 | | | | | $ | 5,333.5 | | | | | $ | 16,243.4 | | |
Residential mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | | | | $ | 1,101.4 | | | | | $ | 1,669.1 | | | | | $ | 364.5 | | | | | $ | 99.2 | | | | | $ | 51.2 | | | | | $ | 253.6 | | | | | $ | 3,539.0 | | |
Non-performing | | | | | 8.0 | | | | | | 4.7 | | | | | | 1.8 | | | | | | 1.0 | | | | | | 0.6 | | | | | | 4.4 | | | | | | 20.5 | | |
Total | | | | $ | 1,109.4 | | | | | $ | 1,673.8 | | | | | $ | 366.3 | | | | | $ | 100.2 | | | | | $ | 51.8 | | | | | $ | 258.0 | | | | | $ | 3,559.5 | | |
Reinsurance recoverable and deposit receivable | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 22,032.0 | | |
| | | As of December 31, 2021 | | |||||||||||||||||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | Prior | | | Total | | |||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
A- and above | | | | $ | 2,194.1 | | | | | $ | 1,676.5 | | | | | $ | 2,385.6 | | | | | $ | 2,334.9 | | | | | $ | 1,374.9 | | | | | $ | 4,336.8 | | | | | $ | 14,302.8 | | |
BBB+ thru BBB- | | | | | 255.0 | | | | | | 299.3 | | | | | | 270.1 | | | | | | 105.2 | | | | | | 297.7 | | | | | | 370.5 | | | | | | 1,597.8 | | |
BB+ thru BB- | | | | | 17.5 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 50.7 | | | | | | 68.2 | | |
B+ and below | | | | | — | | | | | | — | | | | | | — | | | | | | 8.8 | | | | | | — | | | | | | 30.1 | | | | | | 38.9 | | |
Total | | | | $ | 2,466.6 | | | | | $ | 1,975.8 | | | | | $ | 2,655.7 | | | | | $ | 2,448.9 | | | | | $ | 1,672.6 | | | | | $ | 4,788.1 | | | | | $ | 16,007.7 | | |
Residential mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Performing | | | | $ | 1,973.0 | | | | | $ | 429.5 | | | | | $ | 123.5 | | | | | $ | 67.0 | | | | | $ | 80.2 | | | | | $ | 265.9 | | | | | $ | 2,939.1 | | |
Non-performing | | | | | — | | | | | | 1.8 | | | | | | 0.6 | | | | | | — | | | | | | 0.8 | | | | | | 2.0 | | | | | | 5.2 | | |
Total | | | | $ | 1,973.0 | | | | | $ | 431.3 | | | | | $ | 124.1 | | | | | $ | 67.0 | | | | | $ | 81.0 | | | | | $ | 267.9 | | | | | $ | 2,944.3 | | |
Reinsurance recoverable and deposit receivable | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,189.0 | | |
| | | December 31, 2022 | | |||||||||||||||
| | | Beginning amortized cost on nonaccrual status | | | Ending amortized cost on nonaccrual status | | | Amortized cost of nonaccrual assets without a valuation allowance | | |||||||||
| | | (in millions) | | |||||||||||||||
Commercial mortgage loans | | | | $ | 8.7 | | | | | $ | 43.8 | | | | | $ | — | | |
Residential mortgage loans | | | | | 3.4 | | | | | | 16.0 | | | | | | 0.6 | | |
Total | | | | $ | 12.1 | | | | | $ | 59.8 | | | | | $ | 0.6 | | |
| | | December 31, 2021 | | |||||||||||||||
| | | Beginning amortized cost on nonaccrual status | | | Ending amortized cost on nonaccrual status | | | Amortized cost of nonaccrual assets without a valuation allowance | | |||||||||
| | | (in millions) | | |||||||||||||||
Commercial mortgage loans | | | | $ | — | | | | | $ | 8.7 | | | | | $ | — | | |
Residential mortgage loans | | | | | 9.1 | | | | | | 3.4 | | | | | | 0.7 | | |
Total | | | | $ | 9.1 | | | | | $ | 12.1 | | | | | $ | 0.7 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Commercial mortgage loans | | | | $ | 0.9 | | | | | $ | 0.5 | | | | | $ | — | | |
Total | | | | $ | 0.9 | | | | | $ | 0.5 | | | | | $ | — | | |
| | | December 31, 2022 | | |||||||||||||||||||||||||||||||||
| | | 30 – 59 days past due | | | 60 – 89 days past due | | | 90 days or more past due | | | Total past due | | | Current | | | Total(1) | | ||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | | | | $ | — | | | | | $ | — | | | | | $ | 8.3 | | | | | $ | 8.3 | | | | | $ | 16,235.1 | | | | | $ | 16,243.4 | | |
Residential mortgage loans | | | | | 35.9 | | | | | | 2.4 | | | | | | 12.4 | | | | | | 50.7 | | | | | | 3,508.8 | | | | | | 3,559.5 | | |
Total | | | | $ | 35.9 | | | | | $ | 2.4 | | | | | $ | 20.7 | | | | | $ | 59.0 | | | | | $ | 19,743.9 | | | | | $ | 19,802.9 | | |
| | | December 31, 2021 | | |||||||||||||||||||||||||||||||||
| | | 30 – 59 days past due | | | 60 – 89 days past due | | | 90 days or more past due | | | Total past due | | | Current | | | Total(1) | | ||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||
Commercial mortgage loans | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 16,007.7 | | | | | $ | 16,007.7 | | |
Residential mortgage loans | | | | | 27.6 | | | | | | 2.9 | | | | | | 4.5 | | | | | | 35.0 | | | | | | 2,909.3 | | | | | | 2,944.3 | | |
Total | | | | $ | 27.6 | | | | | $ | 2.9 | | | | | $ | 4.5 | | | | | $ | 35.0 | | | | | $ | 18,917.0 | | | | | $ | 18,952.0 | | |
| | | For the year ended December 31, 2022 | | |||||||||||||||||||||
| | | Commercial mortgage loans | | | Residential mortgage loans | | | Reinsurance recoverables | | | Total | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Beginning balance | | | | $ | 42.0 | | | | | $ | 1.7 | | | | | $ | 2.7 | | | | | $ | 46.4 | | |
Provision | | | | | 33.5 | | | | | | 1.2 | | | | | | — | | | | | | 34.7 | | |
Charge-offs | | | | | — | | | | | | (0.2) | | | | | | — | | | | | | (0.2) | | |
Recoveries | | | | | — | | | | | | 2.3 | | | | | | — | | | | | | 2.3 | | |
Ending balance | | | | $ | 75.5 | | | | | $ | 5.0 | | | | | $ | 2.7 | | | | | $ | 83.2 | | |
| | | For the year ended December 31, 2021 | | |||||||||||||||||||||
| | | Commercial mortgage loans | | | Residential mortgage loans | | | Reinsurance recoverables | | | Total | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Beginning balance | | | | $ | 40.5 | | | | | $ | 5.7 | | | | | $ | 2.7 | | | | | $ | 48.9 | | |
Provision(1) | | | | | 1.5 | | | | | | (7.2) | | | | | | — | | | | | | (5.7) | | |
Charge-offs | | | | | — | | | | | | (0.5) | | | | | | — | | | | | | (0.5) | | |
Recoveries | | | | | — | | | | | | 3.7 | | | | | | — | | | | | | 3.7 | | |
Ending balance | | | | $ | 42.0 | | | | | $ | 1.7 | | | | | $ | 2.7 | | | | | $ | 46.4 | | |
| | | For the year ended December 31, 2020 | | |||||||||||||||||||||
| | | Commercial mortgage loans | | | Residential mortgage loans | | | Reinsurance recoverables | | | Total | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Beginning balance | | | | $ | 25.9 | | | | | $ | 2.6 | | | | | $ | 2.5 | | | | | $ | 31.0 | | |
Provision(2) | | | | | 14.6 | | | | | | 1.1 | | | | | | 0.2 | | | | | | 15.9 | | |
Charge-offs | | | | | — | | | | | | (1.0) | | | | | | — | | | | | | (1.0) | | |
Recoveries | | | | | — | | | | | | 3.0 | | | | | | — | | | | | | 3.0 | | |
Ending balance | | | | $ | 40.5 | | | | | $ | 5.7 | | | | | $ | 2.7 | | | | | $ | 48.9 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Commercial mortgage loans: | | | | | | | | | | | | | | | | | | | |
Purchased | | | | $ | 261.3 | | | | | $ | — | | | | | $ | 45.7 | | |
Residential mortgage loans: | | | | | | | | | | | | | | | | | | | |
Purchased(1) | | | | | 1,805.2 | | | | | | 2,272.4 | | | | | | 1,021.4 | | |
Sold | | | | | 512.8 | | | | | | — | | | | | | — | | |
| | | December 31, 2022 | | | December 31, 2021 | | ||||||||||||||||||
| | | Amortized cost | | | Percent of total | | | Amortized cost | | | Percent of total | | ||||||||||||
| | | ($ in millions) | | |||||||||||||||||||||
Geographic distribution | | | | | | | | | | | | | | | | | | | | | | | | | |
New England | | | | $ | 513.3 | | | | | | 3.2% | | | | | $ | 587.1 | | | | | | 3.7% | | |
Middle Atlantic | | | | | 4,518.8 | | | | | | 27.8 | | | | | | 4,550.2 | | | | | | 28.4 | | |
East North Central | | | | | 653.9 | | | | | | 4.0 | | | | | | 625.3 | | | | | | 3.9 | | |
West North Central | | | | | 371.9 | | | | | | 2.3 | | | | | | 339.4 | | | | | | 2.1 | | |
South Atlantic | | | | | 2,565.5 | | | | | | 15.8 | | | | | | 2,471.9 | | | | | | 15.4 | | |
East South Central | | | | | 340.6 | | | | | | 2.1 | | | | | | 379.8 | | | | | | 2.4 | | |
West South Central | | | | | 1,208.8 | | | | | | 7.4 | | | | | | 1,247.8 | | | | | | 7.8 | | |
Mountain | | | | | 940.9 | | | | | | 5.8 | | | | | | 928.0 | | | | | | 5.8 | | |
Pacific | | | | | 5,129.7 | | | | | | 31.6 | | | | | | 4,878.2 | | | | | | 30.5 | | |
Total | | | | $ | 16,243.4 | | | | | | 100.0% | | | | | $ | 16,007.7 | | | | | | 100.0% | | |
Property type distribution | | | | | | | | | | | | | | | | | | | | | | | | | |
Office | | | | $ | 4,331.8 | | | | | | 26.7% | | | | | $ | 4,801.0 | | | | | | 29.9% | | |
Retail | | | | | 1,502.5 | | | | | | 9.2 | | | | | | 1,625.5 | | | | | | 10.2 | | |
Industrial | | | | | 3,246.4 | | | | | | 20.0 | | | | | | 2,975.7 | | | | | | 18.6 | | |
Apartments | | | | | 6,848.3 | | | | | | 42.2 | | | | | | 6,255.2 | | | | | | 39.1 | | |
Hotel | | | | | 72.5 | | | | | | 0.4 | | | | | | 85.7 | | | | | | 0.5 | | |
Mixed use/other | | | | | 241.9 | | | | | | 1.5 | | | | | | 264.6 | | | | | | 1.7 | | |
Total | | | | $ | 16,243.4 | | | | | | 100.0% | | | | | $ | 16,007.7 | | | | | | 100.0% | | |
| | | For the year ended December 31, 2022 | | |||||||||||||||||||||
| | | TDRs | | | TDRs in payment default | | ||||||||||||||||||
| | | Number of contracts | | | Recorded investment | | | Number of contracts | | | Recorded investment | | ||||||||||||
| | | | | | | | | (in millions) | | | | | | | | | (in millions) | | ||||||
Commercial mortgage loans | | | | | 1 | | | | | $ | 35.5 | | | | | | — | | | | | $ | — | | |
Total | | | | | 1 | | | | | $ | 35.5 | | | | | | — | | | | | $ | — | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (in millions) | | |||||||||
Total assets | | | | $ | 128,765.7 | | | | | $ | 106,743.2 | | |
Total liabilities | | | | | 12,335.4 | | | | | | 11,862.3 | | |
Total equity | | | | $ | 116,430.3 | | | | | $ | 94,880.9 | | |
Net investment in unconsolidated entities | | | | $ | 1,275.5 | | | | | $ | 957.1 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Total revenues | | | | $ | 36,915.1 | | | | | $ | 17,674.2 | | | | | $ | 11,761.4 | | |
Net income | | | | | 33,194.6 | | | | | | 14,083.1 | | | | | | 7,350.8 | | |
Our share of net income of unconsolidated entities | | | | | 119.5 | | | | | | 229.6 | | | | | | 46.4 | | |
| | | Gross amounts not offset in the consolidated statements of financial position | | |||||||||||||||||||||
| | | Gross amount of recognized assets(1) | | | Financial instruments(2) | | | Collateral received | | | Net amount | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
December 31, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative assets | | | | $ | 256.6 | | | | | $ | (133.5) | | | | | $ | (120.8) | | | | | $ | 2.3 | | |
Reverse repurchase agreements | | | | | 112.9 | | | | | | — | | | | | | (112.9) | | | | | | — | | |
Total | | | | $ | 369.5 | | | | | $ | (133.5) | | | | | $ | (233.7) | | | | | $ | 2.3 | | |
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative assets | | | | $ | 326.2 | | | | | $ | (99.6) | | | | | $ | (219.2) | | | | | $ | 7.4 | | |
| | | Gross amount of recognized liabilities(1) | | | Gross amounts not offset in the consolidated statements of financial position | | | Net amount | | |||||||||||||||
| Financial instruments(2) | | | Collateral pledged | | ||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||
December 31, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liabilities | | | | $ | 612.3 | | | | | $ | (133.5) | | | | | $ | (467.2) | | | | | $ | 11.6 | | |
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liabilities | | | | $ | 142.3 | | | | | $ | (99.6) | | | | | $ | (41.9) | | | | | $ | 0.8 | | |
| | | December 31, 2022 | | | December 31, 2021 | | ||||||
| | | (in millions) | | |||||||||
Notional amounts of derivative instruments | | | | | | | | | | | | | |
Interest rate contracts: | | | | | | | | | | | | | |
Interest rate swaps | | | | $ | 52,249.9 | | | | | $ | 47,927.4 | | |
Interest rate options | | | | | 4,418.9 | | | | | | 2,373.9 | | |
Interest rate forwards | | | | | 2,527.5 | | | | | | 2,181.6 | | |
Interest rate futures | | | | | 877.5 | | | | | | 1,774.5 | | |
Foreign exchange contracts: | | | | | | | | | | | | | |
Currency swaps | | | | | 1,389.8 | | | | | | 958.9 | | |
Currency forwards | | | | | 32.0 | | | | | | 6.8 | | |
Equity contracts: | | | | | | | | | | | | | |
Equity options | | | | | 2,049.3 | | | | | | 2,378.2 | | |
Equity futures | | | | | 574.1 | | | | | | 150.4 | | |
Credit contracts: | | | | | | | | | | | | | |
Credit default swaps | | | | | 400.0 | | | | | | 295.0 | | |
Other contracts: | | | | | | | | | | | | | |
Embedded derivatives | | | | | 30,461.7 | | | | | | 9,430.5 | | |
Total notional amounts at end of period | | | | $ | 94,980.7 | | | | | $ | 67,477.2 | | |
Credit exposure of derivative instruments | | | | | | | | | | | | | |
Interest rate contracts: | | | | | | | | | | | | | |
Interest rate swaps | | | | $ | 64.2 | | | | | $ | 205.9 | | |
Interest rate options | | | | | 41.7 | | | | | | 24.5 | | |
Interest rate forwards | | | | | 0.1 | | | | | | 15.3 | | |
Foreign exchange contracts: | | | | | | | | | | | | | |
Currency swaps | | | | | 139.2 | | | | | | 51.1 | | |
Currency forwards | | | | | 0.9 | | | | | | 0.4 | | |
Equity contracts: | | | | | | | | | | | | | |
Equity options | | | | | 16.5 | | | | | | 37.3 | | |
Credit contracts: | | | | | | | | | | | | | |
Credit default swaps | | | | | 3.6 | | | | | | 2.7 | | |
Total gross credit exposure | | | | | 266.2 | | | | | | 337.2 | | |
Less: collateral received | | | | | 158.8 | | | | | | 234.0 | | |
Net credit exposure | | | | $ | 107.4 | | | | | $ | 103.2 | | |
| | | Derivative assets(1) | | | Derivative liabilities(2) | | ||||||||||||||||||
| | | December 31, 2022 | | | December 31, 2021 | | | December 31, 2022 | | | December 31, 2021 | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Derivatives designated as hedging instruments | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest rate contracts | | | | $ | 20.0 | | | | | $ | 4.1 | | | | | $ | 105.1 | | | | | $ | 19.0 | | |
Foreign exchange contracts | | | | | 134.6 | | | | | | 48.4 | | | | | | 19.3 | | | | | | 17.2 | | |
Total derivatives designated as hedging instruments | | | | $ | 154.6 | | | | | $ | 52.5 | | | | | $ | 124.4 | | | | | $ | 36.2 | | |
Derivatives not designated as hedging instruments | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest rate contracts | | | | $ | 81.1 | | | | | $ | 233.4 | | | | | $ | 439.9 | | | | | $ | 13.0 | | |
Foreign exchange contracts | | | | | 0.9 | | | | | | 0.4 | | | | | | 0.4 | | | | | | — | | |
Equity contracts | | | | | 16.5 | | | | | | 37.3 | | | | | | 45.6 | | | | | | 90.9 | | |
Credit contracts | | | | | 3.5 | | | | | | 2.6 | | | | | | 2.0 | | | | | | 2.2 | | |
Other contracts | | | | | — | | | | | | — | | | | | | (3,711.7) | | | | | | 320.9 | | |
Total derivatives not designated as hedging instruments | | | | | 102.0 | | | | | | 273.7 | | | | | | (3,223.8) | | | | | | 427.0 | | |
Total derivative instruments | | | | $ | 256.6 | | | | | $ | 326.2 | | | | | $ | (3,099.4) | | | | | $ | 463.2 | | |
| | | December 31, 2022 | | |||||||||||||||||||||
| | | Notional amount | | | Fair value | | | Maximum future payments | | | Weighted average expected life (in years) | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Single name credit default swaps | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt | | | | | | | | | | | | | | | | | | | | | | | | | |
A | | | | $ | 40.0 | | | | | $ | 0.4 | | | | | $ | 40.0 | | | | | | 2.5 | | |
BBB | | | | | 190.0 | | | | | | 2.2 | | | | | | 190.0 | | | | | | 3.1 | | |
BB | | | | | 20.0 | | | | | | (0.2) | | | | | | 20.0 | | | | | | 4.5 | | |
Sovereign | | | | | | | | | | | | | | | | | | | | | | | | | |
A | | | | | 20.0 | | | | | | 0.2 | | | | | | 20.0 | | | | | | 2.5 | | |
Total credit default swap protection sold | | | | $ | 270.0 | | | | | $ | 2.6 | | | | | $ | 270.0 | | | | | | 3.1 | | |
| | | December 31, 2021 | | |||||||||||||||||||||
| | | Notional amount | | | Fair value | | | Maximum future payments | | | Weighted average expected life (in years) | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Single name credit default swaps | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt | | | | | | | | | | | | | | | | | | | | | | | | | |
A | | | | $ | 20.0 | | | | | $ | 0.4 | | | | | $ | 20.0 | | | | | | 3.5 | | |
BBB | | | | | 110.0 | | | | | | 1.7 | | | | | | 110.0 | | | | | | 3.0 | | |
Sovereign | | | | | | | | | | | | | | | | | | | | | | | | | |
A | | | | | 20.0 | | | | | | 0.5 | | | | | | 20.0 | | | | | | 3.5 | | |
Total credit default swap protection sold | | | | $ | 150.0 | | | | | $ | 2.6 | | | | | $ | 150.0 | | | | | | 3.1 | | |
Line item in the consolidated statements of financial position in which the hedged item is included | | | Amortized cost of hedged item | | | Cumulative amount of fair value hedging basis adjustment increase/(decrease) included in the amortized cost of the hedged item | | ||||||||||||||||||
| December 31, 2022 | | | December 31, 2021 | | | December 31, 2022 | | | December 31, 2021 | | ||||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Fixed maturities, available-for-sale(1): | | | | | | | | | | | | | | | | | | | | | | | | | |
Active hedging relationships | | | | $ | 3,498.6 | | | | | $ | 1,859.9 | | | | | $ | (153.4) | | | | | $ | (7.1) | | |
Discontinued hedging relationships | | | | | 48.8 | | | | | | 79.7 | | | | | | 1.3 | | | | | | 2.8 | | |
Total fixed maturities, available-for-sale in active or discontinued hedging relationships | | | | $ | 3,547.4 | | | | | $ | 1,939.6 | | | | | $ | (152.1) | | | | | $ | (4.3) | | |
Derivatives in cash flow hedging relationships | | | Related hedged item | | | Amount of gain (loss) recognized in AOCI on derivatives for the year ended December 31, | | |||||||||||||||
| 2022 | | | 2021 | | | 2020 | | ||||||||||||||
| | | | | | (in millions) | | |||||||||||||||
Interest rate contracts | | | Fixed maturities, available-for-sale | | | | $ | (102.1) | | | | | $ | — | | | | | $ | (3.0) | | |
Interest rate contracts | | | Investment contracts | | | | | 15.9 | | | | | | 4.1 | | | | | | — | | |
Foreign exchange contracts | | | Fixed maturities, available-for-sale | | | | | 84.2 | | | | | | 53.4 | | | | | | (37.1) | | |
Total | | | | | | | $ | (2.0) | | | | | $ | 57.5 | | | | | $ | (40.1) | | |
| | | For the year ended December 31, 2022 | | |||||||||||||||
| | | Net investment income related to hedges of fixed maturities, available- for-sale | | | Net realized capital gains (losses) related to hedges of fixed maturities, available- for-sale | | | Benefits, claims and settlement expenses related to hedges of investment contracts | | |||||||||
| | | (in millions) | | |||||||||||||||
Total amounts of consolidated statement of operations line items in which the effects of fair value and cash flow hedges are reported | | | | $ | 2,852.3 | | | | | $ | (1.2) | | | | | $ | 5,650.7 | | |
Gains on fair value hedging relationships: | | | | | | | | | | | | | | | | | | | |
Interest rate contracts: | | | | | | | | | | | | | | | | | | | |
Loss recognized on hedged item | | | | $ | (154.4) | | | | | $ | — | | | | | $ | — | | |
Gain recognized on derivatives | | | | | 151.6 | | | | | | — | | | | | | — | | |
Amortization of hedged item basis adjustments | | | | | (1.3) | | | | | | — | | | | | | — | | |
Amounts related to periodic settlements on derivatives | | | | | 5.2 | | | | | | — | | | | | | — | | |
Total gain recognized for fair value hedging relationships | | | | $ | 1.1 | | | | | $ | — | | | | | $ | — | | |
Gains on cash flow hedging relationships: | | | | | | | | | | | | | | | | | | | |
Interest rate contracts: | | | | | | | | | | | | | | | | | | | |
Gain (loss) reclassified from AOCI on derivatives | | | | $ | 9.0 | | | | | $ | — | | | | | $ | (0.1) | | |
Gain reclassified from AOCI as a result that a forecasted transaction is no longer probable of occurring | | | | | — | | | | | | 18.5 | | | | | | — | | |
Amounts related to periodic settlements on derivatives | | | | | — | | | | | | — | | | | | | 3.7 | | |
Foreign exchange contracts: | | | | | | | | | | | | | | | | | | | |
Gain reclassified from AOCI on derivatives | | | | | — | | | | | | 0.6 | | | | | | — | | |
Amounts related to periodic settlements on derivatives | | | | | 14.5 | | | | | | — | | | | | | — | | |
Total gain recognized for cash flow hedging relationships | | | | $ | 23.5 | | | | | $ | 19.1 | | | | | $ | 3.6 | | |
| | | For the year ended December 31, 2021 | | |||||||||||||||
| | | Net investment income related to hedges of fixed maturities, available- for-sale | | | Net realized capital gains (losses) related to hedges of fixed maturities, available- for-sale | | | Benefits, claims and settlement expenses related to hedges of investment contracts | | |||||||||
| | | (in millions) | | |||||||||||||||
Total amounts of consolidated statement of operations line items in which the effects of fair value and cash flow hedges are reported | | | | $ | 3,633.7 | | | | | $ | (18.5) | | | | | $ | 6,482.6 | | |
Losses on fair value hedging relationships: | | | | | | | | | | | | | | | | | | | |
Interest rate contracts: | | | | | | | | | | | | | | | | | | | |
Loss recognized on hedged item | | | | $ | (28.7) | | | | | $ | — | | | | | $ | — | | |
Gain recognized on derivatives | | | | | 28.6 | | | | | | — | | | | | | — | | |
Amortization of hedged item basis adjustments | | | | | (1.8) | | | | | | — | | | | | | — | | |
Amounts related to periodic settlements on derivatives | | | | | (10.0) | | | | | | — | | | | | | — | | |
Total loss recognized for fair value hedging relationships | | | | $ | (11.9) | | | | | $ | — | | | | | $ | — | | |
Gains (losses) on cash flow hedging relationships: | | | | | | | | | | | | | | | | | | | |
Interest rate contracts: | | | | | | | | | | | | | | | | | | | |
Gain (loss) reclassified from AOCI on derivatives | | | | $ | 15.4 | | | | | $ | — | | | | | $ | (0.1) | | |
Gain reclassified from AOCI as a result that a forecasted transaction is no longer probable of occurring | | | | | — | | | | | | 1.0 | | | | | | — | | |
Amounts related to periodic settlements on derivatives | | | | | — | | | | | | — | | | | | | (0.4) | | |
Foreign exchange contracts: | | | | | | | | | | | | | | | | | | | |
Gain reclassified from AOCI on derivatives | | | | | — | | | | | | 9.2 | | | | | | — | | |
Amounts related to periodic settlements on derivatives | | | | | 9.6 | | | | | | — | | | | | | — | | |
Total gain (loss) recognized for cash flow hedging relationships | | | | $ | 25.0 | | | | | $ | 10.2 | | | | | $ | (0.5) | | |
| | | For the year ended December 31, 2020 | | |||||||||||||||
| | | Net investment income related to hedges of fixed maturities, available- for-sale | | | Net realized capital gains related to hedges of fixed maturities, available- for-sale | | | Benefits, claims and settlement expenses related to hedges of investment contracts | | |||||||||
| | | (in millions) | | |||||||||||||||
Total amounts of consolidated statement of operations line items in which the effects of fair value and cash flow hedges are reported | | | | $ | 3,324.9 | | | | | $ | 105.6 | | | | | $ | 7,837.5 | | |
Losses on fair value hedging relationships: | | | | | | | | | | | | | | | | | | | |
Interest rate contracts: | | | | | | | | | | | | | | | | | | | |
Gain recognized on hedged item | | | | $ | 3.3 | | | | | $ | — | | | | | $ | — | | |
Loss recognized on derivatives | | | | | (3.9) | | | | | | — | | | | | | — | | |
Amortization of hedged item basis adjustments | | | | | (2.5) | | | | | | — | | | | | | — | | |
Amounts related to periodic settlements on derivatives | | | | | (6.2) | | | | | | — | | | | | | — | | |
Total loss recognized for fair value hedging relationships | | | | $ | (9.3) | | | | | $ | — | | | | | $ | — | | |
Gains (losses) on cash flow hedging relationships: | | | | | | | | | | | | | | | | | | | |
Interest rate contracts: | | | | | | | | | | | | | | | | | | | |
Gain (loss) reclassified from AOCI on derivatives | | | | $ | 18.1 | | | | | $ | 2.7 | | | | | $ | (0.1) | | |
Gain reclassified from AOCI as a result that a forecasted transaction is no longer probable of occurring | | | | | — | | | | | | 0.1 | | | | | | — | | |
Foreign exchange contracts: | | | | | | | | | | | | | | | | | | | |
Gain reclassified from AOCI on derivatives | | | | | — | | | | | | 6.3 | | | | | | — | | |
Amounts related to periodic settlements on derivatives | | | | | 8.2 | | | | | | — | | | | | | — | | |
Total gain (loss) recognized for cash flow hedging relationships | | | | $ | 26.3 | | | | | $ | 9.1 | | | | | $ | (0.1) | | |
| | | Amount of gain (loss) recognized in net income on derivatives for the year ended December 31, | | |||||||||||||||
Derivatives not designated as hedging instruments | | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Interest rate contracts | | | | $ | (317.7) | | | | | $ | (33.8) | | | | | $ | 342.7 | | |
Foreign exchange contracts | | | | | 1.4 | | | | | | (4.7) | | | | | | 7.7 | | |
Equity contracts | | | | | 20.7 | | | | | | (81.1) | | | | | | (95.8) | | |
Credit contracts | | | | | 0.1 | | | | | | 0.1 | | | | | | 1.8 | | |
Other contracts(1) | | | | | 4,024.8 | | | | | | 86.0 | | | | | | (247.3) | | |
Total | | | | $ | 3,729.3 | | | | | $ | (33.5) | | | | | $ | 9.1 | | |
| | | December 31, 2022 | | | December 31, 2021 | | ||||||
| | | (in millions) | | |||||||||
Closed Block liabilities | | | | | | | | | | | | | |
Future policy benefits and claims | | | | $ | 3,128.1 | | | | | $ | 3,286.0 | | |
Other policyholder funds | | | | | 5.1 | | | | | | 5.3 | | |
Policyholder dividends payable | | | | | 168.2 | | | | | | 176.6 | | |
Policyholder dividend obligation | | | | | — | | | | | | 210.7 | | |
Other liabilities | | | | | 24.9 | | | | | | 8.8 | | |
Total Closed Block liabilities | | | | | 3,326.3 | | | | | | 3,687.4 | | |
Assets designated to the Closed Block | | | | | | | | | | | | | |
Fixed maturities, available-for-sale | | | | | 1,690.2 | | | | | | 2,191.6 | | |
Fixed maturities, trading | | | | | 2.0 | | | | | | 2.4 | | |
Equity securities | | | | | 0.8 | | | | | | 1.0 | | |
Mortgage loans | | | | | 544.9 | | | | | | 554.9 | | |
Policy loans | | | | | 407.4 | | | | | | 425.2 | | |
Other investments | | | | | 62.2 | | | | | | 48.4 | | |
Total investments | | | | | 2,707.5 | | | | | | 3,223.5 | | |
Cash and cash equivalents | | | | | 62.0 | | | | | | 19.7 | | |
Accrued investment income | | | | | 30.3 | | | | | | 32.6 | | |
Reinsurance recoverable and deposit receivable | | | | | 3.9 | | | | | | 5.1 | | |
Premiums due and other receivables | | | | | 4.1 | | | | | | 3.3 | | |
Deferred tax asset | | | | | 62.0 | | | | | | 24.6 | | |
Other assets | | | | | 0.1 | | | | | | — | | |
Total assets designated to the Closed Block | | | | | 2,869.9 | | | | | | 3,308.8 | | |
Excess of Closed Block liabilities over assets designated to the Closed Block | | | | | 456.4 | | | | | | 378.6 | | |
Amounts included in accumulated other comprehensive income | | | | | (111.9) | | | | | | 0.6 | | |
Maximum future earnings to be recognized from Closed Block assets and liabilities | | | | $ | 344.5 | | | | | $ | 379.2 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | |
Premiums and other considerations | | | | $ | 178.0 | | | | | $ | 196.1 | | | | | $ | 217.6 | | |
Net investment income | | | | | 129.1 | | | | | | 137.6 | | | | | | 143.6 | | |
Net realized capital gains (losses) | | | | | (21.2) | | | | | | (4.6) | | | | | | 16.0 | | |
Total revenues | | | | | 285.9 | | | | | | 329.1 | | | | | | 377.2 | | |
Expenses | | | | | | | | | | | | | | | | | | | |
Benefits, claims and settlement expenses | | | | | 184.3 | | | | | | 212.0 | | | | | | 212.8 | | |
Dividends to policyholders | | | | | 92.5 | | | | | | 92.6 | | | | | | 117.8 | | |
Operating expenses | | | | | 2.2 | | | | | | 2.3 | | | | | | 2.7 | | |
Total expenses | | | | | 279.0 | | | | | | 306.9 | | | | | | 333.3 | | |
Closed Block revenues, net of Closed Block expenses, before income taxes | | | | | 6.9 | | | | | | 22.2 | | | | | | 43.9 | | |
Income taxes | | | | | 0.7 | | | | | | 3.9 | | | | | | 8.4 | | |
Closed Block revenues, net of Closed Block expenses and income taxes | | | | | 6.2 | | | | | | 18.3 | | | | | | 35.5 | | |
Funding adjustments and other transfers | | | | | 28.5 | | | | | | (4.0) | | | | | | (2.2) | | |
Closed Block revenues, net of Closed Block expenses, income taxes and funding adjustments | | | | $ | 34.7 | | | | | $ | 14.3 | | | | | $ | 33.3 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Beginning of year | | | | $ | 379.2 | | | | | $ | 393.5 | | | | | $ | 426.9 | | |
Effects of implementation of accounting changes(1) | | | | | — | | | | | | — | | | | | | 0.1 | | |
End of year | | | | | 344.5 | | | | | | 379.2 | | | | | | 393.5 | | |
Change in maximum future earnings | | | | $ | (34.7) | | | | | $ | (14.3) | | | | | $ | (33.3) | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Balance at beginning of year | | | | $ | 3,749.1 | | | | | $ | 3,398.5 | | | | | $ | 3,509.9 | | |
Costs deferred during the year | | | | | 378.9 | | | | | | 461.2 | | | | | | 456.6 | | |
Amortized to expense during the year(1) | | | | | (383.4) | | | | | | (284.2) | | | | | | (386.9) | | |
Adjustment related to unrealized (gains) losses on available-for-sale securities and derivative instruments(2) | | | | | 934.8 | | | | | | 173.6 | | | | | | (181.1) | | |
Balance at end of year | | | | $ | 4,679.4 | | | | | $ | 3,749.1 | | | | | $ | 3,398.5 | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (in millions) | | |||||||||
Liabilities for investment contracts: | | | | | | | | | | | | | |
Liabilities for individual annuities | | | | $ | 7,739.3 | | | | | $ | 10,652.3 | | |
GICs | | | | | 13,787.7 | | | | | | 12,206.0 | | |
Funding agreements | | | | | 12,318.7 | | | | | | 11,685.5 | | |
Other investment contracts | | | | | 1,005.6 | | | | | | 997.1 | | |
Total liabilities for investment contracts | | | | | 34,851.3 | | | | | | 35,540.9 | | |
Universal life and other reserves | | | | | 7,390.8 | | | | | | 7,416.4 | | |
Total contractholder funds | | | | $ | 42,242.1 | | | | | $ | 42,957.3 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Balance at beginning of year | | | | $ | 2,659.4 | | | | | $ | 2,534.9 | | | | | $ | 2,365.5 | | |
Less: reinsurance recoverable | | | | | 442.1 | | | | | | 436.9 | | | | | | 403.8 | | |
Net balance at beginning of year | | | | | 2,217.3 | | | | | | 2,098.0 | | | | | | 1,961.7 | | |
Incurred: | | | | | | | | | | | | | | | | | | | |
Current year | | | | | 1,664.2 | | | | | | 1,572.5 | | | | | | 1,376.8 | | |
Prior years | | | | | 32.1 | | | | | | 7.2 | | | | | | 26.6 | | |
Total incurred | | | | | 1,696.3 | | | | | | 1,579.7 | | | | | | 1,403.4 | | |
Payments: | | | | | | | | | | | | | | | | | | | |
Current year | | | | | 1,093.2 | | | | | | 1,025.0 | | | | | | 863.8 | | |
Prior years | | | | | 465.4 | | | | | | 435.4 | | | | | | 403.3 | | |
Total payments | | | | | 1,558.6 | | | | | | 1,460.4 | | | | | | 1,267.1 | | |
Net balance at end of year | | | | | 2,355.0 | | | | | | 2,217.3 | | | | | | 2,098.0 | | |
Plus: reinsurance recoverable | | | | | 478.1 | | | | | | 442.1 | | | | | | 436.9 | | |
Balance at end of year | | | | $ | 2,833.1 | | | | | $ | 2,659.4 | | | | | $ | 2,534.9 | | |
Amounts not included in the rollforward above: Claim adjustment expense liabilities | | | | $ | 59.7 | | | | | $ | 59.5 | | | | | $ | 57.8 | | |
| | | Net incurred claims(1) | | | Incurred but not reported claims | | | Cumulative number of reported claims | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2013 | | | 2014 | | | 2015 | | | 2016 | | | 2017 | | | 2018 | | | 2019 | | | 2020 | | | 2021 | | | 2022 | | | 2022 | | | 2022 | | ||||||||||||||||||||||||||||||||||||
| | | ($ in millions) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurral year | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | | | | $ | 219.3 | | | | | $ | 203.3 | | | | | $ | 188.4 | | | | | $ | 190.7 | | | | | $ | 182.3 | | | | | $ | 179.5 | | | | | $ | 177.1 | | | | | $ | 173.4 | | | | | $ | 174.5 | | | | | $ | 174.5 | | | | | $ | 0.1 | | | | | | 7,051 | | |
2014 | | | | | | | | | | | 242.2 | | | | | | 231.4 | | | | | | 214.4 | | | | | | 218.1 | | | | | | 206.2 | | | | | | 201.9 | | | | | | 202.0 | | | | | | 199.3 | | | | | | 199.8 | | | | | | 0.1 | | | | | | 7,604 | | |
2015 | | | | | | | | | | | | | | | | | 231.0 | | | | | | 227.2 | | | | | | 217.2 | | | | | | 215.3 | | | | | | 208.2 | | | | | | 210.0 | | | | | | 211.8 | | | | | | 210.5 | | | | | | 0.1 | | | | | | 7,181 | | |
2016 | | | | | | | | | | | | | | | | | | | | | | | 229.8 | | | | | | 228.4 | | | | | | 219.4 | | | | | | 219.5 | | | | | | 214.4 | | | | | | 218.7 | | | | | | 221.9 | | | | | | 0.1 | | | | | | 6,167 | | |
2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 238.4 | | | | | | 239.7 | | | | | | 243.1 | | | | | | 245.8 | | | | | | 245.2 | | | | | | 246.5 | | | | | | 0.1 | | | | | | 6,082 | | |
2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 239.4 | | | | | | 245.1 | | | | | | 239.2 | | | | | | 239.8 | | | | | | 235.3 | | | | | | 0.1 | | | | | | 5,774 | | |
2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 255.2 | | | | | | 248.4 | | | | | | 240.4 | | | | | | 240.2 | | | | | | 5.7 | | | | | | 5,945 | | |
2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 252.1 | | | | | | 231.0 | | | | | | 221.1 | | | | | | 8.4 | | | | | | 5,913 | | |
2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 259.7 | | | | | | 244.5 | | | | | | 4.0 | | | | | | 5,484 | | |
2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 274.3 | | | | | | 109.8 | | | | | | 3,422 | | |
Total net incurred claims | | | | $ | 2,268.6 | | | | | | | | | | | | | | |
| | | Net cumulative paid claims(1) | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | December 31, | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2013 | | | 2014 | | | 2015 | | | 2016 | | | 2017 | | | 2018 | | | 2019 | | | 2020 | | | 2021 | | | 2022 | | | | | |||||||||||||||||||||||||||||||||
| | | (in millions) | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurral year | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2013 | | | | $ | 12.5 | | | | | $ | 55.0 | | | | | $ | 81.4 | | | | | $ | 97.0 | | | | | $ | 106.4 | | | | | $ | 116.4 | | | | | $ | 123.2 | | | | | $ | 129.0 | | | | | $ | 134.9 | | | | | $ | 139.6 | | | | | | | ||
2014 | | | | | | | | | | | 16.1 | | | | | | 66.0 | | | | | | 96.3 | | | | | | 111.8 | | | | | | 122.3 | | | | | | 132.4 | | | | | | 140.8 | | | | | | 147.2 | | | | | | 153.3 | | | | | | | | |
2015 | | | | | | | | | | | | | | | | | 16.9 | | | | | | 67.0 | | | | | | 98.0 | | | | | | 114.6 | | | | | | 126.8 | | | | | | 137.1 | | | | | | 146.5 | | | | | | 154.0 | | | | | | | | |
2016 | | | | | | | | | | | | | | | | | | | | | | | 16.2 | | | | | | 70.6 | | | | | | 105.6 | | | | | | 124.9 | | | | | | 136.8 | | | | | | 147.2 | | | | | | 157.1 | | | | | | | | |
2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 17.8 | | | | | | 76.5 | | | | | | 115.0 | | | | | | 135.9 | | | | | | 151.7 | | | | | | 165.4 | | | | | | | | |
2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20.1 | | | | | | 79.9 | | | | | | 115.7 | | | | | | 135.7 | | | | | | 150.3 | | | | | | | | |
2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 19.2 | | | | | | 79.7 | | | | | | 117.5 | | | | | | 136.4 | | | | | | | | |
2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20.6 | | | | | | 78.8 | | | | | | 113.1 | | | | | | | | |
2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 19.8 | | | | | | 79.0 | | | | | | | | |
2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 19.6 | | | | | | | | |
Total net paid claims | | | | | 1,267.8 | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities for unpaid claims prior to 2013 net of reinsurance | | | | | 239.5 | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total outstanding liabilities for unpaid claims net of reinsurance | | | | $ | 1,240.3 | | | | | | | | |
| | | Net incurred claims(1) | | | Incurred but not reported claims | | | Cumulative number of reported claims | | |||||||||||||||
| | | December 31, | | |||||||||||||||||||||
| | | 2021 | | | 2022 | | | 2022 | | | 2022 | | ||||||||||||
| | | ($ in millions) | | |||||||||||||||||||||
Incurral year | | | | | | | | | | | | | | | | | | | | | | | | | |
2021 | | | | $ | 826.0 | | | | | $ | 814.1 | | | | | $ | — | | | | | | 3,749,753 | | |
2022 | | | | | | | | | | | 924.4 | | | | | | 56.5 | | | | | | 4,114,456 | | |
Total net incurred claims | | | | | | | | | | $ | 1,738.5 | | | | | | | | | | | | | | |
| | | Net cumulative paid claims(1) | | |||||||||
| | | December 31, | | |||||||||
| | | 2021 | | | 2022 | | ||||||
| | | (in millions) | | |||||||||
Incurral year | | | | | | | | | | | | | |
2021 | | | | $ | 753.4 | | | | | $ | 813.3 | | |
2022 | | | | | | | | | | | 845.5 | | |
Total net paid claims | | | | | | | | | | | 1,658.8 | | |
All outstanding liabilities for unpaid claims prior to 2021 net of reinsurance | | | | | | | | | | | — | | |
Total outstanding liabilities for unpaid claims net of reinsurance | | | | | | | | | | $ | 79.7 | | |
| | | Net incurred claims(1) | | | Incurred but not reported claims | | | Cumulative number of reported claims | | |||||||||||||||
| | | December 31, | | |||||||||||||||||||||
| | | 2021 | | | 2022 | | | 2022 | | | 2022 | | ||||||||||||
| | | ($ in millions) | | |||||||||||||||||||||
Incurral year | | | | | | | | | | | | | | | | | | | | | | | | | |
2021 | | | | $ | 317.6 | | | | | $ | 321.5 | | | | | $ | 0.8 | | | | | | 7,079 | | |
2022 | | | | | | | | | | | 279.3 | | | | | | 24.7 | | | | | | 5,368 | | |
Total net incurred claims | | | | | | | | | | $ | 600.8 | | | | | | | | | | | | | | |
| | | Net cumulative paid claims(1) | | |||||||||
| | | December 31, | | |||||||||
| | | 2021 | | | 2022 | | ||||||
| | | (in millions) | | |||||||||
Incurral year | | | | | | | | | | | | | |
2021 | | | | $ | 243.9 | | | | | $ | 314.3 | | |
2022 | | | | | | | | | | | 218.3 | | |
Total net paid claims | | | | | | | | | | | 532.6 | | |
All outstanding liabilities for unpaid claims prior to 2021 net of reinsurance | | | | | | | | | | | 5.0 | | |
Total outstanding liabilities for unpaid claims net of reinsurance | | | | | | | | | | $ | 73.2 | | |
| | | December 31, 2022 | | |||||||||||||||||||||
| | | LTD and Group Life Waiver | | | Dental, Vision, STD, Critical Illness, Accident and PFML | | | Group Life | | | Consolidated | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Net outstanding liabilities for unpaid claims | | | | $ | 1,240.3 | | | | | $ | 79.7 | | | | | $ | 73.2 | | | | | $ | 1,393.2 | | |
Reconciling items: | | | | | | | | | | | | | | | | | | | | | | | | | |
Reinsurance recoverable on unpaid claims | | | | | 45.3 | | | | | | — | | | | | | 0.4 | | | | | | 45.7 | | |
Impact of discounting | | | | | (209.4) | | | | | | — | | | | | | — | | | | | | (209.4) | | |
Liability for unpaid claims – short-duration contracts | | | | $ | 1,076.2 | | | | | $ | 79.7 | | | | | $ | 73.6 | | | | | | 1,229.5 | | |
Insurance contracts other than short-duration | | | | | | | | | | | | | | | | | | | | | | | 1,603.6 | | |
Liability for unpaid claims | | | | | | | | | | | | | | | | | | | | | | $ | 2,833.1 | | |
| | | December 31, 2022(1) | | |||||||||||||||
Year | | | LTD and Group Life Waiver | | | Dental, Vision, STD, Critical Illness, Accident and PFML | | | Group Life | | |||||||||
1 | | | | | 7.9% | | | | | | 91.8% | | | | | | 79.6% | | |
2 | | | | | 24.7 | | | | | | 8.0 | | | | | | 18.5 | | |
3 | | | | | 15.4 | | | | | | | | | | | | | | |
4 | | | | | 8.3 | | | | | | | | | | | | | | |
5 | | | | | 5.8 | | | | | | | | | | | | | | |
6 | | | | | 5.2 | | | | | | | | | | | | | | |
7 | | | | | 4.3 | | | | | | | | | | | | | | |
8 | | | | | 3.4 | | | | | | | | | | | | | | |
9 | | | | | 3.2 | | | | | | | | | | | | | | |
10 | | | | | 2.6 | | | | | | | | | | | | | | |
| | | LTD and Group Life Waiver | | | Dental, Vision, STD, Critical Illness, Accident and PFML | | | Group Life | | |||||||||
| | | ($ in millions) | | |||||||||||||||
Carrying amount of liabilities for unpaid claims | | | | | | | | | | | | | | | | | | | |
December 31, 2022 | | | | $ | 1,076.2 | | | | | $ | 79.7 | | | | | $ | 73.6 | | |
December 31, 2021 | | | | | 1,057.5 | | | | | | 73.1 | | | | | | 80.2 | | |
Range of discount rates | | | | | | | | | | | | | | | | | | | |
December 31, 2022 | | | | | 2.8 – 7.0% | | | | | | — – —% | | | | | | — – —% | | |
December 31, 2021 | | | | | 2.8 – 7.0 | | | | | | — – — | | | | | | — – — | | |
Aggregate amount of discount | | | | | | | | | | | | | | | | | | | |
December 31, 2022 | | | | $ | 209.4 | | | | | $ | — | | | | | $ | — | | |
December 31, 2021 | | | | | 208.0 | | | | | | — | | | | | | — | | |
Interest accretion | | | | | | | | | | | | | | | | | | | |
For the year ended: | | | | | | | | | | | | | | | | | | | |
December 31, 2022 | | | | $ | 33.0 | | | | | $ | — | | | | | $ | — | | |
December 31, 2021 | | | | | 33.8 | | | | | | — | | | | | | — | | |
December 31, 2020 | | | | | 33.9 | | | | | | — | | | | | | — | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | | | | | | | (in millions) | | | | | | | | |||
Premiums and other considerations: | | | | | | | | | | | | | | | | | | | |
Direct | | | | $ | 5,216.5 | | | | | $ | 4,869.7 | | | | | $ | 6,050.4 | | |
Assumed | | | | | 503.5 | | | | | | 494.3 | | | | | | 439.5 | | |
Ceded | | | | | (455.7) | | | | | | (650.0) | | | | | | (609.1) | | |
Net premiums and other considerations | | | | $ | 5,264.3 | | | | | $ | 4,714.0 | | | | | $ | 5,880.8 | | |
Benefits, claims and settlement expenses: | | | | | | | | | | | | | | | | | | | |
Direct | | | | $ | 6,448.3 | | | | | $ | 6,351.5 | | | | | $ | 7,615.8 | | |
Assumed | | | | | 775.0 | | | | | | 796.1 | | | | | | 746.4 | | |
Ceded | | | | | (1,572.6) | | | | | | (665.0) | | | | | | (524.7) | | |
Net benefits, claims and settlement expenses | | | | $ | 5,650.7 | | | | | $ | 6,482.6 | | | | | $ | 7,837.5 | | |
| | | December 31, 2022 | | | December 31, 2021 | | ||||||
| | | (in millions) | | |||||||||
Cost of reinsurance asset | | | | $ | 3,689.2 | | | | | $ | 46.5 | | |
Cost of reinsurance liability | | | | $ | 84.2 | | | | | $ | 22.1 | | |
| | | December 31, 2022 | | |||
| | | (in millions) | | |||
Fixed maturities, available-for-sale | | | | $ | 15,693.5 | | |
Fixed maturities, trading | | | | | 100.8 | | |
Equity securities | | | | | 11.0 | | |
Mortgage loans | | | | | 2,810.8 | | |
Other investments | | | | | 179.8 | | |
Cash and cash equivalents | | | | | 1,762.9 | | |
Accrued interest income | | | | | 178.7 | | |
Net other liabilities | | | | | (33.6) | | |
Net assets | | | | $ | 20,703.9 | | |
| | | For the year ended December 31, 2022 | | |||
| | | (in millions) | | |||
Fixed maturities, available-for-sale | | | | $ | 745.9 | | |
Fixed maturities, trading | | | | | 2.0 | | |
Equity securities | | | | | 0.6 | | |
Mortgage loans | | | | | 98.4 | | |
Cash and cash equivalents | | | | | 18.2 | | |
Other | | | | | 4.8 | | |
Total | | | | | 869.9 | | |
Investment expenses | | | | | (20.5) | | |
Net investment income | | | | $ | 849.4 | | |
| | | | | | | | | December 31, 2022 | | |||||||||
Obligor/Applicant | | | Financing structure | | | Maturity | | | Capacity | | | Short-term debt outstanding | | ||||||
| | | | | | | | | (in millions) | | |||||||||
PLIC | | | Credit facility | | | October 2027 | | | | $ | 800.0 | | | | | $ | — | | |
Total | | | | | | | | | | $ | 800.0 | | | | | $ | — | | |
| | | | | | | | | December 31, 2021 | | |||||||||
Obligor/Applicant | | | Financing structure | | | Maturity | | | Capacity | | | Short-term debt outstanding | | ||||||
| | | | | | | | | (in millions) | | |||||||||
PFG, PFS, PLIC as co-borrowers | | | Credit facility | | | November 2023 | | | | $ | 600.0 | | | | | $ | — | | |
PFG, PFS, PLIC and Principal Financial Services V (UK) Ltd as co-borrowers | | | Credit facility | | | November 2023 | | | | | 200.0 | | | | | | — | | |
Total | | | | | | | | | | $ | 800.0 | | | | | $ | — | | |
| | | December 31, 2022 | | |||||||||||||||
| | | Principal | | | Net unamortized discount, premium and debt issuance costs | | | Carrying amount | | |||||||||
| | | (in millions) | | |||||||||||||||
Non-recourse mortgages and notes payable | | | | $ | 67.1 | | | | | $ | 0.7 | | | | | $ | 67.8 | | |
Total long-term debt | | | | $ | 67.1 | | | | | $ | 0.7 | | | | | $ | 67.8 | | |
| | | December 31, 2021 | | |||||||||||||||
| | | Principal | | | Net unamortized discount, premium and debt issuance costs | | | Carrying amount | | |||||||||
| | | (in millions) | | |||||||||||||||
Non-recourse mortgages and notes payable | | | | $ | 53.8 | | | | | $ | 0.2 | | | | | $ | 54.0 | | |
Total long-term debt | | | | $ | 53.8 | | | | | $ | 0.2 | | | | | $ | 54.0 | | |
| Year ending December 31: | | | | | | | | | | |
| 2023 | | | | | | | $ | 25.3 | | |
| 2024 | | | | | | | | 32.7 | | |
| 2025 | | | | | | | | 0.4 | | |
| 2026 | | | | | | | | 6.5 | | |
| 2027 | | | | | | | | 0.1 | | |
| Thereafter | | | | | | | | 2.8 | | |
| Total future maturities of long-term debt | | | | | | | $ | 67.8 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Current income taxes (benefits): | | | | | | | | | | | | | | | | | | | |
U.S. federal | | | | $ | (142.9) | | | | | $ | 96.9 | | | | | $ | 19.1 | | |
State | | | | | 21.7 | | | | | | 11.4 | | | | | | 12.6 | | |
Tax benefit of operating loss carryforward | | | | | — | | | | | | — | | | | | | (0.1) | | |
Total current income taxes (benefits) | | | | | (121.2) | | | | | | 108.3 | | | | | | 31.6 | | |
Deferred income taxes (benefits): | | | | | | | | | | | | | | | | | | | |
U.S. federal | | | | | 1,243.3 | | | | | | 124.4 | | | | | | 128.5 | | |
State | | | | | (4.5) | | | | | | 0.5 | | | | | | — | | |
Total deferred income taxes | | | | | 1,238.8 | | | | | | 124.9 | | | | | | 128.5 | | |
Income taxes | | | | $ | 1,117.6 | | | | | $ | 233.2 | | | | | $ | 160.1 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Domestic | | | | $ | 5,840.8 | | | | | $ | 1,686.8 | | | | | $ | 1,227.5 | | |
Total income before income taxes | | | | $ | 5,840.8 | | | | | $ | 1,686.8 | | | | | $ | 1,227.5 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
U.S. corporate income tax rate | | | | | 21% | | | | | | 21% | | | | | | 21% | | |
Dividends received deduction | | | | | (1) | | | | | | (4) | | | | | | (6) | | |
Tax credits | | | | | (1) | | | | | | (3) | | | | | | (3) | | |
Interest exclusion from taxable income | | | | | — | | | | | | (1) | | | | | | (1) | | |
Low income housing tax credit amortization | | | | | — | | | | | | 1 | | | | | | 1 | | |
Other | | | | | — | | | | | | — | | | | | | 1 | | |
Effective income tax rate | | | | | 19% | | | | | | 14% | | | | | | 13% | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Balance at beginning of period | | | | $ | 43.9 | | | | | $ | 45.8 | | | | | $ | 57.2 | | |
Additions based on tax positions related to the current year | | | | | — | | | | | | 1.3 | | | | | | 1.3 | | |
Additions for tax positions of prior years | | | | | — | | | | | | — | | | | | | 17.4 | | |
Reductions for tax positions related to the current year | | | | | (3.3) | | | | | | (3.2) | | | | | | (3.2) | | |
Settlements | | | | | — | | | | | | — | | | | | | (13.4) | | |
Expired statute of limitations | | | | | — | | | | | | — | | | | | | (13.5) | | |
Balance at end of period(1) | | | | $ | 40.6 | | | | | $ | 43.9 | | | | | $ | 45.8 | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (in millions) | | |||||||||
Deferred income tax assets: | | | | | | | | | | | | | |
Net unrealized losses on available-for-sale securities | | | | $ | 1,611.9 | | | | | $ | — | | |
Tax credit carryforwards | | | | | 65.8 | | | | | | — | | |
Employee benefits | | | | | 26.4 | | | | | | 54.2 | | |
Intangible assets | | | | | 17.6 | | | | | | — | | |
Gross deferred income tax assets | | | | | 1,721.7 | | | | | | 54.2 | | |
Valuation allowance | | | | | (12.3) | | | | | | (2.8) | | |
Total deferred income tax assets | | | | | 1,709.4 | | | | | | 51.4 | | |
Deferred income tax liabilities: | | | | | | | | | | | | | |
Deferred acquisition costs | | | | | (811.0) | | | | | | (594.5) | | |
Investments, including derivatives | | | | | (187.6) | | | | | | (278.0) | | |
Funds withheld embedded derivative | | | | | (767.1) | | | | | | — | | |
Net unrealized gains on available-for-sale securities | | | | | — | | | | | | (1,070.7) | | |
Real estate | | | | | (140.0) | | | | | | (141.7) | | |
Insurance liabilities | | | | | (728.8) | | | | | | (21.6) | | |
Intangible assets | | | | | — | | | | | | (7.7) | | |
Gain on sale of discontinued operations(1) | | | | | (182.1) | | | | | | (189.5) | | |
Other deferred income tax liabilities | | | | | (48.4) | | | | | | (21.2) | | |
Total deferred income tax liabilities | | | | | (2,865.0) | | | | | | (2,324.9) | | |
Total net deferred income tax liabilities | | | | $ | (1,155.6) | | | | | $ | (2,273.5) | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (in millions) | | |||||||||
Deferred income tax assets: | | | | | | | | | | | | | |
State | | | | $ | 10.8 | | | | | $ | — | | |
Net deferred income tax assets | | | | | 10.8 | | | | | | — | | |
Deferred income tax liabilities: | | | | | | | | | | | | | |
U.S. federal | | | | | (1,166.4) | | | | | | (2,245.1) | | |
State | | | | | — | | | | | | (28.4) | | |
Net deferred income tax liabilities | | | | | (1,166.4) | | | | | | (2,273.5) | | |
Total net deferred income tax liabilities | | | | $ | (1,155.6) | | | | | $ | (2,273.5) | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (in millions) | | |||||||||
Change in benefit obligation | | | | | | | | | | | | | |
Benefit obligation at beginning of year | | | | $ | (79.2) | | | | | $ | (92.5) | | |
Interest cost | | | | | (1.9) | | | | | | (1.8) | | |
Actuarial gain | | | | | 17.0 | | | | | | 6.4 | | |
Participant contributions | | | | | (6.4) | | | | | | (6.1) | | |
Benefits paid | | | | | 11.9 | | | | | | 11.9 | | |
Plan transfer due to change in sponsorship | | | | | — | | | | | | 2.9 | | |
Benefit obligation at end of year | | | | $ | (58.6) | | | | | $ | (79.2) | | |
Change in plan assets | | | | | | | | | | | | | |
Fair value of plan assets at beginning of year | | | | $ | 89.5 | | | | | $ | 751.1 | | |
Actual return on plan assets | | | | | (15.0) | | | | | | (0.8) | | |
Employer contribution | | | | | 1.4 | | | | | | 1.5 | | |
Participant contributions | | | | | 6.4 | | | | | | 6.1 | | |
Benefits paid | | | | | (11.9) | | | | | | (11.9) | | |
Assets re-designated for non-retiree benefits | | | | | — | | | | | | (656.5) | | |
Fair value of plan assets at end of year | | | | $ | 70.4 | | | | | $ | 89.5 | | |
Amount recognized in statement of financial position | | | | | | | | | | | | | |
Other assets | | | | $ | 11.8 | | | | | $ | 10.3 | | |
Total | | | | $ | 11.8 | | | | | $ | 10.3 | | |
Amount recognized in accumulated other comprehensive income | | | | | | | | | | | | | |
Total net actuarial gain | | | | $ | (18.1) | | | | | $ | (20.7) | | |
Pre-tax accumulated other comprehensive income | | | | $ | (18.1) | | | | | $ | (20.7) | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Interest cost | | | | $ | 1.9 | | | | | $ | 1.8 | | | | | $ | 2.4 | | |
Expected return on plan assets | | | | | (3.7) | | | | | | (3.5) | | | | | | (34.8) | | |
Amortization of prior service cost | | | | | — | | | | | | — | | | | | | 0.1 | | |
Recognized net actuarial (gain) loss | | | | | (0.9) | | | | | | (0.4) | | | | | | 0.2 | | |
Net periodic benefit income | | | | $ | (2.7) | | | | | $ | (2.1) | | | | | $ | (32.1) | | |
| | | For the year ended December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (in millions) | | |||||||||
Other changes recognized in accumulated other comprehensive (income) loss | | | | | | | | | | | | | |
Net actuarial (gain) loss | | | | $ | 1.7 | | | | | $ | (4.1) | | |
Prior service benefit | | | | | — | | | | | | (0.7) | | |
Amortization of net gain | | | | | 0.9 | | | | | | 0.4 | | |
Total recognized in pre-tax accumulated other comprehensive (income) loss | | | | $ | 2.6 | | | | | $ | (4.4) | | |
Total recognized in net periodic benefit cost and pre-tax accumulated other comprehensive income | | | | $ | (0.1) | | | | | $ | (6.5) | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Discount rate | | | | | 5.05% | | | | | | 2.55% | | |
Rate of compensation increase | | | | | N/A | | | | | | N/A | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
Discount rate(1) | | | | | 2.55% | | | | | | 2.15% | | | | | | 2.95% | | |
Expected long-term return on plan assets | | | | | 4.25% | | | | | | 4.25% | | | | | | 4.95% | | |
Rate of compensation increase | | | | | N/A | | | | | | N/A | | | | | | N/A% | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Health care cost trend rate assumed for next year under age 65 | | | | | 7.00% | | | | | | 7.00% | | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | | | | | 4.50% | | | | | | 4.50% | | |
Year that the rate reaches the ultimate trend rate (under age 65) | | | | | 2031 | | | | | | 2030 | | |
| | | December 31, 2022 | | |||||||||||||||||||||
| | | Assets measured at fair value | | | Fair value hierarchy level | | ||||||||||||||||||
| | | Level 1 | | | Level 2 | | | Level 3 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Asset category | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 0.5 | | | | | $ | 0.5 | | | | | $ | — | | | | | $ | — | | |
Fixed income security portfolios(1) | | | | | 34.7 | | | | | | 34.7 | | | | | | — | | | | | | — | | |
U.S. equity portfolios(2) | | | | | 25.6 | | | | | | 25.6 | | | | | | — | | | | | | — | | |
International equity portfolios(3) | | | | | 9.6 | | | | | | 9.6 | | | | | | — | | | | | | — | | |
Total | | | | $ | 70.4 | | | | | $ | 70.4 | | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | |||||||||||||||||||||
| | | Assets measured at fair value | | | Fair value hierarchy level | | ||||||||||||||||||
| | | Level 1 | | | Level 2 | | | Level 3 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Asset category | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 0.5 | | | | | $ | 0.5 | | | | | $ | — | | | | | $ | — | | |
Fixed income security portfolios(1) | | | | | 41.8 | | | | | | 41.8 | | | | | | — | | | | | | — | | |
U.S. equity portfolios(2) | | | | | 32.9 | | | | | | 32.9 | | | | | | — | | | | | | — | | |
International equity portfolios(3) | | | | | 14.3 | | | | | | 14.3 | | | | | | — | | | | | | — | | |
Total | | | | $ | 89.5 | | | | | $ | 89.5 | | | | | $ | — | | | | | $ | — | | |
| | | Other postretirement benefits (gross benefit payments, including prescription drug benefits) | | |||
| | | (in millions) | | |||
Year ending December 31: | | | | | | | |
2023 | | | | $ | 11.6 | | |
2024 | | | | | 10.7 | | |
2025 | | | | | 9.7 | | |
2026 | | | | | 8.6 | | |
2027 | | | | | 7.6 | | |
2028 – 2032 | | | | | 30.1 | | |
| | | December 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (in millions) | | |||||||||
Assets | | | | | | | | | | | | | |
Operating lease assets(1) | | | | $ | 116.9 | | | | | $ | 125.6 | | |
Finance lease assets(1) | | | | | 82.4 | | | | | | 94.2 | | |
Total lease assets | | | | $ | 199.3 | | | | | $ | 219.8 | | |
Liabilities | | | | | | | | | | | | | |
Operating lease liabilities(2) | | | | $ | 112.2 | | | | | $ | 118.3 | | |
Finance lease liabilities(2) | | | | | 83.0 | | | | | | 94.8 | | |
Total lease liabilities | | | | $ | 195.2 | | | | | $ | 213.1 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Finance lease cost(1): | | | | | | | | | | | | | | | | | | | |
Amortization of right-of-use assets | | | | $ | 34.0 | | | | | $ | 30.5 | | | | | $ | 20.4 | | |
Interest on lease liabilities | | | | | 1.2 | | | | | | 1.0 | | | | | | 1.0 | | |
Operating lease cost(1) | | | | | 34.6 | | | | | | 37.6 | | | | | | 30.5 | | |
Other lease cost(1)(2) | | | | | 9.5 | | | | | | 7.3 | | | | | | 5.8 | | |
Sublease income(3) | | | | | (1.5) | | | | | | (1.7) | | | | | | (1.6) | | |
Total lease cost | | | | $ | 77.8 | | | | | $ | 74.7 | | | | | $ | 56.1 | | |
| | | Operating leases | | | Finance leases | | | Total | | |||||||||
| | | (in millions) | | |||||||||||||||
For the twelve months ending December 31: | | | | | | | | | | | | | | | | | | | |
2023 | | | | $ | 25.6 | | | | | $ | 35.0 | | | | | $ | 60.6 | | |
2024 | | | | | 22.3 | | | | | | 30.2 | | | | | | 52.5 | | |
2025 | | | | | 18.8 | | | | | | 14.6 | | | | | | 33.4 | | |
2026 | | | | | 15.7 | | | | | | 5.0 | | | | | | 20.7 | | |
2027 | | | | | 11.6 | | | | | | 0.4 | | | | | | 12.0 | | |
2028 and thereafter | | | | | 32.2 | | | | | | — | | | | | | 32.2 | | |
Total lease payments | | | | | 126.2 | | | | | | 85.2 | | | | | | 211.4 | | |
Less: interest | | | | | 14.0 | | | | | | 2.2 | | | | | | 16.2 | | |
Present value of lease liabilities | | | | $ | 112.2 | | | | | $ | 83.0 | | | | | $ | 195.2 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
Weighted-average remaining lease term (in years): | | | | | | | | | | | | | | | | | | | |
Operating leases | | | | | 7.7 | | | | | | 7.8 | | | | | | 8.1 | | |
Finance leases | | | | | 2.8 | | | | | | 3.2 | | | | | | 3.0 | | |
Weighted-average discount rate: | | | | | | | | | | | | | | | | | | | |
Operating leases | | | | | 2.5% | | | | | | 2.2% | | | | | | 2.4% | | |
Finance leases | | | | | 1.7% | | | | | | 1.1% | | | | | | 1.8% | | |
| | | For the year ended December 31, 2022 | | |||||||||||||||
| | | Pre-Tax | | | Tax | | | After-Tax | | |||||||||
| | | (in millions) | | |||||||||||||||
Net unrealized losses on available-for-sale securities during the period | | | | $ | (12,980.4) | | | | | $ | 2,753.0 | | | | | $ | (10,227.4) | | |
Reclassification adjustment for losses included in net income(1) | | | | | 333.3 | | | | | | (70.4) | | | | | | 262.9 | | |
Adjustments for assumed changes in amortization patterns | | | | | 926.6 | | | | | | (194.6) | | | | | | 732.0 | | |
Adjustments for assumed changes in policyholder liabilities | | | | | 486.1 | | | | | | (102.0) | | | | | | 384.1 | | |
Net unrealized losses on available-for-sale securities | | | | | (11,234.4) | | | | | | 2,386.0 | | | | | | (8,848.4) | | |
Net unrealized losses on derivative instruments during the period | | | | | (1.3) | | | | | | 0.3 | | | | | | (1.0) | | |
Reclassification adjustment for gains included in net income(2) | | | | | (28.0) | | | | | | 5.8 | | | | | | (22.2) | | |
Adjustments for assumed changes in amortization patterns | | | | | 7.3 | | | | | | (1.6) | | | | | | 5.7 | | |
Adjustments for assumed changes in policyholder liabilities | | | | | (2.9) | | | | | | 0.6 | | | | | | (2.3) | | |
Net unrealized losses on derivative instruments | | | | | (24.9) | | | | | | 5.1 | | | | | | (19.8) | | |
Unrecognized postretirement benefit obligation during the period | | | | | (1.7) | | | | | | 0.4 | | | | | | (1.3) | | |
Amortization of amounts included in net periodic benefit cost(3) | | | | | (0.9) | | | | | | 0.1 | | | | | | (0.8) | | |
Net unrecognized postretirement benefit obligation | | | | | (2.6) | | | | | | 0.5 | | | | | | (2.1) | | |
Other comprehensive loss | | | | $ | (11,261.9) | | | | | $ | 2,391.6 | | | | | $ | (8,870.3) | | |
| | | For the year ended December 31, 2021 | | |||||||||||||||
| | | Pre-Tax | | | Tax | | | After-Tax | | |||||||||
| | | (in millions) | | |||||||||||||||
Net unrealized losses on available-for-sale securities during the period | | | | $ | (2,313.3) | | | | | $ | 490.5 | | | | | $ | (1,822.8) | | |
Reclassification adjustment for losses included in net income(1) | | | | | 20.5 | | | | | | (4.3) | | | | | | 16.2 | | |
Adjustments for assumed changes in amortization patterns | | | | | 171.4 | | | | | | (36.0) | | | | | | 135.4 | | |
Adjustments for assumed changes in policyholder liabilities | | | | | 1,288.6 | | | | | | (270.5) | | | | | | 1,018.1 | | |
Net unrealized losses on available-for-sale securities | | | | | (832.8) | | | | | | 179.7 | | | | | | (653.1) | | |
Net unrealized gains on derivative instruments during the period | | | | | 66.7 | | | | | | (14.0) | | | | | | 52.7 | | |
Reclassification adjustment for gains included in net income(2) | | | | | (25.5) | | | | | | 5.4 | | | | | | (20.1) | | |
Adjustments for assumed changes in amortization patterns | | | | | (0.2) | | | | | | — | | | | | | (0.2) | | |
Adjustments for assumed changes in policyholder liabilities | | | | | 1.6 | | | | | | (0.4) | | | | | | 1.2 | | |
Net unrealized gains on derivative instruments | | | | | 42.6 | | | | | | (9.0) | | | | | | 33.6 | | |
Unrecognized postretirement benefit obligation during the period | | | | | 2.3 | | | | | | (0.5) | | | | | | 1.8 | | |
Amortization of amounts included in net periodic benefit cost(3) | | | | | (0.4) | | | | | | 0.1 | | | | | | (0.3) | | |
Net unrecognized postretirement benefit obligation | | | | | 1.9 | | | | | | (0.4) | | | | | | 1.5 | | |
Other comprehensive loss | | | | $ | (788.3) | | | | | $ | 170.3 | | | | | $ | (618.0) | | |
| | | For the year ended December 31, 2020 | | |||||||||||||||
| | | Pre-Tax | | | Tax | | | After-Tax | | |||||||||
| | | (in millions) | | |||||||||||||||
Net unrealized gains on available-for-sale securities during the period | | | | $ | 3,268.3 | | | | | $ | (690.8) | | | | | $ | 2,577.5 | | |
Reclassification adjustment for gains included in net income(1) | | | | | (41.4) | | | | | | 9.4 | | | | | | (32.0) | | |
Adjustments for assumed changes in amortization patterns | | | | | (179.0) | | | | | | 37.6 | | | | | | (141.4) | | |
Adjustments for assumed changes in policyholder liabilities | | | | | (1,275.1) | | | | | | 267.7 | | | | | | (1,007.4) | | |
Net unrealized gains on available-for-sale securities | | | | | 1,772.8 | | | | | | (376.1) | | | | | | 1,396.7 | | |
Net unrealized losses on derivative instruments during the period | | | | | (28.1) | | | | | | 6.5 | | | | | | (21.6) | | |
Reclassification adjustment for gains included in net income(2) | | | | | (27.1) | | | | | | 5.1 | | | | | | (22.0) | | |
Adjustments for assumed changes in amortization patterns | | | | | 2.7 | | | | | | (0.5) | | | | | | 2.2 | | |
Adjustments for assumed changes in policyholder liabilities | | | | | 7.8 | | | | | | (1.6) | | | | | | 6.2 | | |
Net unrealized losses on derivative instruments | | | | | (44.7) | | | | | | 9.5 | | | | | | (35.2) | | |
Unrecognized postretirement benefit obligation during the period | | | | | 5.7 | | | | | | (1.2) | | | | | | 4.5 | | |
Amortization of amounts included in net periodic benefit cost(3) | | | | | 0.3 | | | | | | (0.1) | | | | | | 0.2 | | |
Net unrecognized postretirement benefit obligation | | | | | 6.0 | | | | | | (1.3) | | | | | | 4.7 | | |
Other comprehensive income | | | | $ | 1,734.1 | | | | | $ | (367.9) | | | | | $ | 1,366.2 | | |
| | | Net unrealized gains (losses) on available-for-sale securities(1) | | | Noncredit component of impairment losses on fixed maturities available-for-sale | | | Net unrealized gains on derivative instruments | | | Unrecognized postretirement benefit obligation | | | Accumulated other comprehensive income (loss) | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Balances as of January 1, 2020 | | | | $ | 2,602.9 | | | | | $ | (44.1) | | | | | $ | 53.7 | | | | | $ | 8.2 | | | | | $ | 2,620.7 | | |
Other comprehensive income during the period, net of adjustments | | | | | 1,428.7 | | | | | | — | | | | | | (13.2) | | | | | | 4.5 | | | | | | 1,420.0 | | |
Amounts reclassified from AOCI | | | | | (32.0) | | | | | | — | | | | | | (22.0) | | | | | | 0.2 | | | | | | (53.8) | | |
Other comprehensive income | | | | | 1,396.7 | | | | | | — | | | | | | (35.2) | | | | | | 4.7 | | | | | | 1,366.2 | | |
Effects of implementation of accounting change related to credit losses, net | | | | | (44.1) | | | | | | 44.1 | | | | | | — | | | | | | — | | | | | | — | | |
Balances as of December 31, 2020 | | | | | 3,955.5 | | | | | | — | | | | | | 18.5 | | | | | | 12.9 | | | | | | 3,986.9 | | |
Other comprehensive loss during the period, net of adjustments | | | | | (669.3) | | | | | | — | | | | | | 53.7 | | | | | | 1.8 | | | | | | (613.8) | | |
Amounts reclassified from AOCI | | | | | 16.2 | | | | | | — | | | | | | (20.1) | | | | | | (0.3) | | | | | | (4.2) | | |
Other comprehensive loss | | | | | (653.1) | | | | | | — | | | | | | 33.6 | | | | | | 1.5 | | | | | | (618.0) | | |
Net assets transferred to affiliate due to change in benefit plan sponsorship | | | | | — | | | | | | — | | | | | | — | | | | | | 2.0 | | | | | | 2.0 | | |
Balances as of December 31, 2021 | | | | | 3,302.4 | | | | | | — | | | | | | 52.1 | | | | | | 16.4 | | | | | | 3,370.9 | | |
Other comprehensive loss during the period, net of adjustments | | | | | (9,111.3) | | | | | | — | | | | | | 2.4 | | | | | | (1.3) | | | | | | (9,110.2) | | |
Amounts reclassified from AOCI | | | | | 262.9 | | | | | | — | | | | | | (22.2) | | | | | | (0.8) | | | | | | 239.9 | | |
Other comprehensive loss | | | | | (8,848.4) | | | | | | — | | | | | | (19.8) | | | | | | (2.1) | | | | | | (8,870.3) | | |
Adjustments for reinsurance(2) | | | | | 124.4 | | | | | | — | | | | | | 7.4 | | | | | | — | | | | | | 131.8 | | |
Balances as of December 31, 2022 | | | | $ | (5,421.6) | | | | | $ | — | | | | | $ | 39.7 | | | | | $ | 14.3 | | | | | $ | (5,367.6) | | |
| | | December 31, 2022 | | |||||||||||||||||||||||||||
| | | Assets/ (liabilities) measured at fair value | | | Amount measured at net asset value(4) | | | Fair value hierarchy level | | |||||||||||||||||||||
| | | Level 1 | | | Level 2 | | | Level 3 | | |||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agencies | | | | $ | 1,715.9 | | | | | $ | — | | | | | $ | 1,354.0 | | | | | $ | 361.9 | | | | | $ | — | | |
Non-U.S. governments | | | | | 520.4 | | | | | | — | | | | | | — | | | | | | 520.4 | | | | | | — | | |
States and political subdivisions | | | | | 6,168.3 | | | | | | — | | | | | | — | | | | | | 6,099.2 | | | | | | 69.1 | | |
Corporate | | | | | 33,184.8 | | | | | | — | | | | | | 26.6 | | | | | | 31,589.9 | | | | | | 1,568.3 | | |
Residential mortgage-backed pass- through securities | | | | | 2,170.9 | | | | | | — | | | | | | — | | | | | | 2,170.9 | | | | | | — | | |
Commercial mortgage-backed securities | | | | | 4,827.5 | | | | | | — | | | | | | — | | | | | | 4,824.1 | | | | | | 3.4 | | |
Collateralized debt obligations(1) | | | | | 4,560.2 | | | | | | — | | | | | | — | | | | | | 4,504.0 | | | | | | 56.2 | | |
Other debt obligations | | | | | 6,483.3 | | | | | | — | | | | | | — | | | | | | 6,015.5 | | | | | | 467.8 | | |
Total fixed maturities, available-for-sale | | | | | 59,631.3 | | | | | | — | | | | | | 1,380.6 | | | | | | 56,085.9 | | | | | | 2,164.8 | | |
Fixed maturities, trading | | | | | 634.0 | | | | | | — | | | | | | 78.6 | | | | | | 449.2 | | | | | | 106.2 | | |
Equity securities | | | | | 53.1 | | | | | | — | | | | | | 14.8 | | | | | | 38.3 | | | | | | — | | |
Derivative assets(2) | | | | | 256.6 | | | | | | — | | | | | | — | | | | | | 256.5 | | | | | | 0.1 | | |
Other investments | | | | | 82.8 | | | | | | 81.4 | | | | | | — | | | | | | — | | | | | | 1.4 | | |
Cash equivalents | | | | | 2,776.4 | | | | | | — | | | | | | 930.3 | | | | | | 1,846.1 | | | | | | — | | |
Sub-total excluding separate account assets | | | | | 63,434.2 | | | | | | 81.4 | | | | | | 2,404.3 | | | | | | 58,676.0 | | | | | | 2,272.5 | | |
Separate account assets | | | | | 120,279.6 | | | | | | 9,120.9 | | | | | | 91,424.2 | | | | | | 18,700.4 | | | | | | 1,034.1 | | |
Total assets | | | | $ | 183,713.8 | | | | | $ | 9,202.3 | | | | | $ | 93,828.5 | | | | | $ | 77,376.4 | | | | | $ | 3,306.6 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts(3) | | | | $ | 58.9 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 58.9 | | |
Funds withheld payable embedded derivative(3) | | | | | 3,652.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,652.8 | | |
Derivative liabilities(2) | | | | | (612.3) | | | | | | — | | | | | | — | | | | | | (608.2) | | | | | | (4.1) | | |
Total liabilities | | | | $ | 3,099.4 | | | | | $ | — | | | | | $ | — | | | | | $ | (608.2) | | | | | $ | 3,707.6 | | |
Net assets | | | | $ | 186,813.2 | | | | | $ | 9,202.3 | | | | | $ | 93,828.5 | | | | | $ | 76,768.2 | | | | | $ | 7,014.2 | | |
| | | December 31, 2021 | | |||||||||||||||||||||||||||
| | | Assets/ (liabilities) measured at fair value | | | Amount measured at net asset value(4) | | | Fair value hierarchy level | | |||||||||||||||||||||
| | | Level 1 | | | Level 2 | | | Level 3 | | |||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agencies | | | | $ | 1,937.0 | | | | | $ | — | | | | | $ | 1,587.0 | | | | | $ | 350.0 | | | | | $ | — | | |
Non-U.S. governments | | | | | 947.1 | | | | | | — | | | | | | — | | | | | | 947.1 | | | | | | — | | |
States and political subdivisions | | | | | 9,216.4 | | | | | | — | | | | | | — | | | | | | 9,124.0 | | | | | | 92.4 | | |
Corporate | | | | | 42,965.1 | | | | | | — | | | | | | 41.5 | | | | | | 42,089.3 | | | | | | 834.3 | | |
Residential mortgage-backed pass-through securities | | | | | 2,342.3 | | | | | | — | | | | | | — | | | | | | 2,342.3 | | | | | | — | | |
Commercial mortgage-backed securities | | | | | 5,513.7 | | | | | | — | | | | | | — | | | | | | 5,494.5 | | | | | | 19.2 | | |
Collateralized debt obligations(1) | | | | | 3,533.5 | | | | | | — | | | | | | — | | | | | | 3,447.7 | | | | | | 85.8 | | |
Other debt obligations | | | | | 7,441.8 | | | | | | — | | | | | | — | | | | | | 7,399.7 | | | | | | 42.1 | | |
Total fixed maturities, available-for-sale | | | | | 73,896.9 | | | | | | — | | | | | | 1,628.5 | | | | | | 71,194.6 | | | | | | 1,073.8 | | |
Fixed maturities, trading | | | | | 233.3 | | | | | | — | | | | | | 0.5 | | | | | | 227.9 | | | | | | 4.9 | | |
Equity securities | | | | | 508.2 | | | | | | — | | | | | | 463.5 | | | | | | 44.7 | | | | | | — | | |
Derivative assets(2) | | | | | 326.2 | | | | | | — | | | | | | — | | | | | | 325.6 | | | | | | 0.6 | | |
Other investments | | | | | 94.1 | | | | | | 92.7 | | | | | | — | | | | | | — | | | | | | 1.4 | | |
Cash equivalents | | | | | 753.0 | | | | | | — | | | | | | — | | | | | | 753.0 | | | | | | — | | |
Sub-total excluding separate account assets | | | | | 75,811.7 | | | | | | 92.7 | | | | | | 2,092.5 | | | | | | 72,545.8 | | | | | | 1,080.7 | | |
Separate account assets | | | | | 147,529.0 | | | | | | 8,942.9 | | | | | | 114,735.5 | | | | | | 22,904.6 | | | | | | 946.0 | | |
Total assets | | | | $ | 223,340.7 | | | | | $ | 9,035.6 | | | | | $ | 116,828.0 | | | | | $ | 95,450.4 | | | | | $ | 2,026.7 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts(3) | | | | $ | (320.9) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (320.9) | | |
Derivative liabilities(2) | | | | | (142.3) | | | | | | — | | | | | | — | | | | | | (142.3) | | | | | | — | | |
Total liabilities | | | | $ | (463.2) | | | | | $ | — | | | | | $ | — | | | | | $ | (142.3) | | | | | $ | (320.9) | | |
Net assets | | | | $ | 222,877.5 | | | | | $ | 9,035.6 | | | | | $ | 116,828.0 | | | | | $ | 95,308.1 | | | | | $ | 1,705.8 | | |
| | | For the year ended December 31, 2022 | | |||||||||||||||||||||||||||||||||||||||
| | | Beginning asset/ (liability) balance as of January 1, 2022 | | | Total realized/unrealized gains (losses) | | | Net purchases, sales, issuances and settlements(4) | | | Transfers into Level 3 | | | Transfers out of Level 3 | | | Ending asset/ (liability) balance as of December 31, 2022 | | ||||||||||||||||||||||||
| | | Included in net income(2) | | | Included in other comprehensive income(3) | | ||||||||||||||||||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for- sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
States and political subdivisions | | | | $ | 92.4 | | | | | $ | — | | | | | $ | (23.5) | | | | | $ | (1.6) | | | | | $ | 12.0 | | | | | $ | (10.2) | | | | | $ | 69.1 | | |
Corporate | | | | | 834.3 | | | | | | (4.8) | | | | | | (28.6) | | | | | | 626.3 | | | | | | 176.3 | | | | | | (35.2) | | | | | | 1,568.3 | | |
Commercial mortgage-backed securities | | | | | 19.2 | | | | | | — | | | | | | (1.0) | | | | | | (4.6) | | | | | | — | | | | | | (10.2) | | | | | | 3.4 | | |
Collateralized debt obligations | | | | | 85.8 | | | | | | — | | | | | | (1.0) | | | | | | 151.8 | | | | | | — | | | | | | (180.4) | | | | | | 56.2 | | |
Other debt obligations | | | | | 42.1 | | | | | | (0.3) | | | | | | (20.4) | | | | | | 474.2 | | | | | | — | | | | | | (27.8) | | | | | | 467.8 | | |
Total fixed maturities, available-for-sale | | | | | 1,073.8 | | | | | | (5.1) | | | | | | (74.5) | | | | | | 1,246.1 | | | | | | 188.3 | | | | | | (263.8) | | | | | | 2,164.8 | | |
Fixed maturities, trading | | | | | 4.9 | | | | | | (0.6) | | | | | | — | | | | | | 72.9 | | | | | | 29.0 | | | | | | — | | | | | | 106.2 | | |
Other investments | | | | | 1.4 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1.4 | | |
Separate account assets(1) | | | | | 946.0 | | | | | | 112.0 | | | | | | — | | | | | | (23.9) | | | | | | — | | | | | | — | | | | | | 1,034.1 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts | | | | | (320.9) | | | | | | 363.9 | | | | | | — | | | | | | 15.9 | | | | | | — | | | | | | — | | | | | | 58.9 | | |
Funds withheld payable embedded derivative | | | | | — | | | | | | 3,652.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,652.8 | | |
Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative assets (liabilities) | | | | | 0.6 | | | | | | (4.0) | | | | | | (0.3) | | | | | | — | | | | | | — | | | | | | (0.3) | | | | | | (4.0) | | |
| | | For the year ended December 31, 2021 | | |||||||||||||||||||||||||||||||||||||||
| | | Beginning asset/ (liability) balance as of January 1, 2021 | | | Total realized/unrealized gains (losses) | | | Net purchases, sales, issuances and settlements(4) | | | Transfers into Level 3 | | | Transfers out of Level 3 | | | Ending asset/ (liability) balance as of December 31, 2021 | | ||||||||||||||||||||||||
| | | Included in net income(2) | | | Included in other comprehensive income(3) | | ||||||||||||||||||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for- sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
States and political subdivisions | | | | $ | — | | | | | $ | — | | | | | $ | 12.5 | | | | | $ | (0.4) | | | | | $ | 80.3 | | | | | $ | — | | | | | $ | 92.4 | | |
Corporate | | | | | 290.8 | | | | | | (21.9) | | | | | | 7.8 | | | | | | 381.8 | | | | | | 175.8 | | | | | | — | | | | | | 834.3 | | |
Commercial mortgage-backed securities | | | | | 13.2 | | | | | | (1.0) | | | | | | (0.4) | | | | | | 7.4 | | | | | | — | | | | | | — | | | | | | 19.2 | | |
Collateralized debt obligations | | | | | 27.2 | | | | | | (2.0) | | | | | | 1.7 | | | | | | 397.4 | | | | | | 72.1 | | | | | | (410.6) | | | | | | 85.8 | | |
Other debt obligations | | | | | 29.2 | | | | | | — | | | | | | 0.4 | | | | | | 16.9 | | | | | | 20.6 | | | | | | (25.0) | | | | | | 42.1 | | |
Total fixed maturities, available- for-sale | | | | | 360.4 | | | | | | (24.9) | | | | | | 22.0 | | | | | | 803.1 | | | | | | 348.8 | | | | | | (435.6) | | | | | | 1,073.8 | | |
Fixed maturities, trading | | | | | — | | | | | | — | | | | | | — | | | | | | 4.9 | | | | | | — | | | | | | — | | | | | | 4.9 | | |
Other investments | | | | | 30.0 | | | | | | 12.4 | | | | | | — | | | | | | (41.0) | | | | | | — | | | | | | — | | | | | | 1.4 | | |
Separate account assets(1) | | | | | 8,893.2 | | | | | | 313.8 | | | | | | — | | | | | | (8,261.0) | | | | | | — | | | | | | — | | | | | | 946.0 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts | | | | | (414.4) | | | | | | 67.0 | | | | | | — | | | | | | 26.5 | | | | | | — | | | | | | — | | | | | | (320.9) | | |
Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative assets (liabilities) | | | | | (5.1) | | | | | | (5.0) | | | | | | — | | | | | | 10.7 | | | | | | — | | | | | | — | | | | | | 0.6 | | |
| | | December 31, 2022 | | |||||||||||||||
| | | Investments excluding funds withheld | | | Funds withheld | | | Total | | |||||||||
| | | (in millions) | | |||||||||||||||
Fixed maturities | | | | $ | 44,471.0 | | | | | $ | 15,794.3 | | | | | $ | 60,265.3 | | |
Equity securities | | | | | 42.1 | | | | | | 11.0 | | | | | | 53.1 | | |
Mortgage loans | | | | | 16,911.6 | | | | | | 2,810.8 | | | | | | 19,722.4 | | |
Real estate | | | | | 2,237.4 | | | | | | — | | | | | | 2,237.4 | | |
Policy loans | | | | | 770.2 | | | | | | — | | | | | | 770.2 | | |
Other investments | | | | | 3,081.5 | | | | | | 179.8 | | | | | | 3,261.3 | | |
Total invested assets | | | | | 67,513.8 | | | | | | 18,795.9 | | | | | | 86,309.7 | | |
Cash and cash equivalents | | | | | 1,566.4 | | | | | | 1,762.9 | | | | | | 3,329.3 | | |
Total invested assets and cash | | | | $ | 69,080.2 | | | | | $ | 20,558.8 | | | | | $ | 89,639.0 | | |
| | | December 31, 2021 | | |||||||||||||||
| | | Investments excluding funds withheld | | | Funds withheld | | | Total | | |||||||||
| | | (in millions) | | |||||||||||||||
Fixed maturities | | | | $ | 74,130.2 | | | | | $ | — | | | | | $ | 74,130.2 | | |
Equity securities | | | | | 508.2 | | | | | | — | | | | | | 508.2 | | |
Mortgage loans | | | | | 18,908.3 | | | | | | — | | | | | | 18,908.3 | | |
Real estate | | | | | 2,060.6 | | | | | | — | | | | | | 2,060.6 | | |
Policy loans | | | | | 705.0 | | | | | | — | | | | | | 705.0 | | |
Other investments | | | | | 2,836.7 | | | | | | — | | | | | | 2,836.7 | | |
Total invested assets | | | | | 99,149.0 | | | | | | — | | | | | | 99,149.0 | | |
Cash and cash equivalents | | | | | 1,228.6 | | | | | | — | | | | | | 1,228.6 | | |
Total invested assets and cash | | | | $ | 100,377.6 | | | | | $ | — | | | | | $ | 100,377.6 | | |
| | | December 31, 2020 | | |||||||||||||||
| | | Investments excluding funds withheld | | | Funds withheld | | | Total | | |||||||||
| | | (in millions) | | |||||||||||||||
Fixed maturities | | | | $ | 73,800.8 | | | | | $ | — | | | | | $ | 73,800.8 | | |
Equity securities | | | | | 71.2 | | | | | | — | | | | | | 71.2 | | |
Mortgage loans | | | | | 16,506.1 | | | | | | — | | | | | | 16,506.1 | | |
Real estate | | | | | 1,796.1 | | | | | | — | | | | | | 1,796.1 | | |
Policy loans | | | | | 723.8 | | | | | | — | | | | | | 723.8 | | |
Other investments | | | | | 2,500.7 | | | | | | — | | | | | | 2,500.7 | | |
Total invested assets | | | | | 95,398.7 | | | | | | — | | | | | | 95,398.7 | | |
Cash and cash equivalents | | | | | 1,648.5 | | | | | | — | | | | | | 1,648.5 | | |
Total invested assets and cash | | | | $ | 97,047.2 | | | | | $ | — | | | | | $ | 97,047.2 | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Yield(1) | | | Amount | | | Yield | | | Amount | | | Yield | | | Amount | | | Yield | | | Amount | | | Yield | | | Amount | | ||||||||||||||||||||||||||||||
| | | ($ in millions) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | | | | | 3.6% | | | | | $ | 1,754.0 | | | | | | 3.7% | | | | | $ | 2,492.5 | | | | | | 3.9% | | | | | $ | 2,478.2 | | | | | | (0.1)% | | | | | $ | (738.5) | | | | | | (0.2)% | | | | | $ | 14.3 | | |
Equity securities | | | | | (12.9) | | | | | | (35.4) | | | | | | 0.6 | | | | | | 1.7 | | | | | | 4.7 | | | | | | 3.3 | | | | | | (13.5) | | | | | | (37.1) | | | | | | (4.1) | | | | | | (1.6) | | |
Mortgage loans – commercial | | | | | 4.0 | | | | | | 535.6 | | | | | | 4.2 | | | | | | 646.3 | | | | | | 4.3 | | | | | | 637.6 | | | | | | (0.2) | | | | | | (110.7) | | | | | | (0.1) | | | | | | 8.7 | | |
Mortgage loans – residential | | | | | 2.7 | | | | | | 84.3 | | | | | | 2.1 | | | | | | 46.1 | | | | | | 2.5 | | | | | | 32.2 | | | | | | 0.6 | | | | | | 38.2 | | | | | | (0.4) | | | | | | 13.9 | | |
Real estate | | | | | 12.9 | | | | | | 276.2 | | | | | | 10.1 | | | | | | 194.4 | | | | | | 10.3 | | | | | | 180.8 | | | | | | 2.8 | | | | | | 81.8 | | | | | | (0.2) | | | | | | 13.6 | | |
Policy loans | | | | | 4.7 | | | | | | 34.4 | | | | | | 5.1 | | | | | | 36.2 | | | | | | 5.2 | | | | | | 38.2 | | | | | | (0.4) | | | | | | (1.8) | | | | | | (0.1) | | | | | | (2.0) | | |
Cash and cash equivalents | | | | | 2.7 | | | | | | 37.6 | | | | | | 0.1 | | | | | | 1.7 | | | | | | 0.6 | | | | | | 9.5 | | | | | | 2.6 | | | | | | 35.9 | | | | | | (0.5) | | | | | | (7.8) | | |
Other investments | | | | | 12.4 | | | | | | 366.0 | | | | | | 14.6 | | | | | | 390.2 | | | | | | 4.5 | | | | | | 104.9 | | | | | | (2.2) | | | | | | (24.2) | | | | | | 10.1 | | | | | | 285.3 | | |
Total | | | | | 4.2 | | | | | | 3,052.7 | | | | | | 4.1 | | | | | | 3,809.1 | | | | | | 4.0 | | | | | | 3,484.7 | | | | | | 0.1 | | | | | | (756.4) | | | | | | 0.1 | | | | | | 324.4 | | |
Investment expenses | | | | | (0.3) | | | | | | (200.4) | | | | | | (0.2) | | | | | | (175.4) | | | | | | (0.2) | | | | | | (159.8) | | | | | | (0.1) | | | | | | (25.0) | | | | | | — | | | | | | (15.6) | | |
Net investment income | | | | | 3.9% | | | | | $ | 2,852.3 | | | | | | 3.9% | | | | | $ | 3,633.7 | | | | | | 3.8% | | | | | $ | 3,324.9 | | | | | | —% | | | | | $ | (781.4) | | | | | | 0.1% | | | | | $ | 308.8 | | |
| | | For the year ended December 31, 2020 | | |||||||||||||||||||||||||||||||||||||||
| | | Beginning asset/ (liability) balance as of January 1, 2020 | | | Total realized/unrealized gains (losses) | | | Net purchases, sales, issuances and settlements(4) | | | Transfers into Level 3 | | | Transfers out of Level 3 | | | Ending asset/ (liability) balance as of December 31, 2020 | | ||||||||||||||||||||||||
| | | Included in net income(2) | | | Included in other comprehensive income(3) | | ||||||||||||||||||||||||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available- for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate | | | | $ | 81.7 | | | | | $ | (0.9) | | | | | $ | 5.2 | | | | | $ | 118.0 | | | | | $ | 342.0 | | | | | $ | (255.2) | | | | | $ | 290.8 | | |
Commercial mortgage-backed securities | | | | | 12.9 | | | | | | (1.3) | | | | | | 1.4 | | | | | | (0.1) | | | | | | 0.3 | | | | | | — | | | | | | 13.2 | | |
Collateralized debt obligations | | | | | 199.0 | | | | | | (2.3) | | | | | | (21.8) | | | | | | 182.5 | | | | | | — | | | | | | (330.2) | | | | | | 27.2 | | |
Other debt obligations | | | | | 91.3 | | | | | | — | | | | | | (1.4) | | | | | | (37.9) | | | | | | 46.1 | | | | | | (68.9) | | | | | | 29.2 | | |
Total fixed maturities, available- for-sale | | | | | 384.9 | | | | | | (4.5) | | | | | | (16.6) | | | | | | 262.5 | | | | | | 388.4 | | | | | | (654.3) | | | | | | 360.4 | | |
Fixed maturities, trading | | | | | 0.3 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (0.3) | | | | | | — | | |
Other investments | | | | | 34.2 | | | | | | 6.3 | | | | | | — | | | | | | (10.5) | | | | | | — | | | | | | — | | | | | | 30.0 | | |
Separate account assets(1) | | | | | 8,966.7 | | | | | | 463.5 | | | | | | — | | | | | | (537.0) | | | | | | — | | | | | | — | | | | | | 8,893.2 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts | | | | | (151.2) | | | | | | (244.0) | | | | | | — | | | | | | (19.2) | | | | | | — | | | | | | — | | | | | | (414.4) | | |
Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative assets (liabilities) | | | | | 11.6 | | | | | | 9.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | (26.5) | | | | | | (5.1) | | |
| | | For the year ended December 31, | | | Increase (decrease) | | ||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | | 2022 vs. 2021 | | | 2021 vs. 2020 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross gains | | | | $ | 38.9 | | | | | $ | 50.4 | | | | | $ | 118.7 | | | | | $ | (11.5) | | | | | $ | (68.3) | | |
Gross losses | | | | | (120.7) | | | | | | (26.9) | | | | | | (45.0) | | | | | | (93.8) | | | | | | 18.1 | | |
Net credit losses(1) | | | | | (11.5) | | | | | | (34.5) | | | | | | (22.6) | | | | | | 23.0 | | | | | | (11.9) | | |
Hedging, net | | | | | (0.7) | | | | | | (9.5) | | | | | | (9.7) | | | | | | 8.8 | | | | | | 0.2 | | |
Fixed maturities, trading | | | | | (25.3) | | | | | | (6.6) | | | | | | 6.2 | | | | | | (18.7) | | | | | | (12.8) | | |
Equity securities | | | | | (7.4) | | | | | | (0.5) | | | | | | 1.8 | | | | | | (6.9) | | | | | | (2.3) | | |
Mortgage loans | | | | | (74.1) | | | | | | 5.3 | | | | | | (14.3) | | | | | | (79.4) | | | | | | 19.6 | | |
Derivatives | | | | | 86.9 | | | | | | (4.2) | | | | | | 28.5 | | | | | | 91.1 | | | | | | (32.7) | | |
Other | | | | | 112.7 | | | | | | 8.0 | | | | | | 42.0 | | | | | | 104.7 | | | | | | (34.0) | | |
Net realized capital gains (losses) | | | | $ | (1.2) | | | | | $ | (18.5) | | | | | $ | 105.6 | | | | | $ | 17.3 | | | | | $ | (124.1) | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | |||||||||||||||
Corporate | | | | $ | (1.3) | | | | | $ | (4.6) | | | | | $ | — | | |
Commercial mortgage-backed securities | | | | | — | | | | | | (1.0) | | | | | | (1.2) | | |
Collateralized debt obligations | | | | | — | | | | | | (2.0) | | | | | | (2.2) | | |
Total fixed maturities, available-for-sale | | | | | (1.3) | | | | | | (7.6) | | | | | | (3.4) | | |
Fixed maturities, trading | | | | | (0.6) | | | | | | — | | | | | | — | | |
Other investments | | | | | — | | | | | | 12.5 | | | | | | 5.3 | | |
Separate account assets | | | | | 89.8 | | | | | | 90.5 | | | | | | 385.5 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts | | | | | 349.4 | | | | | | 65.9 | | | | | | (251.1) | | |
Funds withheld payable embedded derivative | | | | | 3,652.8 | | | | | | — | | | | | | — | | |
Derivatives | | | | | | | | | | | | | | | | | | | |
Net derivative assets (liabilities) | | | | | (4.0) | | | | | | — | | | | | | 9.9 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | |||||||||||||||
States and political subdivisions | | | | $ | (21.7) | | | | | $ | 12.5 | | | | | $ | — | | |
Corporate | | | | | (19.8) | | | | | | (0.7) | | | | | | 11.9 | | |
Commercial mortgage-backed securities | | | | | (0.5) | | | | | | (0.4) | | | | | | 1.5 | | |
Collateralized debt obligations | | | | | — | | | | | | 1.9 | | | | | | (0.3) | | |
Total fixed maturities, available-for-sale | | | | | (42.0) | | | | | | 13.3 | | | | | | 13.1 | | |
Derivatives | | | | | | | | | | | | | | | | | | | |
Net derivative assets (liabilities) | | | | | (0.2) | | | | | | — | | | | | | — | | |
Impact of Falling Interest Rates or Sustained Low Interest Rates | | | Impact of Rising Interest Rates | |
Adverse Impacts: | | | Positive Impacts: | |
A reduction in investment income, which may be partially offset by a reduction in the interest we credit on contractholder account balances; however, our ability to lower crediting rates may be constrained by guaranteed minimum interest rates and competitive pressures | | | An increase in investment income, which may be partially or fully offset by an increase in the interest we credit on contractholder account balances | |
An increase in the cost of hedging our GMWB riders | | | A decrease in the cost of hedging our GMWB riders | |
An increase in reserves and/or a true-up or unlocking of our DAC asset and other actuarial balances | | | A true-up or unlocking of our DAC asset and other actuarial balances | |
A reduction in the discount rate used in valuing our OPEB obligations, leading to an increase in our Accumulated Postretirement Benefit Obligation and Net Periodic Benefit Cost | | | An increase in the discount rate used in valuing our OPEB obligations, leading to a decrease in our Accumulated Postretirement Benefit Obligation and Net Periodic Benefit Cost | |
An increase in statutory capital we are required to hold as well as the amount of assets we must maintain to support statutory reserves | | | A decrease in statutory capital we are required to hold as well as the amount of assets we must maintain to support statutory reserves | |
An increase in prepayments or redemptions on mortgages and bonds we own, which would force us to reinvest the proceeds at lower interest rates | | | A decrease in prepayments or redemptions on mortgages and bonds we own, which would reduce our opportunity to reinvest the proceeds at higher interest rates | |
Positive Impacts: | | | Adverse Impacts: | |
A decrease in the interest expense on our long-term borrowings, to the extent the borrowings have adjustable rates or we are able to refinance our obligations at lower interest rates | | | An increase in the interest expense on our long-term borrowings, to the extent the borrowings have adjustable rates or we refinance our obligations at higher interest rates | |
An increase in the fair value of certain financial assets held at fair value on our consolidated statements of financial position | | | A decrease in the fair value of certain financial assets held at fair value on our consolidated statements of financial position, as discussed below | |
| | | For the year ended December 31, 2022 | | |||||||||||||||||||||||||||
| | | Purchases | | | Sales | | | Issuances | | | Settlements | | | Net purchases, sales, issuances and settlements | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
States and political subdivisions | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (1.6) | | | | | $ | (1.6) | | |
Corporate | | | | | 817.3 | | | | | | (50.4) | | | | | | — | | | | | | (140.6) | | | | | | 626.3 | | |
Commercial mortgage-backed securities | | | | | — | | | | | | (4.1) | | | | | | — | | | | | | (0.5) | | | | | | (4.6) | | |
Collateralized debt obligations | | | | | 151.9 | | | | | | — | | | | | | — | | | | | | (0.1) | | | | | | 151.8 | | |
Other debt obligations | | | | | 487.4 | | | | | | (8.2) | | | | | | — | | | | | | (5.0) | | | | | | 474.2 | | |
Total fixed maturities, available-for-sale | | | | | 1,456.6 | | | | | | (62.7) | | | | | | — | | | | | | (147.8) | | | | | | 1,246.1 | | |
Fixed maturities, trading | | | | | 106.9 | | | | | | (32.6) | | | | | | — | | | | | | (1.4) | | | | | | 72.9 | | |
Separate account assets(5) | | | | | 11.8 | | | | | | (4.5) | | | | | | (50.0) | | | | | | 18.8 | | | | | | (23.9) | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts | | | | | — | | | | | | — | | | | | | (7.4) | | | | | | 23.3 | | | | | | 15.9 | | |
| | | For the year ended December 31, 2021 | | |||||||||||||||||||||||||||
| | | Purchases | | | Sales | | | Issuances | | | Settlements | | | Net purchases, sales, issuances and settlements | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
States and political subdivisions | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (0.4) | | | | | $ | (0.4) | | |
Corporate | | | | | 626.6 | | | | | | (84.3) | | | | | | — | | | | | | (160.5) | | | | | | 381.8 | | |
Commercial mortgage-backed securities | | | | | 7.7 | | | | | | — | | | | | | — | | | | | | (0.3) | | | | | | 7.4 | | |
Collateralized debt obligations | | | | | 422.7 | | | | | | — | | | | | | — | | | | | | (25.3) | | | | | | 397.4 | | |
Other debt obligations | | | | | 45.1 | | | | | | — | | | | | | — | | | | | | (28.2) | | | | | | 16.9 | | |
Total fixed maturities, available-for-sale | | | | | 1,102.1 | | | | | | (84.3) | | | | | | — | | | | | | (214.7) | | | | | | 803.1 | | |
Fixed maturities, trading | | | | | 4.9 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4.9 | | |
Other investments | | | | | — | | | | | | (41.0) | | | | | | — | | | | | | — | | | | | | (41.0) | | |
Separate account assets(5) | | | | | 38.5 | | | | | | (8,206.2) | | | | | | (191.5) | | | | | | 98.2 | | | | | | (8,261.0) | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts | | | | | — | | | | | | — | | | | | | (16.4) | | | | | | 42.9 | | | | | | 26.5 | | |
Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative assets (liabilities) | | | | | — | | | | | | 10.7 | | | | | | — | | | | | | — | | | | | | 10.7 | | |
| | | For the year ended December 31, 2020 | | |||||||||||||||||||||||||||
| | | Purchases | | | Sales | | | Issuances | | | Settlements | | | Net purchases, sales, issuances and settlements | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate | | | | $ | 169.2 | | | | | $ | (5.5) | | | | | $ | — | | | | | $ | (45.7) | | | | | $ | 118.0 | | |
Commercial mortgage-backed securities | | | | | — | | | | | | — | | | | | | — | | | | | | (0.1) | | | | | | (0.1) | | |
Collateralized debt obligations | | | | | 182.0 | | | | | | — | | | | | | — | | | | | | 0.5 | | | | | | 182.5 | | |
Other debt obligations | | | | | 14.3 | | | | | | — | | | | | | — | | | | | | (52.2) | | | | | | (37.9) | | |
Total fixed maturities, available-for-sale | | | | | 365.5 | | | | | | (5.5) | | | | | | — | | | | | | (97.5) | | | | | | 262.5 | | |
Other investments | | | | | 0.5 | | | | | | (11.0) | | | | | | — | | | | | | — | | | | | | (10.5) | | |
Separate account assets(5) | | | | | 309.2 | | | | | | (656.7) | | | | | | (396.1) | | | | | | 206.6 | | | | | | (537.0) | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts | | | | | — | | | | | | — | | | | | | (41.0) | | | | | | 21.8 | | | | | | (19.2) | | |
| | | For the year ended December 31, 2022 | | |||||||||||||||||||||
| | | Transfers out of Level 1 into Level 3 | | | Transfers out of Level 2 into Level 3 | | | Transfers out of Level 3 into Level 1 | | | Transfers out of Level 3 into Level 2 | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
States and political subdivisions | | | | $ | — | | | | | $ | 12.0 | | | | | $ | — | | | | | $ | 10.2 | | |
Corporate | | | | | — | | | | | | 176.3 | | | | | | — | | | | | | 35.2 | | |
Commercial mortgage-backed securities | | | | | — | | | | | | — | | | | | | — | | | | | | 10.2 | | |
Collateralized debt obligations | | | | | — | | | | | | — | | | | | | — | | | | | | 180.4 | | |
Other debt obligations | | | | | — | | | | | | — | | | | | | — | | | | | | 27.8 | | |
Total fixed maturities, available-for-sale | | | | | — | | | | | | 188.3 | | | | | | — | | | | | | 263.8 | | |
Fixed maturities, trading | | | | | — | | | | | | 29.0 | | | | | | — | | | | | | — | | |
Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative assets (liabilities) | | | | | — | | | | | | — | | | | | | — | | | | | | 0.3 | | |
| | | For the year ended December 31, 2021 | | |||||||||||||||||||||
| | | Transfers out of Level 1 into Level 3 | | | Transfers out of Level 2 into Level 3 | | | Transfers out of Level 3 into Level 1 | | | Transfers out of Level 3 into Level 2 | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
States and political subdivisions | | | | $ | — | | | | | | 80.3 | | | | | $ | — | | | | | $ | — | | |
Corporate | | | | | — | | | | | | 175.8 | | | | | | — | | | | | | — | | |
Collateralized debt obligations | | | | | — | | | | | | 72.1 | | | | | | — | | | | | | 410.6 | | |
Other debt obligations | | | | | — | | | | | | 20.6 | | | | | | — | | | | | | 25.0 | | |
Total fixed maturities, available-for-sale | | | | | — | | | | | | 348.8 | | | | | | — | | | | | | 435.6 | | |
| | | For the year ended December 31, 2020 | | |||||||||||||||||||||
| | | Transfers out of Level 1 into Level 3 | | | Transfers out of Level 2 into Level 3 | | | Transfers out of Level 3 into Level 1 | | | Transfers out of Level 3 into Level 2 | | ||||||||||||
| | | (in millions) | | |||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate | | | | $ | — | | | | | $ | 342.0 | | | | | $ | — | | | | | $ | 255.2 | | |
Commercial mortgage-backed securities | | | | | — | | | | | | 0.3 | | | | | | — | | | | | | — | | |
Collateralized debt obligations | | | | | — | | | | | | — | | | | | | — | | | | | | 330.2 | | |
Other debt obligations | | | | | — | | | | | | 46.1 | | | | | | — | | | | | | 68.9 | | |
Total fixed maturities, available-for-sale | | | | | — | | | | | | 388.4 | | | | | | — | | | | | | 654.3 | | |
Fixed maturities, trading | | | | | — | | | | | | — | | | | | | — | | | | | | 0.3 | | |
Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | |
Net derivative assets (liabilities) | | | | | — | | | | | | — | | | | | | — | | | | | | 26.5 | | |
| | | December 31, 2022 | | |||||||||||||||
| | | Assets / (liabilities) measured at fair value | | | Valuation technique(s) | | | Unobservable input description | | | Input/range of inputs | | | Weighted average | | |||
| | | (in millions) | | | | | | |||||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | |
Corporate | | | | $ | 1,479.9 | | | | Discounted cash flow | | | Discount rate(1) | | | 2.7% – 33.1% | | | 11.0% | |
| | | | | | | | | | | | Illiquidity premium | | | 0 basis points (“bps”) – 467bps | | | 50bps | |
| | | | | | | | | | | | Comparability adjustment | | | (16)bps – 0bps | | | (11)bps | |
Collateralized debt obligations | | | | | 39.5 | | | | Discounted cash flow | | | Discount rate(1) | | | 4.4% | | | 4.4% | |
| | | | | | | | | | | | Comparability adjustment | | | 55bps | | | 55bps | |
Other debt obligations | | | | | 467.8 | | | | Discounted cash flow | | | Discount rate(1) | | | 5.6% – 8.2% | | | 7.6% | |
| | | | | | | | | | | | Illiquidity premium | | | 0bps – 260bps | | | 220bps | |
| | | | | | | | | | | | Comparability adjustment | | | 1bps – 139bps | | | 77bps | |
Fixed maturities, trading | | | | | 92.5 | | | | Discounted cash flow | | | Discount rate(1) | | | 9.6% – 15.2% | | | 11.0% | |
Separate account assets | | | | | 1,034.1 | | | | Discounted cash flow — real estate | | | Discount rate(1) | | | 5.5% – 10.0% | | | 7.0% | |
| | | | | | | | | | | | Terminal capitalization rate | | | 4.5% – 9.5% | | | 5.8% | |
| | | | | | | | | | | | Average market rent growth rate | | | 2.0% – 3.8% | | | 3.0% | |
| | | | | | | | | Discounted cash flow — real estate debt | | | Loan to value | | | 43.6% – 62.2% | | | 50.6% | |
| | | | | | | | | | | | Market interest rate | | | 5.3% – 8.6% | | | 6.6% | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts(6) | | | | | 58.9 | | | | Discounted cash flow | | | Long duration interest rate | | | 2.4% – 4.1%(3) | | | 3.7% | |
| | | | | | | | | | | | Long-term equity market volatility | | | 17.8% – 36.9% | | | 21.9% | |
| | | | | | | | | | | | Nonperformance risk | | | 0.9% – 2.0% | | | 1.6% | |
| | | | | | | | | | | | Utilization rate | | | See note(4) | | | | |
| | | | | | | | | | | | Lapse rate | | | 1.3% – 9.0% | | | 4.7% | |
| | | | | | | | | | | | Mortality rate | | | See note(5) | | | | |
| | | December 31, 2021 | | |||||||||||||||
| | | Assets / (liabilities) measured at fair value | | | Valuation technique(s) | | | Unobservable input description | | | Input/range of inputs | | | Weighted average | | |||
| | | (in millions) | | | | | | | | | | | | | | |||
Assets | | | | | | | | | | | | | | | | | | | |
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | |
Corporate | | | | $ | 829.9 | | | | Discounted cash flow | | | Discount rate(1) | | | 0.9% – 15.5% | | | 6.8% | |
| | | | | | | | | | | | Illiquidity premium | | | 0 bps – 70bps | | | 6bps | |
| | | | | | | | | Market comparables | | | Potential loss severity | | | 39.4% | | | 39.4% | |
| | | | | | | | | | | | Probability of default | | | 100.0% | | | 100.0% | |
Commercial mortgage-backed securities | | | | | 3.5 | | | | Discounted cash flow | | | Discount rate(1) | | | 3.7% | | | 3.7% | |
Collateralized debt obligations | | | | | 45.9 | | | | Discounted cash flow | | | Discount rate(1) | | | 3.0% – 5.3% | | | 4.0% | |
| | | | | | | | | | | | Illiquidity premium | | | 0bps – 385bps | | | 255bps | |
Other debt obligations | | | | | 22.1 | | | | Discounted cash flow | | | Discount rate(1) | | | 3.0% – 10.0% | | | 3.3% | |
| | | | | | | | | | | | Illiquidity premium | | | 225bps – 500bps | | | 237bps | |
Fixed maturities, trading | | | | | 4.9 | | | | Discounted cash flow | | | Discount rate(1) | | | 7.5% | | | 7.5% | |
Separate account assets | | | | | 946.0 | | | | Discounted cash flow — mortgage loans | | | Discount rate(1) | | | 1.4% | | | 1.4% | |
| | | | | | | | | | | | Credit spread rate | | | 120bps | | | 120bps | |
| | | | | | | | | Discounted cash flow — real estate | | | Discount rate(1) | | | 5.3% – 10.0% | | | 6.6% | |
| | | | | | | | | | | | Terminal capitalization rate | | | 4.3% – 9.3% | | | 5.6% | |
| | | | | | | | | | | | Average market rent growth rate | | | 1.6% – 3.6% | | | 2.7% | |
| | | | | | | | | Discounted cash flow — real estate debt | | | Loan to value | | | 40.1% – 58.5% | | | 46.0% | |
| | | | | | | | | | | | Market interest rate | | | 2.5% – 3.1% | | | 2.7% | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Investment and universal life contracts(6) | | | | | (320.9) | | | | Discounted cash flow | | | Long duration interest rate | | | 1.9%(3) | | | 1.9% | |
| | | | | | | | | | | | Long-term equity market volatility | | | 19.8% – 32.5% | | | 22.5% | |
| | | | | | | | | | | | Nonperformance risk | | | 0.3% – 1.1% | | | 0.9% | |
| | | | | | | | | | | | Utilization rate | | | See note(4) | | | | |
| | | | | | | | | | | | Lapse rate | | | 1.3% – 9.0% | | | 4.7% | |
| | | | | | | | | | | | Mortality rate | | | See note(5) | | | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Real estate ventures | | | | | | | | | | | | | | | | | | | |
Change in fair value pre-tax gain(1) | | | | $ | — | | | | | $ | 12.5 | | | | | $ | 5.3 | | |
| | | December 31, 2022 | | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | Fair value hierarchy level | | |||||||||||||||
| | | Carrying amount | | | Fair value | | | Level 1 | | | Level 2 | | | Level 3 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Assets (liabilities) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage loans | | | | $ | 19,722.4 | | | | | $ | 17,847.1 | | | | | $ | — | | | | | $ | — | | | | | $ | 17,847.1 | | |
Policy loans | | | | | 770.2 | | | | | | 749.5 | | | | | | — | | | | | | — | | | | | | 749.5 | | |
Other investments | | | | | 230.0 | | | | | | 217.4 | | | | | | — | | | | | | 112.9 | | | | | | 104.5 | | |
Cash and cash equivalents | | | | | 552.9 | | | | | | 552.9 | | | | | | 552.9 | | | | | | — | | | | | | — | | |
Reinsurance deposit receivable | | | | | 7,900.9 | | | | | | 6,859.9 | | | | | | — | | | | | | — | | | | | | 6,859.9 | | |
Cash collateral receivable | | | | | 262.8 | | | | | | 262.8 | | | | | | 262.8 | | | | | | — | | | | | | — | | |
Investment contracts | | | | | (34,919.4) | | | | | | (31,915.2) | | | | | | — | | | | | | (7,278.9) | | | | | | (24,636.3) | | |
Long-term debt | | | | | (67.8) | | | | | | (60.5) | | | | | | — | | | | | | — | | | | | | (60.5) | | |
Separate account liabilities | | | | | (107,227.6) | | | | | | (106,410.4) | | | | | | — | | | | | | — | | | | | | (106,410.4) | | |
Bank deposits(1) | | | | | (352.4) | | | | | | (336.3) | | | | | | — | | | | | | (336.3) | | | | | | — | | |
Cash collateral payable | | | | | (285.1) | | | | | | (285.1) | | | | | | (285.1) | | | | | | — | | | | | | — | | |
| | | December 31, 2021 | | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | Fair value hierarchy level | | |||||||||||||||
| | | Carrying amount | | | Fair value | | | Level 1 | | | Level 2 | | | Level 3 | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
Assets (liabilities) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage loans | | | | $ | 18,908.3 | | | | | $ | 19,842.3 | | | | | $ | — | | | | | $ | — | | | | | $ | 19,842.3 | | |
Policy loans | | | | | 705.0 | | | | | | 888.9 | | | | | | — | | | | | | — | | | | | | 888.9 | | |
Other investments | | | | | 290.4 | | | | | | 281.2 | | | | | | — | | | | | | 185.0 | | | | | | 96.2 | | |
Cash and cash equivalents | | | | | 475.6 | | | | | | 475.6 | | | | | | 475.6 | | | | | | — | | | | | | — | | |
Cash collateral receivable | | | | | 2.0 | | | | | | 2.0 | | | | | | 2.0 | | | | | | — | | | | | | — | | |
Investment contracts | | | | | (35,249.5) | | | | | | (35,534.9) | | | | | | — | | | | | | (7,454.3) | | | | | | (28,080.6) | | |
Long-term debt | | | | | (54.0) | | | | | | (38.0) | | | | | | — | | | | | | — | | | | | | (38.0) | | |
Separate account liabilities | | | | | (131,096.8) | | | | | | (130,152.8) | | | | | | — | | | | | | — | | | | | | (130,152.8) | | |
Bank deposits(1) | | | | | (373.3) | | | | | | (372.8) | | | | | | — | | | | | | (372.8) | | | | | | — | | |
Cash collateral payable | | | | | (204.4) | | | | | | (204.4) | | | | | | (204.4) | | | | | | — | | | | | | — | | |
| | | As of or for the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Statutory net income (loss) | | | | $ | (1,563.1) | | | | | $ | 864.0 | | | | | $ | 915.9 | | |
Statutory capital and surplus | | | | | 4,304.4 | | | | | | 5,375.2 | | | | | | 5,682.4 | | |
| | | December 31, 2022 | | | December 31, 2021 | | ||||||
| | | (in millions) | | |||||||||
Assets: | | | | | | | | | | | | | |
Retirement and Income Solutions | | | | $ | 202,518.1 | | | | | $ | 220,777.3 | | |
U.S. Insurance Solutions | | | | | 39,907.5 | | | | | | 32,344.7 | | |
Corporate | | | | | 788.6 | | | | | | 2,226.3 | | |
Total consolidated assets | | | | $ | 243,214.2 | | | | | $ | 255,348.3 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Operating revenues by segment: | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions: | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions – Fee | | | | $ | 2,236.2 | | | | | $ | 2,141.7 | | | | | $ | 1,808.8 | | |
Retirement and Income Solutions – Spread | | | | | 3,721.3 | | | | | | 4,187.3 | | | | | | 5,353.7 | | |
Total Retirement and Income Solutions(1) | | | | | 5,957.5 | | | | | | 6,329.0 | | | | | | 7,162.5 | | |
U.S. Insurance Solutions: | | | | | | | | | | | | | | | | | | | |
Specialty Benefits insurance | | | | | 2,981.6 | | | | | | 2,706.8 | | | | | | 2,522.7 | | |
Individual Life insurance | | | | | 1,325.9 | | | | | | 2,047.1 | | | | | | 1,945.8 | | |
Eliminations | | | | | (0.3) | | | | | | (0.1) | | | | | | (0.1) | | |
Total U.S. Insurance Solutions | | | | | 4,307.2 | | | | | | 4,753.8 | | | | | | 4,468.4 | | |
Corporate | | | | | 60.5 | | | | | | 67.4 | | | | | | 37.9 | | |
Total segment operating revenues | | | | | 10,325.2 | | | | | | 11,150.2 | | | | | | 11,668.8 | | |
Net realized capital losses, net of related revenue adjustments | | | | | (46.9) | | | | | | (141.4) | | | | | | (3.9) | | |
Revenues from exited business(2) | | | | | 4,447.2 | | | | | | — | | | | | | — | | |
Total revenues per consolidated statements of operations | | | | $ | 14,725.5 | | | | | $ | 11,008.8 | | | | | $ | 11,664.9 | | |
Pre-tax operating earnings (losses) by segment: | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions | | | | $ | 1,159.9 | | | | | $ | 1,292.4 | | | | | $ | 1,065.7 | | |
U.S. Insurance Solutions | | | | | 526.8 | | | | | | 461.8 | | | | | | 232.1 | | |
Corporate | | | | | (117.2) | | | | | | (40.7) | | | | | | (3.9) | | |
Total segment pre-tax operating earnings | | | | | 1,569.5 | | | | | | 1,713.5 | | | | | | 1,293.9 | | |
Pre-tax net realized capital losses, as adjusted(3) | | | | | (88.0) | | | | | | (51.0) | | | | | | (85.8) | | |
Pre-tax income from exited business(4) | | | | | 4,297.1 | | | | | | — | | | | | | — | | |
Adjustments related to equity method investments and noncontrolling interest | | | | | 62.2 | | | | | | 24.3 | | | | | | 19.4 | | |
Income before income taxes per consolidated statements of operations | | | | $ | 5,840.8 | | | | | $ | 1,686.8 | | | | | $ | 1,227.5 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Revenues from exited business: | | | | | | | | | | | | | | | | | | | |
Change in fair value of funds withheld embedded derivative | | | | $ | 3,652.8 | | | | | $ | — | | | | | $ | — | | |
Net realized capital gains on funds withheld assets | | | | | 749.4 | | | | | | — | | | | | | — | | |
Strategic review costs and impacts | | | | | 32.4 | | | | | | — | | | | | | — | | |
Amortization of reinsurance gain | | | | | 12.6 | | | | | | — | | | | | | — | | |
Total revenues from exited business | | | | $ | 4,447.2 | | | | | $ | — | | | | | $ | — | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Net realized capital gains (losses): | | | | | | | | | | | | | | | | | | | |
Net realized capital gains (losses) | | | | $ | (1.2) | | | | | $ | (18.5) | | | | | $ | 105.6 | | |
Derivative and hedging-related revenue adjustments | | | | | (41.7) | | | | | | (119.4) | | | | | | (119.3) | | |
Market value adjustments to fee revenues | | | | | 0.7 | | | | | | (0.6) | | | | | | (1.6) | | |
Recognition of front-end fee revenue | | | | | (4.7) | | | | | | (2.9) | | | | | | 11.4 | | |
Net realized capital losses, net of related revenue adjustments | | | | | (46.9) | | | | | | (141.4) | | | | | | (3.9) | | |
Amortization of deferred acquisition costs and other actuarial balances | | | | | 2.5 | | | | | | 11.1 | | | | | | (26.8) | | |
Capital (gains) losses distributed | | | | | 0.5 | | | | | | (0.5) | | | | | | (0.1) | | |
Market value adjustments of embedded derivatives | | | | | (44.1) | | | | | | 79.8 | | | | | | (55.0) | | |
Pre-tax net realized capital losses, as adjusted(a) | | | | $ | (88.0) | | | | | $ | (51.0) | | | | | $ | (85.8) | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Pre-tax income from exited business: | | | | | | | | | | | | | | | | | | | |
Change in fair value of funds withheld embedded derivative | | | | $ | 3,652.8 | | | | | $ | — | | | | | $ | — | | |
Net realized capital gains on funds withheld assets | | | | | 749.4 | | | | | | — | | | | | | — | | |
Strategic review costs and impacts | | | | | (57.1) | | | | | | — | | | | | | — | | |
Amortization of reinsurance loss | | | | | (82.5) | | | | | | — | | | | | | — | | |
Impacts to actuarial balances of reinsured business | | | | | 34.5 | | | | | | — | | | | | | — | | |
Total pre-tax income from exited business | | | | $ | 4,297.1 | | | | | $ | — | | | | | $ | — | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Income tax expense (benefit) by segment: | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions | | | | $ | 138.8 | | | | | $ | 170.4 | | | | | $ | 133.3 | | |
U.S. Insurance Solutions | | | | | 100.7 | | | | | | 90.5 | | | | | | 46.3 | | |
Corporate | | | | | (8.2) | | | | | | (14.3) | | | | | | (6.3) | | |
Total segment income taxes from operating earnings | | | | | 231.3 | | | | | | 246.6 | | | | | | 173.3 | | |
Tax benefit related to net realized capital losses, as adjusted | | | | | (21.7) | | | | | | (13.5) | | | | | | (13.2) | | |
Tax expense related to exited business(1) | | | | | 908.0 | | | | | | — | | | | | | — | | |
Certain adjustments related to equity method investments | | | | | — | | | | | | 0.1 | | | | | | — | | |
Total income taxes per consolidated statements of operations | | | | $ | 1,117.6 | | | | | $ | 233.2 | | | | | $ | 160.1 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Income tax expense related to exited business: | | | | | | | | | | | | | | | | | | | |
Change in fair value of funds withheld embedded derivative | | | | $ | 767.1 | | | | | $ | — | | | | | $ | — | | |
Net realized capital gains on funds withheld assets | | | | | 157.4 | | | | | | — | | | | | | — | | |
Strategic review costs and impacts | | | | | (6.3) | | | | | | — | | | | | | — | | |
Amortization of reinsurance gain | | | | | (17.4) | | | | | | — | | | | | | — | | |
Impacts to actuarial balances of reinsured business | | | | | 7.2 | | | | | | — | | | | | | — | | |
Total income tax expense related to exited business | | | | $ | 908.0 | | | | | $ | — | | | | | $ | — | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Depreciation and amortization expense by segment: | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions | | | | $ | 58.0 | | | | | $ | 53.0 | | | | | $ | 38.8 | | |
U.S. Insurance Solutions | | | | | 18.9 | | | | | | 19.3 | | | | | | 20.2 | | |
Corporate | | | | | 5.2 | | | | | | 9.8 | | | | | | 4.4 | | |
Total segment depreciation and amortization expense included in pre-tax operating earnings | | | | | 82.1 | | | | | | 82.1 | | | | | | 63.4 | | |
Depreciation and amortization expense related to exited business | | | | | 26.9 | | | | | | — | | | | | | — | | |
Total depreciation and amortization expense included in our consolidated statements of operations | | | | $ | 109.0 | | | | | $ | 82.1 | | | | | $ | 63.4 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Revenue from contracts with customers by segment: | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions: | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions – Fee | | | | $ | 522.2 | | | | | $ | 399.3 | | | | | $ | 250.5 | | |
Retirement and Income Solutions – Spread | | | | | 11.4 | | | | | | 9.9 | | | | | | 8.6 | | |
Total Retirement and Income Solutions | | | | | 533.6 | | | | | | 409.2 | | | | | | 259.1 | | |
U.S. Insurance Solutions: | | | | | | | | | | | | | | | | | | | |
Specialty Benefits insurance | | | | | 12.2 | | | | | | 12.1 | | | | | | 12.1 | | |
Individual Life insurance | | | | | 64.4 | | | | | | 60.1 | | | | | | 48.4 | | |
Eliminations | | | | | — | | | | | | (0.1) | | | | | | (0.1) | | |
Total U.S. Insurance Solutions | | | | | 76.6 | | | | | | 72.1 | | | | | | 60.4 | | |
Corporate | | | | | (0.8) | | | | | | (1.0) | | | | | | (0.8) | | |
Total segment revenue from contracts with customers | | | | | 609.4 | | | | | | 480.3 | | | | | | 318.7 | | |
Adjustments for fees and other revenues not within the scope of revenue recognition guidance(1) | | | | | 1,557.5 | | | | | | 2,202.8 | | | | | | 2,025.1 | | |
Pre-tax other adjustments(2) | | | | | 41.0 | | | | | | (3.5) | | | | | | 9.8 | | |
Total fees and other revenues per consolidated statements of operations | | | | $ | 2,207.9 | | | | | $ | 2,679.6 | | | | | $ | 2,353.6 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Administrative service fee revenue | | | | $ | 519.2 | | | | | $ | 395.9 | | | | | $ | 248.4 | | |
Other fee revenue | | | | | 3.0 | | | | | | 3.4 | | | | | | 2.1 | | |
Total revenues from contracts with customers | | | | | 522.2 | | | | | | 399.3 | | | | | | 250.5 | | |
Fees and other revenues not within the scope of revenue recognition guidance | | | | | 1,187.0 | | | | | | 1,299.6 | | | | | | 1,130.4 | | |
Total fees and other revenues | | | | | 1,709.2 | | | | | | 1,698.9 | | | | | | 1,380.9 | | |
Premiums and other considerations | | | | | — | | | | | | 0.5 | | | | | | 4.9 | | |
Net investment income | | | | | 527.0 | | | | | | 442.3 | | | | | | 423.0 | | |
Total operating revenues | | | | $ | 2,236.2 | | | | | $ | 2,141.7 | | | | | $ | 1,808.8 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Deposit account fee revenue | | | | $ | 10.2 | | | | | $ | 9.2 | | | | | $ | 8.4 | | |
Commission income | | | | | 1.2 | | | | | | 0.7 | | | | | | 0.2 | | |
Total revenues from contracts with customers | | | | | 11.4 | | | | | | 9.9 | | | | | | 8.6 | | |
Fees and other revenues not within the scope of revenue recognition guidance | | | | | 2.9 | | | | | | 7.9 | | | | | | 9.5 | | |
Total fees and other revenues | | | | | 14.3 | | | | | | 17.8 | | | | | | 18.1 | | |
Premiums and other considerations | | | | | 1,959.7 | | | | | | 1,883.1 | | | | | | 3,216.0 | | |
Net investment income | | | | | 1,747.3 | | | | | | 2,286.4 | | | | | | 2,119.6 | | |
Total operating revenues | | | | $ | 3,721.3 | | | | | $ | 4,187.3 | | | | | $ | 5,353.7 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Specialty Benefits insurance: | | | | | | | | | | | | | | | | | | | |
Administrative service fees | | | | $ | 12.2 | | | | | $ | 12.1 | | | | | $ | 12.1 | | |
Total revenues from contracts with customers | | | | | 12.2 | | | | | | 12.1 | | | | | | 12.1 | | |
Fees and other revenues not within the scope of revenue recognition guidance | | | | | 18.5 | | | | | | 19.0 | | | | | | 19.2 | | |
Total fees and other revenues | | | | | 30.7 | | | | | | 31.1 | | | | | | 31.3 | | |
Premiums and other considerations | | | | | 2,771.1 | | | | | | 2,496.5 | | | | | | 2,330.8 | | |
Net investment income | | | | | 179.8 | | | | | | 179.2 | | | | | | 160.6 | | |
Total operating revenues | | | | $ | 2,981.6 | | | | | $ | 2,706.8 | | | | | $ | 2,522.7 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Individual Life insurance: | | | | | | | | | | | | | | | | | | | |
Administrative service fees | | | | $ | 26.9 | | | | | $ | 26.2 | | | | | $ | 21.6 | | |
Commission income | | | | | 37.5 | | | | | | 33.9 | | | | | | 26.8 | | |
Total revenues from contracts with customers | | | | | 64.4 | | | | | | 60.1 | | | | | | 48.4 | | |
Fees and other revenues not within the scope of revenue recognition guidance | | | | | 333.2 | | | | | | 858.8 | | | | | | 849.5 | | |
Total fees and other revenues | | | | | 397.6 | | | | | | 918.9 | | | | | | 897.9 | | |
Premiums and other considerations | | | | | 535.9 | | | | | | 333.9 | | | | | | 329.1 | | |
Net investment income | | | | | 392.4 | | | | | | 794.3 | | | | | | 718.8 | | |
Total operating revenues | | | | $ | 1,325.9 | | | | | $ | 2,047.1 | | | | | $ | 1,945.8 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Eliminations | | | | $ | (0.8) | | | | | $ | (1.0) | | | | | $ | (0.8) | | |
Total revenues from contracts with customers | | | | | (0.8) | | | | | | (1.0) | | | | | | (0.8) | | |
Fees and other revenues not within the scope of revenue recognition guidance | | | | | 15.9 | | | | | | 17.5 | | | | | | 16.5 | | |
Total fees and other revenues | | | | | 15.1 | | | | | | 16.5 | | | | | | 15.7 | | |
Premiums and other considerations | | | | | (2.1) | | | | | | — | | | | | | — | | |
Net investment income | | | | | 47.5 | | | | | | 50.9 | | | | | | 22.2 | | |
Total operating revenues | | | | $ | 60.5 | | | | | $ | 67.4 | | | | | $ | 37.9 | | |
| | | For the year ended December 31, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
| | | (in millions) | | |||||||||||||||
Compensation cost | | | | $ | 22.2 | | | | | $ | 25.2 | | | | | $ | 24.4 | | |
Related income tax benefit | | | | | 4.6 | | | | | | 4.3 | | | | | | 4.0 | | |
Capitalized as part of an asset | | | | | 1.2 | | | | | | 1.4 | | | | | | 1.5 | | |
| | | For the year ended December 31, | | |||||||||||||||
Options | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Expected volatility | | | | | —% | | | | | | 34.2% | | | | | | 25.7% | | |
Expected term (in years) | | | | | — | | | | | | 7.0 | | | | | | 7.0 | | |
Risk-free interest rate | | | | | —% | | | | | | 1.2% | | | | | | 1.3% | | |
Expected dividend yield | | | | | —% | | | | | | 3.82% | | | | | | 4.33% | | |
Weighted average estimated fair value | | | | $ | — | | | | | $ | 15.67 | | | | | $ | 9.64 | | |
Type of Investment | | | Cost | | | Fair value | | | Amount as shown in the consolidated statement of financial position | | |||||||||
| | | (in millions) | | |||||||||||||||
Fixed maturities, available-for-sale: | | | | | | | | | | | | | | | | | | | |
U.S Treasury securities and obligations of U.S government corporations and agencies | | | | $ | 1,964.6 | | | | | $ | 1,715.9 | | | | | $ | 1,715.9 | | |
States, municipalities and political subdivisions | | | | | 7,280.1 | | | | | | 6,168.3 | | | | | | 6,168.3 | | |
Foreign governments | | | | | 565.3 | | | | | | 520.4 | | | | | | 520.4 | | |
Public utilities | | | | | 4,637.7 | | | | | | 3,983.8 | | | | | | 3,983.8 | | |
Redeemable preferred stock | | | | | 157.5 | | | | | | 128.1 | | | | | | 128.1 | | |
All other corporate bonds | | | | | 32,700.2 | | | | | | 29,072.9 | | | | | | 29,072.9 | | |
Residential mortgage-backed securities | | | | | 2,362.1 | | | | | | 2,170.9 | | | | | | 2,170.9 | | |
Commercial mortgage-backed securities | | | | | 5,529.7 | | | | | | 4,827.5 | | | | | | 4,827.5 | | |
Collateralized debt obligations | | | | | 4,698.9 | | | | | | 4,560.2 | | | | | | 4,560.2 | | |
Other debt obligations | | | | | 7,207.8 | | | | | | 6,483.3 | | | | | | 6,483.3 | | |
Total fixed maturities, available-for-sale | | | | | 67,103.9 | | | | | | 59,631.3 | | | | | | 59,631.3 | | |
Fixed maturities, trading | | | | | 634.0 | | | | | | 634.0 | | | | | | 634.0 | | |
Equity securities: | | | | | | | | | | | | | | | | | | | |
Banks, trust and insurance companies | | | | | 38.2 | | | | | | 38.2 | | | | | | 38.2 | | |
Non-redeemable preferred stock | | | | | 14.9 | | | | | | 14.9 | | | | | | 14.9 | | |
Total equity securities | | | | | 53.1 | | | | | | 53.1 | | | | | | 53.1 | | |
Mortgage loans | | | | | 19,722.4 | | | | | | XXXX | | | | | | 19,722.4 | | |
Real estate, net: | | | | | | | | | | | | | | | | | | | |
Other real estate | | | | | 2,237.4 | | | | | | XXXX | | | | | | 2,237.4 | | |
Policy loans | | | | | 770.2 | | | | | | XXXX | | | | | | 770.2 | | |
Other investments | | | | | 3,261.3 | | | | | | XXXX | | | | | | 3,261.3 | | |
Total investments | | | | $ | 93,782.3 | | | | | | XXXX | | | | | $ | 86,309.7 | | |
Segment | | | Deferred acquisition costs | | | Future policy benefits and claims | | | Contractholder and other policyholder funds | | |||||||||
| | | (in millions) | | |||||||||||||||
2022: | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions | | | | $ | 1,271.5 | | | | | $ | 28,322.9 | | | | | $ | 35,262.8 | | |
U.S. Insurance Solutions | | | | | 3,407.9 | | | | | | 12,128.2 | | | | | | 7,943.3 | | |
Corporate | | | | | — | | | | | | 157.9 | | | | | | 2.1 | | |
Total | | | | $ | 4,679.4 | | | | | $ | 40,609.0 | | | | | $ | 43,208.2 | | |
2021: | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions | | | | $ | 819.4 | | | | | $ | 27,716.5 | | | | | $ | 35,941.4 | | |
U.S. Insurance Solutions | | | | | 2,929.7 | | | | | | 12,262.1 | | | | | | 8,039.6 | | |
Corporate | | | | | — | | | | | | 163.0 | | | | | | 2.3 | | |
Total | | | | $ | 3,749.1 | | | | | $ | 40,141.6 | | | | | $ | 43,983.3 | | |
Segment | | | Premiums and other considerations | | | Net investment income(1) | | | Benefits, claims and settlement expenses | | | Amortization of deferred acquisition costs | | | Other operating expenses(1) | | |||||||||||||||
| | | (in millions) | | |||||||||||||||||||||||||||
2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions | | | | $ | 1,959.7 | | | | | $ | 2,252.3 | | | | | $ | 3,228.6 | | | | | $ | 134.2 | | | | | $ | 1,519.6 | | |
U.S. Insurance Solutions | | | | | 3,306.7 | | | | | | 560.2 | | | | | | 2,421.1 | | | | | | 249.2 | | | | | | 1,019.0 | | |
Corporate | | | | | (2.1) | | | | | | 39.8 | | | | | | 1.0 | | | | | | — | | | | | | 217.2 | | |
Total | | | | $ | 5,264.3 | | | | | $ | 2,852.3 | | | | | $ | 5,650.7 | | | | | $ | 383.4 | | | | | $ | 2,755.8 | | |
2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions | | | | $ | 1,883.6 | | | | | $ | 2,674.4 | | | | | $ | 3,450.1 | | | | | $ | 116.8 | | | | | $ | 1,383.0 | | |
U.S. Insurance Solutions | | | | | 2,830.4 | | | | | | 907.9 | | | | | | 3,031.7 | | | | | | 167.4 | | | | | | 994.4 | | |
Corporate | | | | | — | | | | | | 51.4 | | | | | | 0.8 | | | | | | — | | | | | | 83.0 | | |
Total | | | | $ | 4,714.0 | | | | | $ | 3,633.7 | | | | | $ | 6,482.6 | | | | | $ | 284.2 | | | | | $ | 2,460.4 | | |
2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retirement and Income Solutions | | | | $ | 3,221.0 | | | | | $ | 2,457.6 | | | | | $ | 4,899.3 | | | | | $ | 82.2 | | | | | $ | 1,138.3 | | |
U.S. Insurance Solutions | | | | | 2,659.8 | | | | | | 842.0 | | | | | | 2,937.2 | | | | | | 304.7 | | | | | | 932.9 | | |
Corporate | | | | | — | | | | | | 25.3 | | | | | | 1.0 | | | | | | — | | | | | | 21.6 | | |
Total | | | | $ | 5,880.8 | | | | | $ | 3,324.9 | | | | | $ | 7,837.5 | | | | | $ | 386.9 | | | | | $ | 2,092.8 | | |
| | | Gross amount | | | Ceded to other companies | | | Assumed from other companies | | | Net amount | | | Percentage of amount assumed to net | | |||||||||||||||
| | | ($ in millions) | | |||||||||||||||||||||||||||
2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life insurance in force | | | | $ | 317,116.8 | | | | | $ | 222,711.4 | | | | | $ | 374,462.3 | | | | | $ | 468,867.7 | | | | | | 79.9% | | |
Premiums: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life insurance and annuities | | | | $ | 2,824.1 | | | | | $ | 297.9 | | | | | $ | 503.5 | | | | | $ | 3,029.7 | | | | | | 16.6% | | |
Accident and health insurance | | | | | 2,392.4 | | | | | | 157.8 | | | | | | — | | | | | | 2,234.6 | | | | | | —% | | |
Total | | | | $ | 5,216.5 | | | | | $ | 455.7 | | | | | $ | 503.5 | | | | | $ | 5,264.3 | | | | | | 9.6% | | |
2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life insurance in force(1) | | | | $ | 299,318.1 | | | | | $ | 195,641.7 | | | | | $ | 367,764.8 | | | | | $ | 471,441.1 | | | | | | 78.0% | | |
Premiums: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life insurance and annuities | | | | $ | 2,693.4 | | | | | $ | 494.3 | | | | | $ | 494.3 | | | | | $ | 2,693.4 | | | | | | 18.4% | | |
Accident and health insurance | | | | | 2,176.3 | | | | | | 155.7 | | | | | | — | | | | | | 2,020.6 | | | | | | —% | | |
Total | | | | $ | 4,869.7 | | | | | $ | 650.0 | | | | | $ | 494.3 | | | | | $ | 4,714.0 | | | | | | 10.5% | | |
2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life insurance in force(1) | | | | $ | 294,161.3 | | | | | $ | 183,067.9 | | | | | $ | 331,394.6 | | | | | $ | 442,488.0 | | | | | | 74.9% | | |
Premiums: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life insurance and annuities | | | | $ | 4,013.8 | | | | | $ | 452.5 | | | | | $ | 439.5 | | | | | $ | 4,000.8 | | | | | | 11.0% | | |
Accident and health insurance | | | | | 2,036.6 | | | | | | 156.6 | | | | | | — | | | | | | 1,880.0 | | | | | | —% | | |
Total | | | | $ | 6,050.4 | | | | | $ | 609.1 | | | | | $ | 439.5 | | | | | $ | 5,880.8 | | | | | | 7.5% | | |
• Derivative ValCur | is the value, calculated using the Black-Scholes formula, of a hypothetical basket of derivatives associated with the Index-Linked Segment Option on the date the Equity Adjustment is calculated. |
• Derivative ValBeg | is the value, calculated using the Black-Scholes formula, of a hypothetical basket of derivatives associated with the Index-Linked Segment Option on the Segment Start Date. |
• Time Elapsed | is the number of |
• Segment Term | is the number of days in the Segment Term. |
Example | | | 1 | | | 2 | | | 3 | |
Change in Index Value | | | 20% decrease | | | No change | | | 20% increase | |
Change in Bond Adjustment Index Value | | | No change | | | No change | | | No change | |
Months until Segment End Date | | | 63 | | | 63 | | | 63 | |
Months until end of current Bond Adjustment period | | | 63 | | | 63 | | | 63 | |
Premium Payment | | | $10,000.00 | | | $10,000.00 | | | $10,000.00 | |
Crediting Base | | | $10,000.00 | | | $10,000.00 | | | $10,000.00 | |
Equity Adjustment percentage(1) | | | -18.54% | | | -0.68% | | | 17.76% | |
Equity Adjustment Amount(2) | | | -$1,853.69(2a) | | | -$68.22(2b) | | | $1,775.67(2c) | |
Accumulated Value (Segment Interim Value)(3) | | | $8,146.31(3a) | | | $9,931.78(3b) | | | $11,775.67(3c) | |
Bond Adjustment percentage(4) | | | 0.00% | | | 0.00% | | | 0.00% | |
Bond Adjustment Amount(5) | | | $0.00 | | | $0.00 | | | $0.00 | |
Accumulated Value (Segment Interim Value) adjusted for Bond Adjustment(6) | | | $8,146.31(6a) | | | $9,931.78(6b) | | | $11,775.67(6c) | |
Free Surrender Amount(7) | | | $1,000.00 | | | $1,000.00 | | | $1,000.00 | |
Amount after Free Surrender Amount(8) | | | $7,146.31(8a) | | | $8,931.78(8b) | | | $10,775.67(8c) | |
Surrender Charge percentage(9) | | | 8.00% | | | 8.00% | | | 8.00% | |
Surrender Charge(10) | | | $571.70(10a) | | | $714.54(10b) | | | $862.05(10c) | |
Surrender Value(11) | | | $7,574.61(11a) | | | $9,217.23(11b) | | | $10,913.61(11c) | |
Example | | | 4 | | | 5 | | | 6 | |
Change in Index Value | | | 10% increase | | | 10% increase | | | 10% increase | |
Change in Bond Adjustment Index Value | | | 10% increase | | | 10% increase | | | 10% increase | |
Months until Segment End Date | | | 63 | | | 36 | | | 9 | |
Months until end of current Bond Adjustment period | | | 63 | | | 36 | | | 9 | |
Premium Payment | | | $10,000.00 | | | $10,000.00 | | | $10,000.00 | |
Crediting Base | | | $10,000.00 | | | $10,000.00 | | | $10,000.00 | |
Equity Adjustment percentage(1) | | | 8.46% | | | 12.03% | | | 12.15% | |
Equity Adjustment Amount(2) | | | $846.16(2a) | | | $1,202.89(2b) | | | $1,214.51(2c) | |
Accumulated Value (Segment Interim Value)(3) | | | $10,846.16(3a) | | | $11,202.89(3b) | | | $11,214.51(3c) | |
Bond Adjustment percentage(4) | | | -1.02% | | | -0.59% | | | -0.15% | |
Bond Adjustment Amount(5) | | | -$102.31(5a) | | | -$58.59(5b) | | | -$14.68(5c) | |
Accumulated Value (Segment Interim Value) adjusted for Bond Adjustment(6) | | | $10,743.85(6a) | | | $11,144.29(6b) | | | $11,199.83(6c) | |
Free Surrender Amount(7) | | | $1,000.00 | | | $1,000.00 | | | $1,000.00 | |
Amount after Free Surrender Amount(8) | | | $9,743.85(8a) | | | $10,144.29(8b) | | | $10,199.83(8c) | |
Surrender Charge percentage(9) | | | 8.00%(9a) | | | 6.00%(9b) | | | 4.00%(9c) | |
Surrender Charge(10) | | | $779.51(10a) | | | $608.66(10b) | | | $407.99(10c) | |
Surrender Value(11) | | | $9,964.34(11a) | | | $10,535.64(11b) | | | $10,791.84(11c) | |
Example | | | 7 | | | 8 | | | 9 | |
Change in Index Value | | | 10% decrease | | | 10% decrease | | | 10% decrease | |
Change in Bond Adjustment Index Value | | | 10% decrease | | | 10% decrease | | | 10% decrease | |
Months until Segment End Date | | | 63 | | | 36 | | | 9 | |
Months until end of current Bond Adjustment period | | | 63 | | | 36 | | | 9 | |
Premium Payment | | | $10,000.00 | | | $10,000.00 | | | $10,000.00 | |
Crediting Base | | | $10,000.00 | | | $10,000.00 | | | $10,000.00 | |
Equity Adjustment percentage(1) | | | -9.68% | | | -6.13% | | | -4.57% | |
Equity Adjustment Amount(2) | | | -$967.57(2a) | | | -$613.28(2b) | | | -$456.69(2c) | |
Accumulated Value (Segment Interim Value)(3) | | | $9,032.43(3a) | | | $9,386.72(3b) | | | $9,543.31(3c) | |
Bond Adjustment percentage(4) | | | 1.04% | | | 0.59% | | | 0.15% | |
Bond Adjustment Amount(5) | | | $103.57(5a) | | | $59.05(5b) | | | $14.73(5c) | |
Accumulated Value (Segment Interim Value) adjusted for Bond Adjustment(6) | | | $9,136.00(6a) | | | $9,445.78(6b) | | | $9,558.05(6c) | |
Free Surrender Amount(7) | | | $1,000.00 | | | $1,000.00 | | | $1,000.00 | |
Amount after Free Surrender Amount(8) | | | $8,136.00(8a) | | | $8,445.78(8b) | | | $8,558.05(8c) | |
Surrender Charge percentage(9) | | | 8.00%(9a) | | | 6.00%(9b) | | | 4.00%(9c) | |
Surrender Charge(10) | | | $650.88(10a) | | | $506.75(10b) | | | $342.32(10c) | |
Surrender Value(11) | | | $8,485.12(11a) | | | $8,939.03(11b) | | | $9,215.72(11c) | |
State | | | Benefit | | | Variation | |
| | Free Look | | | | ||
California | | | Free Look | | | | |
Connecticut | | | Free Look | | | For a replacement of an existing contract, your right to | |
District of Columbia | | | Free Look | | | For a replacement of an existing contract, your right to cancel period is 15 days. | |
Delaware | | | Free Look | | | For a replacement of an existing contract, your right to cancel period is 20 days. | |
Florida | | | Free Look | | | Your right to cancel period is 21 | |
| | Free Look | | | | ||
Idaho | | | Free Look | | | Your right to cancel period is 20 | |
| | | Surrender | | | Surrender payments will be delayed no longer than six months from the date we receive your notice to surrender. | |
| | Free Look | | | |||
| |||||||
| | Free Look | | | | ||
Kansas | | | Free Look | | | For a replacement of an existing contract, your right to cancel period is 20 days. | |
Kentucky | | | Free Look | | | For a non-replacement, your right to cancel period is 20 days. | |
Massachusetts | | | Free Look | | | Your right to cancel period is 20 | |
Michigan | | | Free Look | | | For a replacement of an existing contract, your right to cancel period is 15 days. | |
Minnesota | | | Free Look | | | Notice of cancellation and return of the Will refund | |
| | | Death Benefit | | | We will pay death benefit within two months. | |
| | | | ||||
| |||||||
North Dakota | | | Free Look | | | Your right to cancel period is 20 days. | |
| | Free Look | | | |||
|
State | | | Benefit | | | Variation | |
| | | | For a replacement For a replacement of an existing contract that was issued to you by Principal Life Insurance Company, | | ||
Rhode Island | | | Free Look | | | | |
Tennessee | | | Free Look | | | For a replacement of an existing contract, your right to cancel period is 20 days. | |
Texas | | | Free Look | | | | |
| | | Separate Account | | | The description of the Separate Account is modified for contracts issued in Texas. The Separate Account is a segregated account, established by Principal, in which we hold reserves for the Index-Linked Segment Option under the | |
| | Free Look | | | |||
| |||||||
Washington | | | Free Look | | | an existing contract, your right to cancel period is 20 days. An additional 10% penalty shall be added to any | |
|
| SEC Registration Fee | | | $ | 82,760.20 | | | SEC Registration Fee | | | $ | 82,760 | | | ||
| Legal Fees and Expenses | | | $ | 90,000 | | | Legal Fees and Expenses | | | $ | 90,000 | | | ||
| Accounting Fees and Expenses | | | $ | 50,000 | | | Accounting Fees and Expenses | | | $ | 50,000 | | | ||
| Printing Costs: | | | $ | 700 | | | Printing Costs: | | | $ | 700 | | | ||
| Total Expenses | | | $ | 223,460.20 | | | Total Expenses | | | $ | 223,460 | | |
| | | | PRINCIPAL LIFE INSURANCE COMPANY (Registrant) | | |||
| | | | | | /s/ D. J. Houston | | |
| | | | | | | D. J. Houston | |
| | | | | | | Director, Chairman, President and Chief Executive Officer | |
| Signature | | | Title | | | Date | |
| /s/ D. J. Houston D. J. Houston | | | Director, Chairman, President, and Chief Executive Officer (Principal Executive Officer) | | | | |
| /s/ J. M. Pitz J. M. Pitz | | | Senior Vice President and Controller | | | | |
| /s/ D. D. Strable-Soethout D. D. Strable-Soethout | | | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | | | | |
| /s/ J. S. Auerbach* J. S. Auerbach | | | Director | | | | |
| /s/ M. E. Beams* M. E. Beams | | | Director | | | | |
| /s/ J. Carter-Miller* J. Carter-Miller | | | Director | | | ||
| ||||||||
| /s/ R. C. Hochschild* R. C. Hochschild | | | Director | | | | |
| /s/ S. M. Mills* S. M. Mills | | | Director | | | | |
| /s/ H. E. Mitchell* H. E. Mitchell | | | Director | | | February 9, 2024 | |
| Signature | | | Title | | | Date | |
| /s/ | |||||||
C. N. Muruzabal | | | Director | | | | ||
| /s/ D. C. Nordin* D. C. Nordin | | | Director | | | | |
| /s/ B. C. Pickerell* B. C. Pickerell | | | Director | | | | |
| /s/ C. S. Richer* C. S. Richer | | | Director | | | | |
| /s/ A. Rivera* A. Rivera | | | Director | | | |
| | | | *By | | | /s/ D. J. Houston | |
| | | | | | | D. J. Houston | |
| | | | | | | Director, Chairman, President and Chief Executive Officer | |
| | | | *By: D.J. Houston — Attorney-in-Fact pursuant to Powers of Attorney filed previously. | |