| SECURITIES AND EXCHANGE COMMISSION |
| Washington, D.C. 20549 |
| ________________________________ |
| FORM 8-K |
| CURRENT REPORT |
| Pursuant to Section 13 or 15(d) of the |
| Securities Exchange Act of 1934 |
| Date of Report:August 3, 2009 |
| (Date of earliest event reported) |
| PRINCIPAL FINANCIAL GROUP, INC. |
| (Exact name of registrant as specified in its charter) |
| Delaware | 1-16725 | 42-1520346 |
| (State or other jurisdiction | (Commission file number) | (I.R.S. Employer |
| of incorporation) | Identification Number) |
| 711 High Street, Des Moines, Iowa 50392 |
| (Address of principal executive offices) |
| (515) 247-5111 |
| (Registrant’s telephone number, including area code) |
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the | |
| registrant under any of the following provisions: | |
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR |
| 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR |
| 240.13e-4(c)) | |
| __________________________ | |
| Page 2 |
Item 2.02. Results of Operations and Financial Condition |
| On August 3, 2009, Principal Financial Group, Inc. publicly announced information regarding its results of operations |
| and financial condition for the quarter ended July 31, 2009. The text of the announcement is included herewith as |
| Exhibit 99. |
Item 9.01 Financial Statements and Exhibits |
| 99 Second Quarter 2009 Earnings Release |
SIGNATURE |
| Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this |
| report to be signed on its behalf by the undersigned thereunto duly authorized. |
| PRINCIPAL FINANCIAL GROUP, INC. | |||
| By: | /s/Terrance J. Lillis | ||
| Name: | Terrance J. Lillis | ||
| Title: | Senior Vice President and Chief Financial Officer | ||
| Date: | August 4, 2009 | ||
| Page 3 | ||
| EXHIBIT 99 | ||
| RELEASE: | On receipt | |
| MEDIA CONTACT: | Susan Houser, 515-248-2268, Houser.Susan@principal.com | |
| INVESTOR RELATIONS CONTACT: | Tom Graf, 515-235-9500, investor-relations@principal.com | |
| PRINCIPAL FINANCIAL GROUP, INC. REPORTS SECOND QUARTER 2009 RESULTS | ||
| Des Moines, IA (August 3, 2009) – Principal Financial Group, Inc. (NYSE: PFG) today announced net |
| income available to common stockholders for the three months ended June 30, 2009, of $150.3 million, or |
| $0.52 per diluted share compared to $168.3 million, or $0.64 per diluted share for the three months ended |
| June 30, 2008. The company reported operating earnings of $200.5 million for second quarter 2009, |
| compared to $254.1 million for second quarter 2008. Operating earnings per diluted share (EPS) for second |
| quarter 2009 were $0.69 compared to $0.97 for the same period in 2008.1The decline in operating earnings |
| from a year ago primarily reflects lower fee income due to lower equity2and fixed income asset valuations, |
| which reduced total company assets under management (AUM) by 16 percent to $257.7 billion as of June 30, |
| 2009, compared to $308.0 billion as of June 30, 2008. The decline in per share results also reflects the |
| company’s common stock offering on May 11, 2009, which increased weighted average shares outstanding |
| from 261.2 million for the quarter ending June 30, 2008, to 291.4 million for the quarter ending June 30, |
| 2009. In addition, negative market performance in 2008 resulted in higher costs for employee pension and |
| other post-retirement benefits3in second quarter 2009 than second quarter 2008 of $0.07 on an EPS basis. |
| “We view our operating results for second quarter 2009 as solid,” said Larry D. Zimpleman, |
| chairman, president and chief executive officer. “We continued to benefit from diversification in our |
| businesses and our investment portfolio, and improved equity markets during the second quarter helped drive |
| a strong rebound from first quarter 2009 in assets under management, operating earnings and net income.” |
| Highlights comparing second quarter 2009 to first quarter 2009: | |
| · | Assets under management up 9 percent, or $21.1 billion, to $257.7 billion as of June 30, 2009. |
| · | Operating earnings up 22 percent, driven by a 50 percent or $58 million improvement from the |
| company’s three asset management and asset accumulation segments. | |
| · | Net income available to common stockholders up 33 percent, reflecting improved operating earnings and |
| a comparable level of net realized capital losses. | |
| “During the quarter we successfully completed two capital raises totaling $1.9 billion, with $1.15 |
| billion from equity and $750 million from long-term debt. These raises demonstrated investor confidence in |
| our ability to deliver sustainable, profitable growth and meet our obligations,” said Zimpleman. “Between |
| our equity raise and a $3 billion improvement in net unrealized losses4from narrowing of credit spreads, our |
| book value more than doubled from March 31stto $16.19 per share.” |
| _____________________________ |
| 1Use of non-GAAP financial measures is discussed in this release after Segment Highlights. |
| 2S&P 500 daily average down 35 percent comparing second quarter 2009 to second quarter 2008. |
| 3SFAS 87 Pension Expense and SFAS 106 Other Post-Retirement Benefits. |
| 4Before adjustment for deferred policy acquisition costs and taxes. |
| Page 4 |
| Added Terry Lillis, senior vice president and chief financial officer, “The quarter was not without its |
| challenges: institutional investors continue to delay funding due to market volatility and fewer plan sponsors |
| are changing their retirement plan providers due to the economy; rising unemployment is reducing the |
| number of participants in existing employee benefit plans; and investment income has declined. We expect |
| these pressures to ease over the next several quarters, but in the meantime, we continue to focus on managing |
| expenses and reducing risk in the investment portfolio. As always, we also remain focused on meeting the |
| needs of our customers and the advisors who serve them. Our success here is reflected in improving |
| retention, with withdrawals, as a percent of beginning assets under management, down 100 basis points |
| through mid-year.” |
Other Business Highlights: |
| · | Expense management: management action reduced compensation and other expenses $156 million or |
| 13 percent comparing the six months ended June 30, 2009 to the same period a year ago. | |
| · | Capital and liquidity management: the company increased its position in highly liquid assets 80 |
| percent from a year ago to $7.5 billion at June 30, 2009. Compared to June 30, 2008, cash and cash | |
| equivalent holdings were up 184 percent to $4.3 billion as of June 30, 2009, and government-backed | |
| securities were up 18 percent to $3.2 billion. Strong asset/liability matching and liquidity enabled the | |
| company to continue scaling back on the Investment Only business, reducing the block by $1.1 billion | |
| during the second quarter. | |
| · | Solid sales: the company’s three key retirement and investment products generated $3.0 billion of sales, |
| on a combined basis in second quarter 2009, despite a difficult sales environment, with $720 million of | |
| sales for full service accumulation, $1.9 billion for Principal Funds, and $371 million for individual | |
| annuities. |
| Net Income |
| Net income available to common stockholders of $150.3 million for second quarter 2009 reflects net realized |
| capital losses of $50.2 million, which includes: $80.6 million of losses related to sales and other than |
| temporary impairment of fixed maturity securities; $36.5 million of losses related to hedging activities; $16.0 |
| million of losses on commercial mortgage loans; $72.6 million of gains related to deferred policy acquisition |
| costs; and $11.8 million of gains on mark to market of fixed maturity securities held as trading. Of the $80.6 |
| million of losses related to sales and other than temporary impairment of fixed maturity securities, $27.7 |
| million reflects the sale of $526.0 million of securities to reduce the company’s exposure to ratings drift risk. |
| Segment Highlights |
U.S. Asset Accumulation |
| Segment operating earnings for second quarter 2009 declined 10 percent to $137.4 million, |
| compared to $152.9 million for the same period in 2008. The variance primarily reflects 17 percent lower |
| average account values for the segment due to significant equity market declines over the trailing twelve- |
| month period. The decline also reflects the impact of higher costs for employee pension and other post- |
| retirement benefits in second quarter 2009 than second quarter 2008, which reduced segment operating |
| earnings by $8.0 million. The impact of lower average account values was partially offset by expense |
| actions, which reduced compensation and other expense by $33.7 million or 13 percent compared to second |
| quarter 2008. Full service accumulation earnings were $62.4 million for second quarter 2009, compared to |
| $78.2 million in second quarter 2008, primarily reflecting an 18 percent decline in average account values. |
| Page 5 |
| Operating revenues for the second quarter decreased 21 percent to $991.3 million, compared to |
| $1,255.7 million for the same period in 2008. Excluding lower single premium group annuity (SPGA) sales, |
| operating revenues for the segment decreased 17 percent, consistent with the decline in average account |
| values. SPGA sales tend to vary from period to period as the product is typically used to fund defined |
| benefit plan terminations and therefore generates large premiums from a small number of customers. |
| Segment assets under management were $145.3 billion as of June 30, 2009, compared to $173.2 |
| billion as of June 30, 2008. |
| Global Asset Management |
| Segment operating earnings for second quarter 2009 were $8.2 million, compared to $24.1 million in |
| the prior year quarter, reflecting a 19 percent decline in average assets under management, lower net investment |
| income, lower fees due to a slowdown in the real estate market and higher costs for employee pension and other |
| post-retirement benefits. The impact of these items was partially offset by expense management, including a |
| $16.6 million or 25 percent reduction in compensation costs compared to the year ago quarter. |
| Operating revenues for second quarter decreased to $103.3 million from $143.7 million for the same |
| period in 2008. |
| Third party assets under management were $67.3 billion as of June 30, 2009, compared to $88.7 |
| billion as of June 30, 2008. |
| International Asset Management and Accumulation |
| Segment operating earnings for second quarter 2009 were $29.3 million compared to $31.8 |
| million for the same period in 2008. Second quarter 2009 earnings were dampened by unfavorable |
| macroeconomic conditions – modest deflation in Chile and weakening of Latin American currencies relative |
| to the U.S. dollar. |
| Operating revenues were $161.7 million for second quarter 2009, compared to $251.2 million for the |
| same period last year primarily due to lower investment yields from inflation-adjusted assets in Latin America. |
| Segment assets under management were $28.7 billion as of June 30, 2009, compared to $30.0 |
| billion as of June 30, 2008. Had currency rates remained unchanged from 2008, segment assets under |
| management would have increased 10 percent over last year. |
| Life and Health Insurance |
| Segment operating earnings for second quarter 2009 were $57.7 million, compared to $66.7 |
| million for the same period in 2008, with the decline reflecting $9.1 million of higher after-tax costs for |
| employee pension and other post-retirement benefits in second quarter 2009 than second quarter 2008. |
| Individual Life earnings were $28.3 million compared to $24.0 million in second quarter 2008, reflecting |
| lower deferred policy acquisition cost amortization expense resulting from improved equity market |
| performance during the quarter. Despite expense efficiencies in both divisions, Health earnings decreased to |
| $5.7 million compared to $11.8 million for second quarter 2008, and Specialty Benefits earnings decreased to |
| Page 6 |
| $23.7 million compared to $30.9 million. Health experienced higher claim costs in second quarter 2009 and |
| Specialty Benefits experienced unfavorable dental claims. Both divisions also experienced a reduction in the |
| number of participants in existing plans and lower investment income. |
| Operating revenues were $1,116.9 million, compared to $1,180.6 million for the same period a |
| year ago. The decline was primarily due to an 8 percent decline in Health division premiums, which |
| primarily reflects a decline in covered members. |
| Corporate and Other |
| Operating losses for second quarter 2009 were $32.1 million, compared to operating losses of $21.4 |
| million for the same period in 2008. The increase in losses reflects higher interest expense resulting from the |
| company’s $750 million debt issuance during the second quarter 2009. |
| Other-than-temporary impairments for second quarter 2009 |
| On April 9, 2009, the Financial Accounting Standards Board established new requirements for measuring |
| and presenting other-than-temporary impairment charges on available for sale securities, which the Company |
| adopted with first quarter 2009 reporting. Based on the new requirements, on a pre-tax basis, total other than |
| temporary impairment losses on available for sale securities were $200.9 million and the noncredit portion of |
| loss recognized in other comprehensive income was $66.5 million. Net impairment losses on available for |
| sale securities of $134.4 million for second quarter 2009 reflect: the company’s actions to reduce capital drift |
| risk by selling or tendering certain securities, which resulted in a loss of $48.1 million; and deterioration in |
| expected cash flows, which resulted in a $19.8 million net impairment charge on non-agency residential |
| mortgage backed securities and residential collateralized debt obligations. The remainder of the net |
| impairment losses for second quarter 2009 is primarily related to impairments of corporate credits. |
| Forward looking and cautionary statements |
| This press release contains forward-looking statements, including, without limitation, statements as to |
| operating earnings, net income available to common stockholders, net cash flows, realized and unrealized |
| losses, capital and liquidity positions, sales and earnings trends, and management's beliefs, expectations, |
| goals and opinions. The company does not undertake to update or revise these statements, which are based |
| on a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Future |
| events and their effects on the company may not be those anticipated, and actual results may differ materially |
| from the results anticipated in these forward-looking statements. The risks, uncertainties and factors that |
| could cause or contribute to such material differences are discussed in the company's annual report on Form |
| 10-K for the year ended December 31, 2008, and in company’s quarterly report on Form 10-Q for the quarter |
| ended March 31, 2009, filed by the company with the Securities and Exchange Commission, as updated or |
| supplemented from time to time in subsequent filings. These risks and uncertainties include, without |
| limitation: adverse capital and credit market conditions that may significantly affect the company’s ability to |
| meet liquidity needs, access to capital and cost of capital; difficult conditions in the global capital markets |
| and the general economy, which the company does not expect to improve in the near future, that may |
| materially adversely affect the company’s business and results of operations; the actions of the U.S. |
| government, Federal Reserve and other governmental and regulatory bodies for purposes of stabilizing the |
| financial markets might not achieve the intended effect; the risk from acquiring new businesses, which could |
| result in the impairment of goodwill and/or intangible assets recognized at the time of acquisition; |
| impairment of other financial institutions that could adversely affect the company; investment risks which |
| may diminish the value of the company’s invested assets and the investment returns credited to customers, |
| which could reduce sales, revenues, assets under management and net income; requirements to post collateral |
| or make payments related to declines in market value of specified assets may adversely affect company |
| liquidity and expose the company to counterparty credit risk; changes in laws, regulations or accounting |
| standards that may reduce company profitability; fluctuations in foreign currency exchange rates that could |
| reduce company profitability; Principal Financial Group, Inc.’s primary reliance, as a holding company, on |
| Page 7 | |
| dividends from its subsidiaries to meet debt payment obligations and regulatory restrictions on the ability of | |
| subsidiaries to pay such dividends; competitive factors; volatility of financial markets; decrease in ratings; | |
| interest rate changes; inability to attract and retain sales representatives; international business risks; a | |
| pandemic, terrorist attack or other catastrophic event; and default of the company’s re-insurers. | |
| Use of Non-GAAP Financial Measures | |
| The company uses a number of non-GAAP financial measures that management believes are useful to | |
| investors because they illustrate the performance of normal, ongoing operations, which is important in | |
| understanding and evaluating the company’s financial condition and results of operations. They are not, | |
| however, a substitute for U.S. GAAP financial measures. Therefore, the company has provided reconciliations | |
| of the non-GAAP measures to the most directly comparable U.S. GAAP measure at the end of the release. | |
| The company adjustsU.S. GAAP measures for items not directly related to ongoing operations. However, | |
| it is possible theseadjusting items have occurred in the past and could recur in the future reporting periods. | |
| Management also usesnon-GAAP measures for goal setting, as a basis for determining employee and | |
| senior management awardsand compensation, and evaluating performance on a basis comparable to that | |
| used by investors and securities analysts. | |
| Earnings Conference Call | |
| At 9:00 A.M. (CST) tomorrow, Chairman, President and Chief Executive Officer Larry Zimpleman and | |
| Senior Vice President and Chief Financial Officer Terry Lillis will lead a discussion of results, asset quality | |
| and capital adequacy during a live conference call, which can be accessed as follows: | |
| · Via live Internet webcast. Please go towww.principal.com/investorat least 10-15 minutes prior to the | |
| start of the call to register, and to download and install any necessary audio software. | |
| · Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or 706-643-7701 (International | |
| callers) approximately 10 minutes prior to the start of the call. The call leader's name is Tom Graf. | |
| · Replays of the earnings call are available at:www.principal.com/investoror by dialing 800-642-1687 | |
| (U.S. and Canadian callers) or 706-645-9291 (International callers). The access code is 17748880. | |
| Replays will be available approximately two hours after the completion of the live earnings call through | |
| the end of day August 11, 2009. | |
| The company's financial supplement and additional investment portfolio detail for second quarter 2009 is | |
| currently available atwww.principal.com/investor, and may be referred to during the call. | |
| Page 8 |
| About the Principal Financial Group |
| The Principal Financial Group®(The Principal®)5is a leader in offering businesses, individuals and |
| institutional clients a wide range of financial products and services, including retirement and investment |
| services, life and health insurance, and banking through its diverse family of financial services companies. A |
| member of the Fortune 500, the Principal Financial Group has $257.7 billion in assets under management6 |
| and serves some 18.8 million customers worldwide from offices in Asia, Australia, Europe, Latin America |
| and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the |
| ticker symbol PFG. For more information, visitwww.principal.com. |
| ### |
| _________________________________ |
| 5"The Principal Financial Group" and “The Principal” are registered service marks of Principal Financial Services, Inc., a member of the |
| Principal Financial Group. |
| 6As of June 30, 2009 |
| Page 9 |
| Summary of Segment and Principal Financial Group, Inc. Results |
| Operating Earnings (Loss)* | ||||
| in millions | ||||
| Three Months Ended, | Six Months Ended, | |||
| Segment | 6/30/09 | 6/30/08 | 6/30/09 | 6/30/08 |
| U.S. Asset Accumulation | $137.4 | $152.9 | $230.5 | $292.0 |
| Global Asset Management | 8.2 | 24.1 | 15.0 | 43.9 |
| International Asset Management and Accumulation | 29.3 | 31.8 | 46.3 | 63.5 |
| Life and Health Insurance | 57.7 | 66.7 | 129.5 | 145.9 |
| Corporate and Other | (32.1) | (21.4) | (56.8) | (32.8) |
| Operating Earnings | 200.5 | 254.1 | 364.5 | 512.5 |
| Net realized capital losses, as adjusted | (50.2) | (85.4) | (101.1) | (160.1) |
| Other after-tax adjustments | (0.0) | (0.4) | (0.3) | (9.9) |
| Net income available to common stockholders | $150.3 | $168.3 | $263.1 | $342.5 |
| Per Diluted Share | ||||
| Three Months Ended, | Six Months Ended, | |||
| 6/30/09 | 6/30/08 | 6/30/09 | 6/30/08 | |
| Operating Earnings | $0.69 | $0.97 | $1.32 | $1.96 |
| Net realized capital losses, as adjusted | (0.17) | (0.33) | (0.37) | (0.62) |
| Other after-tax adjustments | (0.00) | (0.00) | (0.00) | (0.03) |
| Net income available to common stockholders | $0.52 | $0.64 | $0.95 | $1.31 |
| Weighted-average diluted common shares | 291.4 | 261.2 | 275.8 | 261.2 |
| outstanding | ||||
| *Operating earnings versus U.S. GAAP (GAAP) net income available to common stockholders |
| Management uses operating earnings, which excludes the effect of net realized capital gains and losses, as adjusted, and other after- |
| tax adjustments, for goal setting, as a basis for determining employee compensation, and evaluating performance on a basis |
| comparable to that used by investors and securities analysts. Segment operating earnings are determined by adjusting U.S. GAAP |
| net income available to common stockholders for net realized capital gains and losses, as adjusted, and other after-tax adjustments |
| the company believes are not indicative of overall operating trends. Note: it is possible these adjusting items have occurred in the |
| past and could recur in future reporting periods. While these items may be significant components in understanding and assessing |
| our consolidated financial performance, management believes the presentation of segment operating earnings enhances the |
| understanding of results of operations by highlighting earnings attributable to the normal, ongoing operations of the company’s |
| businesses. |
| Page 10 | |||||
| Principal Financial Group, Inc. Results of Operations (in millions) | |||||
| Three Months Ended, | Six Months Ended, | ||||
| 6/30/09 | 6/30/08 | 6/30/09 | 6/30/08 | ||
| Premiums and other considerations | $ 937.7 | $ 1,156.2 | $ 1,887.6 | $ 2,209.2 | |
| Fees and other revenues | 515.2 | 622.5 | 988.7 | 1,235.9 | |
| Net investment income | 860.1 | 990.9 | 1,688.6 | 1,951.2 | |
| Net realized capital gains (losses), excluding | |||||
| impairment losses on available-for-sale | |||||
| securities | (20.8) | (65.6) | 11.9 | (124.1) | |
| Total other-than-temporary impairment losses | |||||
| on available-for-sale securities | (200.9) | (45.9) | (347.5) | (113.4) | |
| Portion of impairment losses on fixed | |||||
| maturities, available-for-sale recognized | |||||
| in other comprehensive income | 66.5 | - | 117.1 | - | |
| Net impairment losses on available-for-sale | |||||
| securities | (134.4) | (45.9) | (230.4) | (113.4) | |
| Net realized capital losses | (155.2) | (111.5) | (218.5) | (237.5) | |
| Total revenues | 2,157.8 | 2,658.1 | 4,346.4 | 5,158.8 | |
| Benefits, claims, and settlement expenses | 1,334.3 | 1,634.0 | 2,640.9 | 3,106.0 | |
| Dividends to policyholders | 62.9 | 69.0 | 126.4 | 139.8 | |
| Operating expenses | 562.7 | 742.6 | 1,251.1 | 1,493.3 | |
| Total expenses | 1,959.9 | 2,445.6 | 4,018.4 | 4,739.1 | |
| Income before income taxes | 197.9 | 212.5 | 328.0 | 419.7 | |
| Income taxes | 33.9 | 29.4 | 41.4 | 59.0 | |
| Net income | 164.0 | 183.1 | 286.6 | 360.7 | |
| Net income attributable to noncontrolling | |||||
| interest | 5.4 | 6.5 | 7.0 | 1.7 | |
| Net income attributable to PFG | 158.6 | 176.6 | 279.6 | 359.0 | |
| Preferred stock dividends | 8.3 | 8.3 | 16.5 | 16.5 | |
| Net income available to common stockholders | $ 150.3 | $ 168.3 | $ 263.1 | $ 342.5 | |
| Less: | |||||
| Net realized capital losses, as adjusted | (50.2) | (85.4) | (101.1) | (160.1) | |
| Other after-tax adjustments | (0.0) | (0.4) | (0.3) | (9.9) | |
| Operating earnings | $ 200.5 | $ 254.1 | $ 364.5 | $ 512.5 | |
| Selected Balance Sheet Statistics | |||
| Period Ended, | |||
| 6/30/09 | 12/31/08 | 6/30/08 | |
| Total assets (in billions) | $ 130.7 | $ 128.2 | $ 151.5 |
| Total common equity (in millions) | $ 5,153.2 | $ 1,930.8 | $ 6,077.9 |
| Total common equity excluding accumulated | |||
| other comprehensive income (in millions) | $ 8,195.6 | $ 6,842.4 | $ 6,851.8 |
| End of period common shares outstanding (in | |||
| millions) | 318.3 | 259.3 | 259.0 |
| Book value per common share | $ 16.19 | $ 7.45 | $ 23.47 |
| Book value per common share excluding | |||
| accumulated other comprehensive income | $ 25.75 | $ 26.39 | $ 26.45 |
| Page 11 | |
| Principal Financial Group, Inc. Reconciliation of Non-GAAP Financial Measures to U.S. GAAP (in millions, except as indicated) | |
| Three Months Ended, | Six Months Ended, | |||
| 06/30/09 | 06/30/08 | 06/30/09 | 06/30/08 | |
| Diluted Earnings Per Common Share: | ||||
| Operating Earnings | 0.69 | 0.97 | 1.32 | 1.96 |
| Net realized capital losses | (0.17) | (0.33) | (0.37) | (0.62) |
| Other after-tax adjustments | (0.00) | (0.00) | (0.00) | (0.03) |
| Net income available to common stockholders | 0.52 | 0.64 | 0.95 | 1.31 |
| Book Value Per Common Share Excluding Accumulated Other | ||||
| Comprehensive Income: | ||||
| Book value per common share excluding accumulated other | ||||
| comprehensive income | 25.75 | 26.45 | 25.75 | 26.45 |
| Net unrealized capital losses | (7.67) | (3.49) | (7.67) | (3.49) |
| Foreign currency translation | (0.20) | 0.27 | (0.20) | 0.27 |
| Net unrecognized post-retirement benefit obligations | (1.69) | 0.24 | (1.69) | 0.24 |
| Book value per common share including accumulated other | ||||
| comprehensive income | 16.19 | 23.47 | 16.19 | 23.47 |
| Operating Revenues: | ||||
| USAA | 991.3 | 1,255.7 | 1,998.8 | 2,460.4 |
| GAM | 103.3 | 143.7 | 207.7 | 283.3 |
| IAMA | 161.7 | 251.2 | 225.7 | 434.9 |
| Life and Health | 1,116.9 | 1,180.6 | 2,247.9 | 2,368.2 |
| Corporate and Other | (37.4) | (44.6) | (83.1) | (99.9) |
| Total operating revenues | 2,335.8 | 2,786.6 | 4,597.0 | 5,446.9 |
| Add: | ||||
| Net realized capital losses and related adjustments | (178.0) | (130.9) | (250.5) | (269.2) |
| Terminated commercial mortgage securities issuance operation | 0.0 | 2.4 | (0.1) | (18.9) |
| Total GAAP revenues | 2,157.8 | 2,658.1 | 4,346.4 | 5,158.8 |
| Operating Earnings: | ||||
| USAA | 137.4 | 152.9 | 230.5 | 292.0 |
| GAM | 8.2 | 24.1 | 15.0 | 43.9 |
| IAMA | 29.3 | 31.8 | 46.3 | 63.5 |
| Life and Health | 57.7 | 66.7 | 129.5 | 145.9 |
| Corporate and Other | (32.1) | (21.4) | (56.8) | (32.8) |
| Total operating earnings | 200.5 | 254.1 | 364.5 | 512.5 |
| Net realized capital losses | (50.2) | (85.4) | (101.1) | (160.1) |
| Other after-tax adjustments | (0.0) | (0.4) | (0.3) | (9.9) |
| Net income available to common stockholders | 150.3 | 168.3 | 263.1 | 342.5 |
| Net Realized Capital Gains (losses): | ||||
| Net realized capital gains losses, as adjusted | (50.2) | (85.4) | (101.1) | (160.1) |
| Add: | ||||
| Periodic settlements and accruals on non-hedge derivatives | 20.0 | 19.4 | 27.7 | 28.2 |
| Amortization of DPAC and sale inducement costs | (114.4) | (16.4) | (89.6) | (29.9) |
| Certain market value adjustments of embedded derivatives | (2.5) | 3.2 | (6.5) | 3.2 |
| Capital gains (losses) distributed | 13.6 | 6.9 | 6.9 | (2.4) |
| Tax impacts | (29.0) | (42.2) | (65.8) | (76.3) |
| Noncontrolling interest capital gains (losses) | 4.5 | 3.0 | 5.6 | (3.7) |
| Less related fee adjustments: | ||||
| Unearned front-end fee income | (2.8) | - | (2.8) | - |
| Certain market value adjustments to fee revenues | - | - | (1.5) | (3.5) |
| GAAP net realized capital losses | (155.2) | (111.5) | (218.5) | (237.5) |
| Other After Tax Adjustments: | ||||
| Change in estimated loss related to a prior year legal contingency | - | - | - | 7.6 |
| Terminated commercial mortgage securities issuance operation | - | (0.4) | (0.3) | (17.5) |
| Total other after-tax adjustments | - | (0.4) | (0.3) | (9.9) |