Future Policy Benefits and Claims

Schedule of Liability for Unpaid Claims (Table)


	For the six months ended June 30,
	2025		2024

	(in millions)
Balance at beginning of period	$	1,379.9	$	1,405.9
Less: reinsurance recoverable		61.2		67.8
Net balance at beginning of period		1,318.7		1,338.1
Incurred:
Current year		926.1		899.7
Prior years		(71.1)		(68.3)
Total incurred		855.0		831.4
Payments:
Current year		615.5		578.6
Prior years		254.1		250.4
Total payments		869.6		829.0
Net balance at end of period		1,304.1		1,340.5
Plus: reinsurance recoverable		59.7		63.7
Balance at end of period	$	1,363.8	$	1,404.2

Summary of amounts of expected undiscounted future benefit payments, expected undiscounted future gross premiums and expected discounted future gross premiums (Table)


	June 30, 2025		December 31, 2024

	(in millions)
Retirement and Income Solutions:
Pension risk transfer
Expected undiscounted future benefit payments	$	40,756.9	$	39,532.3

Individual fixed income annuities
Expected undiscounted future benefit payments	$	6,413.9	$	6,622.6

Principal Asset Management – International Pension:
Latin America:
Individual fixed income annuities
Expected undiscounted future benefit payments	$	5,841.6	$	5,509.1

Benefits and Protection – Specialty Benefits:
Individual disability
Expected discounted future gross premiums	$	5,588.0	$	5,484.0
Expected undiscounted future gross premiums	$	8,693.9	$	8,680.0
Expected undiscounted future benefit payments	$	9,925.1	$	9,808.8

Benefits and Protection – Life Insurance:
Term life
Expected discounted future gross premiums	$	6,821.1	$	6,651.2
Expected undiscounted future gross premiums	$	11,533.7	$	11,391.4
Expected undiscounted future benefit payments	$	9,066.8	$	8,970.7

Corporate:
Long-term care insurance
Expected discounted future gross premiums	$	36.7	$	38.4
Expected undiscounted future gross premiums	$	52.3	$	55.7
Expected undiscounted future benefit payments	$	351.4	$	357.3

Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits expected future policy benefits (Table)


	For the six months ended				For the year ended
	June 30, 2025				December 31, 2024
	Pension		Individual		Pension		Individual
	risk		fixed income		risk		fixed income
	transfer		annuities		transfer		annuities

	($ in millions)
Present value of expected future policy benefit payments
Balance at beginning of period	$	24,958.1	$	4,504.6	$	23,855.8	$	4,914.1
Effect of changes in discount rate assumptions at beginning of period		1,938.8		420.4		1,036.1		296.7
Balance at beginning of period at original discount rate		26,896.9		4,925.0		24,891.9		5,210.8
Effect of changes in cash flow assumptions		—		—		(3.4)		(38.4)
Effect of actual variances from expected experience		(8.5)		0.2		(1.5)		(1.7)
Adjusted beginning of period balance at original discount rate		26,888.4		4,925.2		24,887.0		5,170.7
Interest accrual		608.6		99.9		1,135.1		208.4
Benefit payments		(1,212.8)		(248.0)		(2,238.1)		(500.2)
Issuances		1,257.4		13.9		3,112.9		46.1
Balance at end of period at original discount rate		27,541.6		4,791.0		26,896.9		4,925.0
Effect of changes in discount rate assumptions at end of period		(1,542.5)		(343.7)		(1,938.8)		(420.4)
Future policy benefits		25,999.1		4,447.3		24,958.1		4,504.6
Reinsurance impact		—		(4,403.6)		—		(4,469.4)
Future policy benefits after reinsurance	$	25,999.1	$	43.7	$	24,958.1	$	35.2

Weighted-average duration for future policy benefits (years) (1)		8.0		7.1		8.0		7.2

(1)	Represents the average of the cohort-level duration of the benefit cash flows weighted by the reserve balance for each cohort.

Future Policy Benefits and Claims

Summary of balances and the changes in the additional liability for certain benefits features (Table)


	For the six months ended		For the year ended
	June 30, 2025		December 31, 2024

	($ in millions)
Balance at beginning of period	$	6,037.2	$	5,326.5
Effect of changes in cash flow assumptions		—		151.9
Effect of actual variances from expected experience		9.0		28.0
Interest accrual		138.3		253.3
Net assessments collected		213.5		425.2
Benefit payments		(94.9)		(147.7)
Balance at end of period		6,303.1		6,037.2
Reinsurance impact		(6,287.5)		(6,011.3)
Balance at end of period after reinsurance	$	15.6	$	25.9

Weighted-average duration for additional liability (years) (1)		22.4		23.3

(1)	Represents the average of the cohort-level duration of the benefits less the net assessment cash flows weighted by the reserve balance for each cohort.

Future Policy Benefits and Claims

Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits expected future policy benefits (Table)


	For the six months ended		For the year ended
	June 30, 2025		December 31, 2024

	($ in millions)
Present value of expected net premiums
Balance at beginning of period	$	30.8	$	42.8
Effect of changes in discount rate assumptions at beginning of period		(1.3)		(3.0)
Balance at beginning of period at original discount rate		29.5		39.8
Effect of changes in cash flow assumptions		—		(5.3)
Effect of actual variances from expected experience		0.4		(2.2)
Adjusted beginning of period balance at original discount rate		29.9		32.3
Interest accrual		0.9		1.9
Net premiums collected		(2.5)		(4.7)
Balance at end of period at original discount rate		28.3		29.5
Effect of changes in discount rate assumptions at end of period		1.7		1.3
Balance at end of period	$	30.0	$	30.8

Present value of expected future policy benefit payments
Balance at beginning of period	$	195.6	$	209.5
Effect of changes in discount rate assumptions at beginning of period		(8.8)		(20.0)
Balance at beginning of period at original discount rate		186.8		189.5
Effect of changes in cash flow assumptions		—		(1.2)
Effect of actual variances from expected experience		1.2		2.5
Adjusted beginning of period balance at original discount rate		188.0		190.8
Interest accrual		5.6		11.2
Benefit payments		(7.9)		(15.2)
Balance at end of period at original discount rate		185.7		186.8
Effect of changes in discount rate assumptions at end of period		11.0		8.8
Balance at end of period	$	196.7	$	195.6

Future policy benefits (1)	$	166.7	$	164.8
Reinsurance impact		(166.7)		(164.8)
Future policy benefits after reinsurance	$	—	$	—

Weighted-average duration for future policy benefits (years) (2)		9.1		9.3

(1)	Represents the present value of expected future policy benefit payments less the present value of expected net premiums.

(2)	Represents the average of cohort-level duration of the benefits less the net premium cash flows weighted by the reserve balance for each cohort.