Future Policy Benefits and Claims (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Future Policy Benefits and Claims |
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| Disaggregated Future Policy Benefits and Claims amounts and reconciliation (Table) |
| | | | | | | | | June 30, 2026 | | December 31, 2025 | | | | (in millions) | Liability for future policy benefits by segment (1): | | | | | | | Retirement and Income Solutions: | | | | | | | Pension risk transfer | | $ | 26,999.0 | | $ | 27,349.3 | Individual fixed income annuities | | | 4,180.4 | | | 4,367.4 | Total Retirement and Income Solutions | | | 31,179.4 | | | 31,716.7 | Principal Asset Management – International Pension: | | | | | | | Latin America: | | | | | | | Individual fixed income annuities | | | 4,382.4 | | | 4,600.5 | Benefits and Protection: | | | | | | | Specialty Benefits: | | | | | | | Individual disability | | | 2,039.4 | | | 1,994.2 | Life Insurance: | | | | | | | Term life | | | 1,555.7 | | | 1,515.7 | Total Benefits and Protection | | | 3,595.1 | | | 3,509.9 | Corporate: | | | | | | | Long-term care insurance | | | 163.7 | | | 166.7 | Total liability for future policy benefits | | | 39,320.6 | | | 39,993.8 | | | | | | | | Additional liability for certain benefit features by segment (2): | | | | | | | Benefits and Protection – Life Insurance: | | | | | | | Universal life | | | 6,876.4 | | | 6,604.8 | Total additional liability for certain benefit features | | | 6,876.4 | | | 6,604.8 | | | | | | | | Reconciling items: | | | | | | | Participating contracts | | | 2,723.9 | | | 2,784.3 | Short-duration contracts | | | 1,180.4 | | | 1,205.2 | Cost of reinsurance liability | | | 953.9 | | | 971.4 | Reinsurance recoverable liability | | | 27.8 | | | 23.5 | Other (3) | | | 165.1 | | | 166.7 | Future policy benefits and claims per consolidated statements of financial position | | $ | 51,248.1 | | $ | 51,749.7 |
| (1) | Amounts include the deferred profit liability. |
| (2) | Includes reserves on certain long-duration contracts where benefit features result in gains in early years followed by losses in later years. |
| (3) | Includes other miscellaneous reserves and the impact of unrealized gains (losses) on the additional liability for certain benefit features. |
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| Schedule of Liability for Unpaid Claims (Table) |
| | | | | | | | | For the six months ended June 30, | | | 2026 | | 2025 | | | | (in millions) | Balance at beginning of period | | $ | 1,342.4 | | $ | 1,379.9 | Less: reinsurance recoverable | | | 62.6 | | | 61.2 | Net balance at beginning of period | | | 1,279.8 | | | 1,318.7 | Incurred: | | | | | | | Current year | | | 932.0 | | | 926.1 | Prior years | | | (83.3) | | | (71.1) | Total incurred | | | 848.7 | | | 855.0 | Payments: | | | | | | | Current year | | | 625.4 | | | 615.5 | Prior years | | | 241.1 | | | 254.1 | Total payments | | | 866.5 | | | 869.6 | Net balance at end of period | | | 1,262.0 | | | 1,304.1 | Plus: reinsurance recoverable | | | 61.7 | | | 59.7 | Balance at end of period | | $ | 1,323.7 | | $ | 1,363.8 |
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| Summary of gross premiums or assessments and interest accretion recognized by segment (Table) |
| | | | | | | | | | | | | | | Gross premiums or assessments (1) | | | For the three months ended | | For the six months ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in millions) | Retirement and Income Solutions: | | | | | | | | | | | | | Pension risk transfer (2) | | $ | 485.0 | | $ | 444.0 | | $ | 653.4 | | $ | 1,250.1 | Individual fixed income annuities | | | 6.5 | | | 5.9 | | | 12.0 | | | 14.1 | Total Retirement and Income Solutions | | | 491.5 | | | 449.9 | | | 665.4 | | | 1,264.2 | Principal Asset Management – International Pension: | | | | | | | | | | | | | Latin America: | | | | | | | | | | | | | Individual fixed income annuities | | | — | | | 4.1 | | | — | | | 5.9 | Benefits and Protection: | | | | | | | | | | | | | Specialty Benefits: | | | | | | | | | | | | | Individual disability | | | 165.4 | | | 161.8 | | | 325.9 | | | 320.4 | Life Insurance: | | | | | | | | | | | | | Universal life | | | 179.2 | | | 177.2 | | | 360.6 | | | 354.2 | Term life | | | 178.1 | | | 173.7 | | | 352.4 | | | 344.0 | Total Benefits and Protection | | | 522.7 | | | 512.7 | | | 1,038.9 | | | 1,018.6 | Corporate: | | | | | | | | | | | | | Long-term care insurance | | | 1.1 | | | 1.2 | | | 2.8 | | | 2.9 | Total per consolidated statements of operations | | $ | 1,015.3 | | $ | 967.9 | | $ | 1,707.1 | | $ | 2,291.6 |
| (1) | Gross premiums are included within premiums and other considerations on the consolidated statements of operations. Assessments, which are only applicable to the Life Insurance – Universal life level of aggregation, are included within fees and other revenues on the consolidated statements of operations. |
| (2) | Since premium received from pension risk transfer products is generally in the form of single payments, the level of premiums can fluctuate depending on the number of large-scale annuity sales in a particular quarter. |
| | | | | | | | | | | | | | | Interest accretion (1) | | | For the three months ended | | For the six months ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | (in millions) | Retirement and Income Solutions: | | | | | | | | | | | | | Pension risk transfer | | $ | 324.6 | | $ | 308.1 | | $ | 650.6 | | $ | 608.6 | Individual fixed income annuities | | | 47.0 | | | 49.6 | | | 94.6 | | | 99.9 | Total Retirement and Income Solutions | | | 371.6 | | | 357.7 | | | 745.2 | | | 708.5 | Principal Asset Management – International Pension: | | | | | | | | | | | | | Latin America: | | | | | | | | | | | | | Individual fixed income annuities (2) | | | 141.9 | | | 78.4 | | | 196.3 | | | 167.2 | Benefits and Protection: | | | | | | | | | | | | | Specialty Benefits: | | | | | | | | | | | | | Individual disability | | | 27.1 | | | 26.2 | | | 54.0 | | | 52.0 | Life Insurance: | | | | | | | | | | | | | Universal life | | | 75.9 | | | 69.8 | | | 150.3 | | | 138.3 | Term life | | | 18.4 | | | 16.1 | | | 36.4 | | | 31.6 | Total Benefits and Protection | | | 121.4 | | | 112.1 | | | 240.7 | | | 221.9 | Corporate: | | | | | | | | | | | | | Long-term care insurance | | | 2.3 | | | 2.3 | | | 4.7 | | | 4.7 | Total per consolidated statements of operations | | $ | 637.2 | | $ | 550.5 | | $ | 1,186.9 | | $ | 1,102.3 |
(1)Interest accretion is included within benefits, claims and settlement expenses on the consolidated statements of operations. (2)Includes inflation adjustments included within the liability for future policy benefits rollforward for interest accretion.
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| Summary of amounts of expected undiscounted future benefit payments, expected undiscounted future gross premiums and expected discounted future gross premiums (Table) |
| | | | | | | | | June 30, 2026 | | December 31, 2025 | | | | (in millions) | Retirement and Income Solutions: | | | | | | | Pension risk transfer | | | | | | | Expected undiscounted future benefit payments | | $ | 42,577.0 | | $ | 42,601.7 | | | | | | | | Individual fixed income annuities | | | | | | | Expected undiscounted future benefit payments | | $ | 6,018.6 | | $ | 6,221.3 | | | | | | | | Principal Asset Management – International Pension: | | | | | | | Latin America: | | | | | | | Individual fixed income annuities | | | | | | | Expected undiscounted future benefit payments | | $ | 5,800.8 | | $ | 5,945.8 | | | | | | | | Benefits and Protection – Specialty Benefits: | | | | | | | Individual disability | | | | | | | Expected discounted future gross premiums | | $ | 5,602.3 | | $ | 5,683.8 | Expected undiscounted future gross premiums | | $ | 8,759.6 | | $ | 8,763.7 | Expected undiscounted future benefit payments | | $ | 10,032.2 | | $ | 9,951.7 | | | | | | | | Benefits and Protection – Life Insurance: | | | | | | | Term life | | | | | | | Expected discounted future gross premiums | | $ | 6,873.4 | | $ | 6,929.2 | Expected undiscounted future gross premiums | | $ | 12,060.4 | | $ | 11,960.4 | Expected undiscounted future benefit payments | | $ | 9,710.9 | | $ | 9,653.9 | | | | | | | | Corporate: | | | | | | | Long-term care insurance | | | | | | | Expected discounted future gross premiums | | $ | 33.8 | | $ | 37.4 | Expected undiscounted future gross premiums | | $ | 48.3 | | $ | 52.7 | Expected undiscounted future benefit payments | | $ | 355.9 | | $ | 363.1 |
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| Summary of weighted-average rates of interest accretion and current discount (Table) |
| | | | | | | | | | | | Interest accretion rate | | Current discount rate | | | | June 30, 2026 | | December 31, 2025 | | June 30, 2026 | | December 31, 2025 | | Retirement and Income Solutions: | | | | | | | | | | Pension risk transfer | | 4.72 | % | 4.70 | % | 5.49 | % | 5.28 | % | Individual fixed income annuities | | 4.22 | % | 4.22 | % | 5.41 | % | 5.16 | % | Principal Asset Management – International Pension (1): | | | | | | | | | | Latin America: | | | | | | | | | | Individual fixed income annuities | | 4.19 | % | 4.19 | % | 3.10 | % | 2.78 | % | Benefits and Protection: | | | | | | | | | | Specialty Benefits: | | | | | | | | | | Individual disability | | 3.82 | % | 3.84 | % | 5.62 | % | 5.43 | % | Life Insurance: | | | | | | | | | | Universal life | | 4.74 | % | 4.74 | % | See note | (2) | See note | (2) | Term life | | 4.67 | % | 4.81 | % | 5.21 | % | 4.91 | % | Corporate: | | | | | | | | | | Long-term care insurance | | 6.16 | % | 6.16 | % | 5.56 | % | 5.36 | % |
| (1) | The interest accretion rate and current discount rate are Chilean real rates, excluding inflation, in the local currency. |
| (2) | The additional liability for certain benefit features for Life Insurance – Universal life is measured using the discount rate at contract inception. Therefore, the current discount rate is not applicable for this product. |
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| Retirement and Income Solutions |
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| Future Policy Benefits and Claims |
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| Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits (Table) |
| | | | | | | | | | | | | | | For the six months ended | | For the year ended | | | June 30, 2026 | | December 31, 2025 | | | 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 | | $ | 27,349.3 | | $ | 4,367.4 | | $ | 24,958.1 | | $ | 4,504.6 | Effect of changes in discount rate assumptions at beginning of period | | | 1,294.3 | | | 297.6 | | | 1,938.8 | | | 420.4 | Balance at beginning of period at original discount rate | | | 28,643.6 | | | 4,665.0 | | | 26,896.9 | | | 4,925.0 | Effect of actual variances from expected experience | | | (1.0) | | | 1.9 | | | (17.9) | | | 2.3 | Adjusted beginning of period balance at original discount rate | | | 28,642.6 | | | 4,666.9 | | | 26,879.0 | | | 4,927.3 | Interest accrual | | | 650.6 | | | 94.6 | | | 1,234.2 | | | 197.2 | Benefit payments | | | (1,282.4) | | | (242.2) | | | (2,442.8) | | | (490.0) | Issuances | | | 654.2 | | | 11.8 | | | 2,973.2 | | | 30.5 | Balance at end of period at original discount rate | | | 28,665.0 | | | 4,531.1 | | | 28,643.6 | | | 4,665.0 | Effect of changes in discount rate assumptions at end of period | | | (1,666.0) | | | (350.7) | | | (1,294.3) | | | (297.6) | Future policy benefits | | | 26,999.0 | | | 4,180.4 | | | 27,349.3 | | | 4,367.4 | Reinsurance impact | | | — | | | (4,118.1) | | | — | | | (4,310.3) | Future policy benefits after reinsurance | | $ | 26,999.0 | | $ | 62.3 | | $ | 27,349.3 | | $ | 57.1 | | | | | | | | | | | | | | Weighted-average duration for future policy benefits (years) (1) | | | 7.9 | | | 7.0 | | | 7.9 | | | 7.1 |
| (1) | Represents the average of the cohort-level duration of the benefit cash flows weighted by the reserve balance for each cohort. |
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| Principal Asset Management | International Pension |
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| Future Policy Benefits and Claims |
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| Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits (Table) |
| | | | | | | | | For the six months ended | | For the year ended | | | June 30, 2026 | | December 31, 2025 | | | | ($ in millions) | Present value of expected future policy benefit payments | | | | | | | Balance at beginning of period | | $ | 4,600.5 | | $ | 4,126.9 | Effect of changes in discount rate assumptions at beginning of period | | | (493.5) | | | (368.4) | Balance at beginning of period at original discount rate | | | 4,107.0 | | | 3,758.5 | Effect of actual variances from expected experience | | | 0.4 | | | (0.4) | Adjusted beginning of period balance at original discount rate | | | 4,107.4 | | | 3,758.1 | Interest accrual (1) | | | 196.3 | | | 293.1 | Benefit payments | | | (181.9) | | | (335.6) | Issuances | | | — | | | 6.4 | Foreign currency translation adjustment | | | (91.3) | | | 385.0 | Balance at end of period at original discount rate | | | 4,030.5 | | | 4,107.0 | Effect of changes in discount rate assumptions at end of period | | | 351.9 | | | 493.5 | Future policy benefits | | $ | 4,382.4 | | $ | 4,600.5 | | | | | | | | Weighted-average duration for future policy benefits (years) (2) | | | 9.3 | | | 9.6 |
| (1) | Includes inflation adjustments. |
| (2) | Represents the average of the cohort-level duration of the benefit cash flows weighted by the reserve balance for each cohort. |
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| Benefits and Protection |
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| Future Policy Benefits and Claims |
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| Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits (Table) |
| | | | | | | | | | | | | | | For the six months ended | | For the year ended | | | June 30, 2026 | | December 31, 2025 | | | Specialty | | Life | | Specialty | | Life | | | Benefits | | Insurance | | Benefits | | Insurance | | | Individual | | | | | Individual | | | | | | disability | | Term life | | disability | | Term life | | | | ($ in millions) | Present value of expected net premiums | | | | | | | | | | | | | Balance at beginning of period | | $ | 2,740.8 | | $ | 4,392.2 | | $ | 2,680.6 | | $ | 4,107.2 | Effect of changes in discount rate assumptions at beginning of period | | | 349.8 | | | 198.4 | | | 436.4 | | | 290.1 | Balance at beginning of period at original discount rate | | | 3,090.6 | | | 4,590.6 | | | 3,117.0 | | | 4,397.3 | Effect of changes in cash flow assumptions | | | — | | | — | | | (22.5) | | | 163.2 | Effect of actual variances from expected experience | | | 50.8 | | | (16.4) | | | 114.8 | | | 11.7 | Adjusted beginning of period balance at original discount rate | | | 3,141.4 | | | 4,574.2 | | | 3,209.3 | | | 4,572.2 | Interest accrual | | | 54.7 | | | 107.3 | | | 108.8 | | | 208.7 | Net premiums collected | | | (148.7) | | | (213.2) | | | (298.0) | | | (418.8) | Issuances | | | 31.7 | | | 109.6 | | | 70.5 | | | 228.5 | Balance at end of period at original discount rate | | | 3,079.1 | | | 4,577.9 | | | 3,090.6 | | | 4,590.6 | Effect of changes in discount rate assumptions at end of period | | | (384.7) | | | (260.1) | | | (349.8) | | | (198.4) | Balance at end of period | | $ | 2,694.4 | | $ | 4,317.8 | | $ | 2,740.8 | | $ | 4,392.2 | | | | | | | | | | | | | | Present value of expected future policy benefit payments | | | | | | | | | | | | | Balance at beginning of period | | $ | 4,735.0 | | $ | 5,907.9 | | $ | 4,509.6 | | $ | 5,355.2 | Effect of changes in discount rate assumptions at beginning of period | | | 1,191.3 | | | 215.7 | | | 1,302.8 | | | 366.0 | Balance at beginning of period at original discount rate | | | 5,926.3 | | | 6,123.6 | | | 5,812.4 | | | 5,721.2 | Effect of changes in cash flow assumptions | | | — | | | — | | | (42.6) | | | 240.4 | Effect of actual variances from expected experience | | | 48.1 | | | (26.8) | | | 107.9 | | | 4.1 | Adjusted beginning of period balance at original discount rate | | | 5,974.4 | | | 6,096.8 | | | 5,877.7 | | | 5,965.7 | Interest accrual | | | 108.7 | | | 143.7 | | | 213.8 | | | 275.3 | Benefit payments | | | (122.9) | | | (177.2) | | | (234.1) | | | (359.7) | Issuances | | | 30.6 | | | 116.1 | | | 68.9 | | | 242.3 | Balance at end of period at original discount rate | | | 5,990.8 | | | 6,179.4 | | | 5,926.3 | | | 6,123.6 | Effect of changes in discount rate assumptions at end of period | | | (1,257.0) | | | (305.9) | | | (1,191.3) | | | (215.7) | Balance at end of period | | $ | 4,733.8 | | $ | 5,873.5 | | $ | 4,735.0 | | $ | 5,907.9 | | | | | | | | | | | | | | Future policy benefits (1) | | $ | 2,039.4 | | $ | 1,555.7 | | $ | 1,994.2 | | $ | 1,515.7 | Reinsurance impact | | | (432.1) | | | 9.6 | | | (430.0) | | | 9.8 | Future policy benefits after reinsurance | | $ | 1,607.3 | | $ | 1,565.3 | | $ | 1,564.2 | | $ | 1,525.5 | | | | | | | | | | | | | | Weighted-average duration for future policy benefits (years) (2) | | | 16.9 | | | 7.1 | | | 17.2 | | | 7.4 |
| (1) | Represents the present value of expected future policy benefit payments less the present value of expected net premiums. |
| (2) | Represents the average of the cohort-level duration of the benefits less the net premium cash flows weighted by the reserve balance for each cohort. |
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| Summary of balances and the changes in the additional liability for certain benefit features (Table) |
| | | | | | | | | For the six months ended | | For the year ended | | | June 30, 2026 | | December 31, 2025 | | | | ($ in millions) | Balance at beginning of period | | $ | 6,604.8 | | $ | 6,037.2 | Effect of changes in cash flow assumptions | | | — | | | 6.8 | Effect of actual variances from expected experience | | | 35.2 | | | 18.5 | Interest accrual | | | 150.3 | | | 282.4 | Net assessments collected | | | 214.2 | | | 430.6 | Benefit payments | | | (128.1) | | | (170.7) | Balance at end of period | | | 6,876.4 | | | 6,604.8 | Reinsurance impact | | | (6,865.4) | | | (6,593.6) | Balance at end of period after reinsurance | | $ | 11.0 | | $ | 11.2 | | | | | | | | Weighted-average duration for additional liability (years) (1) | | | 20.8 | | | 21.6 |
| (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. |
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| Corporate |
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| Future Policy Benefits and Claims |
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| Summary of balances and the changes in the present value for expected net premiums and expected future policy benefits (Table) |
| | | | | | | | | For the six months ended | | For the year ended | | | June 30, 2026 | | December 31, 2025 | | | | ($ in millions) | Present value of expected net premiums | | | | | | | Balance at beginning of period | | $ | 32.4 | | $ | 30.8 | Effect of changes in discount rate assumptions at beginning of period | | | (2.0) | | | (1.3) | Balance at beginning of period at original discount rate | | | 30.4 | | | 29.5 | Effect of changes in cash flow assumptions | | | — | | | 3.3 | Effect of actual variances from expected experience | | | (0.5) | | | 0.3 | Adjusted beginning of period balance at original discount rate | | | 29.9 | | | 33.1 | Interest accrual | | | 0.8 | | | 1.8 | Net premiums collected | | | (2.5) | | | (4.5) | Balance at end of period at original discount rate | | | 28.2 | | | 30.4 | Effect of changes in discount rate assumptions at end of period | | | 1.4 | | | 2.0 | Balance at end of period | | $ | 29.6 | | $ | 32.4 | | | | | | | | Present value of expected future policy benefit payments | | | | | | | Balance at beginning of period | | $ | 199.1 | | $ | 195.6 | Effect of changes in discount rate assumptions at beginning of period | | | (12.7) | | | (8.8) | Balance at beginning of period at original discount rate | | | 186.4 | | | 186.8 | Effect of changes in cash flow assumptions | | | — | | | 1.3 | Effect of actual variances from expected experience | | | 0.3 | | | 3.4 | Adjusted beginning of period balance at original discount rate | | | 186.7 | | | 191.5 | Interest accrual | | | 5.5 | | | 11.2 | Benefit payments | | | (8.1) | | | (16.3) | Balance at end of period at original discount rate | | | 184.1 | | | 186.4 | Effect of changes in discount rate assumptions at end of period | | | 9.2 | | | 12.7 | Balance at end of period | | $ | 193.3 | | $ | 199.1 | | | | | | | | Future policy benefits (1) | | $ | 163.7 | | $ | 166.7 | Reinsurance impact | | | (163.7) | | | (166.7) | Future policy benefits after reinsurance | | $ | — | | $ | — | | | | | | | | Weighted-average duration for future policy benefits (years) (2) | | | 9.5 | | | 9.7 |
| (1) | Represents the present value of expected future policy benefit payments less the present value of expected net premiums. |
| (2) | Represents the average of the cohort-level duration of the benefits less the net premium cash flows weighted by the reserve balance for each cohort. |
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