| 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: July 26, 2012 |
| (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)) |
| Item 2.02. Results of Operations and Financial Condition | |
|
On July 26, 2012, Principal Financial Group, Inc. publicly announced information regarding its results | |
| of operations and financial condition for the quarter ended June 30, 2012. The text of the | |
|
announcement is included herewith as Exhibit 99. | |
|
Item 9.01 Financial Statements and Exhibits |
|
|
99 Second Quarter 2012 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: July 26, 2012 | |
| EXHIBIT 99 | ||
| Release: | On receipt, July 26, 2012 | |
| Media contact: | Adam Lackey, 515-362-0482, lacky.adam@principal.com | |
| Investor contact: | John Egan, 515-235-9500, egan.john@principal.com | |
| Principal Financial Group, Inc. Announces Second Quarter 2012 Results | ||
| · | Second quarter 2012 operating earnings1 were $216.3 million; $0.72 of earnings per share. | |
| · | Record assets under management of $367.1 billion. | |
| · | Second quarter 2012 total company net cash flows of $7.3 billion. | |
|
(Des Moines, Iowa) – Principal Financial Group, Inc. (NYSE: PFG) today announced results for second quarter | ||
| 2012. The company reported operating earnings of $216.3 million for second quarter 2012, compared to $229.0 | ||
| million for second quarter 2011. Operating earnings per diluted share (EPS) were $0.72 for second quarter 2012, | ||
| compared to $0.71 for second quarter 2011. The company reported net income available to common stockholders of | ||
| $173.1 million, or $0.58 per diluted share for second quarter 2012, compared to $217.3 million, or $0.67 per diluted | ||
| share for second quarter 2011. Operating revenues for second quarter 2012 were $2,136.3 million compared to | ||
| $2,098.5 million for the same period last year. | ||
| “The second quarter saw a continuation of the strong business fundamentals of the past few quarters. | ||
| We expect this momentum to continue despite ongoing macro headwinds,” said Larry D. Zimpleman, chairman, | ||
| president and chief executive officer of Principal Financial Group, Inc. “The diversification of our investment | ||
| management plus strategy allows us to generate deployable capital, even in challenging times.” | ||
| Added Terry Lillis, senior vice president and chief financial officer, “Our shift to a more fee-based business | ||
| model allows us to operate from a position of financial strength. We deployed $475 million of excess capital in the first | ||
| half of 2012 through a strategic international acquisition, quarterly dividends and opportunistic share repurchases. We | ||
| remain on track to deploy our targeted $800 to $900 million of excess capital, which we can return to shareholders or | ||
| invest in strategic M&A as opportunities arise.” | ||
|
1 Use of non-GAAP financial measures is discussed in this release after Segment Highlights | ||
| Key Highlights | |
| · | Record assets under management of $367.1 billion are up 9 percent compared to the year ago quarter. |
| · | Strong sales in the company’s three key U.S. Retirement and Investor Services Accumulation segments in the |
| second quarter, with $2.3 billion for Full Service Accumulation, $3.4 billion for Principal Funds and $492 | |
| million for Individual Annuities. | |
| · | Net cash flows of $1.9 billion for Full Service Accumulation and $1.1 billion for Principal Funds. |
| · | Unaffiliated net cash flows of $2.1 billion contributed to record unaffiliated assets under management of $92.3 |
| billion for Principal Global Investors. | |
| · | Principal International reported net cash flows of $2.3 billion and record assets under management of $60.3 |
| billion (excluding $8.3 billion of assets under management in our asset management joint venture in China, | |
| which are not included in reported assets under management). | |
| · | Individual Life sales of $45 million are up 6 percent over second quarter 2011. |
| · | Specialty Benefits had solid premium and fees growth of 5 percent over second quarter 2011 and a continued |
| stable loss ratio. | |
| · | Strong capital position with an estimated risk based capital ratio of 440 percent at quarter-end and $1.5 billion of |
| excess capital.2 | |
| · | Paid a quarterly dividend of $0.18 per common share on June 29, 2012. |
| · | Principal Financial Group bought back 5.4 million shares of common stock in the second quarter at an average |
| price of $25.52, bringing the year-to-date total number of shares repurchased 7.2 million. | |
| · | Book value per share, excluding AOCI3 was $28.18, up 4 percent over second quarter 2011 and 2 percent |
| sequentially. | |
| Net Income | |
| Net income available to common stockholders of $173.1 million for second quarter 2012 reflects net realized | |
| capital losses of $39.2 million, which includes: | |
|
· |
$20.8 million of net losses related to sales and permanent impairments of fixed maturity securities, including |
| $16.8 million of losses on commercial mortgage backed securities; and | |
| · | $2.2 million of losses on commercial mortgage whole loans. |
| Segment Highlights | |
| Retirement and Investor Services | |
| Segment operating earnings for second quarter 2012 were $141.7 million, compared to $154.7 million for | |
| the same period in 2011. The Full Service Accumulation segment earnings were $72.6 million compared to $77.1 | |
| million in the year ago quarter, primarily due to pressure on fee growth. Principal Funds earnings were $12.2 million | |
| compared to $13.2 million in second quarter 2011. The decrease was primarily due to higher expenses as we | |
| continue to invest in growing the business. Individual Annuities earnings were $24.6 million compared to $29.8 | |
| million for second quarter 2011, which reflects spread compression and higher deferred acquisition cost amortization. | |
| Bank and Trust Services operating earnings were $8.6 million, compared to $9.5 million. The guaranteed businesses, | |
| which consist of Investment Only and Full Service Payout, earned $23.7 million in the second quarter 2012, down 6 | |
| percent from second quarter 2011, which is in line with the drop in average account values. | |
| Operating revenues for the second quarter 2012 were $1,081.2 million compared to $1,044.2 million for | |
| the same period in 2011. | |
|
2 Excess capital includes cash at the holding company and capital at the life company above that needed to maintain a 350 | |
| percent NAIC risk based capital ratio for the life company. | |
| 3 Accumulated Other Comprehensive Income | |
| Segment assets under management were $193.6 billion as of June 30, 2012, compared to $183.6 billion |
| as of June 30, 2011. |
| Principal Global Investors |
| Segment operating earnings for second quarter 2012 were $18.2 million, compared to $20.8 million in the |
| prior year quarter, reflecting higher compensation costs from additional distribution staff and added investment |
| professionals to support growth. |
| Operating revenues for second quarter were $141.1 million, compared to $136.3 million for the same |
| period in 2011. |
| Unaffiliated assets under management were a record $92.3 billion as of June 30, 2012, compared to $79.4 |
|
billion as of June 30, 2011. |
|
Principal International |
| Segment operating earnings were $36.9 million in second quarter 2012, compared to $36.3 million in the |
| prior year quarter. Second quarter results were dampened $3 million due to expenses related to the closing of the |
| Claritas transaction. |
| Operating revenues were $210.6 million for second quarter 2012, compared to $227.2 million for the same |
| period last year, primarily due to the strengthening of the U.S. dollar. |
| Segment assets under management were a record $60.3 billion as of June 30, 2012, up $7.3 billion over |
| $53.0 billion as of June 30, 2011. |
| U.S. Insurance Solutions |
| Segment operating earnings for second quarter 2012 were $50.2 million, compared to $49.0 million for |
| the same period in 2011. Individual Life earnings were $27.6 million in the second quarter compared to $23.7 |
| million in second quarter 2011 reflecting better mortality experience in the current quarter. Specialty Benefits |
| earnings were $22.6 million in second quarter 2012, down from $25.3 million in the same period a year ago |
| primarily due to stronger than normal net investment income in second quarter 2011. Specialty Benefits loss ratios |
| continue to be stable. |
| Segment operating revenues for second quarter 2012 were $751.5 million compared to $730.7 million |
| for the same period a year ago. |
| Corporate |
| Operating losses for second quarter 2012 were $30.7 million compared to operating losses of $31.8 |
| million in second quarter 2011. |
| 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 gains and losses, |
| capital and liquidity positions, sales and earnings trends, and management's beliefs, expectations, goals and |
| opinions. The company does not undertake to update 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 Dec. |
| 31, 2011, and in the company’s quarterly report on Form 10-Q for the quarter ended March 31, 2012, 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 may significantly affect the company’s ability to meet liquidity needs, access to capital and cost of capital; |
| continued difficult conditions in the global capital markets and the economy generally; continued volatility or further |
| declines in the equity markets; changes in interest rates or credit spreads; the company’s investment portfolio is |
| subject to several risks that may diminish the value of its invested assets and the investment returns credited to |
| customers; the company’s valuation of securities may include methodologies, estimations and assumptions that are |
| subject to differing interpretations; the determination of the amount of allowances and impairments taken on the |
| company’s investments requires estimations and assumptions that are subject to differing interpretations; gross |
| unrealized losses may be realized or result in future impairments; competition from companies that may have greater |
| financial resources, broader arrays of products, higher ratings and stronger financial performance; a downgrade in the |
| company’s financial strength or credit ratings; inability to attract and retain sales representatives and develop new |
| distribution sources; international business risks; the company’s actual experience could differ significantly from its |
| pricing and reserving assumptions; the company’s ability to pay stockholder dividends and meet its obligations may |
| be constrained by the limitations on dividends or distributions Iowa insurance laws impose on Principal Life; the |
| pattern of amortizing the company’s DPAC and other actuarial balances on its universal life-type insurance contracts, |
| participating life insurance policies and certain investment contracts may change; the company may need to fund |
| deficiencies in its “Closed Block” assets that support participating ordinary life insurance policies that had a dividend |
| scale in force at the time of Principal Life’s 1998 conversion into a stock life insurance company; the company’s |
| reinsurers could default on their obligations or increase their rates; risks arising from acquisitions of businesses; |
| changes in laws, regulations or accounting standards; a computer system failure or security breach could disrupt |
| the company’s business, and damage its reputation; results of litigation and regulatory investigations; from time to |
| time the company may become subject to tax audits, tax litigation or similar proceedings, and as a result it may |
| owe additional taxes, interest and penalties in amounts that may be material; fluctuations in foreign currency |
| exchange rates; and applicable laws and the company’s stockholder rights plan, certificate of incorporation and by- |
| laws may discourage takeovers and business combinations that some stockholders might consider in their best |
| interests. |
| 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 adjusts U.S. GAAP measures |
| for items not directly related to ongoing operations. However, it is possible these adjusting items have occurred in |
| the past and could recur in future reporting periods. Management also uses non-GAAP measures for goal setting, |
| as a basis for determining employee and senior management awards and compensation, and evaluating |
| performance on a basis comparable to that used by investors and securities analysts. |
| Earnings Conference Call | |
| On Friday, July 27, 2012 at 10:00 a.m. (ET), 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 to www.principal.com/investor at 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 access code is 20811. | |
| · | Replay of the earnings call via telephone is available by dialing 855-859-2056 (U.S. and Canadian callers) or |
| 404-537-3406 (International callers). The access code is 20811. This replay will be available approximately | |
| two hours after the completion of the live earnings call through the end of day August 3, 2012. | |
| · | Replay of the earnings call via webcast as well as a transcript of the call will be available after the call at: |
| www.principal.com/investor. | |
| The company's financial supplement and additional investment portfolio detail for second quarter 2012 is | |
| currently available at www.principal.com/investor, and may be referred to during the call. Slides related to the | |
| call will be available at www.principal.com/investor approximately one-half hour prior to call start time. | |
| About the Principal Financial Group | |
| The Principal Financial Group® (The Principal ®)4 is a global investment management leader including | |
| retirement services, insurance solutions and asset management. The Principal offers businesses, individuals | |
| and institutional clients a wide range of financial products and services, including retirement, asset | |
| management and insurance through its diverse family of financial services companies. Founded in 1879 and a | |
| member of the FORTUNE 500®, the Principal Financial Group has $367.1 billion in assets under | |
| management5 and serves some 18.2 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, visit www.principal.com. | |
| ### | |
| 4 “The Principal Financial Group” and “The Principal” are registered service marks of Principal Financial Services, Inc., a member of the Principal | |
| Financial Group. | |
| 5 As of June 30, 2012. | |
| Summary of Segment and Principal Financial Group, Inc. Results | |||||
| Operating Earnings (Loss)* in millions | |||||
| Three Months Ended, | Six Months Ended, | ||||
| Segment | 06/30/12 | 06/30/11 | 06/30/12 | 06/30/11 | |
| Retirement and Investor Services | $ 141.7 | $ 154.7 | $ 285.3 | $ 308.8 | |
| Principal Global Investors | 18.2 | 20.8 | 34.4 | 37.4 | |
| Principal International | 36.9 | 36.3 | 78.7 | 64.1 | |
| U.S. Insurance Solutions | 50.2 | 49.0 | 100.4 | 102.4 | |
| Corporate | (30.7) | (31.8) | (69.5) | (63.9) | |
| Operating Earnings | $ 216.3 | $ 229.0 | $ 429.3 | $ 448.8 | |
| Net realized capital gains (losses), as adjusted | (39.2) | 23.5 | (49.2) | (31.4) | |
| Other after-tax adjustments | (4.0) | (35.2) | (5.5) | (18.1) | |
| Net income available to common stockholders | $ 173.1 | $ 217.3 | $ 374.6 | $ 399.3 | |
| Per Diluted Share | |||||
| Three Months Ended, | Six Months Ended, | ||||
| 06/30/12 | 06/30/11 | 06/30/12 | 06/30/11 | ||
| Operating Earnings | $ 0.72 | $ 0.71 | $ 1.42 | $ 1.39 | |
| Net realized capital gains (losses), as adjusted | (0.13) | 0.07 | (0.16) | (0.10) | |
| Other after-tax adjustments | (0.01) | (0.11) | (0.02) | (0.06) | |
| Net income available to common stockholders | $ 0.58 | $ 0.67 | $ 1.24 | $ 1.23 | |
| Weighted-average diluted common shares | 301.9 | 323.2 | 303.3 | 324.0 | |
| 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. |
| Principal Financial Group, Inc. | |||||||
| Results of Operations | |||||||
| (in millions) | |||||||
| Three Months Ended, | Six Months Ended, | ||||||
| 06/30/12 | 06/30/11 | 06/30/12 | 06/30/11 | ||||
| Premiums and other considerations | $ 681.3 | $ 596.2 | $ 1,358.4 | $ 1,167.4 | |||
| Fees and other revenues | 632.1 | 603.8 | 1,214.8 | 1,198.3 | |||
| Net investment income | 822.9 898.5 1,670.5 1,780.3 | ||||||
| Total operating revenues | 2,136.3 2,098.5 4,243.7 4,146.0 | ||||||
| Benefits, claims and settlement expenses | 1,105.2 | 1,088.4 | 2,321.4 | 2,108.9 | |||
| Dividends to policyholders | 49.5 | 52.9 | 99.8 | 106.5 | |||
| Commissions | 158.7 | 147.7 | 318.5 | 294.6 | |||
| Capitalization of DPAC | (99.4) | (81.2) | (200.4) | (163.9) | |||
| Amortization of DPAC | 49.2 | 37.3 | (56.2) | 91.2 | |||
| Depreciation and amortization | 18.3 | 16.5 | 41.8 | 36.5 | |||
| Interest expense on corporate debt | 30.5 | 31.7 | 61.6 | 62.2 | |||
| Compensation and other | 538.8 496.1 1,085.5 1,000.6 | ||||||
| Total expenses | 1,850.8 1,789.4 3,672.0 3,536.6 | ||||||
| Operating earnings before tax, noncontrolling | |||||||
| interest and preferred stock dividends | 285.5 | 309.1 | 571.7 | 609.4 | |||
| Less: | |||||||
| Income tax | 58.3 | 67.5 | 122.2 | 138.7 | |||
| Operating earnings attributable to noncontrolling | |||||||
| interest | 2.6 | 4.3 | 3.7 | 5.4 | |||
| Preferred stock dividends | 8.3 | 8.3 | 16.5 | 16.5 | |||
| Operating earnings | $ 216.3 $ 229.0 $ 429.3 $ 448.8 | ||||||
| Net realized capital gains (losses), as adjusted | (39.2) | 23.5 | (49.2) | (31.4) | |||
| Other after-tax adjustments | (4.0) | (35.2) | (5.5) | (18.1) | |||
| Net income available to common stockholders | $ 173.1 $ 217.3 $ 374.6 $ 399.3 | ||||||
| Selected Balance Sheet Statistics | |||||||
| Period Ended, | |||||||
| 06/30/12 | 12/31/11 | 06/30/11 | |||||
| Total assets (in billions) | $ 152.1 | $ 147.4 | $ 148.3 | ||||
| Total common equity (in millions) | $ 8,880.7 | $ 8,475.9 | $ 9,234.8 | ||||
| Total common equity excluding accumulated | |||||||
| other comprehensive income (in millions) | $ 8,330.2 | $ 8,217.9 | $ 8,493.5 | ||||
| End of period common shares outstanding (in | |||||||
| millions) | 295.6 | 301.1 | 313.7 | ||||
| Book value per common share | $ 30.04 | $ 28.15 | $ 29.44 | ||||
| Book value per common share excluding | |||||||
| accumulated other comprehensive income | $ 28.18 | $ 27.29 | $ 27.08 | ||||
| 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, | |||
| 06/30/12 | 06/30/11 | 06/30/12 | 06/30/11 | |
| Diluted Earnings Per Common Share: | ||||
| Operating earnings | $ 0.72 | $ 0.71 | $ 1.42 | $ 1.39 |
| Net realized capital gains (losses) | (0.13) | 0.07 | (0.16) | (0.10) |
| Other after-tax adjustments | (0.01) | (0.11) | (0.02) | (0.06) |
| Net income available to common stockholders | $ 0.58 $ 0.67 $ 1.24 $ 1.23 | |||
| Book Value Per Common Share Excluding Accumulated | ||||
| Other Comprehensive Income: | ||||
| Book value per common share excluding accumulated other | ||||
| comprehensive income | $ 28.18 | $ 27.08 | $ 28.18 | $ 27.08 |
| Net unrealized capital gains | 3.46 | 2.55 | 3.46 | 2.55 |
| Foreign currency translation | (0.44) | 0.32 | (0.44) | 0.32 |
| Net unrecognized postretirement benefit obligations | (1.16) | (0.51) | (1.16) | (0.51) |
| Book value per common share including accumulated other | ||||
| comprehensive income | $ 30.04 $ 29.44 $ 30.04 $ 29.44 | |||
| Operating Revenues: | ||||
| RIS | $ 1,081.2 | $ 1,044.2 | $ 2,136.3 | $ 2,062.1 |
| PGI | 141.1 | 136.3 | 279.2 | 261.6 |
| PI | 210.6 | 227.2 | 473.1 | 433.3 |
| USIS | 751.5 | 730.7 | 1,448.5 | 1,462.7 |
| Corporate | (48.1) | (39.9) | (93.4) | (73.7) |
| Total operating revenues | 2,136.3 | 2,098.5 | 4,243.7 | 4,146.0 |
| Net realized capital gains (losses) and related adjustments | (21.7) | 17.1 | (52.1) | (63.4) |
| Exited group medical insurance business | 4.0 | 180.8 | 22.9 | 435.7 |
| Total GAAP revenues | $ 2,118.6 $ 2,296.4 $ 4,214.5 $ 4,518.3 | |||
| Operating Earnings: | ||||
| RIS | $ 141.7 | $ 154.7 | $ 285.3 | $ 308.8 |
| PGI | 18.2 | 20.8 | 34.4 | 37.4 |
| PI | 36.9 | 36.3 | 78.7 | 64.1 |
| USIS | 50.2 | 49.0 | 100.4 | 102.4 |
| Corporate | (30.7) | (31.8) | (69.5) | (63.9) |
| Total operating earnings | 216.3 | 229.0 | 429.3 | 448.8 |
| Net realized capital gains (losses) and related adjustments | (39.2) | 23.5 | (49.2) | (31.4) |
| Other after-tax adjustments | (4.0) | (35.2) | (5.5) | (18.1) |
| Net income available to common stockholders | $ 173.1 $ 217.3 $ 374.6 $ 399.3 | |||
| Net Realized Capital Gains (Losses): | ||||
| Net realized capital gains (losses), as adjusted | $ (39.2) | $ 23.5 | $ (49.2) | $ (31.4) |
| Certain derivative and hedging-related adjustments | 22.4 | 25.5 | 45.7 | 47.8 |
| Amortization of DPAC and sale inducement costs | 28.7 | 14.3 | (4.2) | (6.3) |
| Certain market value adjustments of embedded derivatives | (0.5) | (60.0) | 1.4 | (63.8) |
| Capital gains (losses) distributed | (5.6) | 3.0 | 1.9 | 11.7 |
| Tax impacts | (5.1) | 12.0 | (10.0) | (15.5) |
| Noncontrolling interest capital gains | 0.1 | 19.3 | 8.2 | 36.8 |
| Recognition of front-end fee revenues | (0.5) | (0.1) | (0.1) | 0.1 |
| Certain market value adjustments to fee revenues | - | 0.1 | - | 0.1 |
| Net realized capital gains (losses) associated with exited group | ||||
| medical business | (0.1) | 0.1 | (0.2) | 0.2 |
| GAAP net realized capital gains (losses) | $ 0.2 $ 37.7 $ (6.5) $ (20.3) | |||
| Other After-Tax Adjustments: | ||||
| Exited group medical insurance businesses | $ (4.0) | $ 18.8 | $ (5.5) | $ 35.9 |
| Contribution to PFG Foundation | - | (19.5) | - | (19.5) |
| Assumption change within the Individual Life business | - | (34.5) | - | (34.5) |
| Total other after-tax adjustments | $ (4.0) $ (35.2) $ (5.5) $ (18.1) | |||