Principal Financial Group, Inc.’s (PFG) first-quarter 2025 operating net income of $1.81 per share missed the Zacks Consensus Estimate by 2.1%. Also, the bottom line increased 10% year over year. Principal Financial witnessed higher revenues and operating earnings across most of the segments and improved assets under management (AUM), offset by higher expenses. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Behind the HeadlinesOperating revenues increased 5.5% year over year to $4 ...

Principal Financial (PFG) came out with quarterly earnings of $1.81 per share, missing the Zacks Consensus Estimate of $1.85 per share. This compares to earnings of $1.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.16%. A quarter ago, it was expected that this financial services company would post earnings of $1.95 per share when it actually produced earnings of $1.94, delivering a surprise of -0.51%.Over the last four ...

Exhibit 99 INVESTOR CONTACT: MEDIA CONTACT: Humphrey Lee 877-909-1105, lee.humphrey@principal.com Sara Bonney 515-878-0835, bonney.sara@principal.com Principal Financial Group Announces First Quarter 2025 Results Raises second quarter 2025 common stock dividend (Des Moines, Iowa) – Principal Financial Group® (Nasdaq: PFG) announced results for first quarter 2025. | Diluted earnings per common share | 1Q25 | Net income attributable to PFG (in millions) | 1Q25 | | --- | --- | --- | --- | | Net income attribut ...

Core Viewpoint - Principal Financial Group, Inc. (PFG) is expected to report first-quarter 2025 earnings on April 24, with a consensus estimate of $1.85 per share, reflecting a 12.1% increase year-over-year, despite a negative earnings surprise in the previous quarter [1][7]. Group 1: Earnings and Revenue Expectations - The first-quarter results are anticipated to show a rise in fee revenues, higher yields, favorable market performance, and increased sales of single premium group annuities [2]. - Operating revenues are projected to increase to $3.97 billion, marking a nearly 4.4% rise from the same quarter last year [3]. - Net investment income is expected to reach $1.1 billion, benefiting from higher yields and average invested assets [6]. Group 2: Expense and Performance Factors - Operating expenses are likely to increase to $1.3 billion due to higher benefits, claims, and settlement expenses [7]. - Investment Management is expected to see improved performance from higher management fee revenues, although this may be offset by lower performance fee revenues and increased variable compensation expenses [4]. Group 3: Market and International Operations - International Pension operations are expected to benefit from increased earnings from equity method investments in Brazil and favorable market performance, although foreign currency headwinds may offset some gains [5]. - Assets under management are likely to improve due to favorable market performance across equity, fixed income, and real estate [6]. Group 4: Earnings Prediction Model - The earnings prediction model indicates a potential earnings beat for Principal Financial, supported by a positive Earnings ESP of +0.31% and a Zacks Rank of 3 [8][9].

Principal Financial (PFG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Apri ...

Principal Financial Group, Inc. (PFG) has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of March 25, 2025, was $85.67, down 6.8% from its 52-week high of $91.98.The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.With a market capitalization of $19.32 billion, the average volume of shares traded ...

Financial Performance and Assets - As of December 31, 2024, Principal Financial Group had $1,663.9 billion in assets under administration (AUA) and $712.1 billion in assets under management (AUM) [11]. - The Workplace Savings and Retirement Solutions (WSRS) segment managed over 43,000 defined contribution plans with $550.7 billion in assets, covering approximately 11.3 million eligible participants [22]. - Approximately 31% of WSRS account values were managed by Principal Asset Management, while 65% were managed by third-party asset managers [22]. - As of December 31, 2024, 90% of the $8.3 billion variable annuity account balances were allocated to mutual funds managed by Principal Asset Management [26]. - The company reported that $5.6 billion of the variable annuity separate account values had the Guaranteed Minimum Withdrawal Benefit (GMWB) rider [27]. - Principal Bank had approximately 772,000 customers and $8.8 billion in assets as of December 31, 2024 [36]. - Principal Trust Company managed approximately $658.6 billion in assets under administration as of December 31, 2024 [38]. - As of December 31, 2024, the Investment Management teams managed $559.1 billion in assets [45]. Insurance and Employee Benefits - The company had over 123,000 group dental and vision insurance policies in force covering over 3.0 million employees as of December 31, 2024 [68]. - The group life insurance business provided nearly $186 billion of group life insurance in force covering approximately 3.1 million employee lives as of December 31, 2024 [69]. - Long-term disability represented 59% of total group disability premium as of December 31, 2024 [70]. - The company administered approximately 716,000 individual life insurance policies with over $555.0 billion of individual life insurance in force as of December 31, 2024 [73]. - Interest sensitive products represented 18% of individual life insurance in force and generated 72% of individual life insurance annualized first year premium sales for the year ended December 31, 2024 [75]. - The company served approximately 2.2 million employee lives through over 69,000 contracts in group disability insurance as of December 31, 2024 [70]. - As of December 31, 2024, term life insurance products represented 80% of individual life insurance in force and 28% of individual life insurance annualized first year premium sales [78]. - Small and medium-sized business sales accounted for 100% of individual life sales and 71% of individual disability sales for the year ended December 31, 2024 [83]. Market Opportunities and Strategy - The company believes that small and medium-sized businesses represent an underserved market with attractive growth opportunities in retirement and employee benefit markets [13]. - The group insurance market is shifting towards voluntary/worksite products, presenting growth opportunities for the company [81]. - The company focuses on the Nonqualified Deferred Compensation and Business Solutions market to address financial challenges for business owners [83]. - The voluntary benefits platform is being enhanced to capitalize on the expanding market due to employer funding shifts [81]. Employee and Organizational Insights - As of December 31, 2024, the company employed approximately 19,700 people globally, with 12,000 in the U.S. and 7,700 outside the U.S. [112]. - The average tenure of employees was 8.8 years globally and 11.2 years in the U.S., with an annual turnover rate of 17.4% globally and 11.0% in the U.S. [119]. - The company has established eight employee resource groups (ERGs) to enhance inclusion and provide cultural insights as of December 31, 2024 [115]. - The company utilizes an enterprise people scorecard to monitor employee retention, learning, hiring, engagement, and productivity trends [117]. Risk Management and Regulatory Environment - The company’s risk management includes ongoing monitoring of various risk metrics and quarterly risk reporting to manage established risk appetites and tolerances [111]. - The company anticipates that acquisition and investment activities may increase the number and magnitude of mark-to-market adjustments on equity securities, trading securities, and derivative instruments, potentially reducing profitability and causing volatility in net income [145]. - Changes in laws or regulations could significantly increase compliance costs and reduce profitability, impacting how the company conducts business [164]. - The company is subject to various federal, state, and international regulations that may increase compliance costs and reduce profitability, particularly in the context of emerging ESG requirements [178]. - The company faces potential liabilities from assessments by state insurance guaranty associations, which could impact financial strength [167]. - Regulatory changes regarding cybersecurity and privacy may increase compliance costs and limit data insights, affecting business operations [175]. Financial Stability and Investment Risks - Financial strength ratings for Principal Life and PNLIC include A+ ("Superior") from A.M. Best and AA− ("Very Strong") from Fitch, indicating strong financial stability [88]. - The statutory surplus of each of the U.S. life insurance companies exceeded the minimum risk-based capital requirements as of December 31, 2024 [95]. - The company held $53.0 billion in fixed maturities, representing 66% of total U.S. invested assets, with approximately 5% rated below investment grade as of December 31, 2024 [141]. - The international investment operations held $2.5 billion in fixed maturities, accounting for 41% of total international invested assets as of December 31, 2024 [142]. - The commercial mortgage loan portfolio was valued at $14.7 billion, representing 17% of total invested assets, with no loans in foreclosure as of December 31, 2024 [143]. - Approximately $12.3 billion, or 85%, of the U.S. commercial mortgage loans had balloon payment maturities, which historically have a higher default rate [144]. - The company reported gross unrealized losses on fixed maturities of $4,246.2 million pre-tax as of December 31, 2024, with $4,081.7 million of these losses being in a continuous unrealized loss position for over twelve months [152]. - The company faces risks related to environmental liability exposure from its commercial mortgage loan portfolio and real estate investments, which may harm financial strength and reduce profitability [150]. Competitive Landscape and Market Challenges - The company faces pressure to lower prices due to competition from other insurance companies, which may adversely affect revenues and profitability [192]. - A downgrade in financial strength or credit ratings could lead to increased policy surrenders, reduced new sales, and higher costs of capital, negatively impacting profitability [193]. - Revenues from asset management and accumulation products are primarily fee-based, and significant client terminations or withdrawals may reduce assets under management (AUM), adversely affecting revenues [195]. - The company is exposed to risks from guarantees in certain products, which may decrease net income or increase volatility if hedging strategies prove ineffective [197]. - International operations face political, legal, and operational risks that could reduce profitability, particularly in emerging markets [198]. Technological and Operational Risks - Cybersecurity risks pose significant threats, including unauthorized access and potential reputational damage, which could adversely affect profitability [220]. - Disruptions in information technology and infrastructure could lead to operational impairments and reputational damage [219]. - The company may face costly litigation related to intellectual property infringement claims, which could result in significant liability and operational restrictions [215]. - Loss of key vendor relationships could adversely affect business operations and lead to financial losses [221]. - The company must maintain effective controls to prevent cybersecurity incidents, as failures could result in legal liabilities and competitive disadvantages [220]. Future Outlook and Strategic Considerations - The company may need to fund deficiencies in its Closed Block assets, which could impact financial stability if cash flows are insufficient [202]. - Future acquisitions may present integration challenges and unforeseen liabilities, potentially impairing expected benefits and goodwill [206]. - Technological advances and societal changes may disrupt the business model, requiring significant expenditures to adapt to evolving customer preferences [211]. - Climate change may impact mortality and morbidity rates, asset prices, and overall economic conditions, posing risks to profitability [210]. - The company's ability to attract and retain qualified employees is critical for operational success, facing intense competition in various professional fields [216]. - The performance of investments directly impacts the ability to increase and retain Assets Under Management (AUM), with potential cash outflows if qualified portfolio managers are not retained [218]. - The company relies on a variety of distribution channels, including internal digital channels and independent brokers, to sell its products and services [217].

Financial Data and Key Metrics Changes - The company achieved an adjusted non-GAAP earnings per share (EPS) growth of 11% for 2024, with a strong 16% increase in the fourth quarter, driven by top-line growth and equity market tailwinds [10][34] - The free capital flow conversion ratio ended the year at the midpoint of the targeted range of 75% to 85%, and return on equity (ROE) improved by 90 basis points year-over-year, on track to achieve the 14% to 16% target in 2025 [11][35] - Total capital returned to shareholders was $1.7 billion in 2024, including share buybacks and a 10% increase in the annual common stock dividend [12][51] Business Line Data and Key Metrics Changes - In the Retirement segment, recurring deposits increased by 7% in 2024, with pension risk transfer (PRT) sales reaching nearly $900 million in the fourth quarter, totaling over $3 billion for the year [20][24] - Asset Management ended the year with $683 billion of assets under management (AUM), with net flows improving compared to 2023, despite a $28 billion negative impact from foreign exchange [25][26] - Specialty Benefits experienced a 7% growth in premiums and fees, with a favorable loss ratio of 60.4% for the year [28][44] Market Data and Key Metrics Changes - The S&P 500 gained 25% in 2024, contributing to favorable market conditions for the company's performance [36] - The company managed to offset foreign exchange impacts on AUM through strong equity market performance, resulting in a 3% year-over-year increase in total company-managed AUM [18][37] - The company reported positive institutional and retail flows in the fourth quarter, despite typical seasonal weaknesses in U.S. retirement sales [19] Company Strategy and Development Direction - The company focuses on three strategic areas for sustained growth: the broad retirement ecosystem, small and midsized businesses (SMB), and global asset management [13] - Recent expansions in the retirement ecosystem include new personalized and passive target date offerings, addressing evolving needs [14] - The company aims to maintain a disciplined approach to growth in the SMB segment, leveraging strong customer relationships and a track record of above-market growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changes in the Chilean pension reform, viewing it as an opportunity for long-term growth [68][70] - The outlook for 2025 includes reaffirmed targets of 9% to 12% EPS growth, 75% to 85% free capital flow conversion, and 14% to 16% ROE [54][56] - Management highlighted the importance of maintaining financial flexibility while returning excess capital to shareholders, targeting $1.4 billion to $1.7 billion in capital deployments for 2025 [55][126] Other Important Information - The company received recognition as one of America's Most Just Companies and as a Best Place to Work in Money Management for the 13th consecutive year [30][31] - The company maintains a strong capital position with $1.6 billion of excess and available capital, supporting its growth initiatives [50][51] Q&A Session Summary Question: Initial thoughts on the pension reform in Chile - Management is optimistic about the reform providing clarity for future operations and believes it will improve system efficiency [68][70] Question: Thoughts on increasing private assets in 401(k) plans - Management sees significant opportunities for increased use of private assets in retirement plans but acknowledges regulatory hurdles that need to be addressed [72][75] Question: Stabilization of participant withdrawals in RIS - Management noted improved retention rates and lower withdrawal rates, contributing to a positive outlook for 2025 [80][84] Question: Expectations for real estate transactional activity and variable investment income - Management anticipates a gradual recovery in the commercial real estate market and expects improved returns in 2025 for the variable investment income portfolio [92][98] Question: Impact of litigation in the PRT market - Management has not seen litigation migrate to the smaller end of the market and remains confident in their PRT business [102][106] Question: Underwriting discipline in Specialty Benefits - Management is exercising underwriting discipline due to competitive pressures, particularly in the dental market, while maintaining a focus on profitable growth [108][115]

Core Insights - Principal Financial Group, Inc. (PFG) reported a fourth-quarter 2024 operating net income of $1.94 per share, which missed the Zacks Consensus Estimate by 0.5%, but increased by 6% year over year [1][15] - Total revenues surged 76.6% year over year to $4.7 billion, exceeding the Zacks Consensus Estimate by 17.9% [2] Financial Performance - Total expenses decreased by 4.2% year over year to $3.6 billion, lower than the estimate of $4.4 billion [3] - As of December 31, 2024, assets under management (AUM) were $712 billion, part of total assets under administration (AUA) of $1.7 trillion [3] Segment Analysis - **Retirement and Income Solution**: Revenues fell 6.3% year over year to $2.1 billion, missing the estimate of $2.2 billion; pre-tax operating earnings increased 6% to $280.1 million, but missed the estimate of $828.5 million [4] - **Investment Management**: Revenues rose 9.6% year over year to $474.6 million; pre-tax operating earnings increased 27% to $163.9 million, with an operating margin expansion of 570 basis points to 38.3% [5] - **International Pension**: Revenues decreased 21.6% year over year to $239.8 million; pre-tax operating earnings dropped 40% to $52.1 million, with an operating margin contraction of 1,100 basis points to 38.1% [6] - **Benefits and Protection**: Revenues increased 2.7% year over year to $1.2 billion, beating the estimate of $1 billion; pre-tax operating earnings rose 7.1% to $154.7 million, exceeding the estimate of $40.7 million [7] - **Specialty Benefits**: Revenues grew 4.2% year over year to $873.3 million, surpassing the estimate of $801.8 million; pre-tax operating earnings increased 23% to $147.2 million, beating the estimate of $111.1 million [8] - **Life Insurance**: Revenues decreased 1.4% year over year to $329.3 million, beating the estimate of $280 million; pre-tax operating earnings declined 70% to $7.5 million, attributed to higher mortality [9][10] - **Corporate**: Pre-tax operating losses widened to $103.9 million from a loss of $88.5 million a year ago, exceeding the estimate of $92.4 million [11] Capital Management - Principal Financial returned $1.7 billion to shareholders in 2024, including $1 billion in share repurchases and $0.7 billion in dividends; the board raised the first-quarter dividend by 9% to 75 cents per share [13] - A new authorization for the repurchase of $1.5 billion of outstanding shares was approved, with approximately $0.8 billion remaining under the prior authorization as of December 31, 2024 [14] Full-Year Highlights - For 2024, operating net income was $6.97 per share, missing the Zacks Consensus Estimate by 0.2%, but increased 6% year over year; total operating revenues reached $15.63 billion, beating the consensus mark by 0.3% and increasing 6.6% year over year [15] 2025 Guidance - Principal Financial expects 9-12% annual non-GAAP operating earnings per diluted share growth, with an estimated 75-85% free capital flow conversion and a projected 14-16% non-GAAP return on equity [16]

Principal® RETIREMENT | ASSET MANAGEMENT | BENEFITS & PROTECTION Fourth Quarter 2024 Earnings and 2025 Outlook PRINCIPAL FINANCIAL GROUP February 6, 2025 Key takeaways Delivering on long-term quidance 11% EPS growth1 (9-12% target) 13.7% ROE2 (14-16% target) Delivering on long-term guidance | 11% | 13.7% | 80% | | --- | --- | --- | | EPS growth1 | ROE2 | FCF %3 | | (9-12% target) | | (75-85% target) | FY 2024 operating results Reported non-GAAP operating earnings5 $1,641M (+2% vs. FY 2023) Non-GAAP operatin ...