Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Commission file number) PRINCIPAL FINANCIAL GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 42-1520346 Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 1-16725 (State or other jurisdiction of incorporati ...

Principal Financial Group, Inc. (NASDAQ:PFG) Q2 2021 Earnings Conference Call July 28, 2021 10:00 AM ET Company Participants John Egan - VP, IR Dan Houston - CEO Deanna Strable - CFO Amy Friedrich - President, U.S. Insurance Solutions Renee Schaaf - President, Retirement Income Solutions Pat Halter - Global Asset Management Conference Call Participants Tom Gallagher - Evercore Humphrey Lee - Dowling & Partners Andrew Kligerman - Credit Suisse Jimmy Bhullar - JPMorgan Ryan Krueger - KBW Erik Bass - Autonomou ...

| --- | --- | |------------|-------| | | | | Principal* | | Use of non-GAAP financial measures A non-GAAP financial measure is a numerical measure of performance, financial position, or cash flow that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP. The company uses a number of non-GAAP financial measures management believes are useful to investors because they illustrate the performance of the company's normal, ongoing operations which is important in underst ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 1-16725 (Commission file number) PRINCIPAL FINANCIAL GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 42-1520346 (I.R.S. Employer Identification Number) (S ...

| --- | --- | |--------------|-------| | | | | O Principal® | | Use of non-GAAP financial measures A non-GAAP financial measure is a numerical measure of performance, financial position, or cash flow that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP. The company uses a number of non-GAAP financial measures management believes are useful to investors because they illustrate the performance of the company's normal, ongoing operations which is important in und ...

Financial Data and Key Metrics Changes - The company reported non-GAAP operating earnings of $424 million for Q1 2021, an 18% increase compared to Q1 2020, driven by solid execution and improved macroeconomic conditions [10][33] - Net income attributable to Principal was $517 million, including $94 million of net realized capital gains with minimal credit losses [32] - The company closed Q1 with record total assets under management (AUM) of $820 billion, a 30% increase from the pressured first quarter of 2020 [13] Business Line Data and Key Metrics Changes - The Retirement business achieved record sales with $8 billion in sales growth, contributing to a 10% increase in recurring deposits compared to Q1 2020 [17][37] - Individual life sales rebounded with a 30% increase over the prior-year quarter, driven by nonqualified deferred compensation [26] - Principal International reported $161 billion of AUM, a 15% increase on a constant currency basis compared to a year ago [16] Market Data and Key Metrics Changes - The S&P 500 Index increased by 6% in Q1 2021, benefiting revenue, AUM, and account value growth in various segments [38] - In Brazil, industry-wide net deposits were down 19% from a year ago, but the company continues to lead in pension deposits with a first-quarter net cash flow of $100 million [21][90] - China AUM increased to $155 billion in Q1 2021, with $34 billion of net cash flow, despite not being included in reported AUM [16][20] Company Strategy and Development Direction - The company is focused on enhancing shareholder value and strengthening its position as an industry leader through a strategic review of its business mix and capital management, in collaboration with Elliott Management [28][29] - The integration of the Institutional Retirement and Trust business is on track, with expense synergies expected to emerge in the second half of the year [22][24] - The company is committed to its ESG strategy, pledging enhanced support for women and minority-owned businesses and targeting net-zero carbon emissions by 2050 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities ahead, citing strong momentum across diversified businesses and resiliency in small to medium-sized businesses [11][44] - The macroeconomic outlook has improved, which is expected to fuel continued growth across the company's businesses [44] - Management noted that participant withdrawals returned to pre-pandemic levels, which is anticipated to persist throughout the year [17] Other Important Information - The company announced a $0.61 common stock dividend payable in Q2 2021, a $0.05 increase over the previous quarter [12][43] - The company has $2.8 billion of excess and available capital, significantly above its target [41] - The company is exploring solutions to mitigate the impacts of low IOER rates on its trust and custody business [99] Q&A Session Summary Question: Strong flows in Retirement and Asset Management business - Management acknowledged strong sales across all plan sizes, particularly in the large plan market, and noted the importance of proprietary asset management capabilities [48][49] Question: Revenue synergies from IRT integration - Management indicated that revenue synergies from the IRT block exceeded expectations, with successful transitions of three out of five blocks of business [59][60] Question: International organic growth drivers - Management highlighted strong net cash flows in Southeast Asia and ongoing challenges in Latin America due to pension reforms and COVID impacts [88][90][96] Question: Mortality trends beyond COVID - Management reported no significant changes in mortality trends beyond normal volatility, indicating stable claims patterns [110][111] Question: Acquired AUA drop - Management explained that the drop in AUA was due to market depreciation and normal shock lapses, particularly in the trust and custody segment [114][115]

| --- | --- | |--------------|-------| | | | | Q Principal® | | Use of non-GAAP financial measures A non-GAAP financial measure is a numerical measure of performance, financial position, or cash flow that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP. The company usesa number of non-GAAP financial measures management believes are useful to investors because they illustrate the performance of the company's normal, ongoing operations which is important in unde ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-16725 PRINCIPAL FINANCIAL GROUP, INC. (Exact name of Registrant as specified in its charter) Delaware (State or other jurisdicti ...

Principal Financial Group, Inc. (NASDAQ:PFG) Q4 2020 Earnings Conference Call January 29, 2021 10:00 AM ET Company Participants John Egan - Vice President, Investor Relations Dan Houston - Chief Executive Officer Deanna Strable - Chief Financial Officer Amy Friedrich - President-U.S. Insurance Solutions Renee Schaaf - President-Retirement and Income Solutions Luis Valdés - Principal International Pat Halter - Global Asset Management Conference Call Participants Ryan Krueger - KBW Humphrey Lee - Dowling & Pa ...

| --- | --- | |-----------------------------------------------------------------------------------------------|-------| | | | | Q Principal® | | | | | | Principal Financial Group Fourth Quarter and Full Year 2020 Earnings Results January 28, 2021 | | Use of non-GAAP financial measures A non-GAAP financial measure is a numerical measure of performance, financial position, or cash flow that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP. The company uses a numb ...