Core Viewpoint - Principal Financial (PFG) reported quarterly earnings of $1.94 per share, slightly missing the Zacks Consensus Estimate of $1.95 per share, but showing an increase from $1.83 per share a year ago [1] Financial Performance - The company posted revenues of $4.75 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 17.89%, compared to $4.24 billion in the same quarter last year [2] - Over the last four quarters, Principal Financial has not surpassed consensus EPS estimates, but has topped consensus revenue estimates three times [2] Stock Performance - Principal Financial shares have increased by approximately 4.1% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.96 on revenues of $4.04 billion, and for the current fiscal year, it is $8.36 on revenues of $16.56 billion [7] - The estimate revisions trend for Principal Financial is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Insurance - Multi line industry, to which Principal Financial belongs, is currently in the bottom 44% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of the stock may be influenced by the overall outlook for the industry [8]

Financial Performance - Full-year non-GAAP operating earnings per diluted share increased 11% to $7.65, aligning with long-term guidance of 9-12% growth[7] - Net income attributable to Principal Financial Group (PFG) for 4Q24 was $905.4 million, compared to a loss of $871.7 million in 4Q23[37] - Non-GAAP net income attributable to PFG, excluding exited business, was $353.5 million in 4Q24, up from $299.1 million in 4Q23[37] - Non-GAAP operating earnings for 4Q24 were $448.1 million, slightly increasing from $440.5 million in 4Q23[37] - The company reported a non-GAAP pre-tax operating earnings of $546.9 million for 4Q24, compared to $539.8 million in 4Q23[37] - The Retirement and Income Solutions segment reported pre-tax operating earnings of $280.1 million in 4Q24, up from $264.6 million in 4Q23[37] Shareholder Returns - The company returned $1.7 billion to shareholders in 2024, including $1.0 billion in share repurchases and $0.7 billion in common stock dividends[5] - The first quarter 2025 common stock dividend was raised to $0.75 per share, a 9% increase over the first quarter 2024 dividend[7] Assets and Capital - Assets under management (AUM) reached $712 billion, contributing to total assets under administration (AUA) of $1.7 trillion[7] - Total assets increased to $313.7 billion in 4Q24 from $305.0 billion in 4Q23[42] - Stockholders' equity rose to $11,131.3 million in 4Q24, compared to $10,961.7 million in 4Q23[42] - Stockholders' equity available to common stockholders increased to $11,086.4 million in Q4 2024 from $10,916.0 million in Q4 2023, representing a growth of 1.6%[44] - Stockholders' equity, excluding cumulative change in fair value of funds withheld and AOCI, was $12,144.0 million in Q4 2024, down from $12,735.4 million in Q4 2023, a decrease of 4.6%[44] Investment Management - Investment Management AUM increased by $32 billion to $559 billion, with a record quarter in retirement investment sales[16] - Investment management operating revenues for Q4 2024 were $474.6 million, compared to $433.1 million in Q4 2023, marking an increase of 9.6%[48] Tax and Capital Gains - Total GAAP income taxes for Q4 2024 were $209.9 million, a significant increase from a tax benefit of $(268.0) million in Q4 2023[46] - Net realized capital gains (losses) for Q4 2024 were $(88.6) million, an improvement from $(112.7) million in Q4 2023[46] - Net realized capital gains (losses), as adjusted, were $(94.6) million in Q4 2024, compared to $(141.4) million in Q4 2023, showing an improvement of 33.1%[46] Future Outlook - The company anticipates 9-12% annual non-GAAP operating earnings per diluted share growth for 2025, with capital deployment expected between $1.4 billion and $1.7 billion[11] - Principal Financial Group plans to discuss future prospects and capital adequacy in an earnings conference call scheduled for February 7, 2025[32] Segment Performance - Retirement and Income Solutions (RIS) recurring deposit growth was 7%, with transfer deposit growth of 16% over 2023[16] - Specialty Benefits premium and fees increased by 7% over 2023, with a pre-tax operating earnings increase of 23% in 4Q24[24] - Pre-tax operating earnings for International Pension decreased by 42% in 4Q24, primarily due to lower net revenue[19] Other Financial Metrics - Book value per common share increased to $49.01 in 4Q24 from $46.18 in 4Q23[42] - Book value per common share, excluding cumulative change in fair value of funds withheld, rose to $53.69 in Q4 2024 compared to $53.87 in Q4 2023, indicating a slight decrease of 0.3%[44] - Operating revenues less pass-through expenses for Q4 2024 reached $435.7 million, up from $397.9 million in Q4 2023, reflecting an increase of 9.4%[48] - The change in fair value of funds withheld embedded derivative was $794.3 million in Q4 2024, a recovery from $(1,478.6) million in Q4 2023[46] - Total income from exited business for Q4 2024 was $551.9 million, a significant turnaround from a loss of $(1,170.8) million in Q4 2023[46] - Significant variances in 4Q24 included lower than expected variable investment income across multiple segments[31]

Core Viewpoint - Principal Financial (PFG) is expected to report quarterly earnings of $1.95 per share, reflecting a 6.6% increase year-over-year, while revenues are forecasted to decline by 5% to $4.03 billion [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 0.9% in the last 30 days, indicating analysts' reassessment of their initial projections [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenue- Premiums and other considerations' will reach $1.92 billion, a decrease of 7.4% from the previous year [5] - 'Revenue- Net investment income' is expected to be $1.17 billion, showing an increase of 3.9% year-over-year [5] - 'Revenue- Fees and other revenues' is projected at $1.09 billion, indicating a 4.9% increase from the prior year [5] Segment Revenue Estimates - 'Revenue- Principal Asset Management Segment- Net investment income' is estimated at $194.07 million, down 12.1% from the year-ago quarter [6] - 'Revenue- Benefits and Protection Segment- Specialty Benefits- Premiums and other considerations' is expected to be $800.73 million, reflecting a 2.3% increase year-over-year [7] - 'Revenue- Benefits and Protection Segment- Life Insurance- Total' is projected at $331.56 million, indicating a slight decrease of 0.8% from the previous year [10] Stock Performance - Over the past month, Principal Financial shares have returned +4.1%, outperforming the Zacks S&P 500 composite's +1% change [11] - Based on its Zacks Rank 3 (Hold), PFG is expected to perform in line with the overall market in the near term [11]

Core Viewpoint - Principal Financial Group, Inc. (PFG) is expected to report its fourth-quarter 2024 earnings on February 6, with a negative earnings surprise in the previous quarter [1] Factors at Play - The fourth-quarter results are anticipated to show an increase in fee revenues, higher yields, favorable market performance, and increased sales of single premium group annuities [2] Revenue and Earnings Estimates - Operating revenues are projected to decline due to lower premiums and fees in Retirement and Income Solutions and Principal Global Investors, with the Zacks Consensus Estimate for revenues at $4.03 billion, reflecting a nearly 5% decrease from the previous year [3] - The expected net investment income for the fourth quarter is $1.2 billion, benefiting from higher yields and average invested assets [4] - The Zacks Consensus Estimate for earnings is $1.95 per share, indicating a 5% decrease from the prior-year quarter [5] Earnings Prediction Model - The earnings prediction model suggests a potential earnings beat for Principal Financial, supported by a positive Earnings ESP of +0.03% and a Zacks Rank of 3 [6][7] Other Stocks to Consider - Unum Group (UNM) has an Earnings ESP of +0.23% and a Zacks Rank of 3, with a consensus estimate of $2.13 for fourth-quarter earnings, indicating a 19% year-over-year increase [8] - Allstate Corporation (ALL) has an Earnings ESP of +3.93% and a Zacks Rank of 3, with a consensus estimate of $6.51 for fourth-quarter earnings, reflecting an 11.9% year-over-year increase [9] - Intercontinental Exchange Inc. (ICE) has an Earnings ESP of +0.09% and a Zacks Rank of 3, with a consensus estimate of $1.49 for fourth-quarter earnings, indicating a 5.3% year-over-year increase [10]

Core Viewpoint - Principal Financial Group, Inc. (PFG) has gained investor favor due to strategic buyouts, financial flexibility, strong retention, business growth, positive net cash flow, and effective capital deployment [1] Financial Performance - PFG currently holds a Zacks Rank 3 (Hold) and has experienced a stock loss of 0.9% over the past year, while the industry has grown by 11.1% [2] - The Zacks Consensus Estimate for PFG's 2025 earnings per share indicates a 19.3% increase from 2024 estimates, while revenues are expected to rise by 6.2% [4] Growth Drivers - Revenue growth for PFG is anticipated to improve long-term due to higher premiums, fees, and improved net investment income across segments [5] - The Principal International segment is expected to benefit from increased single-premium annuity sales in Chile, with operating earnings positively impacted by foreign currency tailwinds [5] - The Specialty Benefits Insurance business is projected to continue benefiting from record sales, strong retention, and employment growth, contributing to pre-tax operating earnings [6] Capital Management - PFG's extensive distribution network, strategic buyouts, and operational discipline are expected to enhance asset growth under management [7] - The company maintains a strong capital position with sufficient cash generation capabilities and liquidity, having adjusted the target RBC level to a range of 375-400% [7] - For 2024, PFG aims for 9% to 12% growth in earnings per share and 75% to 85% free capital flow conversion [8] Shareholder Returns - PFG's wealth distribution strategy includes share buybacks and dividend payments, with a 9% dividend increase in Q3 2024 for the sixth consecutive quarter, aligning with a targeted 40% payout ratio [11] - The company has a solid dividend yield of 3.6%, surpassing the industry average of 2.4% [11] - PFG plans to deploy $1.5-$1.8 billion in capital for 2024, including $800 million to $1.1 billion for share repurchases, targeting 35-45% share repurchases based on net income [12]

Core Insights - Albert Anthony is a Croatian-American media personality and financial contributor, reaching over 1 million investors globally since 2023 [1] - His content on Seeking Alpha averages over 25,000 views monthly, focusing on stock analysis and dividend income portfolio building [1] - In addition to his media work, he has been involved in city council politics in Croatia and ran for Parliament in 2024 [1] Group 1 - Albert Anthony provides curated analysis of stocks trading on major US exchanges [1] - He has experience as an information systems analyst and worked at Charles Schwab [1] - He has completed certifications from various prestigious institutions, enhancing his financial expertise [1] Group 2 - Anthony is also a host at Online Live TV Croatia and has contributed to various media outlets in the US and Croatia [1] - He became a member of the Croatian Economic Association in 2024, focusing on economics and monetary policy [1] - His involvement in film and TV productions includes a role in the Polish WWII film "Red Poppies" set for release in 2024 [1]

AUSTIN, Texas, Nov. 7, 2024 /PRNewswire/ -- PerfectQuote, Inc., a leading group health digital quoting platform, announced its collaboration with Principal Financial Group®, to provide PerfectQuote customers with direct, underwritten proposals for dental, vision, life, disability and voluntary benefits delivered through its Request-for-Proposal ("RFP") toolset.With a critical mass of firms and general agencies leveraging the PerfectQuote platform (including 14 of the top 20 largest U.S.- based firms) servic ...

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 September 30, 2024 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 (State or other jurisdiction of incorp ...

| --- | --- | |-----------------------------------------------|-------| | | | | O Principal® | | | Third Quarter 2024 Earnings Call Presentation | | | PRINCIPAL FINANCIAL GROUP October 24, 2024 | | | --- | --- | |---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Principal Financial Group, Inc. (NASDAQ:PFG) Q3 2024 Earnings Conference Call October 25, 2024 10:00 AM ET Company Participants Humphrey Lee - VP, IR Daniel Houston - Chairman, President & CEO Deanna Strable - EVP & CFO Amy Friedrich - President, Benefits and Protection Christopher Littlefield - President, Retirement and Income Solutions Kamal Bhatia - President & CEO, Principal Asset Management Joel Pitz - Interim CFO Conference Call Participants Joel Hurwitz - Dowling & Partners Suneet Kamath - Jefferies ...