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].

Summary of Principal Financial Group (PFG) Conference Call - February 10, 2025 Company Overview - **Company**: Principal Financial Group (PFG) - **Industry**: Insurance and Financial Services - **Key Participants**: Amy Friedrich (President of Benefits & Protection), Michael Ward (Vice President & Senior Analyst - US Insurance) Core Business Segments - **Benefits and Protection**: Encompasses all insurance businesses, with a focus on specialty benefits and group benefits as growth engines [3][2] - **Life Insurance**: Transitioned from retail to business market, focusing on individual life insurance solutions for business owners [3][2] - **Affiliated Distribution**: Involves a network of 1,200 financial professionals contributing to production in securities, mutual funds, asset management, and retirement business [4][2] Market Focus and Growth Strategy - **Small and Mid-Sized Businesses (SMB)**: PFG targets the SMB market, which is a significant driver of U.S. job growth, with over 100,000 employer relationships [6][7] - **Product Expansion**: Expanded product offerings to include worksite and voluntary products such as critical illness, hospital indemnity, and accident insurance [9][10] - **Distribution Strategy**: Focuses on regional relationships rather than large national ones, emphasizing partnerships with distributors serving the SMB market [11][12] Employer and Employee Sentiment - **Employer Well-Being Index**: Approximately 58% of employers describe their businesses as growing, indicating healthy demand for benefits [20][21] - **Employee Concerns**: Inflation and personal finance are top concerns for employees, but interest in voluntary products remains high [25][26] Voluntary Products and Market Trends - **Voluntary Product Growth**: Coverage count in voluntary and worksite products grew by over 60% from 2021 to 2023, indicating strong demand [27][28] - **Simplified Billing**: PFG emphasizes the importance of streamlined billing processes for small employers to enhance product uptake [29][30] Technology and AI Integration - **AI in Disability Claims**: PFG utilizes AI to improve the disability claims experience, enhancing recovery rates and return-to-work capabilities [36][37] - **Human-Assisted AI**: AI applications are complemented by human oversight to ensure quality in underwriting and claims processing [45][46] Competitive Landscape and Market Opportunities - **Market Saturation**: The large employer market is saturated, while the mid-market and small business segments present growth opportunities [49][50] - **Greenfield Opportunities**: PFG is focused on expanding its presence in the small business segment, which is under-penetrated, with about 50-60% saturation [52][55] Product Performance and Pricing Strategy - **Dental and Vision Products**: Increased utilization post-COVID has led to adjustments in pricing strategies to reflect inflationary trends [56][57] - **Life and Disability Products**: Positive performance in life and disability segments, with a focus on maintaining competitive pricing for renewals [62][63] Future Growth and Acquisition Strategy - **Organic Growth Focus**: PFG emphasizes organic growth but remains open to strategic acquisitions that align with its growth platforms [65][66] - **Bundled Products**: The company favors bundled offerings that combine employer-paid and voluntary coverages to enhance customer retention and satisfaction [67][68] Mortality and Morbidity Trends - **Monitoring Trends**: PFG is observing trends in mortality and morbidity, particularly related to new drug classes and their impact on the working population [71][75] - **Neutral Outlook**: Currently, there is no significant change in mortality or morbidity trends over the long term, but PFG continues to monitor these closely [76][77]

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 ...

Core Insights - Principal Financial (PFG) reported $4.75 billion in revenue for Q4 2024, a 12% year-over-year increase, with an EPS of $1.94 compared to $1.83 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $4.03 billion by 17.89%, while the EPS fell short of the consensus estimate of $1.95 by 0.51% [1] Financial Performance Metrics - Assets under management (AUM) reached $712.1 billion, surpassing the average estimate of $695.7 billion [4] - Revenue from premiums and other considerations was $1.83 billion, below the average estimate of $1.92 billion, reflecting an 11.9% year-over-year decline [4] - Revenue from fees and other revenues was $1.12 billion, slightly above the average estimate of $1.09 billion, marking a 7.5% year-over-year increase [4] - Net investment income was reported at $1.12 billion, below the average estimate of $1.17 billion, showing a 0.4% year-over-year decline [4] - Principal Asset Management Segment's net investment income was $163.40 million, significantly below the average estimate of $194.07 million, representing a 26% year-over-year decrease [4] - Specialty Benefits in the Benefits and Protection Segment reported total revenue of $873.30 million, exceeding the average estimate of $858.19 million, with a 4.2% year-over-year increase [4] - Life Insurance segment's premiums and other considerations were $110.90 million, below the average estimate of $124.50 million, indicating an 8% year-over-year decline [4] Stock Performance - Shares of Principal Financial have returned +2.9% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

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]