Company Analysis: Principal Financial - Principal Financial has an Earnings ESP of -0.47%, indicating analysts have become bearish on the company's earnings prospects [4] - The stock currently holds a Zacks Rank of 3 (Hold), making it difficult to predict a consensus EPS beat [5][6] - In the last reported quarter, Principal Financial's actual earnings were $1.65 per share, missing the expected $1.74 by -5.17% [7] - Over the last four quarters, the company has beaten consensus EPS estimates two times [8] Industry Analysis: Ameriprise Financial Services - Ameriprise Financial Services is expected to post earnings of $8.51 per share for the quarter ended June 2024, reflecting a year-over-year increase of +14.4% [12] - The expected revenue for Ameriprise is $4.18 billion, up 9.2% from the previous year [12] - The consensus EPS estimate for Ameriprise has been revised 0.1% lower in the last 30 days, but a higher Most Accurate Estimate results in an Earnings ESP of 0.77%, suggesting a likely beat of the consensus EPS estimate [13] - Ameriprise has beaten consensus EPS estimates in each of the trailing four quarters [13] Earnings Expectations - Principal Financial is expected to deliver a year-over-year increase in earnings on higher revenues for the quarter ended June 2024 [22] - The consensus EPS estimate for Principal Financial is projected at $1.87 per share, representing a year-over-year change of +22.2% [16] - Revenues for Principal Financial are expected to be $3.78 billion, up 7.9% from the year-ago quarter [17] - The consensus EPS estimate for the quarter has been revised 1.74% lower over the last 30 days, reflecting a reassessment by covering analysts [18]

Principal Financial Group, Inc. (PFG) has been favored by investors on the back of its strategic buyouts, strong retention, higher single premium annuity sales and effective capital deployment. The consensus estimate for 2025 earnings per share and revenues indicates an increase of 13.3% and 5.9%, respectively, from the corresponding 2024 estimates. Zacks Rank & Price Performance Business Tailwinds The Specialty Benefits Insurance business should continue to gain from record sales, strong retention and empl ...

Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Principal ...

Principal Financial in Focus All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Headquartered in Des Moines, Principal Financial (PFG) is a Finance stock that has seen a price change of 0.9% so far this year. Currently paying a dividend of $0.69 per share, the company has a dividend yield of 3.58%. In ...

Principal Financial Group, Inc. (PFG) has been gaining momentum on the back of its strategic buyouts, strong retention, higher single premium annuity sales and effective capital deployment. Optimistic Growth Projections The Zacks Consensus Estimate for Principal Financial's 2024 earnings per share indicates a year-over-year increase of 14.5%. The consensus estimate for revenues is pegged at $15.52 billion, implying a year-over-year improvement of 5.8%. The consensus estimate for 2025 earnings per share and ...

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, 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) (State or other jurisdiction of incorporation or Delaware 42-1 ...

| --- | --- | |-----------------------------------------------|-------| | | | | O Principal® | | | First Quarter 2024 Earnings Call Presentation | | | PRINCIPAL FINANCIAL GROUP April 25, 2024 | | Key takeaways • 1Q24 non-GAAP EPS¹ excluding significant variances² of $1.75 increased 9% from 1Q23; non-GAAP operating earnings¹ excluding significant variances2 increased 6% · Well-positioned to deliver on 9-12% long-term enterprise non-GAAP EPS¹ growth in 2024 Strong top-line growth of 5% across the enterprise . ...

Financial Data and Key Metrics Changes - In Q1 2024, the company reported non-GAAP operating earnings of $394 million, or $1.65 per diluted share, representing an 11% increase in EPS compared to Q1 2023 [5] - The reported net income for the first quarter was $533 million, with net income excluding exited business at $376 million [32] - The company returned over $360 million to shareholders in Q1, including $200 million in share repurchases and a raised common stock dividend [6][64] Business Line Data and Key Metrics Changes - Principal Asset Management saw positive institutional net cash flow, particularly in private real estate and fixed income investments [7] - The Retirement and Income Solutions (RIS) segment experienced strong revenue and earnings growth, with total retirement sales growing 6% year-over-year [9][10] - In Benefits and Protection, premium and fees increased by 8% year-over-year, driven by record sales and employment growth [12] Market Data and Key Metrics Changes - Principal International reported positive net cash flow of $1 billion, the strongest quarter since 2021, primarily due to robust sales in Brazil [8] - The total managed assets under management (AUM) reached $709 billion at the end of the quarter, with nearly $1.5 billion in positive net cash flow [24] - The S&P 500 outperformed mid-cap, small-cap, and international equities, impacting overall market performance [15] Company Strategy and Development Direction - The company continues to focus on growth while managing expenses and returning excess capital to shareholders, aiming for 9% to 12% EPS growth for 2024 [23][42] - The company is optimistic about opportunities in higher growth markets and integrated product offerings, particularly in retirement and asset management [30][69] - The company is adapting to regulatory changes, including the Department of Labor's final rule on fiduciary investment advice, while maintaining a focus on customer needs [11][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued investment in longer-duration and higher-yielding assets despite high inflation and low unemployment [26] - Concerns were raised about potential unintended consequences of regulatory changes limiting consumer access to financial tools [29] - The company remains confident in its ability to deliver on long-term financial targets and maintain a strong capital position [37][42] Other Important Information - The company was recognized as one of the world's most ethical companies for the 13th time, highlighting its commitment to ethical leadership [57] - The investment portfolio remains high quality and well-positioned for various economic conditions, with a healthy commercial mortgage loan portfolio [41] Q&A Session Summary Question: Insights on PGI flows and future allocations - Management noted strong institutional flows, particularly in real estate and fixed income, with a positive sentiment from clients [70][72] Question: Impact of high interest rates on participant withdrawals - An uptick in participant retirement withdrawals was observed, influenced by strong equity markets [50] Question: Fee rate expectations in PGI - The fee rate was down year-over-year, with expectations of continued compression in normal markets [75][84] Question: Specialty benefits sales performance - Strong sales in group disability were noted, with growth driven by new business and market openings [88][90] Question: Competitive landscape in group life insurance - The company maintains a rational competitive environment in the small to mid-sized market, with no significant price competition observed [140][141]

[Executive Summary & Q1 2024 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q1%202024%20Highlights) [Overall Performance Overview](index=1&type=section&id=Overall%20Performance%20Overview) The company reported strong Q1 2024 results with nearly $400 million in non-GAAP operating earnings, driven by strategic execution and favorable market conditions - CEO Dan Houston highlighted strong Q1 2024 results with **nearly $400 million in non-GAAP operating earnings**, driven by focused strategy execution, strong sales, and equity market tailwinds[2](index=2&type=chunk) - The company is committed to driving profitable growth, balancing investments in growth and innovation with expense management[2](index=2&type=chunk) - Principal returned **over $360 million to shareholders** in the quarter, including **$200 million in share repurchases**, demonstrating a strong financial position and commitment to capital return[3](index=3&type=chunk) [Key Financial Metrics & Capital Allocation](index=1&type=section&id=Key%20Financial%20Metrics%20%26%20Capital%20Allocation) The company reported $533 million in net income, returned $362 million to shareholders, and grew Assets under Management to $709 billion in Q1 2024 Q1 2024 Key Financial Highlights | Metric | Value | | :--- | :--- | | Net income attributable to PFG | $533 million | | Diluted EPS (GAAP) | $2.22 | | Non-GAAP operating earnings | $394 million | | Non-GAAP operating EPS | $1.65 | | Capital returned to shareholders | $362 million | | Share repurchases | $200 million | | Common stock dividends | $162 million | | Q2 2024 common stock dividend (per share) | $0.71 (+$0.02 YoY) | | Assets under management (AUM) | $709 billion | | Assets under administration (AUA) | $1.6 trillion | | Excess and available capital | $1.4 billion | [Enterprise Financial Results](index=3&type=section&id=Enterprise%20Financial%20Results) [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) The company reported a significant turnaround in net income to $532.5 million and strong growth in both non-GAAP earnings and assets under management Q1 2024 Enterprise Financial Performance (YoY Change) | Metric | 1Q24 ($M) | 1Q23 ($M) | % Change | | :--- | :--- | :--- | :--- | | Net income (loss) attributable to PFG | $532.5 | $(140.1) | N/M | | Non-GAAP net income attributable to PFG, excluding exited business | $376.4 | $346.9 | 9% | | Non-GAAP operating earnings | $394.3 | $366.8 | 7% | | Diluted earnings per common share (GAAP) | $2.22 | $(0.58) | N/M | | Non-GAAP diluted EPS, excluding exited business | $1.58 | $1.39 | 14% | | Non-GAAP operating EPS | $1.65 | $1.48 | 11% | | Assets under administration (billions) | $1,624.3 | $1,503.4 | 8% | | Assets under management (billions) | $708.5 | $659.9 | 7% | [Selected Balance Sheet Statistics](index=8&type=section&id=Selected%20Balance%20Sheet%20Statistics) As of Q1 2024, total assets increased slightly to $308.7 billion, while stockholders' equity grew to $11.2 billion and book value per share rose to $47.60 Selected Balance Sheet Statistics (QoQ Change) | Metric | 1Q24 ($M) | 4Q23 ($M) | | :--- | :--- | :--- | | Total assets (in billions) | $308.7 | $305.0 | | Stockholders' equity (in millions) | $11,230.4 | $10,961.7 | | Total common equity (in millions) | $11,185.5 | $10,916.0 | | Total common equity excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment (in millions) | $12,640.9 | $12,735.4 | | End of period common shares outstanding (in millions) | 235.0 | 236.4 | | Book value per common share | $47.60 | $46.18 | | Book value per common share excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment | $53.79 | $53.87 | [Segment Performance Highlights](index=3&type=section&id=Segment%20Performance%20Highlights) [Retirement and Income Solutions (RIS)](index=3&type=section&id=Retirement%20and%20Income%20Solutions%20(RIS)) The RIS segment achieved 6% growth in both sales and net revenue, leading to a 5% increase in pre-tax operating earnings to $262.2 million RIS Q1 2024 Performance (YoY Change) | Metric | 1Q24 ($M) | 1Q23 ($M) | % Change | | :--- | :--- | :--- | :--- | | Sales | $9,400 | | 6% | | Pre-tax operating earnings | $262.2 | $249.8 | 5% | | Net revenue | $691.4 | $650.1 | 6% | | Operating margin | 37.9% | 38.4% | | - The increase in pre-tax operating earnings was primarily due to **higher net revenue**, partially offset by higher operating expenses[10](index=10&type=chunk) - Net revenue growth was driven by **business expansion**, increased net investment income, and positive market performance[11](index=11&type=chunk) [Principal Global Investors (PGI)](index=3&type=section&id=Principal%20Global%20Investors%20(PGI)) PGI's managed AUM grew 7% to $514 billion, driving a 4% increase in pre-tax operating earnings to $113.9 million from higher management fees PGI Q1 2024 Performance (YoY Change) | Metric | 1Q24 ($M) | 1Q23 ($M) | % Change | | :--- | :--- | :--- | :--- | | Managed AUM (billions) | $513.5 | $478.7 | 7% | | Pre-tax operating earnings | $113.9 | $109.1 | 4% | | Operating revenues less pass-through expenses | $373.8 | $361.5 | 3% | | Operating margin | 30.7% | 30.5% | | - Pre-tax operating earnings increased due to **higher operating revenues less pass-through expenses**, partially offset by higher operating expenses[16](index=16&type=chunk) - Operating revenues less pass-through expenses increased primarily due to **higher management fees on higher average AUM**[16](index=16&type=chunk) [Principal International (PI)](index=3&type=section&id=Principal%20International%20(PI)) PI's AUM grew 7% to $179 billion, but pre-tax operating earnings declined 7% to $73.2 million due to macroeconomic headwinds in Asia PI Q1 2024 Performance (YoY Change) | Metric | 1Q24 ($M) | 1Q23 ($M) | % Change | | :--- | :--- | :--- | :--- | | AUM (billions) | $178.7 | $167.1 | 7% | | Pre-tax operating earnings | $73.2 | $78.7 | (7)% | | Combined net revenue (at PFG share) | $231.3 | $241.5 | (4)% | | Operating margin | 31.6% | 32.6% | | - Pre-tax operating earnings decreased primarily due to **lower combined net revenue**[21](index=21&type=chunk) - Combined net revenue (at PFG share) decreased due to **macroeconomic headwinds in Asia and foreign currency translation**[21](index=21&type=chunk) [Specialty Benefits](index=3&type=section&id=Specialty%20Benefits) The Specialty Benefits segment delivered a 25% surge in pre-tax operating earnings to $102.0 million, driven by record sales and an improved loss ratio Specialty Benefits Q1 2024 Performance (YoY Change) | Metric | 1Q24 ($M) | 1Q23 ($M) | % Change | | :--- | :--- | :--- | :--- | | Premium and fees | $801.3 | $742.1 | 8% | | Pre-tax operating earnings | $102.0 | $81.8 | 25% | | Operating margin | 12.7% | 11.0% | | | Incurred loss ratio | 61.1% | 62.5% | | - Pre-tax operating earnings increased due to **business growth and a lower incurred loss ratio**[22](index=22&type=chunk) - Premium and fees increased, driven by **record sales, employment, and wage growth**[22](index=22&type=chunk) - The incurred loss ratio improved to **61%** due to more favorable underwriting experience[22](index=22&type=chunk) [Life Insurance](index=3&type=section&id=Life%20Insurance) The Life Insurance segment's premium and fees grew 4%, but pre-tax operating earnings fell 44% to $9.8 million due to a regulatory adjustment Life Insurance Q1 2024 Performance (YoY Change) | Metric | 1Q24 ($M) | 1Q23 ($M) | % Change | | :--- | :--- | :--- | :--- | | Market premium and fees | | | 23% | | Premium and fees | $234.0 | $224.8 | 4% | | Pre-tax operating earnings | $9.8 | $17.5 | (44)% | | Operating margin | 4.2% | 7.8% | | - Pre-tax operating earnings decreased primarily due to a **GAAP-only regulatory closed block dividend adjustment**[23](index=23&type=chunk) - Premium and fees increased as **strong business market growth outpaced the runoff of the legacy business**[23](index=23&type=chunk) [Corporate](index=6&type=section&id=Corporate) The Corporate segment improved its pre-tax operating loss by 7% year-over-year, reporting a loss of $(88.9) million for the first quarter of 2024 Corporate Q1 2024 Performance (YoY Change) | Metric | 1Q24 ($M) | 1Q23 ($M) | % Change | | :--- | :--- | :--- | :--- | | Pre-tax operating losses | $(88.9) | $(96.1) | 7% | [Non-GAAP Financial Measures & Reconciliations](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Explanation of Non-GAAP Measures](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like operating earnings to provide a clearer view of ongoing operations by excluding certain non-recurring items - Non-GAAP financial measures are used to illustrate the performance of **normal, ongoing operations**, aiding in understanding and evaluating the company's financial condition[28](index=28&type=chunk) - Management uses non-GAAP measures for **goal setting, determining employee awards and compensation**, and evaluating performance comparable to that used by investors and analysts[28](index=28&type=chunk)[33](index=33&type=chunk) - Non-GAAP operating earnings exclude net realized capital gains and losses, income (loss) from exited business, and other after-tax adjustments deemed not indicative of overall operating trends[33](index=33&type=chunk) [Detailed Reconciliations](index=8&type=section&id=Detailed%20Reconciliations) This section provides comprehensive reconciliations from U.S. GAAP to non-GAAP financial measures, detailing adjustments for key financial metrics Summary of PFG and Segment Results (GAAP to Non-GAAP Reconciliation) | Metric | 1Q24 ($M) | 1Q23 ($M) | | :--- | :--- | :--- | | Net income (loss) attributable to PFG | $532.5 | $(140.1) | | (Income) loss from exited business | $(156.1) | $487.0 | | Non-GAAP net income (loss) attributable to PFG excluding exited business | $376.4 | $346.9 | | Net realized capital (gains) losses, as adjusted | $17.9 | $19.9 | | Non-GAAP Operating Earnings | $394.3 | $366.8 | | Income taxes | $77.9 | $74.0 | | Non-GAAP Pre-Tax Operating Earnings | $472.2 | $440.8 | | | | | | **Segment Pre-Tax Operating Earnings (Losses):** | | | | Retirement and Income Solutions | $262.2 | $249.8 | | Principal Asset Management | $187.1 | $187.8 | | Benefits and Protection | $111.8 | $99.3 | | Corporate | $(88.9) | $(96.1) | | Total Segment Pre-Tax Operating Earnings | $472.2 | $440.8 | | | | | | **Per Diluted Share:** | | | | Net income (loss) | $2.22 | $(0.58) | | Non-GAAP net income (loss) excluding exited business | $1.58 | $1.39 | | Non-GAAP Operating Earnings | $1.65 | $1.48 | Reconciliation of Income Taxes (GAAP to Non-GAAP) | Metric | 1Q24 ($M) | 1Q23 ($M) | | :--- | :--- | :--- | | Total GAAP income taxes (benefit) | $95.1 | $(78.0) | | Net realized capital gains (losses) tax adjustments | $11.1 | $8.2 | | Exited business tax adjustments | $(41.5) | $121.3 | | Income taxes related to equity method investments and noncontrolling interest | $13.2 | $22.5 | | Income taxes (Non-GAAP) | $77.9 | $74.0 | Reconciliation of Principal Global Investors Operating Revenues Less Pass-Through Expenses | Metric | 1Q24 ($M) | 1Q23 ($M) | | :--- | :--- | :--- | | Operating revenues | $404.8 | $392.7 | | Commissions and other expenses | $(31.0) | $(31.2) | | Operating revenues less pass-through expenses (Non-GAAP) | $373.8 | $361.5 | Reconciliation of Principal International Combined Net Revenue (at PFG Share) | Metric | 1Q24 ($M) | 1Q23 ($M) | | :--- | :--- | :--- | | Pre-tax operating earnings | $73.2 | $78.7 | | Combined operating expenses other than pass-through commissions (at PFG share) | $158.1 | $162.8 | | Combined net revenue (at PFG share) (Non-GAAP) | $231.3 | $241.5 | [Additional Information](index=6&type=section&id=Additional%20Information) [Earnings Conference Call](index=6&type=section&id=Earnings%20Conference%20Call) An earnings conference call led by senior executives to discuss Q1 results and future prospects is scheduled for April 26, 2024, at 10:00 a.m. ET - An earnings conference call will be held on **April 26, 2024, at 10:00 a.m. ET**, featuring CEO Dan Houston and CFO Deanna Strable[25](index=25&type=chunk) - The call will discuss **Q1 results, future prospects, asset quality, and capital adequacy**[25](index=25&type=chunk) - Access to the live webcast and telephone dial-in details, along with replay and transcript availability, are provided on investors.principal.com[26](index=26&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements based on current expectations, which are not guarantees of future performance and are subject to risks - The release includes forward-looking statements about **share repurchases, planned dividends, growth strategies, and ongoing operations**[27](index=27&type=chunk) - These statements are based on current expectations and beliefs and are **not guarantees of future performance**; actual results may differ materially[27](index=27&type=chunk) - Risks and uncertainties are described in SEC filings, including the annual report on Form 10-K. The company assumes no obligation to update forward-looking statements[27](index=27&type=chunk) [About Principal](index=7&type=section&id=About%20Principal) Principal Financial Group is a global financial company with a long history of serving millions of customers in planning, insuring, investing, and retirement - Principal Financial Group is a global financial company with **nearly 20,000 employees**, serving approximately **62 million customers** for over 140 years[29](index=29&type=chunk) - The company helps customers plan, insure, invest, and retire, while also focusing on improving the planet, supporting communities, and building a diverse and inclusive workforce[29](index=29&type=chunk) - Principal is recognized as one of the **2023 World's Most Ethical Companies**, a member of the **Bloomberg Gender Equality Index**, and a "Best Places to Work in Money Management"[29](index=29&type=chunk)

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, 2023 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 ...