Financial Data and Key Metrics - The company returned $1.3 billion to shareholders in 2023 through share repurchases and common stock dividends, representing nearly 90% of net income excluding exited businesses [3] - Full-year 2023 non-GAAP operating earnings were $1.6 billion or $6.55 per diluted share, a 6% increase over 2022 [27] - Fourth-quarter non-GAAP operating earnings were $441 million or $1.83 per diluted share, with total company managed AUM reaching $695 billion, up over 9% from 2022 [91] - The company ended 2023 with $1.7 billion of excess and available capital, including $935 million at the holding company, above the $800 million targeted level [55] Business Line Performance - Retirement and Income Solutions (RIS) saw a 22% increase in pre-tax operating earnings in Q4 2023 compared to Q4 2022, driven by business growth, higher net investment income, and favorable markets [20] - RIS sales increased 9% in 2023, with fee-based transfer deposits up 17% and $3 billion in pension risk transfer sales [11] - Specialty Benefits achieved a 9% growth in premium and fees in 2023, with strong retention and employment growth contributing to the increase [29] - Principal International reported a 9% revenue growth in 2023, with a 32% margin and an 11% increase in pre-tax operating earnings over 2022 [75] Market Performance - The S&P 500 daily average increased 4% from 2022, with the index up 24% from the end of 2022 [74] - Retail net cash flow remains challenged, with approximately $6 trillion of assets in money market funds or cash equivalents [10] - The company benefited from diversification across institutional, retail, retirement, private assets, and international geographies [10] Strategic Direction and Industry Competition - The company is focused on maintaining capital and liquidity targets, with a balanced approach to capital deployment [22] - Principal International expects low single-digit revenue growth in 2024, reflecting foreign currency translation and macro headwinds in Asia [36] - The company is targeting $1.5 billion to $1.8 billion in capital deployments for 2024, including $800 million to $1.1 billion in share repurchases [93] Management Commentary on Operating Environment and Future Outlook - The company expects 9% to 12% growth in earnings per share and 75% to 85% free capital flow conversion in 2024 [63] - Management anticipates continued pressure on real estate returns and prepayment fees if the current macro environment persists [34] - The company is well-positioned to deliver on long-term financial targets, with a strong capital position and momentum heading into 2024 [37] Other Important Information - The company announced the retirement of Pat Halter, President of Principal Asset Management, after 40 years of service [18] - Principal Asset Management was named a Best Place to Work in Money Management for the 12th consecutive year [51] - The company established a Bermuda reinsurance entity, which freed up $200 million of capital in Q4 2023 [58] Q&A Session Summary Question: Outlook for real estate-related activities in 2024 [39] - The company expects continued pressure on real estate revenue, with variable investment income difficult to predict [34] - The commercial mortgage loan portfolio remains healthy, with an average loan-to-value of 49% and a stable debt service coverage ratio of 2.5x [21] Question: Impact of exiting guaranteed products in Hong Kong [72] - The exit freed up $30 million to $40 million in capital in Q4 2023, with a similar amount expected in early 2024 [73] - The exit will pressure Hong Kong earnings by approximately $10 million on a pre-tax basis in 2024 [73] Question: Trends in RIS fee flows in the SMB market [83] - SMB transfer deposits increased 12% on a trailing 12-month basis, with recurring deposits up 14% [83] - The company sees healthy fundamentals in the SMB market, driven by participant deferrals and employer matches [83] Question: Competitive environment in RIS [106] - The company remains competitive, with WSRS sales up 14% and fee-based transfer deposits up 17% in 2023 [107] - Strong revenue retention and underlying business fundamentals support the company's ability to compete effectively [107] Question: Commercial mortgage loan portfolio maturities [200] - The company has 11 office loans maturing in 2024, with one already paid off in January [201] - The remaining loans have a 66% loan-to-value and a debt service coverage ratio of 3.8x, with 94% occupancy [208] Question: Outlook for alternative returns [142] - The company expects alternative returns to be in the 8% to 8.5% range, with real estate pre-pays likely running below expectations [143] - Private equity and hedge funds performed better than expected in 2023, offsetting some real estate pressures [149]

| --- | --- | --- | --- | |---------------------------------------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------|-----------------------| | Full year 2023 financial highlights | | | | | FY 2023 OPERATING RESULTS | | | | | Reported non-GAAP operating earnings1 | lmpact of significant variances to non-GAAP operating earnings2 | Non-GAAP operating earnings, excluding significant variances (xSV) | | ...

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, 2023 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 ...

Principal Financial Group, Inc. (NASDAQ:PFG) Q3 2023 Earnings Conference Call October 27, 2023 10:00 AM ET Company Participants Humphrey Lee - Vice President of Investor Relations Dan Houston - Chief Executive Officer Deanna Strable - Chief Financial Officer Pat Halter - President and Chief Executive Officer, Principal Asset Management Chris Littlefield - President, Retirement and Income Solutions Amy Friedrich - President, Benefits and Protection Conference Call Participants Ryan Krueger - KBW Jimmy Bhulla ...

| --- | --- | |-----------------------------------------------|-------| | | | | O Principal® | | | Third Quarter 2023 Earnings Call Presentation | | | PRINCIPAL FINANCIAL GROUP October 26, 2023 | | | --- | --- | |---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

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 June 30, 2023 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 incorporati ...

Principal Financial Group, Inc. (NASDAQ:PFG) Q2 2023 Results Conference Call July 28, 2023 10:00 AM ET Company Participants Humphrey Lee - Vice President of Investor Relations Dan Houston - CEO Deanna Strable - CFO Chris Littlefield - Retirement and Income Solutions Pat Halter - Asset Management Amy Friedrich - Benefits and Protection Conference Call Participants Suneet Kamath - Jefferies Ryan Krueger - KBW Tom Gallagher - Evercore ISI Erik Bass - Autonomous Research John Barnidge - Piper Sandler Wes Carmic ...

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, 2023 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 incorporat ...

Financial Data and Key Metrics Changes - The company reported non-GAAP operating earnings of $395 million or $1.60 per diluted share in the first quarter, despite macroeconomic pressures on AUM levels during 2022 [77] - The total company managed AUM increased by 4% from year-end 2022 to $660 billion, reflecting favorable equity and fixed income markets [67] - The company generated $600 million of positive net cash flow, highlighting the benefits of a diversified business model [67] Business Line Data and Key Metrics Changes - The Retirement and Income Solutions (RIS) business saw a strong start to the year with $600 million in pension risk transfer sales, indicating a favorable environment due to higher interest rates [13][4] - Specialty Benefits experienced above-industry growth in premium and fees, driven by strong retention and sales in the small to midsized employer market [76] - The Asset Management segment reported positive net cash flow of $400 million, benefiting from integrated business models and differentiated investment capabilities [76] Market Data and Key Metrics Changes - The company noted strong employment and wage growth in the U.S., particularly in the small to midsize segment, contributing to growth in the Retirement, Benefits, and Protection business [76] - International markets, particularly in Asia and Latin America, showed positive cash flows despite a volatile macroeconomic environment [59] Company Strategy and Development Direction - The company aims to focus on maximizing growth drivers in retirement, global asset management, and Benefits and Protection to drive long-term growth and shareholder value [81] - The company is committed to a disciplined approach to capital deployment, balancing investments for growth with returning excess capital to shareholders [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating through macroeconomic volatility, highlighting a strong financial position with $1.8 billion of excess and available capital [54] - The company anticipates free cash flow generation to increase throughout the year, despite seasonality affecting the first quarter [108] Other Important Information - The company has reduced its office exposure in the commercial mortgage portfolio from 37% in 2016 to 25% today, reflecting a proactive approach to managing risks in the sector [86] - The commercial loan portfolio has a current average loan-to-value of 46% and a debt service coverage of 2.5x, indicating strong financial health [86] Q&A Session Summary Question: What is the outlook for pension risk transfer sales in 2023? - Management expects to grow the PRT business by 10% to 15% over last year, targeting around $2.3 billion in sales [13] Question: Can you elaborate on the drivers of net investment income increase? - The increase is attributed to higher short-term interest rates, timing differences in rate credits, and overall growth in the business block [22] Question: How does the company assess its commercial real estate exposure? - The company conducts quarterly reevaluations of loans and cash flows, ensuring a robust analysis of debt service coverage ratios [14][15] Question: What is the expected pace of share buybacks moving forward? - Management indicated that while there may be volatility quarter-to-quarter, the annualized pace of buybacks is expected to be consistent with the first quarter's $150 million [21] Question: How is the company managing expenses in the RIS business? - Management highlighted disciplined expense management and noted some one-time benefits from prior period accruals, with expectations for flat expenses year-over-year [44]

49% of rated fund AUM has a 4 or 5 star rating from Morningstar 4 Government Cash, 3.9% Agencies, State & Political, Other1, 10.1% 8.6% Residential Loans, 4.6% Commerical $73.7 B Mortgage Loans Corporate (ex-Office), U.S. invested assets Bonds, 34.6% 13.6% & cash Total Commercial Mortgage 7 Commerical Loans 18.2% Mortgage Loans (Office), 4.6% ABS, 7.0% MBS, 7.6% CMBS, 5.4% • Commercial mortgage loan portfolio has average loan-to-value (LTV) of 46% and average debt service coverage (DSC) ratio of 2.5x; refle ...