Principal Financial(US:PFG)2026-02-09 21:20Financial Performance - Full-year non-GAAP operating earnings per diluted share increased 12% to $8.55, at the high end of the 9-12% target[6] - Net income attributable to PFG for 2025 was $1,185 million, a decrease of 25% compared to 2024[9] - Non-GAAP net income attributable to PFG, excluding exited business, was $1,687 million for 2025, a 12% increase from 2024[9] - Net income attributable to Principal Financial Group (PFG) for 4Q25 was $517.0 million, a decrease from $905.4 million in 4Q24, representing a decline of 42.8%[35] - Non-GAAP net income attributable to PFG, excluding exited business, increased to $489.9 million in 4Q25 from $353.5 million in 4Q24, reflecting a growth of 38.6%[35] - Non-GAAP operating earnings for 4Q25 were $488.0 million, compared to $448.1 million in 4Q24, showing a rise of 8.9%[35] - Non-GAAP pre-tax operating earnings for 4Q25 were $597.9 million, compared to $546.9 million in 4Q24, reflecting an increase of 9.3%[35] Shareholder Returns - Returned over $1.5 billion to shareholders in 2025, including $850 million in share repurchases and $700 million in common stock dividends[6] - Announced a common stock dividend increase of $0.01 to $0.80 per share in Q1 2026, representing a 7% increase over Q1 2025[6] Assets and Management - Assets under management (AUM) reached $781 billion, included in assets under administration (AUA) of $1.8 trillion[6] - Total assets as of 4Q25 reached $341.4 billion, up from $313.7 billion in 4Q24, indicating a growth of 8.3%[39] - Investment management operating revenues for the trailing twelve months reached $1,887.5 million, compared to $1,820.7 million in the previous year, indicating a growth of 3.7%[45] Business Segments Performance - Retirement and Income Solutions transfer deposits increased 9% to $35 billion from 2024[15] - Investment Management gross sales of $127 billion increased 16% from 2024, with non-affiliated gross sales growth of 18%[15] - International Pension AUM grew 24% to $154 billion compared to the previous year[15] - Segment pre-tax operating earnings for Retirement and Income Solutions were $299.5 million in 4Q25, up from $280.1 million in 4Q24, an increase of 6.3%[35] Equity and Book Value - Stockholders' equity available to common stockholders increased to $11,883.9 million in Q4 2025 from $11,086.4 million in Q4 2024, representing a growth of 7.2%[41] - Book value per common share increased to $54.66 in 4Q25 from $49.01 in 4Q24, marking an increase of 11.4%[39] - Book value per common share, excluding changes in fair value of funds withheld embedded derivative, rose to $57.25 in Q4 2025 from $53.69 in Q4 2024, an increase of 6.5%[41] Tax and Capital Gains - Total GAAP income taxes decreased to $110.4 million in Q4 2025 from $209.9 million in Q4 2024, a decline of 47.4%[43] - Net realized capital gains (losses) as adjusted improved to $1.9 million in Q4 2025 from a loss of $94.6 million in Q4 2024[43] Other Financial Metrics - The company reported a loss from exited business of $27.1 million in 4Q25, significantly improved from a loss of $551.9 million in 4Q24[35] - Total income (loss) from exited business was $27.1 million in Q4 2025, a significant decrease from $551.9 million in Q4 2024[43] - Cumulative change in fair value of funds withheld embedded derivative improved to $(2,080.2) million in Q4 2025 from $(2,381.3) million in Q4 2024[41] - AOCI, other than foreign currency translation adjustment, decreased to $2,641.8 million in Q4 2025 from $3,438.9 million in Q4 2024[41] - The company experienced significant variances in 4Q25 due to lower than expected variable investment income across several segments, impacting overall performance[28] - Weighted average diluted common shares outstanding decreased to 222.4 million in 4Q25 from 231.2 million in 4Q24, a reduction of 3.8%[37] - Noncontrolling interest improved to $(33.1) million in Q4 2025 from $(44.9) million in Q4 2024, showing a positive trend[41]