RETIREMENT ASSET MANAGEMENT BENEFITS & PROTECTION Fourth Quarter 2025 Earnings and 2026 Outlook PRINCIPAL FINANCIAL GROUP February 9, 2026 Audience disclosure Key takeaways | | 12% | 92% | 15.7% | | --- | --- | --- | --- | | Delivered on 2025 outlook | FY EPS growth1 | FY FCF %2 | ROE3 | | | (9-12% target) | (75-85% target) | (14-16% target) | | | | 2025 Highlights4 Capital • Returned $448M capital to shareholders during 4Q25, including $275M of share repurchases and $172M of common stock dividends; bringin ...

Core Insights - Principal Financial (PFG) reported a revenue of $4.46 billion for the quarter ended December 2025, reflecting a year-over-year increase of 9.2% and surpassing the Zacks Consensus Estimate of $4.11 billion by 8.34% [1] - The company's earnings per share (EPS) was $2.19, an increase from $1.94 in the same quarter last year, although it fell short of the consensus estimate of $2.23 by 1.72% [1] Financial Performance Metrics - Assets under management (AUM) for International Pension stood at $153.90 billion, slightly above the average estimate of $153.64 billion [4] - AUM for Investment Management was reported at $593.90 billion, below the average estimate of $611.14 billion [4] - Revenue from fees and other revenues was $1.14 billion, slightly below the average estimate of $1.17 billion, marking a year-over-year increase of 1.9% [4] - Net investment income revenue was $1.2 billion, compared to an average estimate of $1.25 billion, reflecting a year-over-year increase of 7% [4] - Premiums and other considerations revenue reached $2.1 billion, exceeding the average estimate of $1.81 billion, representing a significant year-over-year increase of 15% [4] Segment Performance - In the Principal Asset Management Segment, fees and other revenues were $544.1 million, below the average estimate of $565.87 million, with a year-over-year increase of 1.5% [4] - Net investment income in the Principal Asset Management Segment was $149.7 million, falling short of the average estimate of $180.76 million, showing a year-over-year decline of 8.4% [4] - In the Benefits and Protection Segment, Specialty Benefits fees and other revenues were $7.9 million, below the average estimate of $8.58 million, reflecting a year-over-year decrease of 4.8% [4] - Specialty Benefits premiums and other considerations revenue was $837.9 million, slightly above the average estimate of $835.76 million, with a year-over-year increase of 2.8% [4] - Total revenue for Specialty Benefits in the Benefits and Protection Segment was $898.2 million, exceeding the average estimate of $896.11 million, representing a year-over-year increase of 2.9% [4] - Life Insurance fees and other revenues were reported at $119.9 million, below the average estimate of $124.93 million, with a year-over-year increase of 4.7% [4] Stock Performance - Shares of Principal Financial have returned +7.8% over the past month, contrasting with the Zacks S&P 500 composite's -0.2% change, indicating a relatively strong performance [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]

分组1 - Principal Financial (PFG) reported quarterly earnings of $2.19 per share, missing the Zacks Consensus Estimate of $2.23 per share, but showing an increase from $1.94 per share a year ago, resulting in an earnings surprise of -1.72% [1] - The company posted revenues of $4.46 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 8.34%, compared to year-ago revenues of $4.08 billion [2] - Principal Financial shares have increased approximately 10.4% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $2.10 on revenues of $4.18 billion, and for the current fiscal year, it is $9.41 on revenues of $16.91 billion [7] - The Zacks Industry Rank for Insurance - Multi line is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The estimate revisions trend for Principal Financial was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial 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]

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Core Insights - Principal Financial Group, Inc. (PFG) is anticipated to show improvements in both revenue and earnings for the fourth quarter of 2025, with revenue expected to reach $4.11 billion, reflecting a 0.7% increase year-over-year [1] - The earnings consensus estimate is set at $2.23 per share, indicating a year-over-year increase of 14.9%, with a 0.4% upward revision in the past 60 days [2] Financial Performance Expectations - The fourth-quarter results are likely to demonstrate strong performance in PRT, solid underwriting results, and overall business growth [5] - Operating revenues are expected to rise due to increased premiums and fees in Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection [5] - Investment Management is projected to benefit from higher management fee revenues due to increased average assets under management (AUM) and disciplined expense management [6] Investment Income and Market Performance - Investment income is expected to improve from higher average invested assets in fixed maturities and increased income from derivatives and alternative investments for U.S. operations [7] - Assets under management are likely to benefit from strong market performance and positive net cash flow [8] Expense Considerations - Expenses are anticipated to rise due to higher benefits, claims, and settlement expenses [8] Comparative Analysis - Other insurance stocks such as American International Group, Inc. (AIG) and Assurant, Inc. (AIZ) are also expected to show positive earnings trends, with AIG's earnings consensus at $1.89 per share (up 45.3% year-over-year) and AIZ's at $5.55 per share (up 15.8% year-over-year) [11][12]

分组1 - Everest Group reported quarterly earnings of $13.26 per share, missing the Zacks Consensus Estimate of $13.36 per share, compared to a loss of $18.39 per share a year ago, representing an earnings surprise of -0.75% [1] - The company posted revenues of $4.42 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.69%, but down from year-ago revenues of $4.64 billion [2] - Over the last four quarters, Everest Group has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $14.45 on revenues of $4.48 billion, and for the current fiscal year, it is $54.80 on revenues of $16.99 billion [7] - The Zacks Industry Rank for Insurance - Multi line is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The estimate revisions trend for Everest Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Core Viewpoint - Analysts project that Principal Financial (PFG) will report quarterly earnings of $2.23 per share, reflecting a 15% year-over-year increase, with revenues expected to reach $4.11 billion, a 0.8% increase from the same quarter last year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.2%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - The consensus estimate for 'Revenue- Fees and other revenues' is $1.17 billion, indicating a year-over-year change of +5.3% [5]. - 'Revenue- Net investment income' is projected to reach $1.25 billion, reflecting a year-over-year change of +11.3% [5]. - 'Revenue- Premiums and other considerations' is expected to be $1.81 billion, showing a year-over-year change of -0.9% [5]. Segment-Specific Revenue Estimates - 'Revenue- Principal Asset Management segment- Fees and other revenues' is forecasted at $565.87 million, a +5.6% change from the prior-year quarter [6]. - 'Revenue- Principal Asset Management Segment- Net investment income' is expected to be $180.76 million, indicating a +10.6% change from the year-ago quarter [6]. - 'Revenue- Benefits and Protection Segment- Specialty Benefits- Fees and other revenues' is estimated at $8.58 million, reflecting a +3.4% year-over-year change [7]. - 'Revenue- Benefits and Protection Segment- Specialty Benefits- Premiums and other considerations' is projected to be $835.76 million, indicating a +2.5% change from the prior-year quarter [7]. - 'Revenue- Benefits and Protection Segment- Specialty Benefits- Net Investment Income' is expected to reach $51.77 million, a +4.2% change from the prior-year quarter [8]. - The total for 'Revenue- Benefits and Protection Segment- Specialty Benefits' is estimated at $896.11 million, reflecting a +2.6% change from the year-ago quarter [8]. - 'Revenue- Benefits and Protection Segment- Life Insurance- Fees and other revenues' is projected at $124.93 million, indicating a +9.1% year-over-year change [9]. - 'Revenue- Benefits and Protection Segment- Life Insurance- Premiums and other considerations' is expected to reach $126.94 million, reflecting a +14.5% year-over-year change [9]. - 'Revenue- Benefits and Protection Segment- Life Insurance- Net Investment Income' is forecasted at $110.09 million, indicating a +6% change from the year-ago quarter [10]. Stock Performance - Shares of Principal Financial have increased by +3.8% over the past month, compared to a +0.9% increase in the Zacks S&P 500 composite [11].

Core Insights - Principal Financial Group, Inc. (PFG) shares have increased by 12.3% over the last six months, outperforming the Finance sector's growth of 8.3% and the industry growth of 3.4% [1] - The stock closed at $88.49, close to its 52-week high of $92.51, indicating strong investor confidence and potential for further price appreciation [2] - PFG is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [3] Financial Performance - Principal Financial anticipates long-term revenue and margin growth across all segments, supported by strengths in retirement, benefits, asset management, and claims [6] - The Zacks Consensus Estimate projects a 13.4% increase in earnings per share and a 7.6% increase in revenues for 2026 compared to 2025 [8] - The company has a market capitalization of $19.71 billion, with an average trading volume of 1.2 million shares over the last three months [2] Valuation Metrics - PFG shares are trading at a price-to-book value of 1.68X, which is lower than the industry average of 2.63X and the Finance sector's 4.36X, indicating a better entry point for investors [7] - The average price target from 12 analysts is $91.08 per share, suggesting a potential upside of 0.11% from the last closing price [9] Analyst Sentiment - Three out of six analysts have raised their estimates for PFG's 2026 earnings over the past 60 days, leading to a 0.3% increase in the Zacks Consensus Estimate for that year [11] - The company has a Value Score of A, indicating it is among the most attractive value stocks [7] Growth Drivers - PFG's revenue growth is expected to improve due to higher premiums, fees, and improved net investment income across its segments [12] - The company benefits from its leadership in retirement and long-term savings, group benefits, and global asset management, contributing to solid operating earnings [13] - Strong institutional flows across various asset classes are likely to drive positive net cash flow [16] Capital Management - PFG has a strong capital position with $1.6 billion of excess and available capital, positioning it well for long-term financial targets [17] - The company returned approximately $400 million to shareholders in Q3 2025 and aims to deliver a capital return target of $1.4 billion to $1.7 billion in 2025 [19] - The board declared a fourth-quarter dividend with an 8% increase from the previous quarter, aligning with a targeted 40% dividend payout ratio [18] Conclusion - PFG's financial stability, favorable growth estimates, and strategic initiatives suggest a positive outlook for potential investors [20] - The combination of impressive dividend history, attractive valuations, and optimistic analyst sentiment makes it an opportune time for investment [21]