Core Insights - Principal Financial Group, Inc. (PFG) reported a fourth-quarter 2025 operating net income of $2.19 per share, which missed the Zacks Consensus Estimate by 1.8%, but showed a 13% year-over-year increase [1][8] - Total revenues increased by 9.2% year over year to $4.4 billion, driven by higher premiums, fees, and net investment income [1][8] Revenue Performance - Higher revenues were observed across the Retirement and Income Solution, Investment Management, Specialty Benefits, and Life Insurance segments, despite increased expenses [2] - Total expenses rose by 8.2% year over year to $3.9 billion, attributed to higher benefits, claims, and operating expenses [3] Segment Analysis - **Retirement and Income Solution**: Revenues increased by 15.6% year over year to $2.5 billion, with pre-tax operating earnings rising 7% to $299.5 million [4] - **Investment Management**: Revenues reached $482.7 million, up 1.7% from the prior year, with pre-tax operating earnings increasing by 2% to $166.7 million [4][5] - **International Pension**: Revenues decreased by 9.6% year over year to $216.6 million due to lower premiums and net investment income [5] - **Specialty Benefits**: Revenues increased by 2.8% year over year to $898.2 million, while pre-tax operating earnings decreased by 3% to $142.1 million [6] - **Life Insurance**: Revenues rose by 5.1% year over year to $346.1 million, with pre-tax operating earnings surging more than threefold to $27.5 million [7] Financial Position - As of December 31, 2025, assets under management totaled $781 billion, part of $1.8 trillion in assets under administration [3] - Cash and cash equivalents were $4.4 billion, a 5.2% increase from the end of 2024, while long-term debt decreased by 0.7% to $3.9 billion [10] Shareholder Returns - PFG returned $1.5 billion to shareholders in 2025, including $0.9 billion in share repurchases and $0.7 billion in dividends [11] - The quarterly dividend was raised by 7% to 80 cents per share, payable on March 27, 2026 [11] Full-Year Overview - For 2025, PFG reported an operating net income of $8.27 per share, missing estimates by 0.3%, but reflecting a 19% year-over-year increase [12] - Total operating revenues for the year were $15.93 billion, up 2% year over year [12] Future Guidance - PFG anticipates 9-12% annual non-GAAP operating earnings per diluted share growth and expects a 75-85% free capital flow conversion [13] - The company projects $1.5-$1.8 billion in capital deployment, including $0.8-$1.1 billion for share repurchases and a 40% dividend payout ratio [13]