Raises fourth quarter 2025 common stock dividend
DES MOINES, Iowa--(BUSINESS WIRE)--October 27, 2025--
Principal Financial Group$(R)$ (Nasdaq: PFG) announced results for third quarter 2025.
Diluted earnings per common Net income attributable to PFG
share 3Q25 (in millions) 3Q25
Net income attributable to PFG $0.95 Net income attributable to PFG $214
Non-GAAP net income Non-GAAP net income
attributable to PFG, excluding attributable to PFG, excluding
exited business(1) $2.06 exited business(1) $466
Non-GAAP operating earnings(1) $2.10 Non-GAAP operating earnings(1) $474
Third Quarter 2025 Highlights Deanna Strable, Chair, President and
Non-GAAP operating earnings per CEO of Principal(R) "Robust
diluted share, excluding significant operating performance delivered
variances(2) , of $2.32 increased strong EPS growth in the third
13% over prior year quarter Returned quarter driving ROE to the top of
$398 million of capital to our target range, underpinned by
shareholders, including $225 million sound business fundamentals,
of share repurchases and $173 enhanced margin performance, and
million of common stock dividends strategic positioning in high-growth
Raised fourth quarter 2025 common market segments. Sustained free cash
stock dividend to $0.79 per share, a flow enabled investments across
1-cent increase over third quarter value-creating business
2025, an 8% increase over fourth opportunities and shareholder
quarter 2024 and an 8% increase on a distributions, while maintaining a
trailing twelve-month basis Assets strong capital position and
under management (AUM) of $784 financial flexibility. Based on our
billion, including $0.4 billion of year-to-date execution and continued
net cash flow; assets under business momentum, we remain
administration (AUA) of $1.8 confident in achieving our full-year
trillion Strong financial position guidance and advancing our strategic
with $1.6 billion of excess and initiatives."
available capital
Third Quarter Enterprise Results
In millions except percentages, earnings per share, or otherwise noted
Three Months Ended, Trailing Twelve Months,
3Q25 3Q24 % Change 3Q25 3Q24 % Change
Net income (loss)
attributable to
PFG $213.8 $(220.0) N/M $1,573.5 $(206.1) N/M
Non-GAAP net
income
attributable to
PFG, excluding
exited business $465.6 $419.1 11% $1,550.8 $1,450.8 7%
Non-GAAP operating
earnings $473.7 $412.0 15% $1,825.6 $1,632.9 12%
Diluted earnings
per common share
Net income (loss)
attributable to
PFG $0.95 $(0.95) N/M
Non-GAAP net
income
attributable to
PFG, excluding
exited business $2.06 $1.78 16%
Non-GAAP operating
earnings $2.10 $1.76 19%
Non-GAAP operating
earnings,
excluding
significant
variances(2) $2.32 $2.05 13%
Assets under
administration
(billions) $1,792.5 $1,691.0 6%
Assets under
management
(billions) $784.3 $740.6 6%
AUM net cash flow
(billions) $0.4 $(1.1) N/M
Third Quarter Segment Highlights(3)
-- Retirement and Income Solutions pre-tax operating earnings4, excluding
the significant variances outlined in Exhibit 1, increased 8% on net
revenue5 growth of 4% and margin6 of 42%
-- Investment Management pre-tax operating earnings increased 9% on
management fee increase of 5% and margin7 expansion of 180 bps to 40%
-- Specialty Benefits record pre-tax operating earnings, excluding the
significant variances outlined in Exhibit 1, increased 28% on strong
underwriting results
Segment Results(8)
In millions except percentages, or otherwise noted except percentages or
otherwise noted)
Retirement and Income Solutions
Three Months Ended, Trailing Twelve Months,
3Q25 3Q24 % Change 3Q25 3Q24 % Change
Pre-tax
operating
earnings $310.3 $246.1 26% $1,166.2 $1,040.7 12%
Net revenue $751.7 $679.4 11% $2,919.0 $2,762.2 6%
Operating margin 41.3% 36.2% 40.0% 37.7%
-- Pre-tax operating earnings increased $64.2 million. Excluding the
significant variances outlined in Exhibit 1, pre-tax operating earnings
increased $22.5 million due to higher net revenue and disciplined expense
management.
-- Net revenue increased $72.3 million. Excluding the significant
variances outlined in Exhibit 1, net revenue increased $30.6 million
primarily due to growth in the business and favorable markets.
Investment Management
Three Months Ended, Trailing Twelve Months,
3Q25 3Q24 % Change 3Q25 3Q24 % Change
Pre-tax operating
earnings $173.5 $159.1 9% $611.6 $544.1 12%
Operating revenues
less pass-through
expenses(9) $444.0 $427.8 4% $1,724.7 $1,630.8 6%
Operating margin 39.8% 38.0% 36.3% 34.0%
Assets under
management
(billions) $601.6 $572.8 5%
-- Pre-tax operating earnings increased $14.4 million primarily driven by
higher operating revenues less pass-through expenses and disciplined
expense management.
-- Operating revenues less pass-through expenses increased $16.2 million
primarily due to higher management fees.
International Pension
Three Months Ended, Trailing Twelve Months,
3Q25 3Q24 % Change 3Q25 3Q24 % Change
Pre-tax operating
earnings $101.2 $109.7 (8)% $303.0 $320.4 (5)%
Net revenue $187.9 $195.4 (4)% $630.6 $669.6 (6)%
Operating margin(10) 53.9% 56.1% 48.0% 47.8%
Assets under management
(billions) $150.7 $138.3 9%
-- Pre-tax operating earnings decreased $8.5 million. Excluding the
significant variances outlined in Exhibit 1, pre-tax operating earnings
increased $2.0 million.
-- Net revenue decreased $7.5 million. Excluding the significant variances
outlined in Exhibit 1, net revenue decreased $1.8 million.
Specialty Benefits
Three Months Ended, Trailing Twelve Months,
3Q25 3Q24 % Change 3Q25 3Q24 % Change
Pre-tax operating
earnings $155.5 $101.7 53% $536.5 $431.7 24%
Premium and fees $845.2 $818.8 3% $3,340.5 $3,225.0 4%
Operating margin(11) 18.4% 12.4% 16.1% 13.4%
Incurred loss ratio 56.4% 62.7% 58.5% 61.6%
-- Pre-tax operating earnings increased $53.8 million. Excluding the
significant variances outlined in Exhibit 1, pre-tax operating earnings
increased $31.9 million due to more favorable underwriting experience
along with growth in the business.
-- Premium and fees increased $26.4 million driven by growth in the
business.
-- Incurred loss ratio was 56.4%. Excluding the significant variances
outlined in Exhibit 1, the incurred loss ratio of 58.1% improved due to
more favorable underwriting experience in group life, group disability
and group dental.
Life Insurance
Three Months Ended, Trailing Twelve Months,
3Q25 3Q24 % Change 3Q25 3Q24 % Change
Pre-tax operating
earnings (losses) $(69.0) $(37.3) (85)% $(28.2) $21.2 N/M
Premium and fees $248.9 $241.1 3% $947.4 $928.7 2%
Operating margin (27.7)% (15.5)% (3.0)% 2.3%
-- Pre-tax operating earnings decreased $31.7 million. Excluding the
significant variances outlined in Exhibit 1, pre-tax operating earnings
decreased $2.7 million driven by less favorable mortality.
-- Premium and fees increased $7.8 million, as strong business market
growth more than offset the runoff of the legacy life business.
Corporate
Three Months Ended, Trailing Twelve Months,
3Q25 3Q24 % Change 3Q25 3Q24 % Change
Pre-tax operating
losses $(91.6) $(79.4) (15)% $(382.3) $(360.2) (6)%
-- Pre-tax operating losses increased $12.2 million. Excluding the
significant variances outlined in Exhibit 1, pre-tax operating losses
increased $8.7 million primarily due to lower interest income and higher
operating expenses.
Common Stock Dividend
-- The company is announcing a fourth quarter cash dividend of $0.79 per
share to holders of common shares. The dividend will be payable on Dec
19, 2025, to shareholders of record as of Dec 3, 2025.
Exhibit 1 Principal Financial Group Impact of Significant Variances(12)
on Net Income Attributable to PFG; Non-GAAP Net Income Attributable to
PFG, Excluding Exited Business; and Non-GAAP Operating Earnings In
millions except per share data
Three Months Ended, Trailing Twelve Months,
3Q25 3Q24 3Q25 3Q24
Net income (loss)
attributable to
PFG $ (55.9) $ (84.7) $ (96.4) $(134.4)
(Income) loss from
exited business 6.1 20.6 6.1 20.6
------------------ ------ ------ ------ ------
Non-GAAP net
income (loss)
attributable to
PFG, excluding
exited business (49.8) (64.1) (90.3) (113.8)
Net realized
capital (gains)
losses, as
adjusted 0.2 (3.7) 0.2 (3.7)
------------------ ------ ------ ------ ------
Non-GAAP operating
earnings (49.6) (67.8) (90.1) (117.5)
Income taxes (10.5) (12.9) (21.5) (30.3)
------------------ ------ ------ ------ ------
Non-GAAP pre-tax
operating
earnings $ (60.1) $ (80.7) $ (111.6) $(147.8)
Per diluted share:
Net income (loss)
attributable to
PFG $ (0.25) $ (0.36)
(Income) loss from
exited business 0.03 0.09
------------------ ------ ------
Non-GAAP net
income (loss)
attributable to
PFG, excluding
exited business (0.22) (0.27)
Net realized
capital (gains)
losses, as
adjusted - (0.02)
------------------ ------ ------
Non-GAAP operating
earnings $ (0.22) $ (0.29)
Weighted average
diluted common
shares
outstanding 225.2 233.8
Segment pre-tax
operating earnings
(losses):
Retirement and
Income Solutions $ (4.5) $ (46.2) $ (45.6) $ (94.2)
Investment
Management - - 4.8 -
International
Pension 28.5 39.0 22.7 39.1
------------------ ------ ------ ------ ------
Principal Asset
Management 28.5 39.0 27.5 39.1
Specialty
Benefits 8.3 (13.6) 11.1 (24.6)
Life Insurance (99.3) (70.3) (118.7) (95.3)
------------------ ------ ------ ------ ------
Benefits and
Protection (91.0) (83.9) (107.6) (119.9)
Corporate 6.9 10.4 14.1 27.2
------------------ ------ ------ ------ ------
Total segment
pre-tax operating
earnings
(losses) $ (60.1) $ (80.7) $ (111.6) $(147.8)
Income statement line item details of significant variances are available in our earnings conference call presentation on our website.
Earnings Conference Call
On Tuesday, Oct. 28, 2025, at 10:00 a.m. $(ET)$, Chair, President and Chief Executive Officer Deanna Strable and Executive Vice President and Chief Financial Officer Joel Pitz will lead a discussion of results and the impacts on future prospects, asset quality and capital adequacy during a live conference call, which can be accessed as follows:
-- Via live Internet webcast. Please go to investors.principal.com at
least 10-15 minutes prior to the start of the call to register, and to
download and install any necessary audio software.
-- Analysts who will be asking questions will be sent a dial in number and
authorization code in advance of the call.
-- Replay of the earnings call via webcast as well as a transcript of the
call will be available after the call at investors.principal.com.
The company's financial supplement and slide presentation is currently available at investors.principal.com, and may be referred to during the call.
Forward Looking Statements
This release contains statements that constitute forward--looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to share repurchases and planned dividends, the realization of our growth and business strategies and results from ongoing operations. Forward--looking statements are made based upon our current expectations and beliefs concerning future developments and their potential effects on us. Such forward--looking statements are not guarantees of future performance and actual results may differ materially from the results anticipated in the forward-looking statements. We describe risks, uncertainties and factors that could cause or contribute to such material differences in our filings with the Securities and Exchange Commission, including in the "Risk Factors" and "Note Concerning Forward-Looking Statements" sections in our annual report on Form 10-K for the year ended Dec. 31, 2024, as updated or supplemented from time to time in subsequent filings. We assume no obligation to update any forward-looking statement for any reason, which speaks as of its date.
Use of Non-GAAP Financial Measures
The company uses a number of non-GAAP financial measures that management believes are useful to investors because they illustrate the performance of normal, ongoing operations, which is important in understanding and evaluating the company's financial condition and results of operations. They are not, however, a substitute for U.S. GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measure at the end of the release. The company adjusts U.S. GAAP measures for items not directly related to ongoing operations. However, it is possible these adjusting items have occurred in the past and could recur in future reporting periods. Management also uses non-GAAP measures for goal setting, as a basis for determining employee and senior management awards and compensation and evaluating performance on a basis comparable to that used by investors and securities analysts.
About Principal(R)13 Principal Financial Group(R) (Nasdaq: PFG) is a global financial company with approximately 20,000 employees(14) passionate about improving the wealth and well-being of people and businesses. In business for 146 years, we're helping over 70 million customers(14) plan, insure, invest, and retire, while working to support the communities where we do business, and building an inclusive workforce. Principal(R) is proud to be recognized as one of the 2025 World's Most Ethical Companies(15) and named as a "Best Places to Work in Money Management(16) ." Learn more about Principal and our commitment to building a better future at principal.com.
Summary of Principal Financial Group(R) and Segment Results
(in millions)
Three Months Ended, Trailing Twelve Months,
Principal
Financial
Group, Inc.
Results 3Q25 3Q24 3Q25 3Q24
Net income
(loss)
attributable
to PFG $ 213.8 $ (220.0) $ 1,573.5 $ (206.1)
(Income) loss
from exited
business 251.8 639.1 (22.7) 1,656.9
------------- ------- ------- -------- --------
Non-GAAP net
income
(loss)
attributable
to PFG
excluding
exited
business $ 465.6 $ 419.1 $ 1,550.8 $ 1,450.8
Net realized
capital
(gains)
losses, as
adjusted 8.1 (7.1) 274.8 182.1
------------- ------- ------- -------- --------
Non-GAAP
Operating
Earnings* $ 473.7 $ 412.0 $ 1,825.6 $ 1,632.9
Income taxes 106.2 87.8 381.2 365.0
------------- ------- ------- -------- --------
Non-GAAP
Pre-Tax
Operating
Earnings $ 579.9 $ 499.8 $ 2,206.8 $ 1,997.9
Segment
Pre-Tax
Operating
Earnings
(Losses):
Retirement
and Income
Solutions $ 310.3 $ 246.1 $ 1,166.2 $ 1,040.7
Principal
Asset
Management 274.7 268.7 914.6 864.5
Benefits and
Protection 86.5 64.4 508.3 452.9
Corporate (91.6) (79.4) (382.3) (360.2)
------------- ------- ------- -------- --------
Total Segment
Pre-Tax
Operating
Earnings $ 579.9 $ 499.8 $ 2,206.8 $ 1,997.9
Summary of Principal Financial Group(R) and Segment Results
Per Diluted Share
Three Months Ended, Nine Months Ended,
3Q25 3Q24 3Q25 3Q24
Net income (loss)
attributable to PFG $ 0.95 $ (0.95) $ 2.95 $ 2.81
(Income) loss from
exited business 1.11 2.73 2.32 2.06
----------------------- -------- ------- -------- -------
Non-GAAP net income
(loss) excluding
exited business $ 2.06 $ 1.78 $ 5.27 $ 4.87
Net realized capital
(gains) losses, as
adjusted 0.04 (0.03) 0.80 0.17
Impact of dilutive
shares(17) 0.00 0.01 0.00 0.00
----------------------- -------- ------- -------- -------
Non-GAAP Operating
Earnings $ 2.10 $ 1.76 $ 6.07 $ 5.04
----------------------- -------- ------- -------- -------
Impact of significant variances(18) 0.22 0.29 0.24 0.52 ----------------------- -------- ------- -------- ------- Non-GAAP Operating Earnings, excluding significant variances $ 2.32 $ 2.05 $ 6.31 $ 5.56 ----------------------- -------- ------- -------- ------- Weighted-average diluted common shares outstanding (in millions) 225.2 233.8 226.8 236.6
*U.S. GAAP (GAAP) net income attributable to PFG versus non-GAAP operating earnings
Management uses non-GAAP operating earnings, which is a financial measure that excludes the effect of net realized capital gains and losses, as adjusted, income (loss) from exited business and other after-tax adjustments the company believes are not indicative of overall operating trends, for goal setting, as a basis for determining employee and senior management awards and compensation and evaluating performance on a basis comparable to that used by investors and securities analysts. Note: it is possible these adjusting items have occurred in the past and could recur in future reporting periods. While these items may be significant components in understanding and assessing our consolidated financial performance, management believes the presentation of non-GAAP operating earnings enhances the understanding of results of operations by highlighting earnings attributable to the normal, ongoing operations of the company's businesses.
Selected Balance Sheet Statistics
Period Ended,
3Q25 4Q24
Total assets (in billions) $ 334.5 $ 313.7
Stockholders' equity (in millions) $11,717.9 $11,131.3
Total common equity (in millions) $11,665.5 $11,086.4
Total common equity excluding cumulative change in
fair value of funds withheld embedded derivative
and accumulated other comprehensive income (AOCI)
other than foreign currency translation adjustment
(in millions) $12,333.3 $12,144.0
End of period common shares outstanding (in
millions) 220.5 226.2
Book value per common share $ 52.90 $ 49.01
Book value per common share excluding cumulative
change in fair value of funds withheld embedded
derivative and AOCI other than foreign currency
translation adjustment $ 55.93 $ 53.69
Principal Financial Group, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in millions, except as indicated)
Period Ended,
3Q25 4Q24
Stockholders' Equity, Excluding Cumulative
Change in Fair Value of Funds Withheld
Embedded Derivative and AOCI Other Than
Foreign Currency Translation Adjustment,
Available to Common Stockholders:
Stockholders' equity $11,717.9 $11,131.3
Noncontrolling interest (52.4) (44.9)
---------------------------------------------- -------- --------
Stockholders' equity available to common
stockholders 11,665.5 11,086.4
Cumulative change in fair value of funds
withheld embedded derivative (2,021.6) (2,381.3)
AOCI, other than foreign currency translation
adjustment 2,689.4 3,438.9
---------------------------------------------- -------- --------
Stockholders' equity, excluding cumulative
change in fair value of funds withheld
embedded derivative and AOCI other than
foreign currency translation adjustment,
available to common stockholders $12,333.3 $12,144.0
Book Value Per Common Share, Excluding
Cumulative Change in Fair Value of Funds
Withheld Embedded Derivative and AOCI Other
Than Foreign Currency Translation Adjustment:
Book value per common share $ 52.90 $ 49.01
Cumulative change in fair value of funds
withheld embedded derivative and AOCI, other
than foreign currency translation adjustment 3.03 4.68
---------------------------------------------- -------- --------
Book value per common share, excluding change
in fair value of funds withheld embedded
derivative and AOCI other than foreign
currency translation adjustment $ 55.93 $ 53.69
Principal Financial Group, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in millions)
Three Months Ended, Trailing Twelve Months,
3Q25 3Q24 3Q25 3Q24
Income Taxes:
Total GAAP income
taxes (benefit) $ 14.5 $ (100.4) $ 260.0 $ (186.2)
Net realized
capital gains
(losses) tax
adjustments 2.6 (7.6) 60.1 32.5
Exited business
tax adjustments 66.9 170.0 (10.0) 440.6
Income taxes
related to
equity method
investments and
noncontrolling
interest 22.2 25.8 71.1 78.1
----------------- ------ ------- ------ --------
Income taxes $ 106.2 $ 87.8 $ 381.2 $ 365.0
Net Realized
Capital Gains
(Losses):
GAAP net realized
capital gains
(losses) $ 85.7 $ 77.4 $ (114.6) $ (51.4)
Market value
adjustments to
fee revenues - - (0.1) 1.1
Net realized
capital gains
(losses) related
to equity method
investments 1.2 0.3 1.9 (9.0)
Derivative and
hedging-related
revenue
adjustments (25.7) 17.3 (82.6) 52.0
Certain variable
annuity fees 17.2 17.7 68.2 71.9
Sponsored
investment funds
and other
adjustments 9.1 6.4 35.1 25.0
Capital gains
distributed --
operating
expenses (41.4) (36.7) (42.4) (96.4)
Amortization of
actuarial
balances (4.3) (0.3) (10.5) (0.6)
Derivative and
hedging-related
expense
adjustments (3.4) (2.6) 0.8 (1.9)
Market value
adjustments of
embedded
derivatives (0.1) (5.6) (26.8) (13.0)
Market value
adjustments of
market risk
benefits (13.2) (40.8) (78.9) (75.9)
Capital gains
distributed --
cost of interest
credited (17.6) (4.8) (34.2) (85.4)
Net realized
capital gains
(losses) tax
adjustments 2.6 (7.6) 60.1 32.5
Net realized
capital gains
(losses)
attributable to
noncontrolling
interest,
after-tax (18.2) (13.6) (50.8) (31.0)
----------------- ------ ------- ------ --------
Total net
realized capital
gains (losses)
after-tax
adjustments (93.8) (70.3) (160.2) (130.7)
----------------- ------ ------- ------ --------
Net realized
capital gains
(losses), as
adjusted $ (8.1) $ 7.1 $ (274.8) $ (182.1)
Income (Loss)
from Exited
Business:
Pre-tax impacts
of exited
business:
Amortization
of
reinsurance
gains
(losses) $ (18.3) $ (46.4) $ (180.7) $ (492.2)
Other impacts
of exited
business (34.3) (25.3) (138.9) 69.1
Net realized
capital
gains
(losses) on
funds
withheld
assets (0.2) 39.4 13.3 151.1
Change in
fair value
of funds
withheld
embedded
derivative (265.9) (776.8) 339.0 (1,825.5)
Tax impacts of
exited business 66.9 170.0 (10.0) 440.6
----------------- ------ ------- ------ --------
Total income
(loss) from
exited business $ (251.8) $ (639.1) $ 22.7 $(1,656.9)
Principal Financial Group, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in millions)
Three Months Ended, Trailing Twelve Months,
------------------------- ------------------------------
3Q25 3Q24 3Q25 3Q24
------- ------ -------- --------
Investment
Management
Operating
Revenues Less
Pass-Through
Expenses:
Operating
revenues $ 483.9 $ 466.4 $ 1,879.4 $ 1,779.2
Commissions
and other
expenses (39.9) (38.6) (154.7) (148.4)
------------- ------- ------ -------- --------
Operating
revenues
less
pass-through
expenses $ 444.0 $ 427.8 $ 1,724.7 $ 1,630.8
________________________________________
(1) Use of non-GAAP financial measures and their reconciliations to the most
directly comparable GAAP measures are included in this release. Non-GAAP
operating earnings for total company is after tax.
(2) The total company impacts of significant variances, is after tax. See
Exhibit 1 for details on the impact of 3Q 2025 and 3Q 2024 significant
variances on net income attributable to PFG; non-GAAP net income attributable
to PFG, excluding exited business; and non-GAAP operating earnings.
(3) Segment amounts excluding significant variances are non-GAAP. See Exhibit
1 for details on the impact of the significant variances. The company has
determined these measures are more representative of underlying comparable
operating results for the segments.
(4) Pre-tax operating earnings = operating earnings before income taxes and after noncontrolling interest. (5) Net revenue = operating revenues less: benefits, claims and settlement expenses, liability for future policy benefits remeasurement (gain) loss, market risk benefit remeasurement (gain) loss, and dividends to policyholders. (6) Operating margin for Retirement and Income Solutions = pre-tax operating earnings divided by net revenue. (7) Operating margin for Investment Management = pre-tax operating earnings adjusted for noncontrolling interest divided by operating revenues less pass-through expenses. (8) Segment amounts excluding significant variances are non-GAAP. See Exhibit 1 for details on the impact of the significant variances. The company has determined these measures are more representative of underlying comparable operating results for the segments. (9) The company has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measures at the end of the release. The company has determined this measure is more representative of underlying operating revenues growth for Investment Management as it removes commissions and other expenses that are collected through fee revenue and passed through expenses with no impact to pre-tax operating earnings. (10) Operating margin for International Pension = pre-tax operating earnings divided by net revenue. (11) Operating margin for Benefits and Protection = pre-tax operating earnings divided by premium and fees. (12) Significant variances (SVs) in 3Q25 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, and Life Insurance, partially offset by higher than expected variable investment income in Corporate; 2) impact of higher than expected encaje performance and Latin American inflation in International Pension; 3) impacts of 2025 actuarial assumption review. SVs in 3Q24 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits and Life Insurance, partially offset by higher than expected variable investment income in Corporate; 2) impact of higher than expected encaje performance and Latin American inflation in Principal International; 3) impacts of 2024 actuarial assumption review; 4) impact of GAAP-only regulatory closed block adjustment in Life Insurance. SVs on a trailing twelve months in 3Q25 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, and Life Insurance, partially offset by higher than expected variable investment income in Corporate; 2) impacts of 2025 actuarial assumption review; 3) higher than expected encaje performance and Latin American inflation in International Pension; 4) impact from a one-time expense accrual release in RIS, Investment Management, Specialty Benefits, Life Insurance, and Corporate.; 5) impact of GAAP-only regulatory closed block adjustment in Life Insurance; 6) impact of model refinement in Specialty Benefits. SVs on a trailing twelve months in 3Q24 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, Life Insurance partially offset by higher than expected variable investment income in Corporate; 2) impacts of 2024 actuarial assumption review; 3) higher than expected encaje performance, Latin American inflation, Latin American non-economic LDTI discount rate impacts, and other items in International Pension; 4) impact of GAAP-only regulatory closed block adjustment in Life Insurance. (13) Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. (14) As of September 30, 2025 (15) Ethisphere, 2025 (16) Pensions & Investments, 2023 (17) When a net loss is reported, our basic weighted-average shares are used to calculate diluted earnings per share, as dilutive shares would have an antidilutive effect and result in a lower loss per share. (18) See Exhibit 1 for details on the impact of 3Q 2025 and 3Q 2024 significant variances on net income attributable to PFG; non-GAAP net income attributable to PFG, excluding exited business; and non-GAAP operating earnings.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251027254269/en/
CONTACT: INVESTOR CONTACT:
Humphrey Lee
877-909-1105
lee.humphrey@principal.com
MEDIA CONTACT:
Sara Bonney
515-878-0835
bonney.sara@principal.com
(END) Dow Jones Newswires
October 27, 2025 16:15 ET (20:15 GMT)