Principal Financial Group $(PFG)$ reported FY 2025 net income attributable to shareholders of USD 1.19 billion, down 25% year over year, on total revenue of USD 15.63 billion. Income before income taxes was USD 1.42 billion, and the effective tax rate was 11% (down from 15%). Net investment income rose to USD 4.73 billion, while net realized capital gains were USD 27.70 million (vs. a loss in FY 2024). PFG recorded a loss of USD 381.10 million from changes in fair value of the funds withheld embedded derivative (vs. a gain in FY 2024), which management cited as a key driver of the year-over-year decline in net income. By segment, FY 2025 pre-tax operating earnings were USD 1.19 billion for Retirement and Income Solutions, USD 930.20 million for Principal Asset Management, and USD 523.20 million for Benefits and Protection; the Corporate segment posted a pre-tax operating loss of USD 381.20 million. Principal Asset Management ended FY 2025 with AUM of USD 747.80 billion (up from USD 683.40 billion), driven by USD 69.10 billion of market performance and USD 20.00 billion of exchange-rate effects, partially offset by USD 10.60 billion of net outflows and USD 15.50 billion from disposed operations. PFG highlighted a pending agreement announced Jan. 19, 2026 for Santander to acquire its Chile annuities business (Vida), expected to close in Q3 2026, with an estimated USD 280.00 million pre-tax net realized capital loss on disposal. The company also noted impacts tied to exiting sponsor and trustee roles for Hong Kong MPF schemes, including a USD 65.40 million impairment (operating expenses) and a USD 77.00 million held-for-sale write-down (net realized capital losses) recognized in FY 2025. PFG returned USD 1.59 billion to common shareholders in FY 2025, including USD 684.00 million in dividends and USD 901.30 million in share repurchases.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Principal Financial Group Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001104659-26-017031), on February 18, 2026, and is solely responsible for the information contained therein.