Principal Financial Group Announces First Quarter 2025 Results
May 1, 2025 by Principal Financial Group
DES MOINES, Iowa–(BUSINESS WIRE)–Principal Financial Group® (Nasdaq: PFG) announced results for first quarter 2025.
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Diluted earnings per common share |
1Q25 |
|
Net income attributable to PFG (in millions) |
1Q25 |
|
|
Net income attributable to PFG |
$0.21 |
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Net income attributable to PFG |
$48 |
|
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Non-GAAP net income attributable to PFG, excluding exited business1 |
$1.31 |
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Non-GAAP net income attributable to PFG, excluding exited business1 |
$299 |
|
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Non-GAAP operating earnings1 |
$1.81 |
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Non-GAAP operating earnings1 |
$415 |
First Quarter 2025 Highlights
|
Deanna Strable, President and CEO of Principal®
“Strong business fundamentals, continued growth, and our strategic focus on higher growth markets drove 10% 1Q25 EPS growth and 14% ROE in the quarter. We continue to deliver on our commitment to return excess capital to shareholders, while maintaining our strong capital position. We enter 2Q25 in a dynamic market environment. However, we are confident the strength and resilience of our integrated and diversified portfolio of businesses will continue to deliver value for our customers and shareholders.”
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First Quarter Enterprise Results |
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In millions except percentages, earnings per share, or otherwise noted |
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Three Months Ended, |
Trailing Twelve Months, |
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1Q25 |
1Q24 |
% Change |
1Q25 |
1Q24 |
% Change |
|||||||
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Net income (loss) attributable to PFG |
$48.1 |
$532.5 |
N/M |
$1,086.6 |
$1,295.8 |
(16)% |
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|
Non-GAAP net income attributable to PFG, excluding exited business |
$299.4 |
$376.4 |
(20)% |
$1,428.2 |
$1,544.4 |
(8)% |
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|
Non-GAAP operating earnings |
$414.5 |
$394.3 |
5% |
$1,660.7 |
$1,630.3 |
2% |
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Diluted earnings per common share |
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Net income (loss) attributable to PFG |
$0.21 |
$2.22 |
N/M |
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Non-GAAP net income attributable to PFG, excluding exited business |
$1.31 |
$1.58 |
(17)% |
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Non-GAAP operating earnings |
$1.81 |
$1.65 |
10% |
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Non-GAAP operating earnings, excluding significant variances2 |
$1.92 |
$1.75 |
10% |
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Assets under administration (billions) |
$1,661.6 |
$1,624.3 |
2% |
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Assets under management (billions) |
$717.9 |
$708.5 |
1% |
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AUM net cash flow (billions) |
$(4.4) |
$(0.6) |
N/M |
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First Quarter Segment Highlights
- Retirement and Income Solutions (RIS) recurring deposits up 9% to $13.8 billion and strong PRT sales of $0.8 billion
- Principal Asset Management non-affiliated private real estate net cash flow of positive $1.1 billion; net cash flow of positive $0.7 billion in Mexico and SE Asia locally managed strategies
- Specialty Benefits incurred loss ratio improved 40 basis points from 1Q24 due to more favorable underwriting experience in group disability and group life
- Life Insurance business market premium and fees increased 20%
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Segment Results |
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In millions except percentages, or otherwise noted except percentages or otherwise noted) |
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Retirement and Income Solutions |
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Three Months Ended, |
Trailing Twelve Months, |
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1Q25 |
1Q24 |
% Change |
1Q25 |
1Q24 |
% Change |
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Pre-tax operating earnings3 |
$283.7 |
$262.2 |
8% |
$1,077.7 |
$1,063.8 |
1% |
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Net revenue4 |
$724.2 |
$691.4 |
5% |
$2,833.7 |
$2,731.6 |
4% |
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Operating margin5 |
39.2% |
37.9% |
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38.0% |
38.9% |
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- Pre-tax operating earnings increased $21.5 million primarily due to higher net revenue and margin expansion while investing in the business.
- Net revenue increased $32.8 million due to favorable market performance and growth in the business, outpacing fee compression.
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Investment Management |
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Three Months Ended, |
Trailing Twelve Months, |
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1Q25 |
1Q24 |
% Change |
1Q25 |
1Q24 |
% Change |
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Pre-tax operating earnings |
$116.3 |
$122.2 |
(5)% |
$572.9 |
$548.6 |
4% |
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Operating revenues less pass-through expenses6 |
$416.0 |
$398.6 |
4% |
$1,686.0 |
$1,611.7 |
5% |
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Operating margin7 |
29.0% |
31.0% |
|
34.9% |
34.3% |
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Assets under management (billions) |
$555.8 |
$541.2 |
3% |
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- Pre-tax operating earnings decreased $5.9 million primarily driven by elevated seasonal expenses, partially offset by higher operating revenues less pass-through expenses.
- Operating revenues less pass-through expenses increased $17.4 million primarily due to 5% higher management fees from higher AUM.
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International Pension |
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Three Months Ended, |
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Trailing Twelve Months, |
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1Q25 |
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1Q24 |
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% Change |
|
1Q25 |
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1Q24 |
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% Change |
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Pre-tax operating earnings |
$71.2 |
|
$64.9 |
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10% |
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$288.7 |
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$268.4 |
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8% |
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Net revenue |
$146.7 |
|
$149.3 |
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(2)% |
|
$620.3 |
|
$628.0 |
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(1)% |
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Operating margin8 |
48.5% |
|
43.5% |
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46.5% |
|
42.7% |
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Assets under management (billions) |
$133.5 |
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$139.1 |
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(4)% |
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- Pre-tax operating earnings increased $6.3 million primarily due to margin expansion, partially offset by foreign currency headwinds.
- Net revenue decreased $2.6 million primarily due to foreign currency headwinds.
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Specialty Benefits |
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Three Months Ended, |
Trailing Twelve Months, |
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1Q25 |
1Q24 |
% Change |
1Q25 |
1Q24 |
% Change |
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Pre-tax operating earnings |
$106.2 |
$102.0 |
4% |
$463.8 |
$467.2 |
(1)% |
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Premium and fees |
$831.5 |
$801.3 |
4% |
$3,287.4 |
$3,114.2 |
6% |
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Operating margin9 |
12.8% |
12.7% |
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14.1% |
15.0% |
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Incurred loss ratio |
60.7% |
61.1% |
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60.4% |
60.1% |
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- Pre-tax operating earnings increased $4.2 million due to growth in the business, higher net investment income, and more favorable underwriting experience.
- Premium and fees increased $30.2 million driven by growth in the business.
- Incurred loss ratio improved to 60.7% driven by more favorable underwriting experience primarily in group disability and group life.
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Life Insurance |
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Three Months Ended, |
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Trailing Twelve Months, |
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|
1Q25 |
|
1Q24 |
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% Change |
|
1Q25 |
|
1Q24 |
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% Change |
|||
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Pre-tax operating earnings (losses) |
$13.3 |
|
$9.8 |
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36% |
|
$7.1 |
|
$82.9 |
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(91)% |
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Premium and fees |
$235.1 |
|
$234.0 |
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0% |
|
$928.6 |
|
$931.4 |
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0% |
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Operating margin |
5.7% |
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4.2% |
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0.8% |
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8.9% |
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- Pre-tax operating earnings increased $3.5 million as a favorable change in a GAAP-only regulatory closed block dividend adjustment was partially offset by higher mortality experience.
- Premium and fees increased $1.1 million as strong business market growth offset the runoff of the legacy life business.
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Corporate |
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Three Months Ended, |
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Trailing Twelve Months, |
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1Q25 |
|
1Q24 |
% Change |
|
1Q25 |
|
1Q24 |
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% Change |
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Pre-tax operating losses |
$(105.6) |
|
$(88.9) |
(19)% |
|
$(392.3) |
|
$(389.6) |
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(1)% |
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- Pre-tax operating losses increased $16.7 million primarily due to lower net investment income and higher operating expenses.
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Exhibit 1 |
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Principal Financial Group |
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Impact of Significant Variances10 on Net Income Attributable to PFG; Non-GAAP Net Income Attributable to PFG, Excluding Exited Business; and Non-GAAP Operating Earnings |
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In millions except per share data |
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Three Months Ended, |
Trailing Twelve Months, |
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1Q25 |
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1Q24 |
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1Q25 |
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1Q24 |
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|
Net income (loss) attributable to PFG |
$ |
(24.7 |
) |
$ |
(25.1 |
) |
$ |
(175.3 |
) |
$ |
(90.0 |
) |
|
(Income) loss from exited business |
|
– |
|
|
– |
|
|
20.6 |
|
|
(0.1 |
) |
|
Non-GAAP net income (loss) attributable to PFG, excluding exited business |
|
(24.7 |
) |
|
(25.1 |
) |
|
(154.7 |
) |
|
(90.1 |
) |
|
Net realized capital (gains) losses, as adjusted |
|
– |
|
|
– |
|
|
(3.7 |
) |
|
4.2 |
|
|
Non-GAAP operating earnings |
|
(24.7 |
) |
|
(25.1 |
) |
|
(158.4 |
) |
|
(85.9 |
) |
|
Income taxes |
|
(5.6 |
) |
|
(8.8 |
) |
|
(36.2 |
) |
|
43.4 |
|
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Non-GAAP pre-tax operating earnings |
$ |
(30.3 |
) |
$ |
(33.9 |
) |
$ |
(194.6 |
) |
$ |
(42.5 |
) |
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Per diluted share: |
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Net income (loss) attributable to PFG |
$ |
(0.11 |
) |
$ |
(0.10 |
) |
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(Income) loss from exited business |
|
– |
|
|
– |
|
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|
||||
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Non-GAAP net income (loss) attributable to PFG, excluding exited business |
|
(0.11 |
) |
|
(0.10 |
) |
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Net realized capital (gains) losses, as adjusted |
|
– |
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|
– |
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Non-GAAP operating earnings |
$ |
(0.11 |
) |
$ |
(0.10 |
) |
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Weighted average diluted common shares outstanding |
|
228.8 |
|
|
239.4 |
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Segment pre-tax operating earnings (losses): |
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Retirement and Income Solutions |
$ |
(21.0 |
) |
$ |
(20.0 |
) |
$ |
(96.2 |
) |
$ |
(13.6 |
) |
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Investment Management |
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– |
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– |
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– |
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– |
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International Pension |
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– |
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|
(2.9 |
) |
|
11.1 |
|
|
(10.3 |
) |
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Principal Asset Management |
|
– |
|
|
(2.9 |
) |
|
11.1 |
|
|
(10.3 |
) |
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Specialty Benefits |
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(5.0 |
) |
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(4.0 |
) |
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(17.9 |
) |
|
5.7 |
|
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Life Insurance |
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(0.6 |
) |
|
(14.0 |
) |
|
(92.9 |
) |
|
(33.5 |
) |
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Benefits and Protection |
|
(5.6 |
) |
|
(18.0 |
) |
|
(110.8 |
) |
|
(27.8 |
) |
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Corporate |
|
(3.7 |
) |
|
7.0 |
|
|
1.3 |
|
|
9.2 |
|
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Total segment pre-tax operating earnings (losses) |
$ |
(30.3 |
) |
$ |
(33.9 |
) |
$ |
(194.6 |
) |
$ |
(42.5 |
) |
Income statement line item details of significant variances are available in our earnings conference call presentation on our website.
Earnings Conference Call
On Friday, Apr. 25, 2025, at 10:00 a.m. (ET), President and Chief Executive Officer Deanna Strable and Senior Vice President and Interim 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.
Principal Financial Group® (Nasdaq: PFG) is a global financial company with approximately 20,000 employees12 passionate about improving the wealth and well-being of people and businesses. In business for 145 years, we’re helping approximately 70 million customers12 plan, insure, invest, and retire, while working to support the communities where we do business, and building an inclusive workforce. Principal® is proud to be recognized as one of the 2025 World’s Most Ethical Companies13 and named as a “Best Places to Work in Money Management14.” Learn more about Principal and our commitment to building a better future at principal.com.
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Summary of Principal Financial Group® and Segment Results |
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Principal Financial Group, Inc. Results |
(in millions) |
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|
Three Months Ended, |
Trailing Twelve Months, |
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|
|
1Q25 |
|
|
1Q24 |
|
|
1Q25 |
|
|
1Q24 |
|
|
|
Net income (loss) attributable to PFG |
$ |
48.1 |
|
$ |
532.5 |
|
$ |
1,086.6 |
|
$ |
1,295.8 |
|
|
(Income) loss from exited business |
|
251.3 |
|
|
(156.1 |
) |
|
341.6 |
|
|
248.6 |
|
|
Non-GAAP net income (loss) attributable to PFG excluding exited business |
$ |
299.4 |
|
$ |
376.4 |
|
$ |
1,428.2 |
|
$ |
1,544.4 |
|
|
Net realized capital (gains) losses, as adjusted |
|
115.1 |
|
|
17.9 |
|
|
232.5 |
|
|
85.9 |
|
|
Non-GAAP Operating Earnings* |
$ |
414.5 |
|
$ |
394.3 |
|
$ |
1,660.7 |
|
$ |
1,630.3 |
|
|
Income taxes |
|
70.6 |
|
|
77.9 |
|
|
357.2 |
|
|
411.0 |
|
|
Non-GAAP Pre-Tax Operating Earnings |
$ |
485.1 |
|
$ |
472.2 |
|
$ |
2,017.9 |
|
$ |
2,041.3 |
|
|
|
|
|
|
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Segment Pre-Tax Operating Earnings (Losses): |
|
|
|
|
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|
Retirement and Income Solutions |
$ |
283.7 |
|
$ |
262.2 |
|
$ |
1,077.7 |
|
$ |
1,063.8 |
|
|
Principal Asset Management |
|
187.5 |
|
|
187.1 |
|
|
861.6 |
|
|
817.0 |
|
|
Benefits and Protection |
|
119.5 |
|
|
111.8 |
|
|
470.9 |
|
|
550.1 |
|
|
Corporate |
|
(105.6 |
) |
|
(88.9 |
) |
|
(392.3 |
) |
|
(389.6 |
) |
|
Total Segment Pre-Tax Operating Earnings |
$ |
485.1 |
|
$ |
472.2 |
|
$ |
2,017.9 |
|
$ |
2,041.3 |
|
|
|
Per Diluted Share |
||||
|
Three Months Ended, |
|||||
|
|
1Q25 |
|
1Q24 |
|
|
|
Net income (loss) attributable to PFG |
$ |
0.21 |
$ |
2.22 |
|
|
(Income) loss from exited business |
|
1.10 |
|
(0.64 |
) |
|
Non-GAAP net income (loss) excluding exited business |
$ |
1.31 |
$ |
1.58 |
|
|
Net realized capital (gains) losses, as adjusted |
|
0.50 |
|
0.07 |
|
|
Non-GAAP Operating Earnings |
$ |
1.81 |
$ |
1.65 |
|
|
Impact of significant variances15 |
|
0.11 |
|
0.10 |
|
|
Non-GAAP Operating Earnings, excluding significant variances |
$ |
1.92 |
$ |
1.75 |
|
|
Weighted-average diluted common shares outstanding (in millions) |
|
228.8 |
|
239.4 |
|
*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.
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Selected Balance Sheet Statistics |
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Period Ended, |
|||
|
|
1Q25 |
|
4Q24 |
|
|
Total assets (in billions) |
$ |
313.0 |
$ |
313.7 |
|
Stockholders’ equity (in millions) |
$ |
11,268.3 |
$ |
11,131.3 |
|
Total common equity (in millions) |
$ |
11,216.8 |
$ |
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) |
$ |
12,081.4 |
$ |
12,144.0 |
|
End of period common shares outstanding (in millions) |
|
225.0 |
|
226.2 |
|
Book value per common share |
$ |
49.85 |
$ |
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 |
$ |
53.70 |
$ |
53.69 |
|
Principal Financial Group, Inc. |
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|
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures |
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|
(in millions, except as indicated) |
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|
|
Period Ended, |
||||||
|
|
|
1Q25 |
|
|
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 |
$ |
11,268.3 |
|
$ |
11,131.3 |
|
|
|
Noncontrolling interest |
|
(51.5 |
) |
|
(44.9 |
) |
|
|
Stockholders’ equity available to common stockholders |
|
11,216.8 |
|
|
11,086.4 |
|
|
|
Cumulative change in fair value of funds withheld embedded derivative |
|
(2,215.6 |
) |
|
(2,381.3 |
) |
|
|
AOCI, other than foreign currency translation adjustment |
|
3,080.2 |
|
|
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 |
$ |
12,081.4 |
|
$ |
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 |
$ |
49.85 |
|
$ |
49.01 |
|
|
|
Cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment |
|
3.85 |
|
|
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 |
$ |
53.70 |
|
$ |
53.69 |
|
|
|
|
|
|
|
||||
|
Principal Financial Group, Inc. |
|||||||||||||
|
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures |
|||||||||||||
|
(in millions) |
|||||||||||||
|
|
Three Months Ended, |
Trailing Twelve Months, |
|||||||||||
|
|
|
1Q25 |
|
|
1Q24 |
|
|
1Q25 |
|
1Q24 |
|
||
|
Income Taxes: |
|
|
|
|
|
||||||||
|
Total GAAP income taxes (benefit) |
$ |
(34.0 |
) |
$ |
95.1 |
|
$ |
162.6 |
|
$ |
241.8 |
|
|
|
Net realized capital gains (losses) tax adjustments |
|
25.2 |
|
|
11.1 |
|
|
30.2 |
|
|
24.9 |
|
|
|
Exited business tax adjustments |
|
63.0 |
|
|
(41.5 |
) |
|
86.9 |
|
|
75.3 |
|
|
|
Income taxes related to equity method investments and noncontrolling interest |
16.4 |
13.2 |
77.5 |
69.0 |
|||||||||
|
Income taxes |
$ |
70.6 |
|
$ |
77.9 |
|
$ |
357.2 |
|
$ |
411.0 |
|
|
|
|
|
|
|
|
|
||||||||
|
Net Realized Capital Gains (Losses): |
|
|
|
|
|
||||||||
|
GAAP net realized capital gains (losses) |
$ |
(117.1 |
) |
$ |
(0.9 |
) |
$ |
(143.5 |
) |
$ |
(7.1 |
) |
|
|
|
|
|
|
|
|
||||||||
|
Market value adjustments to fee revenues |
|
(0.1 |
) |
|
– |
|
|
– |
|
|
1.3 |
|
|
|
Net realized capital gains (losses) related to equity method investments |
|
4.6 |
|
|
(10.3 |
) |
|
(2.4 |
) |
|
(1.7 |
) |
|
|
Derivative and hedging-related revenue adjustments |
|
(13.2 |
) |
|
18.1 |
|
|
14.7 |
|
|
39.3 |
|
|
|
Certain variable annuity fees |
|
17.0 |
|
|
18.2 |
|
|
70.1 |
|
|
73.1 |
|
|
|
Sponsored investment funds and other adjustments |
|
7.1 |
|
|
5.9 |
|
|
31.1 |
|
|
23.2 |
|
|
|
Capital gains distributed – operating expenses |
|
33.4 |
|
|
(35.6 |
) |
|
(41.5 |
) |
|
(77.7 |
) |
|
|
Amortization of actuarial balances |
|
(1.9 |
) |
|
(0.2 |
) |
|
(3.5 |
) |
|
(0.4 |
) |
|
|
Derivative and hedging-related expense adjustments |
|
0.5 |
|
|
(1.3 |
) |
|
(1.7 |
) |
|
0.5 |
|
|
|
Market value adjustments of embedded derivatives |
|
(22.0 |
) |
|
(4.1 |
) |
|
(42.6 |
) |
|
(5.4 |
) |
|
|
Market value adjustments of market risk benefits |
|
(43.9 |
) |
|
3.3 |
|
|
(91.1 |
) |
|
(61.5 |
) |
|
|
Capital gains distributed – cost of interest credited |
|
6.1 |
|
|
(24.7 |
) |
|
(29.8 |
) |
|
(79.5 |
) |
|
|
Net realized capital gains (losses) tax adjustments |
|
25.2 |
|
|
11.1 |
|
|
30.2 |
|
|
24.9 |
|
|
|
Net realized capital gains (losses) attributable to noncontrolling interest, after-tax |
|
(10.8 |
) |
|
2.6 |
|
|
(22.5 |
) |
|
(14.9 |
) |
|
|
Total net realized capital gains (losses) after-tax adjustments |
|
2.0 |
|
|
(17.0 |
) |
|
(89.0 |
) |
|
(78.8 |
) |
|
|
|
|
|
|
|
|
||||||||
|
Net realized capital gains (losses), as adjusted |
$ |
(115.1 |
) |
$ |
(17.9 |
) |
$ |
(232.5 |
) |
$ |
(85.9 |
) |
|
|
|
|
|
|
|
|
||||||||
|
Income (Loss) from Exited Business: |
|
|
|
|
|
||||||||
|
Pre-tax impacts of exited business: |
|
|
|
|
|
||||||||
|
Amortization of reinsurance gains (losses) |
$ |
(26.4 |
) |
$ |
(10.1 |
) |
$ |
(605.9 |
) |
$ |
(56.7 |
) |
|
|
Other impacts of exited business |
|
(106.2 |
) |
|
(36.8 |
) |
|
68.5 |
|
|
(136.6 |
) |
|
|
Net realized capital gains (losses) on funds withheld assets |
|
28.0 |
|
|
47.5 |
|
|
68.2 |
|
|
131.5 |
|
|
|
Change in fair value of funds withheld embedded derivative |
|
(209.7 |
) |
|
197.0 |
|
|
40.7 |
|
|
(262.1 |
) |
|
|
Tax impacts of exited business |
|
63.0 |
|
|
(41.5 |
) |
|
86.9 |
|
|
75.3 |
|
|
|
Total income (loss) from exited business |
$ |
(251.3 |
) |
$ |
156.1 |
|
$ |
(341.6 |
) |
$ |
(248.6 |
) |
|
|
|
Three Months Ended, |
Trailing Twelve Months, |
|||||||||||
|
|
1Q25 |
|
|
1Q24 |
|
|
1Q25 |
|
|
1Q24 |
|
||
|
Investment Management Operating Revenues Less Pass-Through Expenses: |
|||||||||||||
|
Operating revenues |
$ |
453.7 |
|
$ |
435.5 |
|
$ |
1,838.9 |
|
$ |
1,756.0 |
|
|
|
Commissions and other expenses |
|
(37.7 |
) |
|
(36.9 |
) |
|
(152.9 |
) |
|
(144.3 |
) |
|
|
Operating revenues less pass-through expenses |
$ |
416.0 |
|
$ |
398.6 |
|
$ |
1,686.0 |
|
$ |
1,611.7 |
|
|
|
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 1Q 2025 and 1Q 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 Pre-tax operating earnings = operating earnings before income taxes and after noncontrolling interest. |
|
4 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. |
|
5 Operating margin for Retirement and Income Solutions = pre-tax operating earnings divided by net revenue. |
|
6 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. |
|
7 Operating margin for Investment Management = pre-tax operating earnings adjusted for noncontrolling interest divided by operating revenues less pass-through expenses. |
|
8 Operating margin for International Pension = pre-tax operating earnings divided by net revenue. |
|
9 Operating margin for Benefits and Protection = pre-tax operating earnings divided by premium and fees. |
|
10 Significant variances (SVs) in 1Q25 include 1) lower than expected variable investment income in RIS, Specialty Benefits, Life Insurance and Corporate; 2) impact of GAAP-only regulatory closed block adjustment in Life Insurance. SVs in 1Q24 include 1) impact of higher than expected encaje performance in International Pension; 2) 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. SVs on a trailing twelve months in 1Q25 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 2024 actuarial assumption review; 3) impact of model refinement in Specialty Benefits; 4) lower than expected encaje performance and Latin American inflation in International Pension; 5) impact of GAAP-only regulatory closed block adjustment in Life Insurance. SVs on a trailing twelve months in 1Q24 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 2023 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) mortality experience true-ups in RIS; 5) impact of LDTI model refinement in Specialty Benefits; 6) impact of GAAP-only regulatory closed block adjustment in Life Insurance. |
|
11 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. |
|
12 As of March 31, 2025 |
|
13 Ethisphere, 2025 |
|
14 Pensions & Investments, 2023 |
|
15 See Exhibit 1 for details on the impact of 1Q 2025 and 1Q 2024 significant variances on net income attributable to PFG; non-GAAP net income attributable to PFG, excluding exited business; and non-GAAP operating earnings. |
Contacts
INVESTOR CONTACT:
Humphrey Lee
877-909-1105, lee.humphrey@principal.com
MEDIA CONTACT:
Sara Bonney
515-878-0835, bonney.sara@principal.com
