Press release
Principal Financial Group Announces 2023 and Long-Term Outlook
DES MOINES, Iowa--(BUSINESS WIRE)-- Principal Financial Group® (Nasdaq: PFG) announced its 2023 and long-term financial guidance today. Dan Houston,
About this update from Principal Financial Group Inc
[{"type":"text","content":" DES MOINES, Iowa--(BUSINESS WIRE)--\nPrincipal Financial Group® (Nasdaq: PFG) announced its 2023 and long-term financial guidance today.\n\nDan Houston, chairman, president, and CEO, and Deanna Strable, CFO, will provide additional details and take questions along with other members of the Principal executive team during a conference call on March 2, 2023, at 10 a.m. EST. Slides with details of the 2023 and long-term outlook, including the impacts of the targeted improvements for long-duration insurance contracts accounting guidance (LDTI), and a recast fourth quarter 2022 financial supplement are available at investors.principal.com.\n\nKey takeaways and total company guidance\n\n\nUpdated reporting segments to better align with the Company’s go-forward business model:\n\n\nReporting Retirement and Income Solutions (RIS) in total\n\n\nCombining Principal Global Investors and Principal International into a new segment, Principal Asset Management\n\n\nUpdating the name of the U.S. Insurance Solutions segment to Benefits and Protection\n\n\n\n\nExpect 2023 non-GAAP operating earnings per diluted share (EPS) growth of 3-6% compared to 2022, excluding significant variances in both periods and reflecting macroeconomic assumptions as of Dec. 31, 2022. Macroeconomic headwinds in 2022, which impacted assets under management and account values, are pressuring expected EPS growth in 2023.\n\n\nLong-term enterprise financial targets include:\n\n\n9-12% annual EPS growth\n\n\n14-16% ROE1\n\n\n75-85% free capital flow conversion, including 40% dividend payout ratio2\n\n\n\n\n2023 and long-term guidance\n\nThe 2023 guidance ranges should be applied to the full year 2022 revenue amounts reflecting LDTI and excluding significant variances as shown in the table below and illustrated further in Exhibit 1.\n\n\n\n\n\n\n\n \n\n\n\n \n\n\n\nGuidance measure\n\n\n\n2022 revenue,\nas recast for LDTI\n\n\n(in millions)\n\n\n\n2022 revenue,\nexcluding\nsignificant variances3\n\n\n(in millions)\n\n\n\n2023 revenue\ngrowth & margin\nguidance,\nexcluding\nsignificant variances4\n\n\n\nLong-term\nguidance\n\n\n\n\n\nRetirement and Income Solutions\n\n\n\n\n\nRetirement and Income Solutions\n\n\n\nNet revenue5\n\n\n\n$2,617\n\n\n\n$2,598\n\n\n\n1-4%\n\n\n\n2-5%\n\n\n\n\n\nOperating margin6\n\n\n\n \n\n\n\n \n\n\n\n35-39%\n\n\n\n36-40%\n\n\n\n\n\nPrincipal A...