Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q2 2024 Earnings Presentation
15 slides from Principal Financial's earnings presentation, Jul 26, 2024
Slide 1: Second Quarter 2024 Earnings Call Presentation
e) Principal’ Second Quarter 2024 Earnings Call Presentation PRINCIPAL FINANCIAL GROUP July 25, 2024 RETIREMENT ASSET MANAGEMENT BENEFITS & PROTECTION
Slide 2: Key takeaways
Key takeaways * 2Q24 non-GAAP EPS! excluding significant variances? of $1.76 increased 4% from 2Q23; includes $0.09 of one-time operating expenses (PGI and Corporate) and tax items * Remain well-positioned to deliver on 9-12% long-term enterprise non-GAAP EPS! growth in 2024 * Strong top-line growth
Slide 3: 2Q 2024 financial highlights
2Q 2024 financial highlights 2Q 2024 OPERATING EARNINGS AND EPS Reported non-GAAP Impact of significant variances to Non-GAAP operating earnings, operating earnings! non-GAAP operating earnings? excluding significant variances (xSV) $386M $29.4M after-tax $415M RETURN ON EQUITY? (+3% vs. 2Q 2023) (§
Slide 4: Investment performance
Investment performance 52% of fund-level AUM has 4 or 5 star rating from Morningstar? Equal Weighted % of funds outperforming Morningstar median? % of composites outperforming benchmarks! As of 6/30/2024 3-Year 5-Year 10-Year 3-Year 5-Year Equity 47% 36% 44% 80% 69% 63% 77% 84% Fixed Income 44% 56%
Slide 5: Retirement and Income Solutions
Retirement and Income Solutions HIGHLIGHTS * Pre-tax operating earnings excluding significant variances' increased 10% driven by strong net revenue growth and a higher operating margin * Total sales $5.2B, including $1.0B of PRT sales; recurring deposits up over 7% * Excluding significant variances’
Slide 6: Principal Global Investors (PGI)
Principal Global Investors (PGI) HIGHLIGHTS * Pre-tax operating earnings increased 2% primarily due to higher management fees partially offset by higher operating expenses * PGI Managed AUM of $513B increased 6% over 2Q23 OTHER CONSIDERATIONS * Equity AUM exposure: 40% large cap, 30% small and mid-c
Slide 7: Principal International
Principal International HIGHLIGHTS KEY METRICS * Combined net revenue (at PFG share) and pre-tax operating earnings Trailing twelve month basis (at PFG share)? excluding significant variances! decreased as strong growth in LatAm was offset by macroeconomic headwinds in Asia and FX impacts +3% 32% ch
Slide 8: Specialty Benefits
Specialty Benefits HIGHLIGHTS * Pre-tax operating earnings excluding significant variances! increased due to growth in the business and improved underwriting experience * Premium and fees increased 8% driven by record YTD sales, strong retention, along with employment and wage growth * Underwriting
Slide 9: Life Insurance
Life Insurance HIGHLIGHTS * Pretax operating earnings excluding significant variances! decreased driven by lower net investment income * Premium and fees decreased driven by a one-time impact of a risk-reducing YRT reinsurance transaction®; excluding the one-time item, premiums & fees increased 4% d
Slide 10: Appendix
Appendix
Slide 11: Outlook reiterated
Outlook reiterated * Non-GAAP EPS growth +9-12% vs. PY Full Year * Capital deployment of $1.5B-$1.8B 2024 Guidance * Free capital flow of 75-85% * Share repurchases of $0.8-$1.1B * Non-GAAP EPS growth of 9-12% annually Long-Term Outlook * Free capital flow conversion of 75-85%, including 40% dividen
Slide 12: 2Q 2024 significant variances
12 2Q 2024 significant variances Business unit impacts of significant variances (in millions) Variable investment income Encaje Other Total significant variances Retirement and Income Solutions $(13.0) $(13.0) Principal International $(14.3) $(14.3) Specialty Benefits $(5.0) $(5.0) Life Insurance $(
Slide 13: Non-GAAP financial measure reconciliations
13 Non-GAAP financial measure reconciliations Three months ended (in mil Principal Global Investors operating revenues less pass- through expenses 6/30/24 6/30/23 Principal Global Investors operating revenues $4103 $390.1 Principal Global Investors commissions and other expenses (31.1) (30.5) Princi
Slide 14: Non-GAAP financial measure reconciliations
14 Non-GAAP financial measure reconciliations Stockholders’ equity x- cumulative change in fair value of funds withheld embedded derivative and AOC! other than foreign currency translation adjustment, available to common stockholders Period ended (in millic 6/30/24 Non-GAAP operating earnings ROE (x
Slide 15: Additional Disclosures
15 Additional Disclosures Use of non-GAAP financial measures Anon-GAAP financial measure is a numerical measure of performance, financial position, or cash flow that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP. The company uses a number of non-GAAP
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