Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q1 2024 Earnings Presentation
15 slides from Principal Financial's earnings presentation, Apr 26, 2024
Slide 1: First Quarter 2024 Earnings Call Presentation
e) Principal’ First Quarter 2024 Earnings Call Presentation PRINCIPAL FINANCIAL GROUP April 25, 2024 RETIREMENT ASSET MANAGEMENT BENEFITS & PROTECTION
Slide 2: Key takeaways
Key takeaways * 1Q24 non-GAAP EPS! excluding significant variances? of $1.75 increased 9% from 1Q23; non-GAAP operating earnings" excluding significant variances? increased 6% * Well-positioned to deliver on 9-12% long-term enterprise non-GAAP EPS! growth in 2024 * Strong top-line growth of 5% acros
Slide 3: 1Q 2024 financial highlights
1Q 2024 financial highlights 1Q 2024 OPERATING EARNINGS AND EPS Reported non-GAAP operating earnings! $394M (+7% vs. 1Q 2023) Impact of significant variances to non-GAAP operating earnings? $(25)M after-tax ($(34)M pre-tax) Non-GAAP operating earnings, excluding significant variances (xSV) $419M (+6
Slide 4: Investment performance
Investment performance % of funds outperforming Morningstar median! ? As of 3/31/2024 1-Year 3-Year 5-Year 10-Year Equity 50% 43% 56% 95% ASSET WEIGHTEDS Fixed Income 63% 56% 67% 73% Asset Allocation 94% 70% 91% 77% 5 8 % Total 71% 57% 73% 82% of rated fund AUM has a4 or 5 star rating from Morningst
Slide 5: Retirement and Income Solutions
Retirement and Income Solutions HIGHLIGHTS Pre-tax operating earnings excluding significant variances! increased primarily due to growth in the business, higher net investment income, and favorable market performance Total sales of $9.4B, including $0.8B of PRT sales, increased 6% Excluding signific
Slide 6: Principal Global Investors (PGI)
Principal Global Investors (PGI) HIGHLIGHTS * Pre-tax operating earnings increased primarily due to higher management fees from higher average AUM * PGI Managed AUM of $514B increased 7% over 1Q23 OTHER CONSIDERATIONS + ~$25M of seasonally higher expenses’ * Equity AUM exposure: 40% S&P 500, 30% sma
Slide 7: Principal International
Principal International HIGHLIGHTS KEY METRICS * Pre-tax operating earnings excluding significant variances' decreased Trailing twelve month basis (at PFG share)? primarily due to macroeconomic headwinds in Asia; FX impacts of $(1)M vs 1Q23 and $(4)M vs 4Q23 46% 32% * Reported AUM of $179B, increase
Slide 8: Specialty Benefits
Specialty Benefits HIGHLIGHTS * Pre-tax operating earnings excluding significant variances! increased due to growth in the business and more favorable underwriting experience * Premium and fees increased 8% driven by record 1Q24 sales along with employment and wage growth Reported Pre-tax operating
Slide 9: Life Insurance
Life Insurance HIGHLIGHTS * Pretax operating earnings excluding significant variances! decreased slightly as growth in premium and fees and improved mortality experience was offset by lower interest margin * Premium and fees increased 4% led by strong business market growth of 23%, outpacing runoff
Slide 10: Appendix
Appendix
Slide 11: Sustainability goals
Principal achieved sustainability goals Access to our 2023 sustainability report: principal.com/sustaina In 2021, together with Principal® Foundation, Principal committed to a goal of doubling the number of diverse SMBs we support by 2025. We exceeded this goal in 2023 and have now seta new goal to
Slide 12: 1Q 2024 significant variances
1Q 2024 significant variances Business unit impacts of significant variances (in millions) Variable investment income Encaje Other Total significant variances Retirement and Income Solutions $§(20.0) - - $(20.0) Principal International $(13.0) $10.1 - $(2.9) Specialty Benefits $(4.0) - - $(4.0) Life
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 3/31/24 3/31/23 Principal Global Investors operating revenues $404.8 $392.7 Principal Global Investors commissions and other expenses (31.0) (31.2) Princ
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 3/31/24 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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