Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q2 2026 Earnings Presentation
15 slides from Principal Financial's earnings presentation, Jul 28, 2026
Slide 1: Second Quarter 2026 Earnings
RETIREMENT ASSET MANAGEMENT BENEFITS & PROTEC TION Second Quarter 2026 Earnings P R I N C I PA L F I N A N C I A L G R O U P July 27, 2026 Audience disclosure
Slide 2: Key takeaways
Key takeaways Delivering on 17% / 15% 80% 16.4% long-term 2Q / YTD EPS growth1 TTM FCF %2 ROE3 guidance (9-12% target) (75-85% target) (15-17% target) • Enterprise pre-tax operating earnings growth of 13%, driven by net revenue5 growth of 6% and margin expansion of 200 bps • Retirement and Income So
Slide 3: Strategic priorities are driving sustained growth
Strategic priorities are driving sustained growth Leverage Leverage leadership in Expand market privileged recordkeeping to leadership by partnerships to grow Retirement serving SMBs grow Global Asset Ecosystem holistically Management1 2Q26 HIGHLIGHTS 2Q26 HIGHLIGHTS 2Q26 HIGHLIGHTS Retirement platf
Slide 4: 2Q 2026 financial highlights
2Q 2026 financial highlights 2Q 2026 operating results Capital & liquidity Excess and available capital Debt to capital ratio3 Reported non-GAAP Non-GAAP operating earnings, $1.6B 23.6%4 operating earnings1 excluding significant variances $950M at Hold Co (xSV)2 $300M excess subsidiary capital Estim
Slide 5: Retirement and Income Solutions
Retirement and Income Solutions Delivered strong earnings and net revenue growth with margin expansion Pre-tax operating earnings, xSV1 2Q26 highlights1,3 ($ in millions) +6% • Pre-tax operating earnings increased 8%, driven by net 1,260 revenue growth of 5% and disciplined expense 1,189 management
Slide 6: Principal Asset Management
Principal Asset Management 2Q26 highlights1,4 Higher earnings on AUM growth and margin expansion • Pre-tax operating earnings increased 6%, driven by 4% growth in Investment Management and 11% growth in International Pension Pre-tax operating earnings, xSV1 +6% ($ in millions) 922 • Investment Manag
Slide 7: Benefits and Protection
Benefits and Protection Strong earnings driven by favorable SBD underwriting and Life mortality 2Q26 highlights1,3 Pre-tax operating earnings, xSV1 +23% • Pre-tax operating earnings of $191M increased 29% and ($ in millions) 722 margin expanded 370 bps 587 127 • Specialty Benefits record pre-tax ope
Slide 8: Appendix
Appendix © Principat’
Slide 9: Acquisition of Beam Benefits – Accelerating our SMB Growth Strategy
Acquisition of Beam Benefits – Accelerating our SMB Growth Strategy Strategic Rationale Financial Impact About Beam Benefits • Aligns with our small & midsized • 2026 EPS & capital targets unchanged • Dental, vision, life, disability, and businesses strategic priority supplemental health benefits pr
Slide 10: Investment performance
Investment performance 37% of fund-level AUM has 4 or 5 star rating from Morningstar1,2 Asset Weighted % of AUM outperforming Morningstar median3 % of composite AUM outperforming benchmarks4 As of 6/30/2026 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 31% 49% 50% 36% 5% 37% 36% 8
Slide 11: Market sensitivities
Market sensitivities Estimated impacts of changes in key macroeconomic conditions on annual non-GAAP pre-tax operating earnings relative to the next 12 months, prior to management expense actions: Certain alternative If macroeconomics change Equity market return1 Interest rates +/-100 bps FX: U.S. D
Slide 12: 2Q 2026 significant variances
2Q 2026 significant variances Business unit impacts of significant variances (in millions) Variable investment income Encaje and Inflation Total significant variances Retirement and Income $2.0 - $2.0 Solutions International Pension $(5.1) $23.8 $18.7 Specialty Benefits $(3.0) - $(3.0) Life Insuranc
Slide 13: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Three months ended Three months ended (in millions) Investment Management operating revenues less 6/30/26 6/30/25 Diluted earnings per common share 6/30/26 6/30/25 pass-through expenses Net income $1.84 $1.79 Operating revenues $472.3 $467.2 Net realized ca
Slide 14: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Period ended (in millions) Period ended Stockholders’ equity x- cumulative change in fair value of funds Non-GAAP operating earnings ROE (x- cumulative change in fair value withheld embedded derivative and AOCI other than foreign currency 6/30/26 of funds w
Slide 15: Additional Disclosures
Additional Disclosures Use of non-GAAP financial measures A non-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 f
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