Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q1 2025 Earnings Presentation
15 slides from Principal Financial's earnings presentation, Apr 25, 2025
Slide 1: First Quarter 2025 Earnings
re) ee te Principal RETIREMENT | ASSET MANAGEMENT | BENEFITS & PROTECTION First Quarter 2025 Earnings PRINCIPAL FINANCIAL GROUP April 24, 2025
Slide 2: Key takeaways
Key takeaways Delivering on 10% 14.0% 84% long-term EPS growth’ ROE? TTM FCF 963 guidance (9-12% target) (14-16% target) (75-85% target) * RIS recurring deposit growth of 9%, with SMB recurring deposit growth at 12% * Principal Asset Management non-affiliated private real estate NCF of +$1.1B; NCF o
Slide 3: 1Q 2025 financial highlights
1Q 2025 financial highlights 1Q 2025 operating results Capital & liquidity Excess and available capital? Debt to capital ratio?4 Reported non-GAAP Non-GAAP operating earnings, $1.75B 24.0% operating earnings’ excluding significant variances $1.2B at Hold Co 22.3% pro forma 2Q25 debt maturity 2 C59)
Slide 4: Priorities to drive sustained growth
4 Priorities to drive sustained growth Leverage Leverage leadership in privileged f Serve SMBs ; recordkeeping to holisticall. partnerships to grow Retirement y scale Global Asset Ecosystem Management WSRS recurring deposits +9% y/y WSRS recurring deposits +12% y/y Privates non-affiliated NCF +$1.1B
Slide 5: Retirement and Income Solutions
Retirement and Income Solutions Delivered strong earnings, net revenue growth, and expanded operating margin — i i 1 +9% Pre-tax operating earnings, xSV 4174 ($ in millions) 1,078 +8% 282 305 1Q24 1Q25 1Q24 TIM 1Q25 TTM Impact of significant variances" (20) (21) (14) (96) Reported pre-tax operating
Slide 6: Principal Asset Management
Principal Asset Management Increased revenue offset by seasonally elevated expenses +2% Pre-tax operating earnings, xSV" 828 851 ($ in millions) 279 278 @ Investment Management © International Pension -1% 190 187 12 116 1Q24 1Q25 1Q24TTM 1Q25 TTM International Pension’s impact of (3) - (11) 1 signif
Slide 7: Benefits and Protection
Benefits and Protection Specialty Benefits earnings increased 5%; Life Insurance results impacted by higher mortality Pre-tax operating earnings, xSV' ($ in millions) +1% 578 582 @ Specialty Benefits @ Life Insurance A% 130 125 24 462 482 106 111 1Q24 1Q25 1Q24 TTM 1Q25 TTM Impact of significant var
Slide 8: Appendix
Appendix © Principal’
Slide 9: Investment performance
Investment performance 54% of fund-level AUM has 4 or 5 star rating from Morningstar 1 , 2 Asset Weighted % of AUM outperforming Morningstar median3 % of composite AUM outperforming benchmarks4 As of 3/31/2025 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 70% 68% 57% 89% 60% 77% 6
Slide 10: 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 Equity market return 1 Interest rates FX: U.S. Dollar2 investment
Slide 11: Disciplined capital management strategy
Disciplined capital management strategy With emphasis on actively returning excess capital to shareholders Targeted range as a percentage of net income1: Organic capital deployment 15-25% Capital efficient business mix Consistent dividend payout ratio 40% Growth of dividend will track growth in net
Slide 12: 1Q 2025 significant variances
1 Q 2025 significant variances Business unit impacts of significant variances (in millions) Variable investment income Other 1 Total significant variances Retirement and Income $(21.0) $(21.0) Solutions Specialty Benefits $(5.0) $(5.0) Life Insurance $(5.3) $4.7 $(0.6) Corporate $(3.7) $(3.7) Total
Slide 13: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Three months ended Three months ended (in millions) Diluted earnings per common share 3/31/25 3/31/24 Investment Management operating revenues less 3/31/25 3/31/24 pass-through expenses Net income $0.21 $2.22 Net realized capital (gains) losses, as adjusted
Slide 14: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Period ended Period ended (in millions) 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 3/31/25 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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