Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q3 2024 Earnings Presentation
17 slides from Principal Financial's earnings presentation, Oct 25, 2024
Slide 1: Third Quarter 2024 Earnings Call Presentation
e) Principal’ Third Quarter 2024 Earnings Call Presentation PRINCIPAL FINANCIAL GROUP October 24, 2024 RETIREMENT ASSET MANAGEMENT BENEFITS & PROTECTION
Slide 2: Key takeaways
Key takeaways * 3Q24 non-GAAP EPS' excluding significant variances? of $2.05 increased 12% from 3Q23 * On track to deliver on 9-12% long-term enterprise non-GAAP EPS! growth in 2024 * Top-line growth excluding significant variances? of 5% across the enterprise * Retirement: strong net revenue growth
Slide 3: 3Q 2024 financial highlights
3Q 2024 financial highlights 3Q 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) $412M $68M after-tax $480M RETURN ON EQUITY? (-2% vs. 3Q 2023) (§81
Slide 4: Investment performance
Investment performance 54% of fund-level AUM has 4 or 5 star rating from Morningstar? Asset Weighted % of AUM outperforming Morningstar median? % of composite AUM outperforming benchmarks* As of 9/30/2024 3-Year 5-Year 1-Year 3-Year 5-Year 10-Year Equity 62% 42% 60% 96% 66% 61% 72% 87% Fixed Income
Slide 5: Retirement and Income Solutions
Retirement and Income Solutions HIGHLIGHTS * Pre-tax operating earnings excluding significant variances" increased 12% due to higher net revenue and operating margin * Net revenue excluding significant variances! increased 9% driven by growth in the business, favorable market performance, and higher
Slide 6: Principal Global Investors (PGI)
Principal Global Investors (PGI) HIGHLIGHTS * Pre-tax operating earnings decreased 2% due to strong performance fees in the prior year quarter * PGI Managed AUM increased to $541B driven by market performance; higher AUM supported management fee growth of 6% OTHER CONSIDERATIONS * Equity AUM exposur
Slide 7: Principal International
Principal International HIGHLIGHTS * Pre-tax operating earnings excluding significant variances! increased 8% from 3Q23 primarily due to improved operating margin * Stable combined net revenue (at PFG share) excluding significant variances! as growth in the business was offset by FX headwinds in Lat
Slide 8: Specialty Benefits
Specialty Benefits HIGHLIGHTS KEY METRICS * Pre-tax operating earnings excluding significant variances! decreased primarily due to favorable underwriting results in 3Q23, partially offset by growth in the business Trailing twelve month basis _ +8% 14% 62% * Premium and fees increased 6% driven by gr
Slide 9: Life Insurance
Life Insurance HIGHLIGHTS KEY METRICS * Pre-tax operating earnings excluding significant variances! increased 11% driven by improved mortality experience Trailing twelve month basis * Excluding significant variances”, premiums & fees increased slightly +2% 13% as strong business market growth of 12%
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 $0.8B-$1.1B * Non-GAAP EPS growth of 9-12% annually Long-Term Outlook * Free capital flow conversion of 75-85%, including 40% divide
Slide 12: 3Q 2024 significant variances
12 3Q 2024 significant variances Business unit impacts of significant variances (in millions) Actuarial assumption Variable review investment income Encaje, Inflation & Other Total significant variances Retirement and Income Solutions $(16.7) $(29.5) $(46.2) Principal International $21.1 $(2.3) 20.2
Slide 13: Impacts of 3Q 2024 actuarial assumption review
Impacts of 3Q 2024 actuarial assumption review Income statement line item impacts of the annual actuarial assumption review (in millions) Minimal impact to free capital flow and . Insurance Total run rate earnings Premiums and other considerations $e -[s - 1s - | s Fees and other revenues - - - (15)
Slide 14: Non-GAAP operating earnings
Non-GAAP operating earnings Excluding impacts from actuarial assumption review and other significant variances 3Q24 vs 3Q23 (in millions, except per share data) Significant variances Significant variances Actuarial Other 3Q24 excluding Actuarial Other 3Q23 excluding 3Q24 as assumption significant si
Slide 15: Non-GAAP financial measure reconciliations
15 Non-GAAP financial measure reconciliations Three months ended (in mil Principal Global Investors operating revenues less pass- through expenses 9/30/24 9/30/23 Principal Global Investors operating revenues $431.0 $424.6 Principal Global Investors commissions and other expenses (32.2) (30.7) Princ
Slide 16: Non-GAAP financial measure reconciliations
16 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 9/30/24 Non-GAAP operating earnings ROE (x
Slide 17: Additional Disclosures
7 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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