Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q1 2026 Earnings Presentation
14 slides from Principal Financial's earnings presentation, Apr 24, 2026
Slide 1: First Quarter 2026 Earnings
RETIREMENT ASSET MANAGEMENT BENEFITS & PROTEC TION First 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 April 23, 2026 Audience disclosure
Slide 2: Key takeaways
Key takeaways Delivering on 13% 96% 16.1% long-term 1Q 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 190 bps • Retirement and Income Solutions pre-
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 1Q26 HIGHLIGHTS 1Q26 HIGHLIGHTS 1Q26 HIGHLIGHTS Retirement platf
Slide 4: 1Q 2026 financial highlights
1Q 2026 financial highlights 1Q 2026 operating results Capital & liquidity Excess and available capital3 Debt to capital ratio3 Reported non-GAAP Non-GAAP operating earnings, $1.45B 22.1% operating earnings1 excluding significant variances $800M at Hold Co (xSV)2 $300M excess subsidiary capital Esti
Slide 5: Retirement and Income Solutions
Retirement and Income Solutions Higher earnings on net revenue growth and margin expansion 1Q26 highlights1 Pre-tax operating earnings, xSV1 • Pre-tax operating earnings xSV1 increased 4% vs. 1Q25 due ($ in millions) to 2.9% net revenue growth and disciplined expense +5% management, while investing
Slide 6: Principal Asset Management
Principal Asset Management Strong earnings growth and margin expansion 1Q26 highlights1 • Pre-tax operating earnings xSV1 increased 10% vs. 1Q25 +7% driven by 8% growth in Investment Management and 14% Pre-tax operating earnings, xSV1 908 growth in International Pension ($ in millions) 851 • Investm
Slide 7: Benefits and Protection
Benefits and Protection Strong claims experience and sales results 1Q26 highlights1 • Pre-tax operating earnings xSV1 of $177M increased 41% vs. Pre-tax operating earnings, xSV1 +17% 1Q25 and margin expanded 440 bps 679 ($ in millions) • Specialty Benefits pre-tax operating earnings xSV1 of $140M, 5
Slide 8: Appendix
Appendix Audience disclosure
Slide 9: Investment performance
Investment performance 48% 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 3/31/2026 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 43% 54% 52% 78% 34% 44% 52%
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 change Equity market return1 Interest rates +/-100 bps FX: U.S. D
Slide 11: 1Q 2026 significant variances
1Q 2026 significant variances Business unit impacts of significant variances (in millions) Variable investment income Encaje and Inflation Total significant variances Retirement and Income $(16.0) - $(16.0) Solutions International Pension $3.8 $(1.4) $2.4 Specialty Benefits $(3.0) - $(3.0) Life Insu
Slide 12: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Three months ended Three months ended (in millions) Investment Management operating revenues less 3/31/26 3/31/25 Diluted earnings per common share 3/31/26 3/31/25 pass-through expenses Net income $1.93 $0.21 Operating revenues $466.1 $453.7 Net realized ca
Slide 13: 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 3/31/26 of funds w
Slide 14: 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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