Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q2 2025 Earnings Presentation
15 slides from Principal Financial's earnings presentation, Jul 29, 2025
Slide 1: Second Quarter 2025 Earnings
R ET IR EM ENT AS SET M ANAG E ME NT B ENE FI TS & PR OT ECT I ON Second Quarter 2025 Earnings P R I N C I PA L F I N A N C I A L G R O U P July 28, 2025 Audience disclosure
Slide 2: Key takeaways
Key takeaways Delivering on 18% 14.9% 92% long-term EPS growth1 ROE2 TTM FCF %3 guidance (9-12% target) (14-16% target) (75-85% target) • RIS transfer deposits increased 8% over 2Q24; SMB recurring deposits growth up 7% from the year ago quarter • Investment Management revenue increased 6% over 2Q24
Slide 3: 2Q 2025 financial highlights
2Q 2025 financial highlights 2Q 2025 operating results Capital & liquidity Excess and available capital3 Debt to capital ratio3 Reported non-GAAP Non-GAAP operating earnings, $1.4B 22.1% operating earnings1 excluding significant variances $800M at Hold Co (xSV)2 $250M excess subsidiary capital Estim
Slide 4: Priorities to drive sustained growth
Priorities to drive sustained growth Leverage leadership Leverage privileged in recordkeeping to partnerships to scale DRAFT Serve SMBs Global Asset grow Retirement holistically Management Ecosystem HIGHLIGHTS 2Q25 HIGHLIGHTS 2Q25 HIGHLIGHTS2 2Q25 WSRS recurring deposits +7% TTM WSRS SMB recurring d
Slide 5: Retirement and Income Solutions
Retirement and Income Solutions Strong earnings and margin expansion Pre-tax operating earnings, xSV 1 2Q25 highlights 1 ($ in millions) +8% • Pre-tax operating earnings increased due to growth in the 1,189 business and continued margin expansion 1,103 • Margin improved 80 bps to 40% +5% • Transfer
Slide 6: Principal Asset Management
Principal Asset Management Strong earnings growth on higher fees and margin expansion 2Q25 highlights1 +6% Pre-tax operating earnings, xSV 1 871 • Pre-tax operating earnings increased due to higher management 823 ($ in millions) and performance fees Investment Management +10% 278 278 • Principal Ass
Slide 7: Benefits and Protection
Benefits and Protection Specialty Benefits 10% earnings growth; Life Insurance impacted by claims severity 2Q25 highlights1 • Benefits and Protection pre-tax operating earnings increased due to business growth and more favorable Specialty Benefits Pre-tax operating earnings, xSV 1 underwriting, part
Slide 8: Appendix
Appendix
Slide 9: Investment performance
Investment performance 56% 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 benchmarks 4 As of 6/30/2025 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 64% 56% 52% 86% 72% 82% 66
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 FX: U.S. Dollar2 inve
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: 2Q 2025 significant variances
2Q 2025 significant variances Business unit impacts of significant variances (in millions) Variable investment Encaje and inflation Other1 Total significant variances income Retirement and Income $(23.5) - $19.4 $(4.1) Solutions Investment Management - - $4.8 $4.8 International Pension - $7.8 - $7.8
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 6/30/25 6/30/24 Investment Management operating revenues less 6/30/25 6/30/24 pass-through expenses Net income $1.79 $1.49 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 withheld Non-GAAP operating earnings ROE (x- cumulative change in fair value of funds embedded derivative and AOCI other than foreign currency translati
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
Principal Financial Group — Q2 2025 Earnings Presentation on 6ix