Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q3 2025 Earnings Presentation
15 slides from Principal Financial's earnings presentation, Oct 28, 2025
Slide 1: Third Quarter 2025 Earnings
RETIREMENT ASSET MANAGEMENT BENEFITS & PROTEC TION Third 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 October 27, 2025 Audience disclosure
Slide 2: Key takeaways
Key takeaways Delivering on 13% / 14% 15.5% 91% long-term 3Q / YTD ROE2 YTD FCF %3 guidance EPS growth1 (14-16% target) (75-85% target) (9-12% target) • Enterprise net revenue growth5 of 4% and margin expansion of 180 bps; managed net cash flow of +$0.4 billion • Retirement and Income Solutions pre-
Slide 3: Priorities to drive sustained growth
Priorities to drive sustained growth Leverage Leverage leadership in privileged Serve SMBs partnerships to recordkeeping to holistically scale Global Asset grow Retirement Ecosystem Management HIGHLIGHTS 3Q25 HIGHLIGHTS 3Q25 HIGHLIGHTS1 3Q25 WSRS transfer deposits +13% y/y WSRS SMB recurring deposit
Slide 4: 3Q 2025 financial highlights
3Q 2025 financial highlights 3Q 2025 operating results Capital & liquidity Excess and available capital3 Debt to capital ratio3 Reported non-GAAP Non-GAAP operating earnings, $1.6B 22.0% operating earnings1 excluding significant variances $800M at Hold Co (xSV)2 $350M excess subsidiary capital Estim
Slide 5: Retirement and Income Solutions
Retirement and Income Solutions Strong earnings and margin expansion Pre-tax operating earnings, xSV1 3Q25 highlights1 ($ in millions) +7% • Pre-tax operating earnings of $315 million increased 8% 1,212 due to 4% higher net revenue and disciplined expense 1,135 management • Margin improved 130 bps t
Slide 6: Principal Asset Management
Principal Asset Management Strong earnings and margin expansion 3Q25 highlights1 Pre-tax operating earnings, xSV1 +7% • Investment Management: margin expanded 180 bps due to ($ in millions) 887 5% higher management fees and expense discipline 825 Investment Management +7% 246 280 • Investment Manage
Slide 7: Benefits and Protection
Benefits and Protection Specialty Benefits record earnings driven by favorable underwriting experience and business growth 3Q25 highlights1 • Pre-tax operating earnings increased 20%, due to business growth and more favorable Specialty Benefits underwriting Pre-tax operating earnings, xSV1 which imp
Slide 8: Appendix
Appendix Audience disclosure
Slide 9: Impacts of 3Q 2025 actuarial assumption review
Impacts of 3Q 2025 actuarial assumption review Actuarial assumption review after-tax operating Income statement line item impacts of the actuarial assumption review (in earnings impact millions) Q3 2025 International Specialty Life Line Item RIS Pension Benefits Insurance Total Premiums and other co
Slide 10: Non-GAAP operating earnings
Non-GAAP operating earnings Excluding impacts from actuarial assumption review and other significant variances 3Q25 vs 3Q24 (in millions, except per share data) Significant variances Significant variances Actuarial Other 3Q25 excluding Actuarial Other 3Q24 excluding 3Q25 as assumption significant si
Slide 11: Investment performance
Investment performance 55% 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 9/30/2025 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 36% 60% 46% 79% 44% 74% 58%
Slide 12: 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 return1 Interest rates FX: U.S. Dollar2 investment
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 9/30/25 9/30/24 Investment Management operating revenues less 9/30/25 9/30/24 pass-through expenses Net income $0.95 $(0.95) Net realized capital (gains) losses, as adjust
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 9/30/25 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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