Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Q3 2026 Earnings Presentation
17 slides from Principal Financial's earnings presentation, Oct 26, 2026
Slide 1: Third Quarter 2026 Earnings
RETIREMENT ASSET MANAGEMENT BENEFITS & PROTEC TION Third 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 October 26, 2026
Slide 2: Key takeaways
Key takeaways Delivering on 7% / 12% 77% 16.6% long-term 3Q / YTD EPS growth1 TTM FCF %2 ROE3 guidance (9-12% target) (75-85% target) (15-17% target) • Enterprise earnings per share growth of 7%, driven by net revenue5 growth of 4% • Retirement and Income Solutions pre-tax operating earnings increas
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 3Q26 HIGHLIGHTS 3Q26 HIGHLIGHTS 3Q26 HIGHLIGHTS Retirement platf
Slide 4: 3Q 2026 financial highlights
3Q 2026 financial highlights 3Q 2026 operating results Capital & liquidity Excess and available capital Debt to capital ratio3 Reported non-GAAP Non-GAAP operating earnings, $1.5B 24.7% operating earnings1 excluding significant variances $1.15B at Hold Co (xSV)2 $300M excess subsidiary capital Estim
Slide 5: Retirement and Income Solutions
Retirement and Income Solutions Strong earnings and underlying retirement fundamentals Pre-tax operating earnings, xSV1 3Q26 highlights1,3 ($ in millions) • Pre-tax operating earnings increased 5%, driven by higher +5% net revenue and disciplined expense management; 1,276 operating margin expanded 2
Slide 6: Principal Asset Management
Principal Asset Management Strong earnings growth and margin expansion in International Pension 3Q26 highlights1,4 Pre-tax operating earnings, xSV1 +4% ($ in millions) • Pre-tax operating earnings were stable, with 11% growth in 924 887 International Pension Investment Management +1% International P
Slide 7: Benefits and Protection
Benefits and Protection Earnings growth driven by favorable Life mortality 3Q26 highlights1,3 Pre-tax operating earnings, xSV1 +18% • Pre-tax operating earnings increased 3% primarily due to ($ in millions) improved Life mortality 728 Specialty Benefits 616 • Life Insurance pre-tax operating earning
Slide 8: Appendix
Appendix Audience disclosure
Slide 9: 3Q 2026 significant variances
3Q 2026 significant variances Business unit impacts of significant variances (in millions) Variable investment Total significant Encaje and Inflation Integration costs income variances Retirement and Income $(32.5) - - $(32.5) Solutions International Pension $(7.1) $(10.9) - $(18.0) Specialty Benefi
Slide 10: Non-GAAP operating earnings
Non-GAAP operating earnings Excluding impacts from significant variances 3Q26 vs 3Q25 (in millions, except per share data) Significant variances 3Q26 excluding Actuarial Other 3Q25 excluding 3Q26 as Significant significant 3Q25 as assumption significant significant 3Q26 vs 3Q25 excluding reported va
Slide 11: Annual actuarial assumption review
Annual actuarial assumption review Immaterial impact to 3Q 2026 results 2026 impact $ in millions1 Highlights Benefits and Protection $(3) • Immaterial impact from AAR, split between RIS and B&P • Immaterial run-rate impact reflected in current Retirement and Income Solutions $(3) quarter results; I
Slide 12: Investment performance
Investment performance 34% 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 9/30/2026 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 14% 40% 51% 29% 18% 43% 45%
Slide 13: 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 14: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Three months ended Three months ended (in millions) Investment Management operating revenues less Diluted earnings per common share 9/30/26 9/30/25 9/30/26 9/30/25 pass-through expenses Net income $2.91 $0.95 Operating revenues $476.8 $483.9 Net realized ca
Slide 15: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Period ended Period ended (in millions) (in millions) Stockholders’ equity x- cumulative change in fair value of funds 9/30/26 Total debt excluding non-recourse debt related to collateralized loan withheld embedded derivative and AOCI 9/30/26 obligation war
Slide 16: Non-GAAP financial measure reconciliations
Non-GAAP financial measure reconciliations Period ended Non-GAAP operating earnings ROE (x- cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment) 9/30/26 available to common stockholders Net Income ROE available to common
Slide 17: 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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