Principal Financial Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to PFG was $631.9 million ($2.91 per diluted share) for the three months ended September 30, 2026, compared to $213.8 million ($0.95 per share) in the prior year quarter.
• Non-GAAP net income attributable to PFG, excluding exited business, was $354.8 million ($1.64 per share), a 20% decrease from $465.6 million ($2.06 per share) in the prior year quarter.
• Non-GAAP operating earnings were $481.8 million ($2.22 per share), a 6% increase from $473.7 million ($2.10 per share) in the prior year quarter.
• Non-GAAP operating earnings excluding significant variances were $540.6 million ($2.49 per share), a 7% increase from $523.3 million ($2.32 per share) in the prior year quarter.
• Trailing twelve months net income attributable to PFG was $1,976.9 million, a 26% increase from $1,573.5 million in the prior year period.
• Trailing twelve months Non-GAAP operating earnings were $1,972.9 million, an 8% increase from $1,825.6 million in the prior year period.
• Total assets were $338.7 billion at period end, down from $341.4 billion in the prior year period.
• Stockholders' equity was $11,850.3 million, down from $11,917.0 million in the prior year period.
• Book value per common share was $55.53, up from $54.66 in the prior year period.

Guidance and Future Outlook:

• Management expressed confidence in delivering on the 2026 outlook.
• The company announced a fourth quarter 2026 common stock dividend increase of $0.01 to $0.85 per share, representing an 8% increase over the fourth quarter 2025 and a 7% increase on a trailing twelve-month basis.
• The fourth quarter dividend is payable on December 18, 2026, to shareholders of record as of December 2, 2026.

Business Segments and Product Lines:

• Retirement and Income Solutions:
  • Net revenue was $757.3 million, a 1% increase from the prior year quarter.
  • Pre-tax operating earnings were $297.8 million, a 4% decrease from the prior year quarter.
  • Recurring deposits increased 8% to $13 billion; PRT sales were $0.9 billion.
  • SMB transfer deposits increased 21% and recurring deposits increased 7%.
• Principal Asset Management:
  • Investment Management: Operating revenues less pass-through expenses were $436.1 million, a 2% decrease from the prior year quarter. Pre-tax operating earnings were $168.1 million, a 3% decrease. AUM was $581.7 billion, down 3% from the prior year. Private markets AUM increased 6% with $0.8 billion in private institutional inflows; active ETF net inflows were $0.5 billion.
  • International Pension: Net revenue was $144.1 million, a 23% decrease from the prior year quarter. Pre-tax operating earnings were $62.4 million, a 38% decrease. AUM was $166.2 billion, a 10% increase from the prior year.
• Benefits and Protection:
  • Specialty Benefits: Premium and fees were $895.4 million, a 6% increase from the prior year quarter. Pre-tax operating earnings were $137.3 million, a 12% decrease. The incurred loss ratio was 59.0%, below the targeted range of 60-64%. Sales increased 10%.
  • Life Insurance: Premium and fees were $238.6 million, a 4% decrease from the prior year quarter. Pre-tax operating earnings were $32.4 million, a 147% increase from a loss of $69.0 million in the prior year. Operating margin was 13.6%.
• Corporate: Pre-tax operating losses were $110.5 million, a 21% increase from the prior year quarter.

Market and Competitive Landscape:

• Assets under administration (AUA) were $1.84 trillion, a 3% increase from the prior year quarter.
• Assets under management (AUM) were $785 billion, flat compared to the prior year quarter.
• AUM net cash flow was $(10.7) billion for the quarter, compared to $0.4 billion in the prior year quarter.
• The company maintains a strong financial position with $1.5 billion of excess and available capital.

Risks and Challenges:

• Significant variances impacting results included lower than expected variable investment income across Retirement and Income Solutions, International Pension, Specialty Benefits, Life Insurance, and Corporate.
• International Pension results were impacted by lower than expected encaje returns, partially offset by higher than expected Latin American inflation.
• Integration costs were incurred in Specialty Benefits and Corporate.
• The 2025 actuarial assumption review impacts affected prior year comparisons in multiple segments.
• A $276.7 million pre-tax loss associated with the disposition of the Chilean annuities business was recorded in the prior year quarter, affecting comparability.

Management Commentary and Tone:

• Deanna Strable, Chair, President, and CEO, stated that results demonstrate the strength of the diversified business and progress against strategic priorities.
• Management noted growth in earnings per share and momentum in focused markets.
• The company returned $429 million of capital to shareholders during the quarter, including $250 million in share repurchases and $179 million in common stock dividends.

Other Key Points:

• The company was recognized as one of the 2026 World's Most Ethical Companies.
• The company has over 19,000 employees and serves 84 million customers.
• The earnings conference call was scheduled for Tuesday, October 27, 2026, at 10:00 a.m. (ET).
• Non-GAAP measures exclude net realized capital gains/losses, income/loss from exited business, actuarial assumption review impacts (beginning 3Q 2026), and other adjustments to reflect ongoing operations.