Marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 187 words changed in this paragraph; it is 50% similar to last year's version.
Factors such as Macroeconomic factors, including consumer spending, business investment, government spending, the volatility market volatility, inflation and strength of the capital markets, investor and consumer confidence, foreign currency exchange rates, inflation levels affect our business volume and our ability to manage inflation risk effectively all affect the business and economic environment and, ultimately, the amount and profitability of our business. In an economic downturn characterized by higher unemployment, lower family income, lower corporate earnings, lower business investment, negative investor sentiment and lower consumer spending, the profitability. Economic downturns may reduce demand for our financial and insurance products products. We may be adversely affected. In addition, we may experience an elevated incidence of also face increased claims and lapses or surrenders of policies. policy lapsation. Our policyholders may choose to defer paying insurance premiums or stop paying insurance premiums altogether. In addition, reductions in employment levels of our existing employer customers may result in a reduction in membership levels and premium income for our specialty benefits products. Participants within the Reduced payroll deferrals in retirement plans for which we provide administrative services and increased withdrawals of investment accounts may elect to reduce or stop their payroll deferrals to these plans, which would reduce lower AUM, AUA and revenues. In addition, reductions Reductions in employment levels may result in a decline in employee deposits into retirement plans. Adverse economic changes in the economy could affect may materially impact our net income negatively and could have a material adverse effect on our business, results of operations and financial condition. In addition, increased reliance on passive investment strategies, including target date funds, may amplify market volatility impacts and reduce flexibility in responding to adverse economic conditions.
Source: Item 1A, 10-K 0001104659-26-017031 vs Item 1A, 10-K 0001410578-25-000160
MD&A 178 words changed in this paragraph; it is 43% similar to last year's version.
On January 16, 2025, we announced the signing of an agreement with BCT to expand our investment management capabilities and exit our sponsor and trustee (pension) roles in Hong Kong for MPF Schemes. BCT will be assuming the role as sponsor and trustee for the Principal MPF Schemes. The transaction is expected to close during the first quarter of in 2026, subject to regulatory approval, approval; however, certain transaction impacts were recognized in first quarter 2025. We impaired our distribution agreement intangible asset and will be contract cost asset, resulting in a $65.4 million loss reported within in operating expenses on our consolidated statements of operations. Additionally, we classified our customer relationship intangible asset as held-for-sale, resulting in a $77.0 million loss reported in net realized capital gains (losses) on our consolidated statements of operations. For segment reporting, the impairments are reflected in loss from exited business and the held-for-sale write-down is reflected in net realized capital losses. As such, they had no impact on our Principal Asset Management segment. We expect to record a one-time charge of approximately $140.0 million in the first quarter of 2025 primarily attributable to the write-down of certain intangible assets and deferred contract cost assets, which will reduce pre-tax net income. For segment reporting purposes, the charge will be reported as exited business and net realized capital loss from exiting our roles as MPF Scheme sponsor and trustee. As such, it will have no impact on segment pre-tax operating earnings.
Source: Item 7, 10-K 0001104659-26-017031 vs Item 7, 10-K 0001410578-25-000160
Legal Proceedings 119 words changed in this paragraph; it is 40% similar to last year's version.
Daniel Houston, 63, was a director Joel Pitz, 53, has been Executive Vice President & Chief Financial Officer of the Company and Principal Life and since May 20, 2025. Prior to his current position, he was Interim Chief Executive Financial Officer of the Company and Principal Life from August 2015 until his retirement effective January 7, 2024 to May 2025. Prior to holding these positions, Previously, he held the same positions except was Chief Operating Officer (and not Chief Executive Officer) from 2014 to 2015 served as Senior Vice President and was President Controller of the Company and Principal Life from 2014 2021 to August 2024. Previously, he served as President, Retirement, Insurance 2024 and Vice President and Chief Financial Services Officer of the Company and Principal Life International from 2010 May 2016 to 2014 and held several leadership roles in Retirement and Income Solutions of the Company and Principal Life. He currently serves as Executive Chairman of the Company and Principal Life. August 2021.
Source: Item 3, 10-K 0001104659-26-017031 vs Item 3, 10-K 0001410578-25-000160
Accounting Policies 111 words changed in this paragraph; it is 78% similar to last year's version.
Description Date of Effect on our consolidated adoption financial statements or other significant matters Standards not yet adopted: Disaggregation of Income Statement Expenses December 31, 2027 We are currently evaluating the impact this guidance will have on our notes to the consolidated financial statements. This authoritative guidance expands the disclosures about a public entity’s expenses and addresses requests for more granular information about the types of expenses in commonly presented expense categories. Improvements to income tax disclosures January 1, 2025 This guidance will not have a material impact on our notes to the consolidated financial statements. This authoritative guidance provides improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Standards adopted: Improvements to reportable segments disclosures December 31, 2024 The enhanced disclosures can be found in Note 20, Segment Information. This authoritative guidance enhances the disclosures about a public entity’s reportable segments and addresses requests from investors for additional, more detailed information about a reportable segment’s expenses. Targeted improvements to the accounting for long-duration insurance contracts January 1, 2023 This guidance changed how we account for many of our insurance and annuity products. This authoritative guidance updated certain requirements in the accounting for long-duration insurance and annuity contracts. The additional disclosure requirements can be found in the following notes: ● 1. Note 7, Deferred Acquisition Costs and Other Actuarial Balances The assumptions used to calculate the liability for future policy benefits on traditional and limited-payment contracts are reviewed and updated periodically. Cash flow assumptions are reviewed at least annually and updated when necessary with the impact recognized in net income. Discount rate assumptions are prescribed as the current upper-medium grade (low credit risk) fixed income instrument yield and are updated quarterly with the impact recognized in other comprehensive income (“OCI”). ●
Source: Item 8, Note 1 – Nature of Operations and Significant Accounting Policies, 10-K 0001104659-26-017031 vs Item 8, Note 1 – Nature of Operations and Significant Accounting Policies, 10-K 0001410578-25-000160
