10-K 0001104659-26-017031 (2026-02-18) vs 10-K 0001410578-25-000160 (2025-02-19)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 10,493 |
23.5% |
| MD&A | Item 7 | 16,611 |
10.4% |
| Legal Proceedings | Item 3 | 833 |
24.8% |
| Accounting Policies | Item 8, Note 1 – Nature of Operations and Significant Accounting Policies | 1,071 |
24.7% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, 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
Every change, by type
Sentences and paragraphs of PFG's Risk Factors and MD&A, 10-K 2026-02-18 against 10-K 2025-02-19.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Disruptions, uncertainty or volatility in the capital and credit markets may limit our access to capital required to operate our business, most significantly our insurance operations. Market conditions may hinder our ability to meet obligations, satisfy capital requirements, and access the capital needed to grow our business. We may face higher capital costs or reduced flexibility, impacting liquidity and profitability.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
Our investment portfolio’s risks may reduce asset values, credited returns and overall financial performance.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
In a time of market illiquidity, we may be forced to sell assets at unfavorable prices as reported asset values may not reflect potential sale prices in stressed markets.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
Deferred tax assets and liabilities reflect differences between financial and tax bases, using enacted future tax rates. We assess deferred tax asset recoverability quarterly and establish valuation allowances as needed. We consider reversals of existing taxable temporary differences, future income, carrybacks and tax planning strategies when evaluating the need for valuation allowances.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
We provide products and services to certain employee benefit plans that are subject to ERISA or the Internal Revenue Code of 1986, as amended and regulated by various federal agencies, including the DOL. The laws governing employee benefit plans are complex. Failure to comply can result in civil penalties, excise taxes, litigation, and reputational harm. At times, we contract with customers to provide services as an ERISA fiduciary. In this case, ERISA imposes high standards of conduct on our activities, including managing conflicts of interest and complying with prohibited transaction exemptions. Changes to fiduciary rules, including regulations for fiduciary investment advice, may require modifications to our business practices, compensation structures, systems, and compliance programs. These changes could increase operational costs and limit certain sales practices.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
Additional legislative or regulatory action in the United States and globally could further regulate our collection, use, sharing and other processing of personal data. Evolving privacy laws may raise compliance costs and increase reputational and regulatory risks.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
The following charter provisions may delay or prevent takeovers. Our certificate of incorporation and by-laws:
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
Our risk management framework may not identify or mitigate all risks, potentially leading to unexpected losses.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
Our operations increasingly depend on a network of third party vendors, many of whom rely on additional subcontractors or fourth party providers. This extended dependency can lead to a rise in service disruptions and performance failures, particularly in areas critical to financial services such as technology infrastructure, data processing and customer support. These incidents may result in operational delays and reputational risk and may adversely affect our ability to meet regulatory obligations and client expectations.
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AddedRisk Factors
Risks relating to computer cyber-terrorism, crisis on a national or global scale, climate change or other catastrophic events
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AddedRisk Factors
Sustainability considerations are an important element of our portfolio construction process. Risk underwriting includes an assessment of sustainability factors and the sustainability characteristics of our portfolio are monitored on a regular basis. A diversified portfolio helps us mitigate sustainability risks, including those from climate. Ongoing monitoring of our portfolio allows us to adjust exposure to sectors and/or geographical areas that face severe climate change risks.
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AddedRisk Factors
Policy uncertainty regarding geoeconomic issues and geopolitical uncertainty more broadly are increasing factor considerations for market participants.
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RemovedRisk Factors
This section provides a summary of the risks that may impact our performance in the future. For details of our various risk factors and their impacts, see “Risk Factors Discussion.”
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Our risk factors are organized into the following categories: 1) Risks relating to economic conditions, market conditions and investments, 2) Risks relating to estimates, assumptions and valuations, 3) Risks relating to laws, regulations and taxation, 4) Risks relating to our business and 5) General risks.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
In general, economic and market conditions can cause variability in the following factors: demand for our products and services, short-term and long-term interest rates, inflation and deflation, equity returns, credit spreads, liquidity of investments, level of premiums and deposits, level of delinquencies and defaults, level of claims, level of surrenders and withdrawals and foreign exchange rates. The net effect of this variability can include reductions in business volumes or AUM, reductions in revenues, additional operating expenses, reductions or volatility in net income, inability to meet liquidity needs, inability to access capital and increased cost of capital.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Many different regulatory bodies govern our company. We are required to comply with securities laws; insurance regulations; employee benefit plan regulations; financial services regulations; U.S. and international tax regulations; environmental, social and governance (“ESG”) requirements; and cybersecurity and privacy regulations. Complying with the various regulations can increase our cost of doing business, limit our available capital or impact how we do business. We could also face potential fines or reputational risk if we do not comply. In addition, changes in tax laws can reduce sales of certain tax-advantaged products or increase our operating expenses. Changes in accounting standards may adversely impact reported results of operations and financial condition. Litigation and tax audits can increase costs and create adverse publicity.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Business risks include risks associated with competition, products, fraud, external business partner relationships and acquisitions. In general, the risks related to our business can cause variability in the following factors: demand for our products and services, level of premiums and deposits, level of claims and level of surrenders and withdrawals. The net effect of this variability can include reductions in business volumes, disruptions in business operations, reductions in revenues, increased claims or operating expenses, reduced economic activity, reductions or volatility in net income or adverse effects on our results of operations and financial condition.
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RemovedRisk Factors
These risks are of a general nature and include the risk of catastrophic event; the risk of global climate change; the risk of technological and societal changes; reputational risk; intellectual property risk; risks associated with attracting, developing and retaining qualified employees; the risk of interruptions in information technology, infrastructure or other systems; loss of or disruption in key vendor relationships and risks associated with our enterprise risk management framework. General risks can result in reductions in business volumes, reductions in revenues, additional operating expenses, reductions or volatility in net income, or adverse effects on our results of operations and financial condition.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Our results of operations, financial condition, cash flows and capital position could be materially adversely affected by volatility, uncertainty and disruption in the capital and credit markets.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Disruptions, uncertainty or volatility in the capital and credit markets may limit our access to capital required to operate our business, most significantly our insurance operations. Such market conditions may limit our ability to replace, in a timely manner, maturing liabilities; satisfy statutory capital requirements; fund redemption requests on insurance or other financial products; generate fee income and market-related revenue to meet liquidity needs and access the capital necessary to grow our business. As such, we may be forced to delay raising capital, issue shorter tenor securities than we prefer, utilize available internal resources or bear an unattractive cost of capital, which could decrease our profitability and significantly reduce our financial flexibility and liquidity.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
An economic downturn may also lead to weakening of foreign currencies against the U.S. dollar, which would adversely affect the translation of segment pre-tax operating earnings and equity of our international operations into our consolidated financial statements. For further discussion on foreign currency exchange risk, see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk — Foreign Currency Risk.”
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Our investment portfolio is subject to several risks that may diminish the value of our invested assets and the investment returns credited to customers, which could reduce our sales, revenues, AUM and net income.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
If we require significant amounts of cash on short notice, we may have difficulty selling these investments in a timely manner, be forced to sell them for less than we otherwise would have been able to realize or both. The reported value of our relatively illiquid types of investments, our investments in the asset classes described above and, at times, our high quality, generally liquid asset classes, do not necessarily reflect the lowest possible price for the asset. If we were forced to sell certain of our assets in the current market, there can be no assurance we will be able to sell them for the prices at which we have recorded them, and we may be forced to sell them at significantly lower prices.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to be in effect during the years in which the basis differences reverse. We are required to evaluate the recoverability of our deferred tax assets each quarter and establish a valuation allowance, if necessary, to reduce our deferred tax assets to an amount that is more−likely−than−not to be realizable. In determining the need for a valuation allowance, we consider many factors, including future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in prior carryback years and implementation of any feasible and prudent tax planning strategies management would employ to realize the tax benefit.
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RewordedRisk Factors
Unrealized AFS gains or and losses on AFS securities, excluding those are recorded in fair value hedging relationships, are recognized as a component of accumulated other comprehensive income (“AOCI”) and are, therefore, which is excluded from net income.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
However, withdrawal Withdrawal and surrender levels may differ from anticipated levels for a variety of reasons, such as changes in vary due to economic conditions or changes in our claims paying ability and financial strength ratings.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
The laws and regulations that affect our business include, but are not limited to, the EU GDPR, U.S. federal, state, state and local data protection laws such as the New York Department of Financial Services Part 500 cybersecurity requirements for financial services companies, the California Consumer Privacy Act and California Privacy Rights Act, China’s Cybersecurity Law, the EU GDPR and the China Personal Information Protection Law.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
State laws and our certificate of incorporation and by-laws charter documents may delay, defer, prevent, or render more difficult deter a takeover attempt that some stockholders might consider in their best interests. favor.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
We hold certain investments that may be less liquid than our publicly traded fixed maturities, such as investments, including privately placed fixed maturities, mortgage loans loans, and real estate investments. estate.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Realized losses or credit losses may have a material adverse materially impact on our net income in a particular quarterly or annual period. income.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Additionally, government Government policies to slow climate change (e.g., setting limits on carbon emissions) may have an adverse impact on certain sectors such as utilities, transportation and manufacturing. manufacturing that are dependent on energy sources with very high carbon emissions.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Liability under environmental protection laws resulting Environmental liabilities from our commercial mortgage loan portfolio and real estate investments may harm impact our financial strength and reduce our profitability.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
These trends are expected to could continue in the future and have the potential to impact nearly all several sectors of the economy. economy, potentially impacting our financial results.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
The resulting Resulting macroeconomic conditions could adversely affect our reduce cash flows, as well as the value flows and liquidity of our invested assets.
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RewordedRisk Factors
Significant terminations or Large withdrawals may reduce our AUM, thus adversely affecting our revenues AUM and impact profitability.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
We use derivative instruments derivatives to hedge various risks we face in our businesses. business risks.
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Quiet changesRisk Factors
Even in the absence of a market downturn, we are exposed to substantial risk of loss of income due to market volatility.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
A widening of credit spreads would cause unrealized losses in our investment portfolio, would increase losses associated with credit-based derivatives we have sold that do not qualify or have not been designated for hedge accounting where we assume credit exposure and, if issuer credit spreads increase as a result of fundamental credit deterioration, would likely result in higher allowances.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
On January 19, 2026, an agreement with Banco Santander, S.A. (“Santander”) was announced whereby Santander will acquire our annuities business in Chile, Principal Compañía de Seguros de Vida Chile S.A. (“Vida”), subject to regulatory approvals. The transaction is structured such that the Vida legal entity will be sold excluding its universal life and asset management business, which will be carved out prior to the sale. We expect the transaction to close in the third quarter of 2026. We expect to incur an estimated $280.0 million pre-tax net realized capital loss on the disposal primarily due to recognizing into income our accumulated foreign currency translation adjustment in a loss position. We do not expect a material impact to our Principal Asset Management segment pre-tax operating earnings upon completion of the sale.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
The market risk benefit remeasurement (gain) loss change was primarily due to the $136.4 million unfavorable impact from the change in fair value of the MRB asset (liability), excluding impacts of nonperformance risk, primarily driven by changes in market movements. This change was offset by a $103.6 million favorable impact from periodic and final settlements for derivatives used to hedge MRBs. See Item 8. “Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 11, Market Risk Benefits” for further information on market effects.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
(2) 2025 includes withdrawals related to certain exited pension business in Hong Kong and the divestment of Post Advisory Group. 2025 and 2024 include the divestment of Origin Asset Management.
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AddedMD&A
Pre-tax operating losses increased primarily due to an $18.6 million increase in compensation costs, partially offset by $8.4 million higher net investment income largely resulting from mark-to-market gains on investments and a $7.8 million increase in interest income related to tax settlements.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Fixed maturities, available-for-sale – credit losses, including credit sales (1) $ (44.5) $ (28.3) $ (16.2)
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AddedMD&A
Fixed maturities, available-for-sale and trading – noncredit (43.5) (39.7) (3.8)
Read it in 10-K 2026-02-18 at sec.gov ↗
RemovedMD&A
In the fourth quarter of 2024, we implemented changes to our Principal Asset Management segment to align the global operations by business function. Prior to the fourth quarter of 2024, our Principal Asset Management segment was organized into Principal Global Investors and Principal International. The Principal Asset Management segment is now organized into Investment Management and International Pension. The change has been applied retrospectively, which did not have an impact on our consolidated financial statements.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedMD&A
For the year ended December 31, 2024 2023 (in millions) Retirement and Income Solutions $ (16.7) $ 53.4 Principal Asset Management 21.1 — Benefits and Protection (76.7) 9.8
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedMD&A
For the year ended December 31, Increase 2024 2023 (decrease) (in millions) Revenues: Premiums and other considerations $ 6,850.2 $ 6,470.9 $ 379.3 Fees and other revenues 4,320.5 4,095.9 224.6 Net investment income 4,449.2 4,091.9 357.3 Net realized capital losses (27.3) (72.2) 44.9 Net realized capital gains on funds withheld assets 87.7 165.0 (77.3) Change in fair value of funds withheld embedded derivative 447.4 (1,085.7) 1,533.1 Total revenues 16,127.7 13,665.8 2,461.9 Expenses: Benefits, claims and settlement expenses 8,072.6 7,788.2 284.4 Liability for future policy benefits remeasurement (gain) loss 671.4 (51.6) 723.0 Market risk benefit remeasurement loss 30.3 29.1 1.2 Dividends to policyholders 99.9 89.2 10.7 Operating expenses 5,363.9 5,072.1 291.8 Total expenses 14,238.1 12,927.0 1,311.1 Income before income taxes 1,889.6 738.8 1,150.8 Income taxes 291.7 68.7 223.0 Net income 1,597.9 670.1 927.8 Net income attributable to noncontrolling interest 26.9 46.9 (20.0) Net income attributable to Principal Financial Group, Inc. $ 1,571.0 $ 623.2 $ 947.8
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedMD&A
For the year ended December 31, Increase 2024 2023 (decrease) (in millions) Operating revenues: Premiums and other considerations $ 3,136.9 $ 2,935.0 $ 201.9 Fees and other revenues 1,790.4 1,675.0 115.4 Net investment income 3,048.8 2,640.2 408.6 Total operating revenues 7,976.1 7,250.2 725.9 Expenses: Benefits, claims and settlement expenses, including dividends to policyholders 5,147.9 4,624.2 523.7 Liability for future policy benefits remeasurement gain (4.9) (68.0) 63.1 Market risk benefit remeasurement loss 32.2 3.7 28.5 Operating expenses 1,745.2 1,638.9 106.3 Total expenses 6,920.4 6,198.8 721.6 Pre-tax operating losses attributable to noncontrolling interest (0.5) — (0.5) Pre-tax operating earnings $ 1,056.2 $ 1,051.4 $ 4.8
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RemovedMD&A
Operating expenses increased $91.6 million primarily resulting from growth and investments in the business.
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RemovedMD&A
For the year ended December 31, Increase 2024 2023 (decrease) (in millions) Operating revenues: Premiums and other considerations $ 28.7 $ 29.0 $ (0.3) Fees and other revenues 2,076.0 2,018.9 57.1 Net investment income 685.7 734.4 (48.7) Total operating revenues 2,790.4 2,782.3 8.1 Expenses: Benefits, claims and settlement expenses 362.2 422.9 (60.7) Liability for future policy benefits remeasurement loss 1.0 0.9 0.1 Operating expenses 1,551.6 1,534.2 17.4 Total expenses 1,914.8 1,958.0 (43.2) Pre‑tax operating earnings attributable to noncontrolling interest 14.4 6.6 7.8 Pre‑tax operating earnings $ 861.2 $ 817.7 $ 43.5
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RemovedMD&A
Dividends to policyholders in our Life Insurance business increased primarily due to an increase in the policyholder dividend obligation.
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RemovedMD&A
Pre-tax operating losses decreased primarily due to stranded costs associated with exited business in 2023 with no corresponding activity in 2024.
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RemovedMD&A
(3) The secured subscription facility provides for revolving loans, up to a maximum aggregate availability of $150.0 million, which are secured by outstanding capital commitments of Principal Life and an unaffiliated insurance company.
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RemovedMD&A
December 31, 2024 December 31, 2023 (in millions) Summary Statements of Financial Position Information: Total investments $ 640.6 $ 471.7 Cash and cash equivalents 357.3 603.6 Goodwill 618.5 618.5 Other intangibles 391.2 419.3 Other assets 313.3 344.4 Due from non-obligor subsidiaries 42.8 59.5 Total assets 2,367.3 2,529.0 Long-term debt 3,930.6 3,927.9 Other liabilities 351.2 406.3 Due to non-obligor subsidiaries 732.2 821.6 Total liabilities 5,135.8 5,266.6
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedMD&A
For the year ended For the year ended December 31, 2024 December 31, 2023 (in millions) Summary Statements of Operations Information: Total revenues $ 130.6 $ 61.8 Total expenses 497.1 509.6 Net loss (300.6) (414.9)
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RemovedMD&A
For the year ended December 31, 2024 2023 ($ in millions) Dividends to stockholders $ 658.4 $ 625.5 Repurchase of common stock (1) 1,042.4 748.8 Total cash returned to common stockholders $ 1,700.8 $ 1,374.3 Number of shares repurchased (1) 12,668,636 9,581,329
Read it in 10-K 2025-02-19 at sec.gov ↗
RewordedMD&A
Liability for future policy benefits remeasurement loss in our Life Insurance business increased $55.9 decreased $44.8 million due to the one-time impact of the YRT Reinsurance Transactions in 2024 and $26.5 million due to changes in underlying claims experience, partially offset by $22.4 million due to more unfavorable actuarial assumption updates, model refinements and other updates in 2024 2025 compared to 2023 and $44.8 million due to the one-time impacts of the YRT Reinsurance Transactions in 2024.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Best Fitch Moody’s S&P Last review date March 2024 April 2025 May 2025 June 2024 July 2024 2025 April 2024 2025 Current outlook Stable Stable Stable Stable Principal Financial Group Senior Unsecured Debt a A- Baa1 A- Long-Term Issuer Default Rating A Principal Life Insurance Company Insurer Financial Strength A+ AA- A1 A+ Issuer Credit Rating aa Commercial Paper AMB-1+ P-1 A-1+ Principal National Life Insurance Company Insurer Financial Strength A+ AA- A1 A+
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RewordedMD&A
Net realized capital gains on funds withheld assets decreased primarily due to $70.6 million lower net gains on sales of funds withheld assets as a result of lower reduced sales in 2024 resulting from less portfolio re-positioning 2025 by an external reinsurer. reinsurer partially offset by a $25.9 million change due to net unrealized gains on funds withheld assets in 2025 as compared to net unrealized losses in 2024.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Benefits, claims and settlement expenses in our Life Insurance business decreased increased $65.0 million due to the one-time impacts impact of the YRT Reinsurance Transactions in 2024, offset by $12.1 2024 and $49.7 million due to growth in business and $4.0 million due to from unfavorable actuarial assumption updates, model refinements and other updates in 2024 compared to favorable in 2023. claims experience.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Pre-tax operating earnings increased in our International Pension operations primarily due to $33.2 million of increased earnings from our equity method investments in Brazil primarily as a result of our actuarial assumption review and other updates and $7.4 $29.6 million of favorable relative market performance on our required regulatory investments. investments and $19.4 million increased variable investment income.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Pre-tax operating earnings in our Life Insurance business decreased $68.4 $18.6 million due to more unfavorable actuarial assumption updates, model refinements and other updates in 2024 2025 compared to 2023 and $11.0 2024, partially offset by $3.5 million due to an increase lower net commissions and $3.2 million due to a one-time expense accrual release in the policyholder dividend obligation. 2025.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Fees and other revenues increased $64.8 million for the Principal Asset Management segment primarily due to $92.7 million higher management fee revenue as a result of increased average AUM managed by our Investment Management operations, which was partially offset by $24.2 million lower performance fee revenue for our Investment Management operations primarily in our real estate business. operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Benefits, claims and settlement expenses increased $122.0 million for the Benefits and Protection segment $345.4 million due to growth the one-time impact of the YRT Reinsurance Transactions in the Specialty Benefits 2024 and $49.7 million due to unfavorable claims experience in our Life Insurance business.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Benefits, claims and settlement expenses in our Specialty Benefits business increased $122.0 $63.5 million due to growth in the business, offset by $8.7 business and $16.1 million due to more favorable unfavorable actuarial assumption updates and model refinements in 2024 2025 compared to 2023. favorable in 2024, offset by $40.0 million from improved claims experience.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
(2) Unsecured lines of credit 21.8 2.6 24.1 2.9 Principal Life (1) Credit facility October 2027 $ 800.0 $ — Principal Credit Real Estate Income Trust (3) Secured subscription facility Total 126.0 119.0 Total $ 1,024.8 909.7 $ 152.7 27.7
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Operating expenses in our Specialty Benefits business increased $62.4 $33.1 million due to growth in the business. business and $28.1 million due to higher net commissions, partially offset by a $7.1 million decrease due to a one-time expense accrual release in 2025.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
These decreases were partially offset Net realized capital gains increased primarily due to gains versus losses on GMWB/RILA activities, decreased losses on commercial mortgage loans reserve changes, changes and increased losses on GMWB/RILA activities and reduced gains on equity securities and sponsored investment funds due to equity market movement.
Read it in 10-K 2026-02-18 at sec.gov ↗
