INVESTOR CONTACT: MEDIA CONTACT:
Humphrey Lee 877-909-1105, Sara Bonney 515-878-0835, lee.humphrey@principal… bonney.sara@principal.c…
Raises fourth quarter 2026 common stock dividend (Des Moines, Iowa) – Principal Financial Group ®(Nasdaq: PFG) announced results for third quarter 2026.
Diluted 3Q26 Earnings 3Q26 earnings per common share (in millions) Net $2.91 Net $632 income attributable to PFG income attributable to PFG Non-GAAP Non-GAAP net income attributable to $1.64 net income attributable to $355 PFG, excluding exited PFG, excluding exited business1 business1 Non-GAAP $2.22 Non-GAAP $482 operating earnings1 operating earnings1 Non-GAAP Non-GAAP operating earnings excluding $2.49 operating earnings excluding $541 significant variances2 significant variances2
Non-GAAP operating earnings per diluted share, excluding significant variances2 of · $2.49 increased 7% over prior year quarter; reported non-GAAP operating earnings per diluted share increased 6%
· Returned $429 million of capital to shareholders, including $250 million of share repurchases and $179 million of common stock dividends
Announced common stock dividend increase of $0.01 to $0.85 per share in · the fourth quarter 2026; representing an 8% increase over the fourth quarter 2025 and 7% on a trailing twelve-month basis
· Assets under management (AUM) of $785 billion, which is included in assets under administration (AUA) of $1.8 trillion
Deanna Strable, Chair, President and CEO of Principal® “Our third-quarter results demonstrate the strength of our diversified business and the progress we’re making against our strategic priorities. We grew earnings per share, continued to build momentum in the markets where we’re focused, and returned $429 million to shareholders. We’re seeing the benefits of our focus on areas where our expertise, differentiated solutions, and strong customer relationships position us to win. As the environment evolves, our priorities remain clear. We’re confident in delivering on our 2026 outlook and continuing to create long-term value for our customers, employees, and shareholders.”
1Use of non-GAAP financial measures and their reconciliations to the most directly comparable GAAP measures are included in this release. Non-GAAP operating earnings for total company is after tax. Beginning 3Q 2026, impacts of the actuarial assumption review are excluded from non-GAAP operating earnings.
2The total company impact of significant variances is after tax. See Exhibit 1 for details on the impact of 3Q 2026 and 3Q 2025 significant variances on net income attributable to PFG; non-GAAP net income attributable to PFG, excluding exited business; and non-GAAP operating earnings.
Three Trailing Months Twelve Ended, Months, 3Q26 3Q25 Change 3Q26 3Q25 Change Net income (loss) attributab… $631.9 $213.8 N/M $1,976.9 $1,573.5 26% to PFG Non-GAAP net income attributab… to PFG, $354.8 $465.6 (24)% $1,700.2 $1,550.8 10% excluding exited business Non-GAAP operating $481.8 $473.7 2% $1,972.9 $1,825.6 8% earnings Non-GAAP operating earnings, $540.6 $523.3 3% $2,046.7 $1,915.7 7% excluding significant variances2 Diluted earnings per common share Net income (loss) $2.91 $0.95 N/M attributab… to PFG Non-GAAP net income attributab… to PFG, $1.64 $2.06 (20)% excluding exited business Non-GAAP operating $2.22 $2.10 6% earnings Non-GAAP operating earnings, $2.49 $2.32 7% excluding significant variances2 Assets under $1,840.3 $1,792.5 3% administra… (billions) Assets under $785.0 $784.3 0% management (billions) AUM net cash flow $(10.7) $0.4 $(11.1) $(25.5) $(7.8) $(17.7) (billions)
Investment Management private markets AUM up 6%, supported · by $0.8 billion private institutional inflows in the quarter; active ETF net inflows of $0.5 billion.
Specialty Benefits premium & fees increased 6% with sales up 10%; · strong underwriting results with loss ratio of 59% which remains below targeted range of 60-64%.
· Life Insurance operating margin3 of 13.6%, driven by favorable mortality experience.
3 Operating margin for Benefits and Protection = pre-tax operating earnings divided by premium and fees.
In millions except percentages, or otherwise notedexcept percentages or otherwise noted)
Pre-tax operating earnings decreased $12.5 million primarily due · to lower variable investment income and the impacts of the 3Q25 actuarial assumption review.
Net revenue increased $5.6 million as favorable market performance · and growth in the business was partially offset by lower variable investment income and the impacts of the 3Q25 actuarial assumption review.
· Pre-tax operating earnings decreased $5.4 million primarily due to lower operating revenues less pass-through expenses.
· Operating revenues less pass-through expenses decreased $7.9 million primarily due to lower management fees.
4Pre-tax operating earnings = operating earnings before income taxes and after noncontrolling interest.
5Net revenue = operating revenues less: benefits, claims and settlement expenses, liability for future policy benefits remeasurement (gain) loss, market risk benefit remeasurement (gain) loss, and dividends to policyholders.
6Operating margin for Retirement and Income Solutions = pre-tax operating earnings divided by net revenue.
7The company has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measures at the end of the release. The company has determined this measure is more representative of underlying operating revenues growth for Investment Management as it removes commissions and other expenses that are collected through fee revenue and passed through expenses with no impact to pre-tax operating earnings.
8Operating margin for Investment Management = pre-tax operating earnings adjusted for noncontrolling interest divided by operating revenues less pass- through expenses.
· Net revenue decreased $43.8 million primarily due to unfavorable encaje returns.
· Pre-tax operating earnings decreased $18.2 million driven primarily by impacts of the 3Q25 actuarial assumption review.
Premium and fees increased $50.2 million driven primarily from growth · in the business, with a modest contribution from the 9/1 Beam Benefits acquisition.
· Incurred loss ratio remains below targeted range of 60%-64%, with improved results in dental and group life.
9Operating margin for International Pension = pre-tax operating earnings divided by net revenue.
Pre-tax operating earnings increased $101.4 million primarily due · to impacts of the 3Q25 actuarial assumption review, along with improved mortality experience.
· Premium and fees decreased $10.3 million driven from the movement of a subsidiary supporting enterprise distribution to Corporate.
· Pre-tax operating losses increased $18.9 million primarily due to lower variable investment income.
Announced a fourth quarter cash dividend of $0.85 per share to holders of · common shares. This represents a 1-cent increase over third quarter of 2026 and an 8% increase over the prior year quarter.
Impact of Significant Variances 10on Net Income Attributable to PFG; Non-GAAP Net Income Attributable to PFG,
Trailing Three Months Twelve Ended, 3Q26 3Q25 Months, 3Q26 3Q25 ────────────────────────────────────────────────────────────────────────────── Net income (loss) $ -58.8 $ -55.9 $ -73.8 $ -96.4 attributable to PFG (Income) loss from - 6.1 - 6.1 exited business Non-GAAP net income (loss) attributable -58.8 -49.8 -73.8 -90.3 to PFG, excluding exited business Net realized capital (gains) - 0.2 - 0.2 losses, as adjusted Non-GAAP operating -58.8 -49.6 -73.8 -90.1 earnings Income taxes -13.8 -10.5 -16.2 -21.5 Non-GAAP pre-tax $ -72.6 $ -60.1 $ -90.0 $ -111.6 operating earnings Per diluted share: Net income (loss) $ -0.27 $ -0.25 attributable to PFG (Income) loss from - 0.03 exited business Non-GAAP net income (loss) attributable -0.27 -0.22 to PFG, excluding exited business Net realized capital (gains) - - losses, as adjusted Non-GAAP operating $ -0.27 $ -0.22 earnings Weighted average diluted 216.9 225.2 common shares outstanding Segment pre-tax operating earnings (losses): Retirement and Income $ -32.5 $ -4.5 $ -53.0 $ -45.6 Solutions Investment - - - 4.8 Management Internation… -18.0 28.5 3.1 22.7 Pension Principal Asset -18.0 28.5 3.1 27.5 Management Specialty -6.5 8.3 -16.5 11.1 Benefits Life -6.7 -99.3 -17.8 -118.7 Insurance Benefits and -13.2 -91.0 -34.3 -107.6 Protection Corporate -8.9 6.9 -5.8 14.1 Total segment pre-tax $ -72.6 $ -60.1 $ -90.0 $ -111.6 operating earnings (losses)
Income statement line item details of significant variances are available in our earnings conference call presentation on ourwebsite.
10Significant variances (SVs) in 3Q26 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, Life Insurance, and Corporate; 2) lower than expected encaje performance partially offset by higher than expected Latin American inflation in International Pension; 3) integration costs in Specialty Benefits and Corporate. SVs in 3Q25 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, and Life Insurance, partially offset by higher than expected variable investment income in Corporate; 2) impact of higher than expected encaje performance and Latin American inflation in International Pension; 3) impacts of 2025 actuarial assumption review. SVs on a trailing twelve months in 3Q26 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, Life Insurance, and Corporate; 2) higher than expected Latin America inflation partially offset by lower than expected encaje performance in International Pension; 3) integration costs in Specialty Benefits and Corporate. SVs on a trailing twelve months in 3Q25 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, and Life Insurance, partially offset by higher than expected variable investment income in Corporate; 2) impacts of 2025 actuarial assumption review; 3) higher than expected encaje performance and Latin American inflation in International Pension; 4) impact from a one-time expense accrual release in RIS, Investment Management, Specialty Benefits, Life Insurance, and Corporate; 5) impact of GAAP-only regulatory closed block adjustment in Life Insurance; 6) impact of model refinement in Specialty Benefits.
On Tuesday, Oct. 27, 2026, at 10:00 a.m. (ET), Chair, President, and Chief Executive Officer Deanna Strable and Executive Vice President and Chief Financial Officer Joel Pitz will lead a discussion of results during a live conference call, which can be accessed as follows:
Via live Internet webcast. Please go to investors.principal.com · at least 10-15 minutes prior to the start of the call to register, and to download and install any necessary audio software.
Analysts who will be asking questions will be sent a dial in number and · authorization code in advance of the call.
Replay · of the earnings call via webcast as well as a transcript of the call will be available after the call at investors.principal.com.
The company’s financial supplement and slide presentation are currently available atinvestors.principal.com, and may be referred to during the call.
This release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to share repurchases and planned dividends, the realization of our growth and business strategies and results from ongoing operations. Forward-looking statements are made based upon our current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance and actual results may differ materially from the results anticipated in the forward-looking statements. We describe risks, uncertainties, and factors that could cause or contribute to such material differences in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Note Concerning Forward-Looking Statements” sections in our annual report on Form 10-K for the year ended Dec. 31, 2025, as updated or supplemented from time to time in subsequent filings. We assume no obligation to update any forward-looking statement for any reason, which speaks as of its date.
The company uses a number of non-GAAP financial measures that management believes are useful to investors because they illustrate the performance of normal, ongoing operations, which is important in understanding and evaluating the company’s financial condition and results of operations. They are not, however, a substitute for U.S. GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measure at the end of the release. The company adjusts U.S. GAAP measures for items not directly related to ongoing operations. However, it is possible these adjusting items have occurred in the past and could recur in future reporting periods. Management also uses non-GAAP measures for goal setting, as a basis for determining employee and senior management awards and compensation, and evaluating performance on a basis comparable to that used by investors and securities analysts.
Principal Financial Group (Nasdaq: PFG) is a global financial company with over 19,000 employees12 passionate about improving the wealth and well-being of people and businesses. In business for 147 years, we’re helping 84 million customers plan, insure, invest, and retire, while working to support the communities where we do business, and building an inclusive workforce. Principal is proud to be recognized as one of the 2026 World’s Most Ethical Companies13 and named as a “Best Place to Work in Money Management14.” Learn more about Principal and our commitment to building a better future at principal.com. ### Summary of Principal Financial Group® and Segment Results
11Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
*U.S. GAAP (GAAP) net income attributable to PFG versus non-GAAP operating earnings
Management uses non-GAAP operating earnings, which is a financial measure that excludes the effect of net realized capital gains and losses, as adjusted; income (loss) from exited business; actuarial assumption review impacts (beginning third quarter 2026); and other after-tax adjustments the company believes are not indicative of overall operating trends, for goal setting, as a basis for determining employee and senior management awards and compensation and evaluating performance on a basis comparable to that used by investors and securities analysts. Note: it is possible these adjusting items have occurred in the past and could recur in future reporting periods. While these items may be significant components in understanding and assessing our consolidated financial performance, management believes the presentation of non-GAAP operating earnings enhances the understanding of results of operations by highlighting earnings attributable to the normal, ongoing operations of the company’s businesses.
Period 3Q26 Ended, 4Q25 ────────────────────────────────────────────────────────────────────────────── Total $ 338.7 $ 341.4 assets (in billions) Stockholders’ $ 11,850.3 $ 11,917.0 equity (in millions) Stockholders’ equity available to common stockholders (in $ 11,816.3 $ 11,883.9 millions) Non-GAAP stockholders’ equity, excluding cumulative change in fair value of funds withheld embedded derivative and accumulated other $ 12,264.1 $ 12,445.5 comprehensive income (AOCI) other than foreign currency translation adjustment, available to common stockholders (in millions) End of period common shares outstanding (in 212.8 217.4 millions) Book $ 55.53 $ 54.66 value per common share Non-GAAP book value per common share excluding cumulative change in fair value of funds $ 57.63 $ 57.25 withheld embedded derivative and AOCI other than foreign currency translation adjustment
15See Exhibit 1 for details on the impact of 3Q 2026 and 3Q 2025 significant variances on net income attributable to PFG; non-GAAP net income attributable to PFG, excluding exited business; and non-GAAP operating earnings. Principal Financial Group, Inc.
Non-GAAP Stockholders’ Equity, Excluding Cumulative Change in Fair Value of Funds Withheld Embedded Derivative and AOCI Other Than Foreign Period Currency Translation Adjustment, Available Ended, to Common Stockholders: 3Q26 4Q25 ────────────────────────────────────────────────────────────────────────────── Stockholders’ $ 11,850.3 $ 11,917.0 equity Noncontrolling -34.0 -33.1 interest Stockholders’ 11,816.3 11,883.9 equity available to common stockholders Cumulative change in fair value of funds withheld -2,784.3 -2,080.2 embedded derivative AOCI, other than foreign currency translation 3,232.1 2,641.8 adjustment Non-GAAP stockholders’ equity, excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than $ 12,264.1 $ 12,445.5 foreign currency translation adjustment, available to common stockholders Non-GAAP Book Value Per Common Share, Excluding Cumulative Change in Fair Value of Funds Withheld Embedded Derivative and AOCI Other Than Foreign Currency Translation Adjustment: Book $ 55.53 $ 54.66 value per common share Cumulative change in fair value of funds withheld 2.10 2.59 embedded derivative and AOCI, other than foreign currency translation adjustment Non-GAAP book value per common share, excluding change in fair value of funds withheld $ 57.63 $ 57.25 embedded derivative and AOCI other than foreign currency translation adjustment
Three Non-GAAP Months Trailing Income Ended, Twelve Taxes: 3Q26 3Q25 3Q26 Months, 3Q25 ────────────────────────────────────────────────────────────────────────────── Total GAAP income $ 241.7 $ 14.5 $ 487.0 $ 260.0 taxes (benefit) Net realized capital gains 29.8 2.6 63.3 60.1 (losses) tax adjustme… Exited business -194.8 66.9 -194.6 -10.0 tax adjustme… Actuarial assumpti… review 1.4 0.0 1.4 0.0 tax adjustme… Income taxes related to equity method 27.6 22.2 82.7 71.1 investme… and noncontr… interest Non-GAAP income $ 105.7 $ 106.2 $ 439.8 $ 381.2 taxes Net Realized Capital Gains (Losses): GAAP net realized $ -387.6 $ 85.7 $ -346.3 $ -114.6 capital gains (losses) Market value adjustme… 0.1 - 0.2 -0.1 to fee revenues Net realized capital gains (losses) 4.7 1.2 3.7 1.9 related to equity method investme… Derivati… and hedging-… -39.3 -25.7 -158.0 -82.6 revenue adjustme… Certain variable 17.1 17.2 68.7 68.2 annuity fees Net realized capital (gains) 276.7 - 276.7 - losses related to exited business Certain real estate-r… -21.0 - -52.0 - deprecia… and amortiza… Sponsored investme… funds and 8.8 9.1 48.5 35.1 other adjustme… Capital gains distribu… -6.9 -41.4 -28.4 -42.4 – operating expenses Amortiza… of -6.4 -4.3 -23.9 -10.5 actuarial balances Derivati… and hedging-… -4.2 -3.4 -1.9 0.8 expense adjustme… Market value adjustme… -8.5 -0.1 -28.1 -26.8 of embedded derivati… Market value adjustme… -8.3 -13.2 -71.0 -78.9 of market risk benefits Capital gains distribu… -11.8 -17.6 -32.8 -34.2 – cost of interest credited Net realized capital gains 29.8 2.6 63.3 60.1 (losses) tax adjustme… Net realized capital gains (losses) 34.8 -18.2 13.6 -50.8 attribut… to noncontr… interest, after-tax Total net realized capital 265.6 -93.8 78.6 -160.2 gains (losses) after-tax adjustme… Non-GAAP net realized capital $ -122.0 $ -8.1 $ -267.7 $ -274.8 gains (losses), as adjusted Non-GAAP Income (Loss) from Exited Business: Pre-tax impacts of exited business: Amortiza… of reinsura… $ -14.0 $ -18.3 $ -71.2 $ -180.7 gains (losses) Other impacts -315.3 -34.3 -418.9 -138.9 of exited business… Net realized capital gains -17.0 -0.2 -4.0 13.3 (losses) on funds withheld assets Change in fair value of funds 818.2 -265.9 965.4 339.0 withheld embedded derivati… Tax impacts -194.8 66.9 -194.6 -10.0 of exited business Non-GAAP total income (loss) $ 277.1 $ -251.8 $ 276.7 $ 22.7 from exited business
163Q26 includes a $276.7 million pre-tax loss associated with the disposition of our Chilean annuities business. Principal Financial Group, Inc.
Full text with the tables
Exhibit 99
INVESTOR CONTACT: MEDIA CONTACT:
Humphrey Lee 877-909-1105, Sara Bonney 515-878-0835,
lee.humphrey@principal… bonney.sara@principal.c…
Principal Financial Group ®Announces Third Quarter 2026 Results
Raises fourth quarter 2026 common stock dividend
(Des Moines, Iowa) – Principal Financial Group ®(Nasdaq: PFG) announced results
for third quarter 2026.
Diluted 3Q26 Earnings 3Q26
earnings per common share (in millions)
Net $2.91 Net $632
income attributable to PFG income attributable to PFG
Non-GAAP Non-GAAP
net income attributable to $1.64 net income attributable to $355
PFG, excluding exited PFG, excluding exited
business1 business1
Non-GAAP $2.22 Non-GAAP $482
operating earnings1 operating earnings1
Non-GAAP Non-GAAP
operating earnings excluding $2.49 operating earnings excluding $541
significant variances2 significant variances2
Third Quarter 2026 Highlights
Non-GAAP
operating earnings per diluted share, excluding significant variances2 of
· $2.49
increased 7% over prior year quarter; reported non-GAAP operating
earnings per diluted share
increased 6%
· Returned $429 million of capital to shareholders, including $250 million
of share repurchases and $179 million of common stock dividends
Announced common stock dividend increase of $0.01 to $0.85 per share in
· the fourth quarter 2026; representing an 8% increase over the
fourth quarter 2025 and 7% on a trailing twelve-month basis
· Assets under management (AUM) of $785 billion, which is included in
assets under administration (AUA) of $1.8 trillion
· Strong financial position with $1.5 billion of excess and available
capital
Deanna
Strable, Chair, President and CEO of Principal®
“Our third-quarter results demonstrate the strength of our diversified
business and the progress we’re making against our
strategic priorities. We grew earnings per share, continued to build
momentum in the markets where we’re focused, and returned $429
million to shareholders. We’re seeing the benefits of our focus on areas
where our expertise, differentiated solutions, and strong
customer relationships position us to win.
As the environment evolves, our priorities remain clear. We’re confident in
delivering on our 2026 outlook and continuing to create
long-term value for our customers, employees, and shareholders.”
1Use of non-GAAP financial measures and their reconciliations to the most
directly comparable GAAP measures are included in this release. Non-GAAP
operating earnings for total company is after tax. Beginning 3Q 2026, impacts of
the actuarial assumption review are excluded from non-GAAP operating earnings.
2The total company impact of significant variances is after tax. See Exhibit 1
for details on the impact of 3Q 2026 and 3Q 2025 significant variances on net
income attributable to PFG; non-GAAP net income attributable to PFG, excluding
exited business; and non-GAAP operating earnings.
Third Quarter Enterprise Results
In millions except percentages, earnings per share, or otherwise noted
Three Trailing
Months Twelve
Ended, Months,
3Q26 3Q25 Change 3Q26 3Q25 Change
Net income
(loss)
attributab… $631.9 $213.8 N/M $1,976.9 $1,573.5 26%
to
PFG
Non-GAAP
net income
attributab…
to PFG, $354.8 $465.6 (24)% $1,700.2 $1,550.8 10%
excluding
exited
business
Non-GAAP
operating $481.8 $473.7 2% $1,972.9 $1,825.6 8%
earnings
Non-GAAP
operating
earnings, $540.6 $523.3 3% $2,046.7 $1,915.7 7%
excluding
significant
variances2
Diluted
earnings
per
common
share
Net income
(loss) $2.91 $0.95 N/M
attributab…
to PFG
Non-GAAP
net income
attributab…
to PFG, $1.64 $2.06 (20)%
excluding
exited
business
Non-GAAP
operating $2.22 $2.10 6%
earnings
Non-GAAP
operating
earnings, $2.49 $2.32 7%
excluding
significant
variances2
Assets
under $1,840.3 $1,792.5 3%
administra…
(billions)
Assets
under $785.0 $784.3 0%
management
(billions)
AUM net
cash flow $(10.7) $0.4 $(11.1) $(25.5) $(7.8) $(17.7)
(billions)
Third Quarter Segment Highlights (compared to 3Q25)
Retirement and Income Solutions
· Recurring deposits of $13 billion, up 8%. PRT sales of $0.9 billion.
· SMB momentum with transfer deposits up 21% and recurring deposits up 7%.
Principal Asset Management
Investment Management private markets AUM up 6%, supported
· by $0.8 billion private institutional inflows in the quarter; active ETF
net inflows of $0.5 billion.
· International Pension AUM of $166 billion increased
10%.
Benefits and Protection
Specialty Benefits premium & fees increased 6% with sales up 10%;
· strong underwriting results with loss ratio of 59% which remains below
targeted range of 60-64%.
· Life Insurance operating margin3 of 13.6%,
driven by favorable mortality experience.
3 Operating margin for Benefits and Protection = pre-tax operating earnings
divided by premium and fees.
Segment Results
In millions except percentages, or otherwise notedexcept percentages or
otherwise noted)
Retirement and Income Solutions
Three Months Trailing Twelve
Ended, Months,
3Q26 3Q25 Change 3Q26 3Q25 Change
Pre-tax
operating $297.8 $310.3 (4)% $1,222.7 $1,166.2 5%
earnings4
Net revenue5 $757.3 $751.7 1% $3,041.2 $2,919.0 4%
Operating 39.3% 41.3% 40.2% 40.0%
margin6
Pre-tax operating earnings decreased $12.5 million primarily due
· to lower variable investment income and the impacts of the 3Q25 actuarial
assumption review.
Net revenue increased $5.6 million as favorable market performance
· and growth in the business was partially offset by lower variable
investment income and the impacts of the 3Q25 actuarial assumption
review.
Principal Asset Management - Investment Management
Three Months Trailing Twelve
Ended, Months,
3Q26 3Q25 Change 3Q26 3Q25 Change
Pre-tax
operating $168.1 $173.5 (3)% $619.3 $611.6 1%
earnings
Operating
revenues less $436.1 $444.0 (2)% $1,735.5 $1,724.7 1%
pass-through
expenses7
Operating 39.1% 39.8% 36.3% 36.3%
margin8
Assets under
management $581.7 $601.6 (3)%
(billions)
· Pre-tax operating earnings decreased $5.4 million primarily due to
lower operating revenues less pass-through expenses.
· Operating revenues less pass-through expenses decreased $7.9 million
primarily due to lower management fees.
4Pre-tax operating earnings = operating earnings before income taxes and after
noncontrolling interest.
5Net revenue = operating revenues less: benefits, claims and settlement
expenses, liability for future policy benefits remeasurement (gain) loss, market
risk benefit remeasurement (gain) loss, and dividends to policyholders.
6Operating margin for Retirement and Income Solutions = pre-tax operating
earnings divided by net revenue.
7The company has provided reconciliations of the non-GAAP measures to the most
directly comparable U.S. GAAP measures at the end of the release. The company
has determined this measure is more representative of underlying operating
revenues growth for Investment Management as it removes commissions and other
expenses that are collected through fee revenue and passed through expenses with
no impact to pre-tax operating earnings.
8Operating margin for Investment Management = pre-tax operating earnings
adjusted for noncontrolling interest divided by operating revenues less pass-
through expenses.
Principal Asset Management - International Pension
Three Months Trailing Twelve
Ended, Months,
3Q26 3Q25 Change 3Q26 3Q25 Change
Pre-tax
operating $62.4 $101.2 (38)% $307.7 $303.0 2%
earnings
Net revenue $144.1 $187.9 (23)% $650.3 $630.6 3%
Operating 43.3% 53.9% 47.3% 48.0%
margin9
Assets under
management $166.2 $150.7 10%
(billions)
· Pre-tax operating earnings decreased $38.8 million due to lower net
revenue.
· Net revenue decreased $43.8 million primarily due to unfavorable
encaje returns.
Benefits and Protection - Specialty Benefits
Three Months Trailing
Ended, Twelve Months,
3Q26 3Q25 Change 3Q26 3Q25 Change
Pre-tax
operating $137.3 $155.5 (12)% $575.1 $536.5 7%
earnings
Premium and $895.4 $845.2 6% $3,475.9 $3,340.5 4%
fees
Operating 15.3% 18.4% 16.5% 16.1%
margin
Incurred loss 59.0% 56.4% 58.1% 58.5%
ratio
· Pre-tax operating earnings decreased $18.2 million driven primarily
by impacts of the 3Q25 actuarial assumption review.
Premium and fees increased $50.2 million driven primarily from growth
· in the business, with a modest contribution from the 9/1 Beam Benefits
acquisition.
· Incurred loss ratio remains below targeted range of 60%-64%, with
improved results in dental and group life.
9Operating margin for International Pension = pre-tax operating earnings divided
by net revenue.
Benefits and Protection - Life Insurance
Three Months Trailing
Ended, Twelve Months,
3Q26 3Q25 Change 3Q26 3Q25 Change
Pre-tax
operating $32.4 $(69.0) 147% $118.3 $(28.2) 520%
earnings
Premium and $238.6 $248.9 (4)% $937.5 $947.4 (1)%
fees
Operating 13.6% (27.7)% 12.6% (3.0)%
margin
Pre-tax operating earnings increased $101.4 million primarily due
· to impacts of the 3Q25 actuarial assumption review, along with improved
mortality experience.
· Premium and fees decreased $10.3 million driven from the movement
of a subsidiary supporting enterprise distribution to Corporate.
Corporate
Three Months Trailing
Ended, Twelve Months,
3Q26 3Q25 Change 3Q26 3Q25 Change
Pre-tax
operating $(110.5) $(91.6) (21)% $(430.4) $(382.3) (13)%
losses
· Pre-tax operating losses increased $18.9 million primarily due to
lower variable investment income.
Common Stock Dividend
Announced a fourth quarter cash dividend of $0.85 per share to holders of
· common shares. This represents a 1-cent increase over third quarter of
2026 and an 8% increase over the prior year quarter.
The fourth quarter dividend will be payable on December 18, 2026, to
shareholders
· of record as of December 2, 2026.
──────────────────────────────────────────────────────────────────────────────
Exhibit 1
Principal Financial Group
Impact of Significant Variances 10on Net Income Attributable to PFG; Non-GAAP
Net Income Attributable to PFG,
Excluding Exited Business; and Non-GAAP Operating Earnings
In millions except per share data
Trailing
Three Months Twelve
Ended, 3Q26 3Q25 Months, 3Q26 3Q25
──────────────────────────────────────────────────────────────────────────────
Net income
(loss) $ -58.8 $ -55.9 $ -73.8 $ -96.4
attributable
to PFG
(Income)
loss from - 6.1 - 6.1
exited
business
Non-GAAP net
income
(loss)
attributable -58.8 -49.8 -73.8 -90.3
to PFG,
excluding
exited
business
Net realized
capital
(gains) - 0.2 - 0.2
losses, as
adjusted
Non-GAAP
operating -58.8 -49.6 -73.8 -90.1
earnings
Income taxes -13.8 -10.5 -16.2 -21.5
Non-GAAP
pre-tax $ -72.6 $ -60.1 $ -90.0 $ -111.6
operating
earnings
Per diluted
share:
Net income
(loss) $ -0.27 $ -0.25
attributable
to PFG
(Income)
loss from - 0.03
exited
business
Non-GAAP net
income
(loss)
attributable -0.27 -0.22
to PFG,
excluding
exited
business
Net realized
capital
(gains) - -
losses, as
adjusted
Non-GAAP
operating $ -0.27 $ -0.22
earnings
Weighted
average
diluted 216.9 225.2
common
shares
outstanding
Segment
pre-tax
operating
earnings
(losses):
Retirement
and Income $ -32.5 $ -4.5 $ -53.0 $ -45.6
Solutions
Investment - - - 4.8
Management
Internation… -18.0 28.5 3.1 22.7
Pension
Principal
Asset -18.0 28.5 3.1 27.5
Management
Specialty -6.5 8.3 -16.5 11.1
Benefits
Life -6.7 -99.3 -17.8 -118.7
Insurance
Benefits and -13.2 -91.0 -34.3 -107.6
Protection
Corporate -8.9 6.9 -5.8 14.1
Total
segment
pre-tax $ -72.6 $ -60.1 $ -90.0 $ -111.6
operating
earnings
(losses)
Income statement line item details of significant variances are available in our
earnings conference call presentation on ourwebsite.
10Significant variances (SVs) in 3Q26 include 1) lower than expected variable
investment income in RIS, International Pension, Specialty Benefits, Life
Insurance, and Corporate; 2) lower than expected encaje performance partially
offset by higher than expected Latin American inflation in International
Pension; 3) integration costs in Specialty Benefits and Corporate. SVs in 3Q25
include 1) lower than expected variable investment income in RIS, International
Pension, Specialty Benefits, and Life Insurance, partially offset by higher than
expected variable investment income in Corporate; 2) impact of higher than
expected encaje performance and Latin American inflation in International
Pension; 3) impacts of 2025 actuarial assumption review. SVs on a trailing
twelve months in 3Q26 include 1) lower than expected variable investment income
in RIS, International Pension, Specialty Benefits, Life Insurance, and
Corporate; 2) higher than expected Latin America inflation partially offset by
lower than expected encaje performance in International Pension; 3) integration
costs in Specialty Benefits and Corporate. SVs on a trailing twelve months in
3Q25 include 1) lower than expected variable investment income in RIS,
International Pension, Specialty Benefits, and Life Insurance, partially offset
by higher than expected variable investment income in Corporate; 2) impacts of
2025 actuarial assumption review; 3) higher than expected encaje performance and
Latin American inflation in International Pension; 4) impact from a one-time
expense accrual release in RIS, Investment Management, Specialty Benefits, Life
Insurance, and Corporate; 5) impact of GAAP-only regulatory closed block
adjustment in Life Insurance; 6) impact of model refinement in Specialty
Benefits.
Earnings Conference Call
On Tuesday, Oct. 27, 2026, at 10:00 a.m. (ET), Chair, President, and Chief
Executive
Officer Deanna Strable and Executive Vice President and Chief Financial Officer
Joel Pitz will lead a discussion of results during a live
conference call, which can be accessed as follows:
Via
live Internet webcast. Please go to investors.principal.com
· at
least 10-15 minutes prior to the start of the call to register, and to
download and install
any necessary audio software.
Analysts who will be asking questions will be sent a dial in number and
· authorization code
in advance of the call.
Replay
· of the earnings call via webcast as well as a transcript of the call will
be available after
the call at investors.principal.com.
The company’s financial supplement and slide presentation are currently
available atinvestors.principal.com, and may be
referred to during the call.
Forward-Looking Statements
This release contains statements that constitute forward-looking statements
within
the meaning of the Private Securities Litigation Reform Act of 1995, including
statements relating to share repurchases and planned dividends,
the realization of our growth and business strategies and results from ongoing
operations. Forward-looking statements are made based upon
our current expectations and beliefs concerning future developments and their
potential effects on us. Such forward-looking statements
are not guarantees of future performance and actual results may differ
materially from the results anticipated in the forward-looking
statements. We describe risks, uncertainties, and factors that could cause or
contribute to such material differences in our filings with
the Securities and Exchange Commission, including in the “Risk Factors” and
“Note Concerning Forward-Looking Statements”
sections in our annual report on Form 10-K for the year ended Dec. 31, 2025, as
updated or supplemented from time to time in subsequent
filings. We assume no obligation to update any forward-looking statement for any
reason, which speaks as of its date.
Use of Non-GAAP Financial Measures
The company uses a number of non-GAAP financial measures that management
believes are
useful to investors because they illustrate the performance of normal, ongoing
operations, which is important in understanding and evaluating
the company’s financial condition and results of operations. They are not,
however, a substitute for U.S. GAAP financial measures.
Therefore, the company has provided reconciliations of the non-GAAP measures to
the most directly comparable U.S. GAAP measure at the
end of the release. The company adjusts U.S. GAAP measures for items not
directly related to ongoing operations. However, it is possible
these adjusting items have occurred in the past and could recur in future
reporting periods. Management also uses non-GAAP measures for
goal setting, as a basis for determining employee and senior management awards
and compensation, and evaluating performance on a basis
comparable to that used by investors and securities analysts.
About Principal® 11
Principal Financial Group
(Nasdaq: PFG) is a global financial company with over 19,000 employees12
passionate
about improving the wealth and well-being of people and businesses. In business
for 147 years, we’re helping 84 million customers
plan, insure, invest, and retire, while working to support the communities where
we do business, and building an inclusive workforce.
Principal is proud to be recognized as one of the 2026 World’s Most Ethical
Companies13
and named as a “Best Place to Work in Money Management14.” Learn more about
Principal and our commitment to building a better future at principal.com.
###
Summary of Principal Financial Group® and Segment Results
Principal
Financial
Group, Inc.
Results Trailing
Three Months Twelve
Ended, Months,
3Q26 (in millions) 3Q25 3Q26 3Q25
──────────────────────────────────────────────────────────────────────────────
Net income
(loss) $ 631.9 $ 213.8 $ 1,976.9 $ 1,573.5
attributable
to PFG*
(Income)
loss from -277.1 251.8 -276.7 -22.7
exited
business
Non-GAAP net
income
(loss)
attributable $ 354.8 $ 465.6 $ 1,700.2 $ 1,550.8
to PFG
excluding
exited
business
Net realized
capital
(gains) 122.0 8.1 267.7 274.8
losses, as
adjusted
Actuarial
assumption 5.0 0.0 5.0 0.0
review
Non-GAAP
Operating $ 481.8 $ 473.7 $ 1,972.9 $ 1,825.6
Earnings*
Income taxes 105.7 106.2 439.8 381.2
Non-GAAP
Pre-Tax $ 587.5 $ 579.9 $ 2,412.7 $ 2,206.8
Operating
Earnings
Segment
Pre-Tax
Operating
Earnings
(Losses):
Retirement
and Income $ 297.8 $ 310.3 $ 1,222.7 $ 1,166.2
Solutions
Principal
Asset 230.5 274.7 927.0 914.6
Management
Benefits and 169.7 86.5 693.4 508.3
Protection
Corporate -110.5 -91.6 -430.4 -382.3
Total
Segment
Pre-Tax $ 587.5 $ 579.9 $ 2,412.7 $ 2,206.8
Operating
Earnings
11Principal, Principal and symbol design and Principal Financial Group are
trademarks and service marks of Principal Financial Services, Inc., a member of
the Principal Financial Group.
12As of September 30, 2026
13Ethisphere, 2026
14Pensions & Investments, 2025
Three Months Nine Months
Ended, Per Diluted Ended,
3Q26 Share 3Q25 3Q26 3Q25
──────────────────────────────────────────────────────────────────────────────
Net income
(loss) $ 2.91 $ 0.95 $ 6.68 $ 2.95
attributable
to PFG
(Income) loss
from exited -1.27 1.11 -1.14 2.32
business
Non-GAAP net
income (loss)
excluding $ 1.64 $ 2.06 $ 5.54 $ 5.27
exited
business
Net realized
capital
(gains) 0.56 0.04 1.23 0.80
losses, as
adjusted
Actuarial
assumption 0.02 0.00 0.02 0.00
review
Non-GAAP
Operating $ 2.22 $ 2.10 $ 6.79 $ 6.07
Earnings
Impact of
significant 0.27 0.22 0.29 0.24
variances15
Non-GAAP
Operating
Earnings, $ 2.49 $ 2.32 $ 7.08 $ 6.31
excluding
significant
variances
Weighted-ave…
diluted
common shares 216.9 225.2 218.6 226.8
outstanding
(in millions)
*U.S. GAAP (GAAP) net income attributable to PFG versus non-GAAP operating
earnings
Management uses non-GAAP operating earnings, which is a financial measure that
excludes
the effect of net realized capital gains and losses, as adjusted; income (loss)
from exited business; actuarial assumption review impacts
(beginning third quarter 2026); and other after-tax adjustments the company
believes are not indicative of overall operating trends, for
goal setting, as a basis for determining employee and senior management awards
and compensation and evaluating performance on a basis
comparable to that used by investors and securities analysts. Note: it is
possible these adjusting items have occurred in the past and
could recur in future reporting periods. While these items may be significant
components in understanding and assessing our consolidated
financial performance, management believes the presentation of non-GAAP
operating earnings enhances the understanding of results of operations
by highlighting earnings attributable to the normal, ongoing operations of the
company’s businesses.
Selected Balance Sheet Statistics
Period
3Q26 Ended, 4Q25
──────────────────────────────────────────────────────────────────────────────
Total $ 338.7 $ 341.4
assets (in billions)
Stockholders’ $ 11,850.3 $ 11,917.0
equity (in millions)
Stockholders’
equity available to common stockholders (in $ 11,816.3 $ 11,883.9
millions)
Non-GAAP
stockholders’ equity, excluding cumulative
change in fair value of funds withheld
embedded derivative and accumulated other $ 12,264.1 $ 12,445.5
comprehensive income (AOCI) other than
foreign currency translation adjustment,
available to common stockholders (in
millions)
End
of period common shares outstanding (in 212.8 217.4
millions)
Book $ 55.53 $ 54.66
value per common share
Non-GAAP
book value per common share excluding
cumulative change in fair value of funds $ 57.63 $ 57.25
withheld embedded derivative and AOCI other
than foreign
currency translation adjustment
15See Exhibit 1 for details on the impact of 3Q 2026 and 3Q 2025 significant
variances on net income attributable to PFG; non-GAAP net income attributable to
PFG, excluding exited business; and non-GAAP operating earnings.
Principal Financial Group, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in millions, except as indicated)
Non-GAAP
Stockholders’ Equity, Excluding Cumulative
Change in Fair Value of Funds Withheld
Embedded Derivative and AOCI Other Than
Foreign Period
Currency Translation Adjustment, Available Ended,
to Common Stockholders: 3Q26 4Q25
──────────────────────────────────────────────────────────────────────────────
Stockholders’ $ 11,850.3 $ 11,917.0
equity
Noncontrolling -34.0 -33.1
interest
Stockholders’ 11,816.3 11,883.9
equity available to common stockholders
Cumulative
change in fair value of funds withheld -2,784.3 -2,080.2
embedded derivative
AOCI,
other than foreign currency translation 3,232.1 2,641.8
adjustment
Non-GAAP
stockholders’ equity, excluding cumulative
change in fair value of funds withheld
embedded derivative and AOCI other than $ 12,264.1 $ 12,445.5
foreign
currency translation adjustment, available
to common stockholders
Non-GAAP
Book Value Per Common Share, Excluding
Cumulative Change in Fair Value of Funds
Withheld Embedded Derivative and AOCI
Other Than
Foreign Currency Translation Adjustment:
Book $ 55.53 $ 54.66
value per common share
Cumulative
change in fair value of funds withheld 2.10 2.59
embedded derivative and AOCI, other than
foreign currency translation adjustment
Non-GAAP
book value per common share, excluding
change in fair value of funds withheld $ 57.63 $ 57.25
embedded derivative and AOCI other than
foreign currency
translation adjustment
Principal Financial Group, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in millions)
Three
Non-GAAP Months Trailing
Income Ended, Twelve
Taxes: 3Q26 3Q25 3Q26 Months, 3Q25
──────────────────────────────────────────────────────────────────────────────
Total
GAAP
income $ 241.7 $ 14.5 $ 487.0 $ 260.0
taxes
(benefit)
Net
realized
capital
gains 29.8 2.6 63.3 60.1
(losses)
tax
adjustme…
Exited
business -194.8 66.9 -194.6 -10.0
tax
adjustme…
Actuarial
assumpti…
review 1.4 0.0 1.4 0.0
tax
adjustme…
Income
taxes
related
to equity
method 27.6 22.2 82.7 71.1
investme…
and
noncontr…
interest
Non-GAAP
income $ 105.7 $ 106.2 $ 439.8 $ 381.2
taxes
Net
Realized
Capital
Gains
(Losses):
GAAP
net
realized $ -387.6 $ 85.7 $ -346.3 $ -114.6
capital
gains
(losses)
Market
value
adjustme… 0.1 - 0.2 -0.1
to fee
revenues
Net
realized
capital
gains
(losses) 4.7 1.2 3.7 1.9
related
to equity
method
investme…
Derivati…
and
hedging-… -39.3 -25.7 -158.0 -82.6
revenue
adjustme…
Certain
variable 17.1 17.2 68.7 68.2
annuity
fees
Net
realized
capital
(gains) 276.7 - 276.7 -
losses
related
to exited
business
Certain
real
estate-r… -21.0 - -52.0 -
deprecia…
and
amortiza…
Sponsored
investme…
funds and 8.8 9.1 48.5 35.1
other
adjustme…
Capital
gains
distribu… -6.9 -41.4 -28.4 -42.4
–
operating
expenses
Amortiza…
of -6.4 -4.3 -23.9 -10.5
actuarial
balances
Derivati…
and
hedging-… -4.2 -3.4 -1.9 0.8
expense
adjustme…
Market
value
adjustme… -8.5 -0.1 -28.1 -26.8
of
embedded
derivati…
Market
value
adjustme… -8.3 -13.2 -71.0 -78.9
of market
risk
benefits
Capital
gains
distribu… -11.8 -17.6 -32.8 -34.2
– cost of
interest
credited
Net
realized
capital
gains 29.8 2.6 63.3 60.1
(losses)
tax
adjustme…
Net
realized
capital
gains
(losses) 34.8 -18.2 13.6 -50.8
attribut…
to
noncontr…
interest,
after-tax
Total
net
realized
capital 265.6 -93.8 78.6 -160.2
gains
(losses)
after-tax
adjustme…
Non-GAAP
net
realized
capital $ -122.0 $ -8.1 $ -267.7 $ -274.8
gains
(losses),
as
adjusted
Non-GAAP
Income
(Loss)
from
Exited
Business:
Pre-tax
impacts
of exited
business:
Amortiza…
of
reinsura… $ -14.0 $ -18.3 $ -71.2 $ -180.7
gains
(losses)
Other
impacts -315.3 -34.3 -418.9 -138.9
of exited
business…
Net
realized
capital
gains -17.0 -0.2 -4.0 13.3
(losses)
on funds
withheld
assets
Change
in fair
value of
funds 818.2 -265.9 965.4 339.0
withheld
embedded
derivati…
Tax
impacts -194.8 66.9 -194.6 -10.0
of exited
business
Non-GAAP
total
income
(loss) $ 277.1 $ -251.8 $ 276.7 $ 22.7
from
exited
business
163Q26 includes a $276.7 million pre-tax loss associated with the disposition of
our Chilean annuities business.
Principal Financial Group, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in millions)
3Q26
Investment
Management
Non-GAAP
Operating
Revenues
Less Three Trailing
Pass-Throu… Months Twelve
Expenses: Ended, 3Q25 3Q26 Months, 3Q25
──────────────────────────────────────────────────────────────────────────────
Operating $ 476.8 $ 483.9 $ 1,897.9 $ 1,879.4
revenues
Commissions
and other -40.7 -39.9 -162.4 -154.7
expenses
Non-GAAP
operating
revenues $ 436.1 $ 444.0 $ 1,735.5 $ 1,724.7
less
pass-throu…
expenses