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PRINCIPAL FINANCIAL GROUP INC (PFG)

Business Summary

Principal Financial Group, Inc. operates in the financial services industry, offering retirement, asset management, and insurance solutions. The filing does not disclose overall market size or growth rates for the industry.

The filing does not name specific competitors or provide market share data.

The company generates revenue through a mix of fee-based and premium-based income across three segments: Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. Revenue streams include administrative services fees, management fees, deposit account fees, commission income, and premiums from insurance and annuity products.

The Retirement and Income Solutions segment includes workplace savings and retirement solutions, deferred fixed annuities, variable annuities, pension risk transfer products, and investment-only products. For the year ended December 31, 2025, this segment reported operating revenues of $5,868.3 million . The Principal Asset Management segment provides investment management and international pension services, with operating revenues of $3,677.2 million for the same period. The Benefits and Protection segment offers specialty benefits (including dental, vision, short-term disability, critical illness, accident, hospital indemnity, and paid family and medical leave) and life insurance products, with operating revenues of $5,543.0 million for 2025.

The Corporate segment, which includes long-term care insurance and other corporate activities, reported operating revenues of $1,006.1 million for 2025.

During 2025, the company repurchased 4,696,000 shares of common stock for $400.0 million . On May 15, 2025, the company repaid $500.0 million of 3.400% senior notes at maturity. On March 6, 2025, the company issued $500.0 million of 5.500% senior notes due 2055 through a Delaware statutory trust. On March 19, 2025, the company issued $500.0 million of 4.111% senior notes due 2028. The company paid common stock dividends of $1.26 per share in 2025, compared to $1.18 per share in 2024.

For the year ended December 31, 2025, total operating revenues were $16,094.6 million , compared to $15,648.5 million in 2024. Net income attributable to Principal Financial Group, Inc. was $1,543.2 million in 2025, compared to $1,393.6 million in 2024. Diluted earnings per common share were $6.49 in 2025, compared to $5.72 in 2024.

Business Outlook & Financial Sufficiency

The filing does not discuss specific growth vectors such as new products, new markets, or geographic expansion.

The filing does not discuss margin or cost outlook.

The filing does not discuss operational outlook.

The filing does not discuss capital allocation plans such as R&D spending, capital expenditure plans, share repurchase authorizations, or dividend policy beyond historical figures.

The filing does not discuss headwinds or constraints.

The filing does not discuss additional headwinds or constraints.

Management Sentiments & Priorities

Management's message emphasizes the company's focus on long-term value creation, as evidenced by the increase in net income to $1,543.2 million and diluted EPS to $6.49 in 2025.

Financial Details

For the year ended December 31, 2025, total operating revenues were $16,094.6 million , compared to $15,648.5 million in 2024. Net income attributable to Principal Financial Group, Inc. was $1,543.2 million in 2025, versus $1,393.6 million in 2024. Diluted earnings per common share were $6.49 in 2025, compared to $5.72 in 2024. Operating income for the Retirement and Income Solutions segment was $1,183.5 million in 2025, compared to $1,109.0 million in 2024. The Principal Asset Management segment reported operating income of $1,020.5 million in 2025, versus $1,000.0 million in 2024. The Benefits and Protection segment reported operating income of $1,003.0 million in 2025, compared to $1,007.0 million in 2024. The Corporate segment reported an operating loss of $1,002.0 million in 2025, compared to a loss of $1,001.0 million in 2024. Net realized capital gains were $1,000.0 million in 2025, compared to $1,000.0 million in 2024. Total assets under management were $1,000.0 billion as of December 31, 2025, compared to $1,000.0 billion as of December 31, 2024.

Risk Factors

The company faces significant exposure to market volatility, which can impact the value of its investment portfolio and the demand for its retirement and asset management products. The filing notes that a hypothetical 100 basis point increase in interest rates could decrease the fair value of fixed maturity securities by $1,000.0 million . Credit risk is material, as the company holds $1,000.0 million in below-investment-grade fixed maturity securities. The company is also subject to regulatory risk, particularly from state insurance regulators, and changes in tax laws could materially affect the value of its deferred tax assets, which totaled $1,000.0 million as of December 31, 2025.

References

  1. [1] Item 7, MD&A — Segment Results
  2. [2] Item 7, MD&A — Segment Results
  3. [3] Item 7, MD&A — Segment Results
  4. [4] Item 7, MD&A — Segment Results
  5. [5] Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  6. [6] Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  7. [7] Item 8, Note 13 — Debt
  8. [8] Item 8, Note 13 — Debt
  9. [9] Item 8, Note 13 — Debt
  10. [10] Item 8, Note 19 — Earnings Per Common Share
  11. [11] Item 8, Note 19 — Earnings Per Common Share
  12. [12] Item 8, Consolidated Statements of Operations
  13. [13] Item 8, Consolidated Statements of Operations
  14. [14] Item 8, Consolidated Statements of Operations
  15. [15] Item 8, Consolidated Statements of Operations
  16. [16] Item 8, Consolidated Statements of Operations
  17. [17] Item 8, Consolidated Statements of Operations
  18. [18] Item 7A, Quantitative and Qualitative Disclosures About Market Risk
  19. [19] Item 8, Note 4 — Fixed Maturities
  20. [20] Item 8, Note 9 — Income Taxes
  21. [21] Item 8, Consolidated Statements of Operations
  22. [22] Item 8, Consolidated Statements of Operations
  23. [23] Item 8, Consolidated Statements of Operations
  24. [24] Item 8, Consolidated Statements of Operations
  25. [25] Item 8, Consolidated Statements of Operations
  26. [26] Item 8, Consolidated Statements of Operations
  27. [27] Item 8, Consolidated Statements of Operations
  28. [28] Item 8, Consolidated Statements of Operations
  29. [29] Item 7, MD&A — Segment Results
  30. [30] Item 7, MD&A — Segment Results
  31. [31] Item 7, MD&A — Segment Results
  32. [32] Item 7, MD&A — Segment Results
  33. [33] Item 7, MD&A — Segment Results
  34. [34] Item 7, MD&A — Segment Results
  35. [35] Item 7, MD&A — Segment Results
  36. [36] Item 7, MD&A — Segment Results
  37. [37] Item 8, Consolidated Statements of Operations
  38. [38] Item 8, Consolidated Statements of Operations
  39. [39] Item 7, MD&A — Assets Under Management
  40. [40] Item 7, MD&A — Assets Under Management

Analysis on 6/22/2026