Pension Risk Transfer Sales
Q: What are your PRT sales targets for the year?
A: We had a strong start with PRT sales close to $800 million in the first quarter. " We're targeting $2.5 to $3 billion in PRT sales for the full year " , expecting most of that in the late third and fourth quarters. "

Fee Rate Expectations
Q: How do you see PGI fee rates trending?
A: We're comfortable managing our fee rate in the 28 to 29 basis points range. " Market conditions shifted product mix, impacting revenue " , but improved retail flows into higher-margin products and strong investment performance should support the fee rate. "

Positive Momentum in Flows
Q: Can you provide color on optimism for PGI flows?
A: We had a strong flow quarter, particularly in institutional real estate and fixed income, and our best mutual fund sales in two years. " We see encouraging signs in retail, with interest expanding in higher-revenue equity strategies. " We have $6 billion in unfunded capital commitments in institutional real estate projected to call over the next 18 to 24 months. "

Private Credit Growth
Q: How are you participating in private credit growth?
A: We've organically built our private credit business over the past three years. " Focusing on the smaller and middle market direct lending space, we aim to generate attractive returns while being more risk-aware in deal selection. "

Impact of DOL Rule Changes
Q: What is the expected impact of the new DOL rule?
A: The rule will require more licensing, training, and compliance, but we haven't quantified the costs yet. " We're pleased we can continue providing participant education without being considered fiduciaries, which is positive for our business. "

Specialty Benefits Performance
Q: What's driving strong Specialty Benefits sales and favorable loss ratios?
A: Strong sales were driven by paid family and medical leave products as states open new markets. " We expect to remain at the lower end of our loss ratio range due to repricing and a favorable competitive environment. "

Variable Investment Income Outlook
Q: Why was variable investment income soft, and what's the outlook?
A: Income was pressured due to a $13 million lower-than-expected return from a mark-to-market on real estate funds in Principal International. " We expect this to normalize, but alternative investment returns may continue to cause quarterly volatility. "

Participant Withdrawals and Interest Rates
Q: Are higher rates impacting participant withdrawals?
A: We're seeing a slight uptick in participant withdrawals, partly due to strong equity markets increasing account values. " We benefit from higher rates when we capture participant rollovers into our bank products. "

Fee Revenue Composition
Q: How much of your RIS fees are asset-based vs. per participant?
A: About 80% of our RIS fee revenue is asset-based, and around 20% is non-asset-based. " The fee revenue rate held steady at about 40 basis points over the trailing 12 months. "

Non-Compete Laws and Talent Recruitment
Q: How will changes in non-compete laws affect talent strategy?
A: We don't anticipate impacts on attracting or retaining talent. " Our culture and competitive compensation draw top talent without relying heavily on non-compete agreements. "

Individual Life Margins
Q: Are weak individual life margins an aberration?
A: The weak margins are seen as a one-off. " We expect 2024 earnings to be higher than 2023, with margins in the 13% to 15% range for most of the year. "