| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Latin America        | N/A     | **85.9**  **[0001104659-23-055435_pfg-20230331x10q.htm:107]**  | N/A     | **87.3**  **[0001104659-23-113318_pfg-20230930x10q.htm:127]**  | N/A     | **86.7**  **[0001410578-24-000583_pfg-20240331x10q.htm:98]**  | **86.3**  **[0001410578-24-001133_pfg-20240630x10q.htm:113]**  | **85.9**  **[0001410578-24-001713_pfg-20240930x10q.htm:116]**  |
| Asia                 | N/A     | **27.5**  **[0001104659-23-055435_pfg-20230331x10q.htm:107]**  | N/A     | **28.0**  **[0001104659-23-113318_pfg-20230930x10q.htm:127]**  | N/A     | **27.0**  **[0001410578-24-000583_pfg-20240331x10q.htm:98]**  | **27.7**  **[0001410578-24-001133_pfg-20240630x10q.htm:113]**  | **28.7**  **[0001410578-24-001713_pfg-20240930x10q.htm:116]**  |

f65e789905e83dd132290176e5532ca75ac1f228bc2afd5f1d5e4f8676476b38

| Metric | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------|---------|---------|---------|---------|---------|---------|---------|
| **Expected Undiscounted Future Benefit Payments for Pension Risk Transfer (in millions)** | $34,085.9 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $34,726.8 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $34,656.4 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $36,325.5 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $37,176.8 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $38,337.8 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $38,622.7 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Undiscounted Future Benefit Payments for Individual Fixed Income Annuities (in millions)** | $7,605.3 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $7,506.4 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $7,393.6 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $7,292.0 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $7,187.3 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $7,085.4 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $6,717.8 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Discounted Future Gross Premiums for Individual Disability (in millions)** | $5,316.8 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $5,266.2 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $5,082.4 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $5,456.4 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $5,365.0 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $5,311.7 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $5,731.8 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Undiscounted Future Gross Premiums for Individual Disability (in millions)** | $8,035.8 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $8,121.1 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $8,213.6 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $8,264.8 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $8,283.9 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $8,323.3 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $8,664.9 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Undiscounted Future Benefit Payments for Individual Disability (in millions)** | $8,656.7 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $8,791.0 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $8,899.8 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $8,981.2 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $9,068.3 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $9,154.9 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $9,823.7 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Discounted Future Gross Premiums for Term Life (in millions)** | $6,301.3 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $6,207.5 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $5,911.1 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $6,385.1 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $6,285.0 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $6,229.2 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $6,960.6 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Undiscounted Future Gross Premiums for Term Life (in millions)** | $10,169.3 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $10,212.5 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $10,229.4 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $10,287.2 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $10,359.7 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $10,471.0 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $11,304.0 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Undiscounted Future Benefit Payments for Term Life (in millions)** | $7,264.7 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $7,341.3 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $7,736.1 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $7,832.3 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $7,913.3 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $8,017.8 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $8,908.7 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Discounted Future Gross Premiums for Long-term Care Insurance (in millions)** | $61.5 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $57.4 **[0001104659-23-086723_pfg-20230630x10q.htm:79]** | $40.8 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $42.8 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $39.2 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $36.1 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $38.0 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Undiscounted Future Gross Premiums for Long-term Care Insurance (in millions)** | $89.3 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $84.7 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $60.9 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $60.3 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $56.1 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $52.1 **[0001410578-24-001133_pfg-20240630x10q.htm:70]** | $52.7 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Expected Undiscounted Future Benefit Payments for Long-term Care Insurance (in millions)** | $468.6 **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | $478.5 **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | $373.7 **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | $371.0 **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | $368.3 **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | $364.1 **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | $358.7 **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Interest Accretion Rate for Pension Risk Transfer (%)** | 4.40% **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | 4.42% **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | 4.45% **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | 4.52% **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | 4.54% **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | 4.58% **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | 4.59% **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Interest Accretion Rate for Individual Fixed Income Annuities (%)** | 4.21% **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | 4.21% **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | 4.22% **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | 4.22% **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | 4.22% **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | 4.22% **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | 4.22% **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Interest Accretion Rate for Individual Disability (%)** | 4.01% **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | 4.00% **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | 3.97% **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | 3.96% **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | 3.94% **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | 3.93% **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | 3.91% **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Interest Accretion Rate for Term Life (%)** | 4.85% **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | 4.85% **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | 4.84% **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | 4.83% **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | 4.83% **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | 4.83% **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | 4.83% **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Interest Accretion Rate for Long-term Care Insurance (%)** | 6.16% **[0001104659-23-055435_pfg-20230331x10q.htm:71]** | 6.16% **[0001104659-23-086723_pfg-20230630x10q.htm:80]** | 6.16% **[0001104659-23-113318_pfg-20230930x10q.htm:81]** | 6.16% **[0001104659-24-025516_pfg-20231231x10k.htm:240]** | 6.16% **[0001410578-24-000583_pfg-20240331x10q.htm:63]** | 6.16% **[0001410578-24-001133_pfg-20240630x10q.htm:71]** | 6.16% **[0001410578-24-001713_pfg-20240930x10q.htm:72]** |
| **Excess of Crediting Rates over GMIR (in millions)** | $13,483.4 **[0001104659-23-055435_pfg-20230331x10q.htm:158]** | $13,438.6 **[0001104659-23-086723_pfg-20230630x10q.htm:179]** | $13,586.4 **[0001104659-23-113318_pfg-20230930x10q.htm:183]** | N/A | $14,284.4 **[0001410578-24-001133_pfg-20240630x10q.htm:164]** | $14,284.4 **[0001410578-24-001133_pfg-20240630x10q.htm:164]** | $8,608.8 **[0001410578-24-001713_pfg-20240930x10q.htm:168]** |
| **Weighted-Average Duration for Future Policy Benefits (years)** | 8.6 **[0001104659-23-055435_pfg-20230331x10q.htm:66]** | 8.5 **[0001104659-23-086723_pfg-20230630x10q.htm:75]** | 8.0 **[0001104659-23-113318_pfg-20230930x10q.htm:76]** | 9.4 **[0001104659-24-025516_pfg-20231231x10k.htm:237]** | 8.3 **[0001410578-24-000583_pfg-20240331x10q.htm:58]** | 8.2 **[0001410578-24-001133_pfg-20240630x10q.htm:66]** | 18.7 **[0001410578-24-001713_pfg-20240930x10q.htm:69]** |
| **Net Amount at Risk (in millions)** | $86,335.6 **[0001104659-23-055435_pfg-20230331x10q.htm:61]** | $198.1 **[0001104659-23-086723_pfg-20230630x10q.htm:82]** | $292.7 **[0001104659-23-113318_pfg-20230930x10q.htm:83]** | $111.2 **[0001104659-24-025516_pfg-20231231x10k.htm:242]** | $54.4 **[0001410578-24-000583_pfg-20240331x10q.htm:65]** | $86,091.1 **[0001410578-24-001133_pfg-20240630x10q.htm:60]** | $85,992.9 **[0001410578-24-001713_pfg-20240930x10q.htm:61]** |
| **Cash Surrender Value (in millions)** | $5,308.6 **[0001104659-23-055435_pfg-20230331x10q.htm:59]** | $5,638.3 **[0001104659-23-086723_pfg-20230630x10q.htm:67]** | $5,474.4 **[0001104659-23-113318_pfg-20230930x10q.htm:68]** | $6,041.9 **[0001104659-24-025516_pfg-20231231x10k.htm:222]** | N/A | N/A | N/A |

de8f43e21a9fd0865c1d3af34bfaf2f4e05e7d78c84ba2dd57449ae01cc2d6d0

Principal Financial Group, Inc. (PFG) is a global financial services company that provides a diverse range of financial products and services through several key segments **[0001104659-24-025516_pfg-20231231x10k.htm:3]** **[0001410578-24-001133_pfg-20240630x10q.htm:122]** **[0001410578-24-000583_pfg-20240331x10q.htm:91]**. The company offers retirement products, investment solutions, and insurance services, primarily targeting businesses and their employees **[0001410578-24-001133_pfg-20240630x10q.htm:122]** **[0001104659-24-025516_pfg-20231231x10k.htm:295]**. PFG's comprehensive suite of offerings allows it to maintain a strong market position and leverage synergies across its segments **[0001104659-24-044674_tm2330788d4_def14a.htm:2]** **[0001104659-24-044674_tm2330788d4_def14a.htm:1]**.

1. **Retirement and Income Solutions** - Provides retirement products and services, including defined contribution plans, pension risk transfer, and individual annuities, primarily to businesses and their employees **[0001410578-24-001133_pfg-20240630x10q.htm:122]** **[0001104659-24-025516_pfg-20231231x10k.htm:295]**.
2. **Principal Asset Management** - Offers global investment solutions across various asset classes to institutional, retirement, retail, and high net worth investors **[0001410578-24-001133_pfg-20240630x10q.htm:122]** **[0001104659-24-025516_pfg-20231231x10k.htm:295]**.
3. **Benefits and Protection** - Focuses on insurance solutions, providing group dental, life, disability insurance, and supplemental health products, primarily targeting small-to-mid-sized businesses **[0001410578-24-001133_pfg-20240630x10q.htm:122]** **[0001104659-24-025516_pfg-20231231x10k.htm:295]** **[0001410578-24-001133_pfg-20240630x10q.htm:106]**.
4. **Corporate** - Manages capital not allocated to other segments and includes results from Principal Securities, Inc. **[0001410578-24-000583_pfg-20240331x10q.htm:91]** **[0001410578-24-001713_pfg-20240930x10q.htm:109]**.

0a4b247fd93414e2c1a0555b246a363f7ec38e72e740fe68ce3216bf2f60c91d

- Banks
- Mutual funds
- Institutional trust companies
- Broker-dealers
- Insurers
- Recordkeepers
- Asset managers
- Wealth managers

These competitors may offer a broader array of products, more competitive pricing, greater diversity of distribution sources, better brand recognition, or higher financial strength ratings. Some may have greater financial resources or better investment performance at various times  **[0001104659-24-025516_pfg-20231231x10k.htm:22]** **[0001104659-24-025516_pfg-20231231x10k.htm:51]** .

67155a95c30f99c5890e4183231bd4e82e3f5c40ab34550af255a97224cc24c0

| Segment/Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Retirement and Income Solutions** ($ million) | N/A | **1,616.1**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **1,673.7**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **1,651.1**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **1,932.4**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **2,194.3**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **1,686.4**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |
| **Principal Asset Management** ($ million) | N/A | **692.5**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **686.9**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **668.8**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **655.3**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **684.8**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **740.1**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |
| - Principal Global Investors ($ million) | N/A | **392.7**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **390.1**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **424.6**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **404.8**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **410.3**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **431.0**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |
| - Principal International ($ million) | N/A | **305.1**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **302.3**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **249.6**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **256.7**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **279.0**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **314.8**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |
| - Eliminations ($ million) | N/A | **(5.3)**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **(5.5)**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **(5.4)**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **(6.2)**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **(4.5)**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **(5.7)**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |
| **Benefits and Protection** ($ million) | N/A | **1,103.4**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **1,125.3**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **1,151.4**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **1,185.9**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **1,187.2**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **1,213.5**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |
| - Specialty Benefits ($ million) | N/A | **782.2**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **792.2**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **816.6**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **848.3**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **858.3**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **868.9**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |
| - Life Insurance ($ million) | N/A | **321.4**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **333.2**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **335.0**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **337.8**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **329.1**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **344.8**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |
| - Eliminations ($ million) | N/A | **(0.2)**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **(0.1)**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **(0.2)**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **(0.2)**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **(0.2)**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **(0.2)**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |
| **Corporate** ($ million) | N/A | **27.6**  **[0001104659-23-055435_pfg-20230331x10q.htm:103]**  | **14.6**  **[0001104659-23-086723_pfg-20230630x10q.htm:119]**  | **6.7**  **[0001104659-23-113318_pfg-20230930x10q.htm:122]**  | N/A | **31.1**  **[0001410578-24-000583_pfg-20240331x10q.htm:94]**  | **6.4**  **[0001410578-24-001133_pfg-20240630x10q.htm:108]**  | **31.1**  **[0001410578-24-001713_pfg-20240930x10q.htm:111]**  |

b17a5a3b28d82049319466ba4c799be9c37fbb9dd0e67e16a208e412dd8734cd

1. Can you elaborate on the measures you're taking to address the outflows in PGI, especially from lower fee and yield products, and how you plan to reverse this trend to improve net cash flows?
2. With the slight uptick in participant withdrawal rates among older cohorts, particularly as the baby boomer generation enters peak retirement years, how do you anticipate this impacting your retirement business, and what strategies are you implementing to mitigate potential negative effects?
3. Given the elevated severance costs in the RIS and PI segments during the quarter, should we anticipate further restructuring expenses in the near future, and how will this impact your operating margins and expense management initiatives?
4. Despite the strong net cash flows in Principal International this quarter, can you discuss the sustainability of this performance considering potential FX headwinds and macroeconomic challenges in key markets like China and Southeast Asia?
5. Since you expect lower real estate-related performance fees this year due to the nature of the current real estate cycle, how do you plan to compensate for this decrease to maintain earnings growth in Principal Asset Management?

6df1307b69e7e95e006fe61f7a8e1e3d9ab9f16ad2dc80042a69dbad7ab29a5f

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

9e6a3630495e81e1d575882495335644c2fca4691eda9328b1b6da95735ed897

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

236cc2a24519e56c440b9b63145d00dc825ee326fdf8fbba3d420d27c53907d5

**Expected Undiscounted Future Benefit Payments for Pension Risk Transfer (in millions)**

**Expected Undiscounted Future Benefit Payments for Individual Fixed Income Annuities (in millions)**

**Expected Discounted Future Gross Premiums for Individual Disability (in millions)**

**Expected Undiscounted Future Gross Premiums for Individual Disability (in millions)**

**Expected Undiscounted Future Benefit Payments for Individual Disability (in millions)**

**Expected Discounted Future Gross Premiums for Term Life (in millions)**

**Expected Undiscounted Future Gross Premiums for Term Life (in millions)**

**Expected Undiscounted Future Benefit Payments for Term Life (in millions)**

**Expected Discounted Future Gross Premiums for Long-term Care Insurance (in millions)**

**Expected Undiscounted Future Gross Premiums for Long-term Care Insurance (in millions)**

**Expected Undiscounted Future Benefit Payments for Long-term Care Insurance (in millions)**

**Interest Accretion Rate for Pension Risk Transfer (%)**

**Interest Accretion Rate for Individual Fixed Income Annuities (%)**

**Interest Accretion Rate for Individual Disability (%)**

**Interest Accretion Rate for Term Life (%)**

**Interest Accretion Rate for Long-term Care Insurance (%)**

**Excess of Crediting Rates over GMIR (in millions)**

**Weighted-Average Duration for Future Policy Benefits (years)**

**Net Amount at Risk (in millions)**

**Cash Surrender Value (in millions)**

bbba530848f328e465c09d903679cd8b0a951a20336b033779dcb976cd60f792

bdec70190f562a48b66f521f5a6c7d18448d9c1069b8edd5c500b0c5743b2dc2

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **Non-GAAP Operating ROE**: On track for **14% to 16% in 2025**  **[PFG_3403997_4]** .
  2. **EPS Growth**: Full-year growth aligned with **9% to 12%**  **[PFG_3403997_4]** .
  3. **Dividend Payout Ratio**: Targeted **40%**  **[PFG_3403997_1]** .
  4. **Capital Return**: **$1.5 billion to $1.8 billion** capital deployments, including **$800 million to $1.1 billion** share repurchases  **[PFG_3403997_5]** .
  5. **Pension Risk Transfer Sales**: Target of **$3 billion**  **[PFG_3403997_1]** .
  6. **Principal International Revenue Growth**: Low single-digit growth, **6%** reported, **5%** constant currency  **[PFG_3403997_15]** .
  7. **Principal International Margins**: **30% to 34%**, with a **50 basis point** improvement  **[PFG_3403997_15]** .
  8. **Specialty Benefits Premium and Fee Growth**: **7.5%** year-to-date growth  **[PFG_3403997_7]** .
  9. **Variable Investment Income**: Expected improvement  **[PFG_3403997_19]** .
  10. **Fee Revenue Rate Compression**: **2 to 3 basis points**  **[PFG_3403997_21]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **EPS Growth**: **9% to 12%**  **[PFG_3394769_5]** **[PFG_3394769_3]** .
  2. **Return on Equity (ROE)**: **14% to 16%** target  **[PFG_3394769_3]** .
  3. **Free Capital Flow Conversion**: **75% to 85%**  **[PFG_3394769_5]** .
  4. **Capital Deployment**: **$1.5 billion to $1.8 billion**, including **$800 million to $1.1 billion** share repurchases  **[PFG_3394769_4]** .
  5. **Dividend**: **$0.72** common stock dividend  **[PFG_3394769_4]** .
  6. **RBC Target**: **375% to 400%**  **[PFG_3394769_4]** .
  7. **Pension Risk Transfer Sales**: Closer to **$3 billion**  **[PFG_3394769_13]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **EPS Growth**: **9% to 12%**  **[PFG_3381233_5]** .
  2. **Free Capital Flow Conversion**: **75% to 85%**  **[PFG_3381233_5]** .
  3. **Capital Deployment**: **$1.5 billion to $1.8 billion**, including **$800 million to $1.1 billion** share repurchases  **[PFG_3381233_5]** .
  4. **Dividend Payout Ratio**: **40%**  **[PFG_3381233_5]** .
  5. **Pension Risk Transfer Sales**: **$2.5 billion to $3 billion**  **[PFG_3381233_10]** .
  6. **Fee Revenue Rate**: **28 to 29 basis points**  **[PFG_3381233_7]** .
  7. **Life Insurance Margin**: **13% to 15%**  **[PFG_3381233_21]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **EPS Growth**: **9% to 12%**  **[PFG_3373177_6]** .
  2. **Free Capital Flow Conversion**: **75% to 85%**  **[PFG_3373177_6]** .
  3. **Return on Equity**: **14% to 16%** by 2025  **[PFG_3373177_6]** .
  4. **Capital Deployment**: **$1.5 billion to $1.8 billion**, including **$800 million to $1.1 billion** share repurchases, **40%** dividend payout  **[PFG_3373177_6]** .
  5. **RIS Revenue Growth**: High end or above long-term guidance  **[PFG_3373177_6]** .
  6. **PGI Revenue Growth**: Lower end due to real estate revenue pressure  **[PFG_3373177_6]** .
  7. **Principal International Margin**: In line with 2023, low single-digit revenue growth  **[PFG_3373177_6]** .
  8. **Benefits and Protection**: Favorable loss ratios, improved life insurance margins  **[PFG_3373177_6]** .
  9. **Seasonality Impacts**: PGI and Specialty Benefits seasonal earnings patterns  **[PFG_3373177_6]** .

936652a85ae11d11b7229ec6f5c9c9124582fe8ca09bfb8ada8e869b594467be

6a952c50b1c7a1699bfb38a1865f9a44c16af6166df061bc309f986f917fbb1e

996dba2db2ed7febc6174c7a33c8b8ab4724e235588464e311e429540697972d

| Name                     | Position                                                      | Start Date           | Short Bio                                                                                                                                                                                                 |
|--------------------------|---------------------------------------------------------------|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Vivek Agrawal            | Executive Vice President and Chief Growth Officer             | March 2023           | Vivek Agrawal, aged 56, has been serving as the Executive Vice President and Chief Growth Officer of PFG and Principal Life since March 2023. Previously, he was a senior partner at McKinsey & Company  **[0001104659-24-025516_pfg-20231231x10k.htm:65]** .                                    |
| Kamal Bhatia             | President and Chief Executive Officer of Principal Asset Management | February 10, 2024    | Kamal Bhatia has been the President and CEO of Principal Asset Management since February 10, 2024. He was previously the Global Head of Investments for Principal Asset Management  **[0001104659-24-025516_pfg-20231231x10k.htm:65]** **[0001104659-24-044674_tm2330788d4_def14a.htm:1]** .                                                      |
| Thomas Cheong            | Executive Vice President and President, Principal Asia        | March 2019           | Thomas Cheong, aged 55, has been serving as Executive Vice President of PFG since January 2021 and as President, Principal Asia since March 2019. He is based in Hong Kong  **[0001104659-24-025516_pfg-20231231x10k.htm:65]** **[0001104659-23-022860_pfg-20221231x10k.htm:64]** .                                                              |
| Amy Friedrich            | President of Benefits and Protection                           | May 2017             | Amy Friedrich, 53, has been the President of Benefits and Protection at PFG since May 2017. She was previously the Senior Vice President of the Specialty Benefits division  **[0001104659-24-025516_pfg-20231231x10k.htm:65]** .                                                                |
| Patrick Halter           | Interim Division President of Principal Asset Management      | February 10, 2024    | Patrick G. Halter has been with PFG since 1984. He served as President and CEO of Principal Asset Management until February 10, 2024, and is now Interim Division President until his retirement on April 2, 2024  **[0001104659-24-025516_pfg-20231231x10k.htm:65]** .                           |
| Daniel Houston           | Chairman, President, and Chief Executive Officer              | 2015                 | Daniel J. Houston has been the Chairman, President, and CEO of PFG since 2015. He joined the company in 1984 and has held various executive roles  **[0001104659-24-044674_tm2330788d4_def14a.htm:12]** **[0001104659-24-119004_tm2428254d1_ex99-1.htm:0]** .                                                                                       |
| Kathleen Kay             | Executive Vice President and Chief Information Officer        | May 2020             | Kathleen Kay, 61, has been the Executive Vice President of PFG since March 2022 and the Chief Information Officer since May 2020. She previously held leadership roles at Pacific Gas & Electric Company  **[0001104659-24-025516_pfg-20231231x10k.htm:65]** **[0001104659-23-022860_pfg-20221231x10k.htm:64]** .                               |
| Natalie Lamarque         | Executive Vice President and General Counsel                  | July 2022            | Natalie Lamarque, 47, has been serving as the Executive Vice President and General Counsel of PFG since July 2022. She also became Secretary of the Company in October 2022  **[0001104659-24-025516_pfg-20231231x10k.htm:66]** **[0001104659-23-022860_pfg-20221231x10k.htm:64]** .                                                             |
| Christopher Littlefield  | President of Retirement and Income Solutions                  | March 2022           | Christopher Littlefield, 57, has been the President of Retirement and Income Solutions at PFG since March 2022. He was previously Executive Vice President and General Counsel  **[0001104659-24-025516_pfg-20231231x10k.htm:66]** **[0001104659-23-022860_pfg-20221231x10k.htm:65]** .                                                          |
| Kenneth McCullum         | Executive Vice President and Chief Risk Officer               | April 2023           | Kenneth McCullum, 59, has been the Executive Vice President and Chief Risk Officer of PFG since April 2023. He was previously Senior Vice President and Chief Risk Officer  **[0001104659-24-025516_pfg-20231231x10k.htm:66]** .                                                                 |
| Deanna Strable-Soethout  | President and Chief Operating Officer                         | August 2024          | Deanna Strable-Soethout has been with PFG since 1990. She became Executive Vice President and CFO in February 2017 and was promoted to President and COO in August 2024. She will become CEO on January 7, 2025  **[0001104659-24-025516_pfg-20231231x10k.htm:66]** **[0001104659-24-119004_tm2428254d1_8k.htm:1]** **[0001104659-24-119004_tm2428254d1_ex99-1.htm:0]** .                     |
| Dan Houston              | Executive Chair of the Board                                  | January 7, 2025      | Dan Houston has been with PFG since 1984 and has held various executive roles. He will transition to Executive Chair of the Board on January 7, 2025  **[0001104659-24-119004_tm2428254d1_ex99-1.htm:0]** **[0001104659-24-119004_tm2428254d1_8k.htm:1]** **[0001104659-24-044674_tm2330788d4_def14a.htm:12]** .                                                                                  |
| Deanna Strable           | President and Chief Executive Officer                         | January 7, 2025      | Deanna Strable has been appointed as the President and CEO of PFG, effective January 7, 2025. She has been with Principal since 1990 and held various roles, including Executive Vice President and CFO  **[0001104659-24-119004_tm2428254d1_ex99-1.htm:0]** **[0001104659-24-119004_tm2428254d1_8k.htm:1]** .                                  |
| Joel Pitz                | Interim Chief Financial Officer                               | N/A                  | Joel Pitz is currently serving as the Interim CFO at PFG. He has been with the company for nearly three decades, bringing extensive experience across domestic, international, and corporate functions  **[PFG_3403997_4]** .                                      |

1ba8316a68dab34e75e288f990e16390120e46858f14e4d68914592a263d0640

| Program Details           | Program 1                  | Program 2                  |
|---------------------------|----------------------------|----------------------------|
| Approval Date             | January 2022  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**         | February 2024  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**        |
| End Date/Duration         | Completed in April 2024  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**  | No expiration date  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**   |
| Total additional amount   | **$1.6 billion**  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**     | **$1.5 billion**  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**     |
| Remaining authorization   | Completed  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**            | **$1,086.8 million** as of September 30, 2024  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**  |
| Details                   | Increase to June 2021 program  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**  | Latest authorization  **[0001410578-24-001713_pfg-20240930x10q.htm:178]** **[0001410578-24-001713_pfg-20240930x10q.htm:82]**  |

5df4ad19c73e17f52a850074db19f7e97f5ae8f060fac627f79261466d5480f8

Principal International

- Latin America

- Asia

- Eliminations

- Principal International corporate / regional offices

Principal Global Investors

Retirement and Income

Principal Asset Management

Benefits and Protection

Corporate

Total Segment Revenue

Total Revenue

09233e121223eb86d2a8c9e913709f32a56a5d020aad1996ae775107608c78b5

**Annual guidance for FY 2024:**
- **EPS Growth**: 9% to 12%  **[PFG_3403997_4]**  (no change from 9% to 12%  **[PFG_3394769_5]** **[PFG_3394769_3]** )  
- **Capital Return**: $1.5 billion to $1.8 billion, including $800 million to $1.1 billion in share repurchases  **[PFG_3403997_5]**  (no change from $1.5 billion to $1.8 billion, including $800 million to $1.1 billion  **[PFG_3394769_4]** )  
- **Pension Risk Transfer Sales**: $3 billion  **[PFG_3403997_1]**  (no change from closer to $3 billion  **[PFG_3394769_13]** )  
- **Dividend Payout Ratio**: 40%  **[PFG_3403997_1]**  (no prior guidance)  
- **Principal International Revenue Growth**: Low single-digit growth, 6% reported, 5% constant currency  **[PFG_3403997_15]**  (no prior guidance)  
- **Principal International Margins**: 30% to 34%, with a 50 basis point improvement  **[PFG_3403997_15]**  (no prior guidance)  
- **Specialty Benefits Premium and Fee Growth**: 7.5% year-to-date growth  **[PFG_3403997_7]**  (no prior guidance)  
- **Variable Investment Income**: Expected improvement  **[PFG_3403997_19]**  (no prior guidance)  
- **Fee Revenue Rate Compression**: 2 to 3 basis points  **[PFG_3403997_21]**  (no prior guidance)  

**Annual guidance for FY 2025:**
- **Non-GAAP Operating ROE**: 14% to 16%  **[PFG_3403997_4]**  (no prior guidance)  

a126bba55b1d51f3d5bbb890941fb1baa098222c72e47575943e005cad2c4fea

| Name             | Start Date | End Date | Reason for Change |
|------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1967  **[0001104659-24-025516_pfg-20231231x10k.htm:140]**    | Present  | Current auditor   |

a52c1490b11e3ee038581e29fb8623cd870948b15a5488165fb776e9e1a9e52b

40cc478b67c7b618725903203653758f18eca0a39314f7297742a69805f6c127

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: US$3,011.6 million (‑73% YoY)  **[0001104659-23-113318_pfg-20230930x10q.htm:4]** **[0001104659-23-113318_pfg-20230930x10q.htm:122]** **[0001410578-24-001713_pfg-20240930x10q.htm:4]**   
- Net Income: –US$22 million vs. US$1,237.1 million in Q3 2023 (**‑102% YoY**)  **[0001104659-23-113318_pfg-20230930x10q.htm:4]** **[0001104659-23-113318_pfg-20230930x10q.htm:131]** **[0001410578-24-001713_pfg-20240930x10q.htm:4]**   
- Principal Asset Management: US$740.1 million (+11% YoY)  **[0001104659-23-113318_pfg-20230930x10q.htm:122]** **[0001410578-24-001713_pfg-20240930x10q.htm:111]**   
- Principal International: US$314.8 million (+26% YoY)  **[0001104659-23-113318_pfg-20230930x10q.htm:122]** **[0001410578-24-001713_pfg-20240930x10q.htm:111]**   
- Benefits & Protection: US$1,213.5 million (+5% YoY)  **[0001104659-23-113318_pfg-20230930x10q.htm:122]** **[0001410578-24-001713_pfg-20240930x10q.htm:111]**   

36b88ab40f13246df485b09bd46b46c7695eb96fdf987809d0593eafcbf762d1

2df5e32cf4399bdfb8f4086d3f6706150e0916208ab462cbc460f74853849edb

ddc996c31803142af96d3bc6eaa2fc4b13652d2c7802511f5d0dab8f60795330

International exposure in U.S. operation’s fixed maturities portfolio (percentage)

Total problem, potential problem, and restructured fixed maturities as a percent of total fixed maturities (percent)

Average monthly account values for Retirement and Income Solutions (billions)

Principal International - AUM, beginning of period (billions)

Principal International - Net cash flow (billions)

Principal International - Market performance (billions)

Principal International - Effect of exchange rates (billions)

Principal International - AUM, end of period (billions)

Principal Global Investors - AUM, beginning of period (billions)

Principal Global Investors - Net cash flow (billions)

Principal Global Investors - Market performance (billions)

Principal Global Investors - AUM, end of period (billions)

846889c1482a800f2ce463f84d1c26d4dd01771f535856617ca361885e0b1521

1. **Commercial Mortgage Loan Maturities**  
   **Q:** How are you managing upcoming commercial mortgage loan maturities?  
   **A:** We have about **$3 billion** in office loans within our commercial mortgage loan portfolio.  **[PFG_3373177_19]**  For the **11 loans** maturing in 2024, we see **no issues** at this time.  **[PFG_3373177_19]**  These loans have a **66% loan-to-value**, a **3.8x debt service coverage ratio**, and **94% occupancy** with an average lease term remaining of **5.6 years**.  **[PFG_3373177_19]**  We're closely monitoring a small portion, about **$200 million**, but overall, the portfolio is in good shape.  **[PFG_3373177_19]** 

2. **Alternative Returns Outlook**  
   **Q:** Do you expect alternative investment returns to be softer?  
   **A:** While our run-rate return for the portfolio is **8% to 8.5%**, we achieved **6% to 7%** in 2023 due to lower prepayments and real estate transactions.  **[PFG_3373177_15]**  Given current conditions, we might run below expectations in the near term, but we see a path to reaching our run-rate basis late in 2024 or into 2025.  **[PFG_3373177_15]** 

3. **Real Estate Activity Expectations**  
   **Q:** What are your expectations for real estate activities in 2024?  
   **A:** We are cautiously optimistic about real estate flows in 2024.  **[PFG_3373177_7]**  We have a strong **$6 billion** real estate pipeline and see opportunities to deploy around **$1 billion** in private debt and growth areas like data centers.  **[PFG_3373177_7]**  Investor interest is increasing in specialty fixed income and small to mid-cap equities.  **[PFG_3373177_7]** 

4. **Pension Risk Transfer Sales and Bermuda Subsidiary**  
   **Q:** What's the outlook for pension risk transfer sales, and how does the Bermuda subsidiary impact growth?  
   **A:** We achieved **$2.9 billion** in pension risk transfer sales in 2023, exceeding expectations.  **[PFG_3373177_8]**  For 2024, we're targeting **$2.5 billion to $3 billion**, focusing on returns over volume.  **[PFG_3373177_8]**  The Bermuda subsidiary enhances our capital efficiency, supporting our pension risk transfer and term life insurance businesses, and released about **$200 million** in free capital in the fourth quarter.  **[PFG_3373177_8]** **[PFG_3373177_11]** 

5. **Retirement Services Flows and Competition**  
   **Q:** Why are RIS fee flows negative despite a favorable environment?  
   **A:** The competitive environment remains challenging.  **[PFG_3373177_16]**  We've had some large plan lapses with negligible impact on revenue, as we're focusing on profitability over sheer flow numbers.  **[PFG_3373177_16]**  Participant withdrawals have modestly increased due to retirements, but underlying fundamentals like deferrals (up **over 8%**) and employer matches are strong.  **[PFG_3373177_12]** **[PFG_3373177_16]** 

6. **Exit of Guaranteed Product in Hong Kong**  
   **Q:** Why did you exit the guaranteed product in Hong Kong, and what's the impact?  
   **A:** The guaranteed product was capital-intensive and not meeting return thresholds, so we decided to exit it.  **[PFG_3373177_9]**  This move released **$30 to $40 million** in capital in the fourth quarter, with a similar benefit expected in early 2024.  **[PFG_3373177_9]**  However, it will pressure our Hong Kong pretax earnings by about **$10 million** in 2024.  **[PFG_3373177_9]** 

7. **Pension Reform in Chile**  
   **Q:** How might Chilean pension reform affect your business?  
   **A:** Pension reform discussions are ongoing, but Chileans prefer choice in their providers and have rejected the idea of a state-owned AFP.  **[PFG_3373177_17]**  We're confident in our ability to continue serving the Chilean market and are working closely with regulators and legislators.  **[PFG_3373177_17]** 

8. **Supplemental Voluntary Products Opportunity**  
   **Q:** What's your outlook on supplemental voluntary products?  
   **A:** There's strong demand for products like critical illness, accident, and hospital indemnity.  **[PFG_3373177_14]**  We're expecting growth of **15% to 20%** in these product lines, which complement core coverages and meet evolving customer needs.  **[PFG_3373177_14]** 

9. **Expense Management and Severance**  
   **Q:** Was severance related to unifying operations under Principal Asset Management?  
   **A:** The severance is spread across the organization as part of aligning our expenses with revenues.  **[PFG_3373177_13]**  It's part of our ongoing efforts to manage expenses efficiently.  **[PFG_3373177_13]** 

10. **Benefit Ratio Guidance**  
    **Q:** Why is your benefit ratio guidance stable compared to peers?  
    **A:** Our dental products provide stability, and we've seen moderation in loss ratios returning to normal cycles.  **[PFG_3373177_20]**  We expect 2024 loss ratios to be at the lower end of the **60% to 65%** range across our portfolio.  **[PFG_3373177_20]** 

af7921671090d6e42b415e90215931883a831301e7586c66a66f73c680fc0935

- **Negative net flows in Retirement and Income Solutions (RIS) fee business**: The company has experienced negative net flows **for the last three quarters and each of the last two years** amid an intensifying competitive environment. This trend could impact future growth in this segment.  **[PFG_3373177_16]**
- **Pressure on Principal Global Investors (PGI) revenue growth due to real estate headwinds**: PGI expects **revenue growth at the lower end of its long-term guidance** in 2024, affected by **continued pressure on real estate revenue and impacts from recent redemptions**. This could limit earnings growth prospects in their asset management business.  **[PFG_3373177_7]**
- **Regulatory risk from pension reform in Chile**: Ongoing discussions about pension reform in Chile could pose a risk to Principal's business in that region. **Changes in legislation** may negatively impact their operations and growth prospects.  **[PFG_3373177_17]**

0c4233b7d692eceb8552c0c4da6302c176a1e8a939068419200fa88b80236f71

- **Individual life margins are expected to be at the lower end of the long-term guidance range, with adjusted margin expectations of 13% to 15% for 2024**.  **[PFG_3381233_21]**
- **Per participant fee revenue in the retirement business is not showing significant growth and remains relatively constant**.  **[PFG_3381233_20]** **[PFG_3381233_19]**
- **Principal Global Investors (PGI) fee rates have declined year-over-year to 28 basis points, impacted by market conditions and product mix shifts**.  **[PFG_3381233_7]**

c182567931b82788181274785023649f0e825e71703e82edca4b0dfed3684b84

- **Principal Global Investors (PGI) reported strong flows**, particularly in institutional real estate and fixed income, and had their **best mutual fund sales in two years**, signaling positive momentum in asset management. They are also seeing **$6 billion of unfunded capital commitments in institutional real estate strategies** projected to be called over the next 18 to 24 months.  **[PFG_3381233_6]**
- **Specialty Benefits experienced robust growth**, with **55% of premium growth coming from net new business**, driven by strong sales in the small to mid-sized business market. **Employment growth and wage growth contributed another 40%**, emphasizing the company's competitive advantage in this segment.  **[PFG_3381233_14]**
- **The company’s private credit business is a high-growth area**, with **strong investment results over the past three years**. Their focus on the **small and middle end of the direct lending space gives them an edge** over larger competitors, positioning them well for future growth in asset management.  **[PFG_3381233_23]**

fb71dea59717bfa1938c6ddd3e75b158a21d370d9503774a97994b7a439497e0

- **Principal International achieved record operating earnings of $121 million, record assets under management of $185 billion (up 8% from the previous quarter), and the highest net cash flows of $2.3 billion since Q1 2018.**  **[PFG_3403997_15]**
- **The company remains confident in delivering solid earnings growth and positive net cash flows in Q4 2024, expecting low single-digit revenue growth and margins within guidance.**  **[PFG_3403997_15]**
- **PFG anticipates improved underwriting results in Specialty Benefits in the fourth quarter, contributing to a strong earnings run rate.**  **[PFG_3403997_17]**

4fc2ffaf19c46086c10e377a0b48869f3c237996adb12d410e9801f331e6a184

- **Increased reserves for potential credit losses in the commercial mortgage loan portfolio, particularly in office properties, may signal heightened investment risk for PFG.** The company reported **$23 million of CML losses in the second quarter** due to reserve increases, including a **$15 million increase in loan-specific reserves across four properties** and a **$10 million increase in general reserves**.  **[PFG_3394769_24]**
- **Declining fee revenue rate in the Retirement segment could pressure future net revenue growth and margins.** The fee revenue rate was down **less than 1 basis point sequentially** and down about **2 basis points on a trailing 12-month basis**, even during periods of significant market outperformance. This decline may be due to fee compression and shifts in fee structures, potentially impacting profitability.  **[PFG_3394769_6]**
- **Reliance on a significant earnings increase in the second half to meet EPS growth guidance poses a risk if macroeconomic conditions do not cooperate.** The company needs to achieve an average of **slightly over $2 per share in the next two quarters** to meet its full-year EPS growth target of **9% to 12%**, compared to **$1.76 per share in the first half**. This requires favorable seasonality and business growth but may be challenging if adverse conditions arise.  **[PFG_3394769_8]**

04764e9716af4f2a8e358a6d3e1d5eded077f3e118f7f5842a842cf47af75fd1

1. **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.  **[PFG_3381233_10]**  We're targeting **$2.5 to $3 billion** in PRT sales for the full year  **[PFG_3381233_10]** , expecting most of that in the late third and fourth quarters.  **[PFG_3381233_10]** 

2. **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.  **[PFG_3381233_7]**  Market conditions shifted product mix, impacting revenue  **[PFG_3381233_7]** , but improved retail flows into higher-margin products and strong investment performance should support the fee rate.  **[PFG_3381233_7]** 

3. **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.  **[PFG_3381233_6]**  We see encouraging signs in retail, with interest expanding in higher-revenue equity strategies.  **[PFG_3381233_6]**  We have **$6 billion** in unfunded capital commitments in institutional real estate projected to call over the next 18 to 24 months.  **[PFG_3381233_6]** 

4. **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.  **[PFG_3381233_22]**  Focusing on the smaller and middle market direct lending space, we aim to generate attractive returns while being more risk-aware in deal selection.  **[PFG_3381233_22]** 

5. **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.  **[PFG_3381233_11]**  We're pleased we can continue providing participant education without being considered fiduciaries, which is positive for our business.  **[PFG_3381233_21]** 

6. **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.  **[PFG_3381233_13]**  We expect to remain at the lower end of our loss ratio range due to repricing and a favorable competitive environment.  **[PFG_3381233_16]** 

7. **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.  **[PFG_3381233_24]**  We expect this to normalize, but alternative investment returns may continue to cause quarterly volatility.  **[PFG_3381233_24]** 

8. **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.  **[PFG_3381233_8]**  We benefit from higher rates when we capture participant rollovers into our bank products.  **[PFG_3381233_8]** 

9. **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.  **[PFG_3381233_12]**  The fee revenue rate held steady at about **40 basis points** over the trailing 12 months.  **[PFG_3381233_12]** 

10. **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.  **[PFG_3381233_15]**  Our culture and competitive compensation draw top talent without relying heavily on non-compete agreements.  **[PFG_3381233_15]** 

11. **Individual Life Margins**  
    **Q:** Are weak individual life margins an aberration?  
    **A:** The weak margins are seen as a one-off.  **[PFG_3381233_21]**  We expect 2024 earnings to be higher than 2023, with margins in the **13% to 15%** range for most of the year.  **[PFG_3381233_21]** 

17c23902c3267cc20e8c22325fe5de168086bb02cef5a14d0c83b87882b51b1b

1. **EPS Guidance and Second-Half Expectations**  
   **Q:** How will you achieve EPS growth in the second half?  
   **A:** Management is confident in meeting the **9%-12% EPS growth** guidance for the full year, expecting an average of slightly over **$2 per quarter** in the next two quarters. This growth will be driven by natural business expansion, reduced share count from buybacks, and favorable seasonality in the dental and PGI segments. The pattern aligns with 2023, where EPS increased from **$1.65** in the first half to **$1.82** in the second half.  **[PFG_3394769_8]** **[PFG_3394769_23]** **[PFG_3394769_24]** 

2. **Retirement Fee Revenue and Fee Rate Compression**  
   **Q:** Why was retirement fee revenue lower this quarter?  
   **A:** Retirement fee revenue experienced a decline due to a decrease of less than **1 basis point** sequentially and about **2 basis points** over the trailing 12 months amid significant market outperformance. Contributing factors include non-asset-based fees not keeping pace with asset value increases, the impact of market performance patterns on average account values, diversified equity exposure with less correlation to the S&P 500, and increased use of guaranteed account products shifting revenue from fees to spread income.  **[PFG_3394769_6]** **[PFG_3394769_7]** 

3. **Use of Bermuda Entity and Capital Management**  
   **Q:** How does the Bermuda entity impact your capital position?  
   **A:** The Bermuda entity allows for more efficient capital use by reinsuring new term life business and selectively certain PRT cases, enabling the company to pursue a slightly higher volume of PRT deals with similar capital levels. While not significantly freeing up capital, it enhances growth opportunities. Additionally, the target RBC ratio was lowered from **400%** to a range of **375%-400%**, reflecting a changed risk profile after exiting certain businesses, releasing approximately **$360 million** of capital.  **[PFG_3394769_15]** **[PFG_3394769_21]** **[PFG_3394769_22]** 

4. **PRT Business Growth and Outlook**  
   **Q:** What's your outlook for pension risk transfer sales?  
   **A:** The pension risk transfer (PRT) market remains robust, with industry expectations of **$30-$40 billion** for the year. The company achieved **$1.7 billion** in PRT sales in the first half and now expects to reach the upper end of its **$2.5-$3 billion** guidance for the full year, provided targeted returns are met. Strong capabilities and existing client relationships, especially in the small to midsize market, support this optimistic outlook.  **[PFG_3394769_10]** **[PFG_3394769_13]** **[PFG_3394769_14]** 

5. **Participant Withdrawals Impact on 401(k) Business**  
   **Q:** Are participant withdrawals affecting your 401(k) business?  
   **A:** There is a slight uptick in participant withdrawal rates, but the primary driver of increased withdrawals is higher account balances from strong market performance, leading to larger dollar amounts withdrawn. Retirees and job changers with larger balances are seeking advice and potentially rolling over assets, but the company continues to retain assets through its advisory channels and IRA offerings.  **[PFG_3394769_16]** **[PFG_3394769_17]** 

6. **PGI Net Flows and Performance**  
   **Q:** How are you addressing PGI net outflows and performance issues?  
   **A:** Net outflows were impacted by the loss of a single **$900 million** low-fee mandate in long-duration fixed income, which was always low-fee. The company is focusing on higher-margin areas like real estate and private credit, with inflows of **$500 million** and **$150 million**, respectively. Despite short-term performance pressures, long-term investment performance is strong, and there's no direct correlation observed between short-term performance and flows.  **[PFG_3394769_11]** **[PFG_3394769_12]** 

7. **PGI Expenses and Margins**  
   **Q:** What caused higher expenses in PGI this quarter?  
   **A:** Elevated expenses were due to **$6 million** in severance costs from staff adjustments and strategic investments in the business, particularly in infrastructure debt capabilities. These moves are part of adapting the investment model in a competitive environment. Management remains confident in expense management and margin outlook.  **[PFG_3394769_9]** 

8. **Plan-Level Retention**  
   **Q:** How is your retirement plan retention rate?  
   **A:** Contract retention rates are at all-time positive levels with no significant large plan losses. Improved customer satisfaction and advisor net promoter scores contribute to strong retention across all market segments. The company feels it has moved past the volatility related to prior integrations and is optimistic about current retention trends.  **[PFG_3394769_18]** **[PFG_3394769_19]** **[PFG_3394769_20]** 

165c7a21f9b5f72c16a366d0b1ed3b8a0f43953bdd25902872097fff1be24090

- **Principal Financial Group's U.S. retirement business is demonstrating strong growth and resilience, particularly in the Small and Medium Business (SMB) segment, with recurring deposits up 14%, reflecting healthy fundamentals and revenue generation.**  **[PFG_3373177_10]** **[PFG_3373177_18]**
- **The company achieved exceptional performance in its Pension Risk Transfer (PRT) business, exceeding targeted returns by capitalizing on market opportunities, with nearly $3 billion in sales in 2023, and is targeting $2.5 to $3 billion in PRT sales for 2024, supported by capital efficiencies from its newly established Bermuda reinsurance entity.**  **[PFG_3373177_8]** **[PFG_3373177_11]**
- **Principal Asset Management has a strong $6 billion real estate pipeline ready to be deployed as conditions allow, alongside increased client engagement in specialty fixed income and small and mid-cap equities, indicating potential for improved net cash flows and growth in 2024.**  **[PFG_3373177_7]**

551d50d15e0fbc43f834783f963d2346132616b4008d0606b0973fd3704d826b

- **Principal Financial Group achieved $1 billion in Pension Risk Transfer (PRT) sales in Q2 2024**, exceeding targeted returns and capitalizing on a **robust PRT market expected to reach $30-$40 billion in 2024**.  **[PFG_3394769_10]**  The company leads in both the number of PRT contracts and premium amounts, focusing on small to midsize markets with attractive economics.  **[PFG_3394769_14]**
- **Contract retention is at all-time positive levels across all segments**, with **no significant large case losses** and increasing **customer satisfaction and adviser NPS scores**.  **[PFG_3394769_18]**  The successful integration of acquisitions, like the Wells transaction, has reduced future risks and volatility.  **[PFG_3394769_19]**
- **The company remains confident in achieving its full-year EPS growth guidance of 9% to 12%**, supported by natural business growth, seasonality factors, and share repurchases contributing to a higher EPS in the second half of the year.  **[PFG_3394769_8]**

0265af76d92d8c15144f1ff5062eb1c92448c5b0f69a878b345ec23510bc7adf

1. **Capital Generation Outlook**  
   **Q:** What's the outlook for capital generation for the rest of the year and into 2025?  
   **A:** Deanna Strable-Soethout expressed confidence in meeting their full-year free cash flow target of **75% to 85%** of net income, with expectations of strong free cash flow in the fourth quarter.  **[PFG_3403997_16]**  She feels good about remaining within that target range for 2025 as well.  **[PFG_3403997_16]** 

2. **Real Estate Market Recovery**  
   **Q:** What are your thoughts on the real estate market and its impact on investments?  
   **A:** Daniel Houston and Kamal Bhatia agreed that there is a recovery in commercial real estate.  **[PFG_3403997_17]**  Kamal noted that their core real estate fund had its first gross positive total return in this market cycle  **[PFG_3403997_17]** , indicating improving sentiment. However, transactional activity remains below historical norms due to crosscurrents like inconsistent economic data and geopolitical factors.  **[PFG_3403997_17]** 

3. **Participant Withdrawals Affecting RIS Fees**  
   **Q:** How are participant withdrawals impacting the RIS fee business?  
   **A:** Christopher Littlefield explained that the increase in participant withdrawals is primarily due to strong market performance, accounting for **75%** of the withdrawals.  **[PFG_3403997_9]**  There's a slight uptick in the rate among older participants, contributing to **25%** of the impact.  **[PFG_3403997_9]**  Despite this, they feel good about the underlying fundamentals of the business.  **[PFG_3403997_9]** 

4. **PGI Performance and Net Outflows**  
   **Q:** Can you discuss PGI's improved momentum on gross inflows and increasing withdrawals leading to net outflows?  
   **A:** Kamal Bhatia highlighted positive net cash flows from Principal International (PI), with record flows of **$2.3 billion**.  **[PFG_3403997_11]**  While PGI source flows were roughly breakeven in retail and positive in private institutional markets, higher outflows in public institutional markets affected net flows due to the lumpy nature of institutional activity.  **[PFG_3403997_11]** 

5. **Assumption Review Impact on Life Earnings**  
   **Q:** How did the assumption review affect the Life Insurance segment's ongoing GAAP earnings and operating margins?  
   **A:** Amy Friedrich stated that the results include any ongoing impacts from the assumption review, with run-rate impacts being immaterial.  **[PFG_3403997_18]**  There's a slight decrease in Specialty Benefits and Life, each less than **$0.01** per share per quarter.  **[PFG_3403997_18]** 

6. **Specialty Benefits Growth Slowdown**  
   **Q:** What are the drivers behind the slowdown in Specialty Benefits growth to 6%?  
   **A:** Amy Friedrich explained that the slowdown is largely due to no new Paid Family and Medical Leave (PFML) sales, which were nearly **$20 million** in the prior year's quarter.  **[PFG_3403997_7]**  A competitive environment, particularly in dental, has also impacted growth.  **[PFG_3403997_7]**  They expect premium and fee growth to stay within the bottom end of their communicated range.  **[PFG_3403997_7]** 

7. **Dental Experience and Loss Ratios**  
   **Q:** What are you seeing in dental experience with elevated loss ratios?  
   **A:** Amy Friedrich noted that the dental loss ratio improved sequentially by nearly **400 basis points**.  **[PFG_3403997_8]**  However, it's slightly above expectations due to dental being an inflationary product.  **[PFG_3403997_8]**  They've been taking measured pricing actions and expect dental loss ratios to continue declining in the fourth quarter.  **[PFG_3403997_8]** 

8. **Severance Expenses Outlook**  
   **Q:** Do you have any plans for additional severance that will not be called out as a significant variance?  
   **A:** Daniel Houston stated that they do not foresee any large severance adjustments on the horizon.  **[PFG_3403997_14]**  They constantly look for opportunities to be more efficient but do not expect significant severance expenses.  **[PFG_3403997_14]** 

9. **PRT Activity and 2025 Expectations**  
   **Q:** What are your expectations for Pension Risk Transfer activity for the rest of 2024 and into 2025?  
   **A:** Christopher Littlefield expects to deliver **$3 billion** in PRT sales at attractive returns in 2024, anticipating a robust fourth quarter.  **[PFG_3403997_20]**  He sees opportunities for growth in 2025 due to pension funds being highly funded.  **[PFG_3403997_20]** 

10. **Strategies to Improve Net Flows**  
    **Q:** What strategies are in place to push towards positive net flows in PGI and RIS?  
    **A:** Kamal Bhatia mentioned ensuring a robust pipeline of RFP activities, which are up **12%** and have exceeded 2022 and 2023 levels.  **[PFG_3403997_25]**  They're expanding equity capabilities and seeing increased interest in their private credit business.  **[PFG_3403997_25]**  Christopher Littlefield emphasized focusing on profitable revenue growth, particularly in SMB flows, which are up **11%**.  **[PFG_3403997_25]** 

11. **Variable Investment Income Expectations**  
    **Q:** Should we expect variable investment income to be below long-term expectations going forward?  
    **A:** Deanna Strable-Soethout indicated some pressure on variable investment income over the next few quarters.  **[PFG_3403997_20]**  While there was slight outperformance from real estate and strong equity returns, private equity returns were negative, and prepayments remained minimal.  **[PFG_3403997_20]** 

12. **Principal International's Sustainability**  
    **Q:** Is the favorable performance of Principal International sustainable?  
    **A:** Joel Pitz expressed confidence in delivering on the 2024 outlook, citing record operating earnings of **$121 million**, record AUM of **$185 billion**, and the highest net cash flows since 2018 at **$2.3 billion**.  **[PFG_3403997_15]**  They expect solid earnings growth and positive net cash flows in the fourth quarter.  **[PFG_3403997_15]** 

13. **Withdrawal Rates Among Older Cohorts**  
    **Q:** Do you expect the uptick in withdrawal rates among older cohorts to have a more meaningful impact?  
    **A:** Christopher Littlefield stated they are not seeing a significant increase in withdrawal rates.  **[PFG_3403997_13]**  While there's a slight uptick year-over-year, it was down sequentially, and they don't expect big changes.  **[PFG_3403997_13]** 

14. **RIS Fee Revenue Decompression**  
    **Q:** Can you provide additional color on the RIS fee revenue decompression this year?  
    **A:** Christopher Littlefield explained that the fee revenue rate is down about **2 basis points** versus a year ago.  **[PFG_3403997_21]**  Strong equity markets are pressuring fee revenue rates due to the denominator effect.  **[PFG_3403997_21]**  They expect to be within their guidance of **2 to 3 basis points** of compression for the full year.  **[PFG_3403997_21]** 

15. **Exposure to Fed Funds and SOFR**  
    **Q:** Do you have any exposure to Fed funds and SOFR in terms of floating rate assets?  
    **A:** Deanna Strable-Soethout stated they have very little impact from interest rates, with virtually no net exposure to floating rates.  **[PFG_3403997_26]**  They do not expect any significant impact from a drop in rates moving forward.  **[PFG_3403997_26]** 

16. **Lapsations in Term Life Policies**  
    **Q:** How do lapsations of term life policies affect your earnings?  
    **A:** Joel Pitz explained that lower lapsation rates mean customers are staying longer, which is positive, but it results in increased liabilities under accounting rules.  **[PFG_3403997_23]**  Amy Friedrich added that while it causes a charge, they like the strategy as it aligns with their focus on the business market.  **[PFG_3403997_24]** 

d0c63dba5799a2534bbdd899cf7967582b374949df2303f2715adac8ba77ce87

- **Principal International expects tempered net cash flows in Q4 2024**, indicating potential slowing momentum in its international business.  **[PFG_3403997_15]**
- **In-plan annuity offerings have not gained significant traction yet**, potentially limiting growth opportunities in retirement services.  **[PFG_3403997_10]**
- **Slight uptick in withdrawal rates among older participants** could impact assets under management as baby boomers retire, potentially reducing fee income.  **[PFG_3403997_13]**

2d8696f3842b303d8a78b713a5ac8c16344262560b599430ad0db99f4d528bd4

Principal Financial Group Inc (PFG)

Financials