Slides
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Audience disclosure Third Quarter 2025 Earnings October 27, 2025 PRINCIPAL FINANCIAL GROUP RETIREMENT ASSET MANAGEMENT BENEFITS & PROTECTION
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Classification: Company Confidential Highlights4 • Enterprise net revenue growth5 of 4% and margin expansion of 180 bps; managed net cash flow of +$0.4 billion • Retirement and Income Solutions pre-t ax operating earnings increased 8% on net revenue growth of 4% and margin of 42% • Investment Management pre-t ax operating earnings increased 9% on management fee growth of 5% and margin expansion of 180 bps to 40% • Specialty Benefits record pre-t ax operating earnings increased 28% on strong underwriting results Capital • Returned $398M excess capital to shareholders during 3Q25: $225M share repurchases; $173M common stock dividends • Raised 4Q25 common stock dividend to $0.79, a 1-c ent increase from 3Q25 and an 8% increase from 4Q24 • Excess and available capital position of $1.6B • Debt to capital ratio of 22.0% Delivering on long-term guidance Key takeaways 1 This is a non-GAAP measure, see reconciliation in appendix. Excludes significant variances, see slide 10 for more details. 2 Non-GAAP return on equity, excluding cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment. Excludes impacts of significant variances, see slide 10 for more details. 3 Based on non-GAAP net income attributable to PFG, excluding income or loss from exited business. 4 Quarterly figures represented exclude significant variances, see slide 10 for more details. 5 This is a non-GAAP measure that reflects total segment operating revenue less: benefits, claims and settlement expenses, liability for future policy benefits remeasurement (gain) loss, market risk benefit remeasurement (gain) loss, and dividends to policyholders. 2 3Q / YTD EPS growth1 (9-12% target) 13% / 14% 15.5% ROE2 (14-16% target) 91% YTD FCF %3 (75-85% target)
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Classification: Company Confidential Leverage leadership in recordkeeping to grow Retirement Ecosystem Priorities to drive sustained growth Serve SMBs holistically Leverage privileged partnerships to scale Global Asset Management HIGHLIGHTS 3Q25 WSRS transfer deposits +13% y/y WSRS deferring participants +3% y/y Average deferral per member +2% y/y PRT sales $0.5B DCIO sales $1.7B HIGHLIGHTS 3Q25 WSRS SMB recurring deposits +8% y/y WSRS SMB transfer deposits +27% y/y Group Benefits employment growth +1.7% TTM Group Benefits products per customer 3.11 HIGHLIGHTS1 3Q25 Gross sales +19% y/y Private NCF +$1.7B Private AUM +9% y/y Active ETF NCF +$0.5B 1 Highlights mentioned attributable to Investment Management.
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Classification: Company Confidential 3Q 2025 financial highlights 3Q 2025 operating results Capital deployments $398M returned to shareholders: $225M of share repurchases $173M of common stock dividends 1 This is a non-GAAP measure, see reconciliation in appendix. 2 Excludes significant variances, see slide 10 for more details. 3 This is a non-GAAP financial measure. Debt to capital ratio excludes cumulative change in fair value of funds withheld embedded derivative and AOCI. Reported non-GAAP operating earnings1 Non-GAAP operating earnings, excluding significant variances (xSV)2 $474M +15% vs. 3Q 2024 $523M +9% vs. 3Q 2024 Reported non-GAAP operating earnings per diluted share (EPS )1 Non-GAAP EPS, xSV2 $2.10 +19% vs. 3Q 2024 $2.32 +13% vs. 3Q 2024 Capital & liquidity Excess and available capital3 $1.6B $800M at Hold Co $350M excess subsidiary capital $400M in excess of 375% RBC Estimated PLIC RBC ratio 400% Debt to capital ratio3 22.0% AUM & NCF Total company AUM $784B +4% vs. 2Q25 Total company AUM NCF +$0.4B 4 Announced 4Q 2025 common stock dividend $0.79 +8% from 4Q 2024 dividend +8% on a full-year basis
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Classification: Company Confidential Retirement and Income Solutions Pre-tax operating earnings, xSV1 ($ in millions) Key metrics13Q24 3Q25 3Q24 TTM 3Q25 TTM Impact of significant variances1 (46) (5) (94) (46) Reported pre-tax operating earnings 246 310 1,041 1,166 Operating margin2 xSV1 40% 42% 40% 41% +8% +7% 3Q25 QTD 3Q25 TTM Net revenue +4% +4% Operating margin2 42% 41% • Pre-t ax operating earnings of $315 million increased 8% due to 4% higher net revenue and disciplined expense m anagement • Margin improved 130 bps to 42% • Sales of $7 b illion increased 8% 3Q25 highlights1 1 Excludes impacts of significant variances, see slide 10 for more details. 2 Pre-tax operating earnings divided by net revenue. Strong earnings and margin expansion 292 315 1,135 1,212
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Classification: Company Confidential Principal Asset Management Key metrics1 • Investment Management: margin expanded 180 bps due to 5 % higher management fees and expense discipline • Investment Management: managed net cash flow of +$0.8 bi llion; gross sales of $32 billion • International P ension: record reported AUM of $151 billion, increased 9% from the year ago quarter 3Q25 highlights1 3Q24 3Q25 3Q24 TTM 3Q25 TTM Impact of significant variances1 39 29 39 28 Reported pre-tax operating earnings 269 275 864 915 Operating margin2 xSV1 Investment Management 38% 40% 34% 36% International Pension 45% 47% 45% 47% Pre-tax operating earnings, xSV1 ($ in millions) Strong earnings and margin expansion Investment Management International Pension Investment Management 3Q25 QTD 3Q25 TTM Operating revenues less pass-through expenses3 +4% +6% Operating margin2 40% 36% International Pension 3Q25 QTD 3Q25 TTM Net revenue x-FX, SV (1%) +2% Operating margin2 47% 47%1 Excludes impacts of significant variances, see slide 10 for details. 2 Investment Management’s operating margin is pre-tax operating earnings, adjusted for noncontrolling interest, divided by operating revenues less pass-through expenses; International Pension’s operating margin is pre-tax operating earnings divided by net revenue. 3 This is a non-GAAP financial measure, see reconciliation in appendix. 230 246 825 887 +7% +7% 159 174 71 73 544 607 281 280
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Classification: Company Confidential Benefits and Protection • Pre-t ax operating earnings increased 20%, due to business growth and more favorable Specialty Benefits underwriting w hich improved 340 bps, driven by group life, group di sability, and dental • Specialty Benefits: record pre-t ax operating earnings increased 28% • Specialty Benefits: operating margin of 17% expanded 330 bps • Life Insurance: strong business market premium and fees g rowth of 11% Key metrics1 3Q24 3Q25 3Q24 TTM 3Q25 TTM Impact of significant variances1 (84) (91) (120) (108) Reported pre-tax operating earnings 64 87 453 508 Operating margin2 xSV1 14% 16% 14% 14% 1 Excludes impacts of significant variances, see slide 10 for more details. 2 Pre-tax operating earnings divided by premium and fees. 3Q25 highlights1 Pre-tax operating earnings, xSV1 ($ in millions) Specialty Benefits record earnings driven by favorable underwriting experience and business growth Specialty Benefits 3Q25 QTD 3Q25 TTM Premium and fees +3% +4% Loss ratio 58% 59% Operating margin2 17% 16% Life Insurance 3Q25 QTD 3Q25 TTM Premium and fees +3% +2% Operating margin2 12% 10% Specialty Benefits Life Insurance +8% +20% 148 177 573 616 115 147 33 30 456 525 117 91
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Audience disclosure Appendix
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Classification: Company Confidential Impacts of 3Q 2025 actuarial assumption review 9 Actuarial assumption review after-tax operating earnings impact Q3 2025 Experience ($19M) Model Refinements ($34M) Income statement line item impacts of the actuarial assumption review (in millions) Line Item RIS International Pension Specialty Benefits Life Insurance Total Premiums and other considerations $ - $ - $ - $ - $ - Fees and other revenues - 4.8 - - 4.8 Net investment income - - - - - Total operating revenues - 4.8 - - 4.8 Benefits, claims and settlement expenses - - 1.9 2.1 4.0 Liability for future policy benefits remeasurement (gain) loss (12.0) - (16.2) 89.4 61.2 Market risk benefit remeasurement (gain) loss - - - - - Dividends to policyholders - - - 1.9 1.9 Commissions - - - - - Capitalization of DAC and contract costs - - - - - Amortization of DAC and contract costs - 4.8 - - 4.8 Depreciation and amortization - - - - - Interest expense on corporate debt - - - - - Compensation and other - - - - - Total expenses (12.0) 4.8 (14.3) 93.4 71.9 Non-GAAP pre-tax operating earnings (losses) $ 12.0 $ 0.0 $ 14.3 $ (93.4) $ (67.1) Non-GAAP after-tax operating earnings (losses) $ 9.5 $ 0.0 $ 11.3 $ (73.8) $ (53.0) • Primary drivers reflect model refinements, with r emainder from experience updates
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Audience disclosure Non-GAAP operating earnings Excluding impacts from actuarial assumption review and other significant variances 3Q25 vs 3Q24 (in millions, except per share data) 3Q25 as reported Significant variances 3Q25 excluding significant variances 3Q24 as reported Significant variances 3Q24 excluding significant variances 3Q25 vs 3Q24 excluding significant variances Actuarial assumption review Other significant variances1 Actuarial assumption review Other significant variances2 Retirement and Income Solutions $ 310.3 $ 12.0 $ (16.5) $ 314.8 $ 246.1 $ (16.7) $ (29.5) $ 292.3 $ 22.5 8% Principal Asset Management Investment Management 173.5 - - 173.5 159.1 - - 159.1 14.4 9% International Pension 101.2 - 28.5 72.7 109.7 21.1 17.9 70.7 2.0 3% Total 274.7 - 28.5 246.2 268.7 21.1 17.9 229.7 16.5 7% Benefits and Protection Specialty Benefits 155.5 14.3 (6.0) 147.2 101.7 (11.6) (2.0) 115.3 31.9 28% Life Insurance (69.0) (93.4) (5.9) 30.3 (37.3) (74.8) 4.5 33.0 (2.7) -8% Total 86.5 (79.1) (11.9) 177.5 64.4 (86.4) 2.5 148.3 29.2 20% Corporate (91.6) - 6.9 (98.5) (79.4) - 10.4 (89.8) (8.7) 10% Non-GAAP pre-tax operating earnings (losses) $ 579.9 $ (67.1) $ 7.0 $ 640.0 $ 499.8 $ (82.0) $ 1.3 $ 580.5 $ 59.5 10% Income taxes 106.2 (14.1) 3.6 116.7 87.8 (13.1) 0.2 100.7 16.0 16% Non-GAAP operating earnings (losses) $ 473.7 $ (53.0) $ 3.4 $ 523.3 $ 412.0 $ (68.9) $ 1.1 $ 479.8 $ 43.5 9% Net realized capital gains (losses) (8.1) (0.2) - (7.9) 7.1 3.7 - 3.4 (11.3) N/M Income (loss) from exited business (251.8) (6.1) - (245.7) (639.1) (20.6) - (618.5) 372.8 N/M Net income (loss) attributable to Principal Financial Group, Inc. $ 213.8 $ (59.3) $ 3.4 $ 269.7 $ (220.0) $ (85.8) $ 1.1 $ (135.3) $ 405.0 N/M Non-GAAP operating earnings per share (EPS) $ 2.10 $ (0.24) $ 0.02 $ 2.32 $ 1.76 $ (0.29) $ 0.00 $ 2.05 $ 0.27 13% 10 1 Other significant variances in 3Q25 QTD include 1) lower than expected VII in RIS, International Pension, Specialty Benefits, and Life Insurance; (2) higher than expected VII in Corporate; 3) impact of both higher than expected encaje performance and Latin American inflation in International Pension; 2 Other significant variances in 3Q24 QTD include 1) lower than expected VII in RIS, International Pension, Specialty Benefits, and Life Insurance; (2) higher than expected VII in Corporate; 3) impact of both higher than expected encaje performance and Latin American inflation in International Pension; (4) impact of GAAP-only regulatory closed block adjustment in Life Insurance.
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Investment performance 55% of fund-level AUM has 4 or 5 star rating from Morningstar1,2 1 Asset weighted. 2 Includes only funds with ratings assigned by Morningstar; non- rated funds excluded (84 total, 77 are ranked). 3 Percentage of Principal actively managed mutual funds, exchange traded funds (ETFs), insurance separate accounts, and collecti ve investment trusts (CITs) in the top two Morningstar quartiles. Excludes Money Market, Stable Value, Liability Driven Investment (Short, Intermediate and Extended Duration), Hedge Fund Separate Account, & U.S. Property Separate Account. 4 Composite returns are calculated on a gross basis. All composites compared to official Global Investment Performance Standa rds (GIPS) composite benchmark . Excludes passive composites and doesn’t include certain strategies or mandates for which GIPS comp osites are not calculated (e.g., Lifetime/Target Date strategies). Lifetime/Target Date funds are covered under separate peer -relative calculations. “Total” percentages include equities, fixed income and other asset classes and mandates with GIPS composites (e.g., asset allocation). 5 Coverage of asset allocation strategies in benchmark-relative composites is minimal and non-i nformative. Please see Morningstar rankings above for informative asset allocation performance. Asset Weighted % of AUM outperforming Morningstar median3 % of composite AUM outperforming benchmarks4 As of 9/30/2025 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 36% 60% 46% 79% 44% 74% 58% 85% Fixed Income 53% 87% 70% 82% 72% 94% 97% 94% Asset Allocation5 42% 37% 51% 61% N/A N/A N/A N/A Total 41% 54% 52% 71% 54% 81% 72% 88% Equal Weighted % of funds outperforming Morningstar median3 % of composites outperforming benchmarks4 As of 9/30/2025 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 40% 42% 41% 67% 60% 52% 38% 74% Fixed Income 40% 80% 60% 73% 76% 86% 88% 88% Asset Allocation5 34% 44% 47% 50% N/A N/A N/A N/A Total 37% 51% 48% 59% 68% 69% 63% 81% 11
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Market sensitivities If macroeconomics change by… Equity market return1 +/- 10% Interest rates +/-100 bps FX: U.S. Dollar2 +/- 10% Certain alternative investment valuation3 +/- 10% Then Principal’s annual non- GAAP pre-tax operating earnings will change by… +/- 5-8% +/- (1)-1% +/- < 1% +/- 9% And the primary businesses impacted are… RIS Investment Management All International Pension RIS Life Insurance Specialty Benefits 30% 40% 20% 10% Investment Management Equity AUM Exposure Large cap Small and mid cap International REITs 40% 10% 20% 30% Investment Management Asset allocation AUM Exposure Large cap Small and mid cap International Fixed Income 40% 15% 15% 25% 5% RIS Asset-based fee revenue Large cap Small and mid cap International Fixed Income REITS Estimated impacts of changes in key macroeconomic conditions on annual non-GAAP pre-tax operating earnings relative to the next 12 months, prior to management expense actions: 1 Assumes an immediate 10% change in the S&P 500 followed by 2% growth per quarter thereafter. 2 Principal is primarily impacted by changes in Latin American and Asian currencies. Inverse relationship between movement of the U.S. dollar and impact to non-GAAP pre-tax operating earnings. 3 Includes hedge funds, private equity, infrastructure, and direct lending asset s. Separate and distinct from our equity risk associated with a decline in the S&P 500 index, assumes an immediate 10% decline in the value of these assets, followed by a 2% per quarter increase. Note: The impact to income before income taxes is materially consistent with the impact to non-GAAP pre-tax operating earnings.
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Three months ended (in millions) Investment Management operating revenues less pass-through expenses 9/30/25 9/30/24 Operating revenues $483.9 $466.4 Commissions and other expenses (39.9) (38.6) Operating revenues less pass-through expenses $444.0 $427.8 Three months ended (in millions) Non-GAAP operating earnings (losses) 9/30/25 9/30/24 Net income attributable to PFG $213.8 $(220.0) Net realized capital (gains) losses, as adjusted 8.1 (7.1) (Income) loss from exited business 251.8 639.1 Non-GAAP operating earnings $473.7 $412.0 Non-GAAP financial measure reconciliations Three months ended Diluted earnings per common share 9/30/25 9/30/24 Net income $0.95 $(0.95) Net realized capital (gains) losses, as adjusted 0.04 (0.03) (Income) loss from exited business 1.11 2.73 Impact of dilutive shares - 0.01 Non-GAAP operating earnings $2.10 $1.76 Weighted-average diluted common shares outstanding (in millions) 225.2 233.8 Three months ended (in millions) Income taxes 9/30/25 9/30/24 Total GAAP income taxes $14.5 $(100.4) Net realized capital gains (losses) tax adjustments 2.6 (7.6) Income taxes attributable to noncontrolling interest and equity method investments 22.2 25.8 Income taxes related to exited business 66.9 170.0 Income taxes $106.2 $87.8
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Period ended (in millions) Stockholders’ equity x- cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment, available to common stockholders 9/30/25 Stockholders’ equity $11,717.9 AOCI, other than foreign currency translation adjustment 2,689.4 Cumulative change in fair value of funds withheld embedded derivative (2,021.6) Noncontrolling interest (52.4) Stockholders’ equity x- cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment, available to common stockholders $12,333.3 Period ended Non-GAAP operating earnings ROE (x- cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment) available to common stockholders 9/30/25 Net Income ROE available to common stockholders (including AOCI) 13.7% Cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment (1.0)% Net realized capital (gains) losses 2.2% (Income) loss from exited business (0.2)% Non-GAAP operating earnings ROE (x- cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment) available to common stockholders 14.7% Non-GAAP financial measure reconciliations
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Additional Disclosures A non-GAAP financial measure is a numerical measure of performance, financial position, or cash flow that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP. The company uses a number of non-GAAP financial measures management believes are useful to investors because they illustrate the performance of the company’s normal, ongoing operations which is important in understanding and evaluating the company’s financial condition and results of operations. While such measures are also consistent with measures utilized by investors to evaluate performance, they are not, however, a substitute for U.S. GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure within the slides. The company adjusts U.S. GAAP financial 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 financial 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. The company also uses a variety of other operational measures that do not have U.S. GAAP counterparts, and therefore do not fit the definition of non-GAAP financial measures. Assets under management is an example of an operational measure that is not considered a non-GAAP financial measure. Use of non-GAAP financial measures This presentation 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, 2024, 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. Forward looking statements