Slides
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Audience disclosure Second Quarter 2026 Earnings July 27, 2026 PRINCIPAL FINANCIAL GROUP RETIREMENT ASSET MANAGEMENT BENEFITS & PROTECTION
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Highlights4 • Enterprise pre- tax operating earnings growth of 13%, driven by net revenue5 growth of 6% and margin expansion of 200 bps • Retirement and Income Solutions pre- tax operating earnings increased 8%; 120 bps margin expansion to 41.4% • Principal Asset Management pre- tax operating earnings increased 6%, driven by 4% growth in Investment Management and 11% in International Pension • Benefits and Protection pre- tax operating earnings increased 29% on record Specialty Benefits earnings driven by strong underwriting results, with a loss ratio of 57.4%, and improved Life Insurance mortality experience Capital • Returned $427M of capital to shareholders during 2Q26: $250M of share repurchases and $177M of common stock dividends • Increased 3Q26 common stock dividend to $0.84; increased 8% from 3Q25 and on a trailing twelve- month basis • Excess and available capital position of $1.6B Delivering on long-term guidance Key takeaways 1 This is a non-GAAP measure, see reconciliation in appendix. Excludes significant variances, see slide 12 for more details. 2 Based on non-GAAP net income attributable to PFG, excluding income or loss from exited business. 3 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 12 for more details. 4 Figures represented exclude significant variances, see slide 12 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. Note: Some totals throughout this presentation may not sum due to rounding. 2 17% / 15% 80% 16.4% 2Q / YTD EPS growth1 TTM FCF %2 ROE3 (9-12% target) (75-85% target) (15-17% target)
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Leverage leadership in recordkeeping to grow Retirement Ecosystem Strategic priorities are driving sustained growth Expand market leadership by serving SMBs holistically Leverage privileged partnerships to grow Global Asset Management1 2Q26 HIGHLIGHTS Retirement platform Transfer deposits +30% y/y +28% TTM Recurring deposits +6% y/y +5% TTM WSRS participant engagement Deferring participants +4.0% y/y +3.6% TTM Average deferral per member +3.5% y/y +2.8% TTM Participant roll-ins $1.7B QTR $7.2B TTM Sales DCIO $2.1B QTR $7.9B TTM PRT $0.5B QTR $2.4B TTM 2Q26 HIGHLIGHTS WSRS SMB Transfer deposits (5)% y/y +16% TTM Recurring deposits +6% y/y +6% TTM Group Benefits SMB Employment growth +1.6% TTM Products per customer 3.18 Life SMB Business market life premiums and fees +8% y/y +11% TTM 2Q26 HIGHLIGHTS NCF Active ETF +$0.5B QTR +$2.0B TTM U.S. Real Estate +$0.7B QTR +$4.0B TTM AUM Private markets +10% y/y International Pension +18% y/y Gross Sales Investment Management +2% y/y +13% TTM 1 Highlights mentioned attributable to Investment Management unless otherwise noted.
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2Q 2026 financial highlights 2Q 2026 operating results Capital deployments $427M returned to shareholders: $250M of share repurchases $177M of common stock dividends 1 This is a non-GAAP measure, see reconciliation in appendix. 2 Excludes significant variances, see slide 12 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. 4 Includes proceeds from 2Q26 $400M debt issuance that will be used for general corporate purposes, which may include repayment, redemption or refinancing of existing debt. Reported non-GAAP operating earnings1 Non-GAAP operating earnings, excluding significant variances (xSV)2 $547M +12% vs. 2Q 2025 $529M +13% vs. 2Q 2025 Reported non-GAAP operating earnings per diluted share (EPS )1 Non-GAAP EPS, xSV2 $2.50 +16% vs. 2Q 2025 $2.42 +17% vs. 2Q 2025 Capital & liquidity Excess and available capital $1.6B $950M at Hold Co $300M excess subsidiary capital $350M in excess of 375% RBC Estimated PLIC RBC ratio 400% Debt to capital ratio3 23.6%4 AUM & NCF Total company AUM $808B +7% vs. 2Q25 Total company AUM NCF ($11.1)B 4 Announced 3Q 2026 common stock dividend $0.84 +8% from 3Q25
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Retirement and Income Solutions Pre-tax operating earnings, xSV1 ($ in millions) 2Q25 2Q26 2Q25 TTM 2Q26 TTM Impact of significant variances1 (4) 2 (87) (25) Reported pre-tax operating earnings 292 323 1,102 1,235 Operating margin2 xSV1 40.2% 41.4% 40.3% 41.2% +8% +6% 2Q26 QTD 2Q26 TTM Net revenue +5.4% +3.6% Operating margin2 41.4% 41.2% • Pre-t ax operating earnings increased 8%, driven by net r evenue growth of 5% and disciplined expense m anagement • Operating margin improved 120 bps to 41.4% • Transfer deposits increased 30% to $9B • Recurring deposits increased 6% to $13B Delivered strong earnings and net revenue growth with margin expansion 2Q26 highlights1,3 1 Impact of VII in 2Q26. Impact of a one-time expense accrual release and VII in 2Q25. Trailing twelve months excludes impacts of actuarial assumption reviews and other significant variances. 2 Pre-tax operating earnings divided by net revenue. 3 Highlights mentioned compared to 2Q25 unless otherwise noted. Key metrics1 296 321 1,189 1,260
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Principal Asset Management • Pre-t ax operating earnings increased 6%, driven by 4% growth in Investment Management and 11% growth in I nternational Pension • Investment Management operating margin improved 110 bps t o 37.5%; International Pension operating margin improved 50 bps to 47.3% • International Pension record reported AUM of $169B, up 18% • Investment Management net outflows of $(12)B, c oncentrated in a small number of U.S. active equity strategies 2Q25 2Q26 2Q25 TTM 2Q26 TTM Impact of significant variances1 13 19 38 50 Reported pre-tax operating earnings 236 256 909 971 Operating margin2 xSV1 Investment Management 36.4% 37.5% 35.5% 36.5% International Pension 46.8% 47.3% 46.0% 46.5% 224 238 871 922 +6% +6% Pre-tax operating earnings, xSV1 ($ in millions) Higher earnings on AUM growth and margin expansion Investment Management International Pension Investment Management International Pension 2Q26 QTD 2Q26 TTM 2Q26 QTD 2Q26 TTM Operating revenues less pass-through expenses 3 +0.6% +2.0% Net revenue +9.6% +5.7% Operating margin2 37.5% 36.5% 47.3% 46.5% 1 Impact of VII and higher than expected encaje performance, offset by lower than expected Latin American inflation in 2Q26. Impact of higher than expected encaje performance and a one-time expense accrual release, offset by Latin American inflation in 2Q25. Trailing twelve months excludes impacts of actuarial assumption reviews and other significant variances. 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. 4 Highlights mentioned compared to 2Q25 unless otherwise noted. 2Q26 highlights1,4 Key metrics1 153 159 71 78 592 625 278 297
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Specialty Benefits Life Insurance 2Q26 QTD 2Q26 TTM 2Q26 QTD 2Q26 TTM Premium and fees +3.9% +3.4% (5.8)% +0.7% Operating margin2 18.5% 17.4% 13.1% 13.4% Loss ratio 57.4% 57.9% 2Q26 highlights1,3 Benefits and Protection • Pre-t ax operating earnings of $191M increased 29% and m argin expanded 370 bps • Specialty Benefits record pre-t ax operating earnings of $162M, up 29% driven by business growth and more f avorable underwriting experience; operating margin i mproved 360 bps • Specialty Benefits loss ratio of 57.4% improved 280 bps, dr iven by improvements across all products • Life Insurance pre-t ax operating earnings of $29M, up 29%, driven by improved mortality experience; operating margin e xpanded 350 bps 2Q25 2Q26 2Q25 TTM 2Q26 TTM Impact of significant variances1 (1) (7) (100) (112) Reported pre-tax operating earnings 148 184 486 610 Operating margin2 xSV1 Specialty Benefits 14.9% 18.5% 14.9% 17.4% Life Insurance 9.6% 13.1% 9.9% 13.4% 148 191 587 722 +23% +29% Pre-tax operating earnings, xSV1 ($ in millions) Specialty Benefits Life Insurance Strong earnings driven by favorable SBD underwriting and Life mortality 1 Impact of VII in 2Q26. Impact of one-time expense accrual release and VII in 2Q25. Trailing twelve months excludes impacts of actuarial assumption reviews and other significant variances. 2 Pre-tax operating earnings divided by premium and fees. 3 Highlights mentioned compared to 2Q25 unless otherwise mentioned. Key metrics1 126 162 23 29 493 595 93 127
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Appendix
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Strategic Rationale Financial Impact About Beam Benefits Acquisition of Beam Benefits – Accelerating our SMB Growth Strategy • Aligns with our small & midsized b usinesses strategic priority • Broadens our reach and distribution f ootprint within the SMB segment • Adds meaningful scale with $175M of pr emium • Dental, vision, life, disability, and s upplemental health benefits provider serving the SMB segment • Available in 46 states + D.C. • Modern digital platform with d ifferentiating AI driven tools • 2026 EPS & capital targets unchanged • Specialty Benefits growth to be at or a bove the high end of 5-9% targeted range in 2027 • Expected to close in the second half of 2026 25,000+ employer customers $175M premiums in 2025
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Audience disclosure Investment performance 37% 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 (83 total, 74 are ranked). 3 Percentage of Principal actively managed mutual funds, exchange traded funds (ETFs), insurance separate accounts, and colle ctive 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 com posites 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-informative. Please see Morningstar rankings above for informative asset allocation performance. Asset Weighted % of AUM outperforming Morningstar median3 % of composite AUM outperforming benchmarks4 As of 6/30/2026 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 31% 49% 50% 36% 5% 37% 36% 85% Fixed Income 47% 26% 78% 81% 71% 76% 92% 100% Asset Allocation5 48% 34% 78% 59% N/A N/A N/A N/A Total 41% 40% 67% 52% 31% 45% 46% 75% Equal Weighted % of funds outperforming Morningstar median3 % of composites outperforming benchmarks4 As of 6/30/2026 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 26% 33% 45% 40% 18% 41% 44% 67% Fixed Income 60% 40% 53% 73% 77% 77% 86% 97% Asset Allocation5 34% 27% 55% 54% N/A N/A N/A N/A Total 41% 32% 51% 53% 48% 55% 55% 72% 10
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Audience disclosure 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% +/- 2% +/- 8% And the primary businesses impacted are… RIS Investment Management All International Pension RIS Life Insurance Specialty Benefits 45% 10% 20% 25% RIS Asset-based fee revenue Large cap equities Small and mid cap equities International equities Fixed Income 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 i s materially consistent with the impact to non-GAAP pre-tax operating earnings. 20% 15% 10% 5% 35% 15% Investment Management AUM exposure Large cap equities Small and mid cap equities International equities REITS Fixed Income Alternatives, including real estate
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Variable investment income Encaje and Inflation Total significant variances Retirement and Income Solutions $2.0 - $2.0 International Pension $(5.1) $23.8 $18.7 Specialty Benefits $(3.0) - $(3.0) Life Insurance $(4.2) - $(4.2) Corporate $8.4 - $8.4 Total pre-tax impact $(1.9) $23.8 $21.9 Total after-tax impact $0.6 $17.7 $18.3 EPS impact $0.08 2Q 2026 significant variances Business unit impacts of significant variances (in millions)
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Three months ended (in millions) Investment Management operating revenues less pass-through expenses 6/30/26 6/30/25 Operating revenues $472.3 $467.2 Commissions and other expenses (40.7) (38.2) Operating revenues less pass-through expenses $431.6 $429.0 Three months ended (in millions) Non-GAAP operating earnings (losses) 6/30/26 6/30/25 Net income attributable to PFG $403.4 $406.2 Net realized capital (gains) losses, as adjusted 12.0 57.0 (Income) loss from exited business 131.6 26.1 Non-GAAP operating earnings $547.0 $489.3 Non-GAAP financial measure reconciliations Three months ended Diluted earnings per common share 6/30/26 6/30/25 Net income $1.84 $1.79 Net realized capital (gains) losses, as adjusted 0.06 0.25 (Income) loss from exited business 0.60 0.12 Non-GAAP operating earnings $2.50 $2.16 Impact of significant variances (0.08) (0.09) Non-GAAP operating earnings, excluding significant variances $2.42 $2.07 Weighted-average diluted common shares outstanding (in millions) 218.7 226.5 Three months ended (in millions) Income taxes 6/30/26 6/30/25 Total GAAP income taxes $66.0 $69.9 Net realized capital gains (losses) tax adjustments 3.6 13.4 Income taxes attributable to noncontrolling interest (0.3) (0.3) Income taxes related to equity method investments 17.6 15.9 Income taxes related to exited business 34.9 7.0 Income taxes $121.8 $105.6 13
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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 6/30/26 Stockholders’ equity $12,177.8 AOCI, other than foreign currency translation adjustment 2,526.9 Cumulative change in fair value of funds withheld embedded derivative (2,137.9) Noncontrolling interest (35.0) 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 $12,531.8 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 6/30/26 Net Income ROE available to common stockholders (including AOCI) 13.2% Cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment (0.6)% Net realized capital (gains) losses 1.2% (Income) loss from exited business 2.0% 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 15.8% Impact of significant variances 0.5% 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, excluding significant variances 16.4% Non-GAAP financial measure reconciliations 14
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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, 2025, as updated or supplemented from time to time in subsequent filings. We assume no obligation to update any forward-looking statement for any reason, which speaks as of its date. Forward looking statements