Slides
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Third Quarter 2026 Earnings October 26, 2026 PRINCIPAL FINANCIAL GROUP RETIREMENT ASSET MANAGEMENT BENEFITS & PROTECTION
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Highlights4 • Enterprise earnings per share growth of 7%, driven by net revenue5 growth of 4% • Retirement and Income Solutions pre-tax operating earnings increased 5%, driven by net revenue growth of 4% and disciplined expense management while investing in the business • Principal Asset Management earnings were stable, with continued margin expansion driven by 240 bps of expansion in International Pension • Benefits and Protection pre-tax operating earnings increased 3% driven by improved Life Insurance mortality experience. Specialty Benefits loss ratio at 59%, below our long-term target Capital • Returned $429M of capital to shareholders during 3Q26: $250M of share repurchases and $179M of common stock dividends • Raised 4Q26 common stock dividend to $0.85, an increase of 8% from 4Q25 and 7% on a trailing twelve month basis • Excess and available capital position of $1.5B Delivering on long-term guidance Key takeaways 1 This is a non-GAAP measure, see reconciliation in appendix. Beginning in 3Q26, the impact of the actuarial assumption review is excluded from non-GAAP operating earnings, see slide 11 for more details. Excludes significant variances, see slide 9 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 9 for more details. 4 Figures represented exclude significant variances, see slide 9 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 7% / 12% 77% 16.6% 3Q / 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 3Q26 HIGHLIGHTS Retirement platform Transfer deposits (5)% y/y +24% TTM Recurring deposits +8% y/y +6% TTM WSRS participant engagement Deferring participants +4% y/y +4% TTM Average deferral per member +4% y/y +3% TTM Participant roll-ins $1.8B QTR $7.4B TTM Sales DCIO $1.5B QTR $7.3B TTM PRT $0.9B QTR $2.7B TTM 3Q26 HIGHLIGHTS WSRS SMB Transfer deposits +21% y/y +15% TTM Recurring deposits +7% y/y +7% TTM Specialty Benefits Sales +10% y/y +15% TTM Employment growth +1.8% TTM Products per customer incl. / excl. Beam 2.91 / 3.20 Life Business market life premiums and fees +11% TTM 3Q26 HIGHLIGHTS NCF Active ETF +$0.5B QTR +$1.9B TTM Private markets +$0.8B QTR +$1.9B TTM AUM Private markets +6% y/y International Pension +10% y/y Gross Sales Investment Management (6)% y/y +7% TTM 1 Highlights mentioned attributable to Investment Management unless otherwise noted.
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3Q 2026 financial highlights 3Q 2026 operating results Capital deployments $429M returned to shareholders: $250M of share repurchases $179M of common stock dividends 1 This is a non-GAAP measure, see reconciliation in appendix. 2 Excludes significant variances, see slide 9 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, AOCI, and $28M of non-recourse short-term debt related to a collateralized loan obligation warehouse facility. $350M debt matures in 4Q26. Reported non-GAAP operating earnings1 Non-GAAP operating earnings, excluding significant variances (xSV)2 $482M +2% vs. 3Q 2025 $541M +3% vs. 3Q 2025 Reported non-GAAP operating earnings per diluted share (EPS )1 Non-GAAP EPS, xSV2 $2.22 +6% vs. 3Q 2025 $2.49 +7% vs. 3Q 2025 Capital & liquidity Excess and available capital $1.5B $1.15B at Hold Co $300M excess subsidiary capital $80M in excess of 375% RBC Estimated PLIC RBC ratio 380% Debt to capital ratio3 24.7% AUM & NCF Total company AUM $785B Total company AUM NCF $(10.7)B 4 Announced 4Q 2026 common stock dividend $0.85 +8% from 4Q25
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Retirement and Income Solutions Pre-tax operating earnings, xSV1 ($ in millions) 3Q25 3Q26 3Q25 TTM 3Q26 TTM Impact of significant variances1 (5) (33) (46) (53) Reported pre-tax operating earnings 310 298 1,166 1,223 Operating margin2 xSV1 41.6% 41.8% 40.6% 41.2% +5% +5% 3Q26 QTD 3Q26 TTM Net revenue +4.4% +3.7% Operating margin2 41.8% 41.2% • Pre-t ax operating earnings increased 5%, driven by higher net revenue and disciplined expense management; operating margin expanded 20 basis points to 41.8% • Recurring deposits increased 8% to $13B • PRT sales of $0.9B Strong earnings and underlying retirement fundamentals 3Q26 highlights1,3 1 Excludes impacts of significant variances, see slide 9 for more details. 2 Pre-tax operating earnings divided by net revenue. 3 Highlights mentioned compared to 3Q25 unless otherwise noted. Key metrics1 315 330 1,212 1,276
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Principal Asset Management • Pre-tax operating earnings were stable, with 11% growth in International Pension • Investment Management net cash flows of $(12)B, primarily impacted by select active equity strategies, partially offset by +$0.5B in active ETFs and +$0.8B in private markets • International Pension net cash flow of +$0.4B, with positive flows across all locations 3Q25 3Q26 3Q25 TTM 3Q26 TTM Impact of significant variances1 29 (18) 28 3 Reported pre-tax operating earnings 275 231 915 927 Operating margin2 xSV1 Investment Management 39.8% 39.1% 36.0% 36.3% International Pension 47.1% 49.5% 46.5% 47.1% 246 248 887 924 +4% +1% Pre-tax operating earnings, xSV1 ($ in millions) Strong earnings growth and margin expansion in International Pension Investment Management International Pension Investment Management International Pension 3Q26 QTD 3Q26 TTM 3Q26 QTD 3Q26 TTM Operating revenues less pass-through expenses 3 (1.8)% +0.6% Net revenue +5.4% +7.4% Operating margin2 39.1% 36.3% 49.5% 47.1% 1 Excludes impacts of significant variances, see slide 9 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. 4 Highlights mentioned compared to 3Q25 unless otherwise noted. 3Q26 highlights1,4 Key metrics1 174 168 73 80 607 619 280 305
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Specialty Benefits Life Insurance 3Q26 QTD 3Q26 TTM 3Q26 QTD 3Q26 TTM Premium and fees +5.9% +4.1% (4.1)% (1.0)% Operating margin2 16.1% 17.0% 16.4% 14.5% Loss ratio 59.0% 58.1% 3Q26 highlights1,3 Benefits and Protection • Pre-t ax operating earnings increased 3% primarily due to i mproved Life mortality • Life Insurance pre-t ax operating earnings of $39M, up 29%, driven by improved mortality experience; operating margin e xpanded 420 bps • Specialty Benefits premium and fees growth of 6%, including a modest contribution from the 9/1 Beam Benefits acquisition • Specialty Benefits loss ratio of 59%; remains below the low end o f our 60-64% targeted range 3Q25 3Q26 3Q25 TTM 3Q26 TTM Impact of significant variances1 (91) (13) (108) (34) Reported pre-tax operating earnings 87 170 508 693 Operating margin2 xSV1 Specialty Benefits 17.4% 16.1% 15.7% 17.0% Life Insurance 12.2% 16.4% 9.6% 14.5% 177 183 616 728 +18% +3% Pre-tax operating earnings, xSV1 ($ in millions) Specialty Benefits Life Insurance Earnings growth driven by favorable Life mortality 1 Excludes impacts of significant variances, see slide 9 for more details. 2 Pre-tax operating earnings divided by premium and fees. 3 Highlights mentioned compared to 3Q25 unless otherwise mentioned. Key metrics1 147 144 30 39 525 592 91 136
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Audience disclosure Appendix
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Variable investment income Encaje and Inflation Integration costs Total significant variances Retirement and Income Solutions $(32.5) - - $(32.5) International Pension $(7.1) $(10.9) - $(18.0) Specialty Benefits $(1.0) - $(5.5) $(6.5) Life Insurance $(6.7) - - $(6.7) Corporate $(3.9) - $(5.0) $(8.9) Total pre-tax impact $(51.2) $(10.9) $(10.5) $(72.6) Total after-tax impact $(41.4) $(9.1) $(8.3) $(58.8) EPS impact $(0.27) 3Q 2026 significant variances Business unit impacts of significant variances (in millions)
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Audience disclosure Non-GAAP operating earnings Excluding impacts from significant variances 3Q26 vs 3Q25 (in millions, except per share data) 3Q26 as reported Significant variances1 3Q26 excluding significant variances 3Q25 as reported Significant variances 3Q25 excluding significant variances 3Q26 vs 3Q25 excluding significant variances Actuarial assumption review Other significant variances2 Retirement and Income Solutions $ 297.8 $ (32.5) $ 330.3 $ 310.3 $ 12.0 $ (16.5) $ 314.8 $ 15.5 5% Principal Asset Management Investment Management 168.1 - 168.1 173.5 - - 173.5 (5.4) (3)% International Pension 62.4 (18.0) 80.4 101.2 - 28.5 72.7 7.7 11% Total 230.5 (18.0) 248.5 274.7 - 28.5 246.2 2.3 1% Benefits and Protection Specialty Benefits 137.3 (6.5) 143.8 155.5 14.3 (6.0) 147.2 (3.4) (2)% Life Insurance 32.4 (6.7) 39.1 (69.0) (93.4) (5.9) 30.3 8.8 29% Total 169.7 (13.2) 182.9 86.5 (79.1) (11.9) 177.5 5.4 3% Corporate (110.5) (8.9) (101.6) (91.6) - 6.9 (98.5) (3.1) (3)% Non-GAAP pre-tax operating earnings (losses) $ 587.5 $ (72.6) $ 660.1 $ 579.9 $ (67.1) $ 7.0 $ 640.0 $ 20.1 3% Income taxes 105.7 (13.8) 119.5 106.2 (14.1) 3.6 116.7 2.8 2% Non-GAAP operating earnings (losses) $ 481.8 $ (58.8) $ 540.6 $ 473.7 $ (53.0) $ 3.4 $ 523.3 $ 17.3 3% Net realized capital gains (losses) (122.0) - (122.0) (8.1) (0.2) - (7.9) (114.1) N/M Income (loss) from exited business 277.1 - 277.1 (251.8) (6.1) - (245.7) 522.8 N/M Actuarial assumption review (5.0) - (5.0) - - - - (5.0) N/M Net income (loss) attributable to Principal Financial Group, Inc. $ 631.9 $ (58.8) $ 690.7 $ 213.8 $ (59.3) $ 3.4 $ 269.7 $ 421.0 N/M Non-GAAP operating earnings per share (EPS) $ 2.22 $ (0.27) $ 2.49 $ 2.10 $ (0.24) $ 0.02 $ 2.32 $ 0.17 7% 10 1 Significant variances in 3Q26 QTD include 1) lower than expected VII in RIS, International Pension, Specialty Benefits, Life Insurance, and Corporate; 2) impact of lower than expected encaje performance and higher than expected Latin American inflation in International Pension; 3) integration costs in Specialty Benefits and Corporate. 2 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.
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Annual actuarial assumption review Immaterial impact to 3Q 2026 results Highlights • Immaterial impact from AAR, split between RIS and B& P • Immaterial run-r ate impact reflected in current quarter results; Immaterial impact to capital • Beginning in 2026, assumption review impacts are e xcluded from operating earnings and therefore i mpacting net income only 2026 impact $ in millions1 Benefits and Protection $(3) Retirement and Income Solutions $(3) Pre-tax business unit impact reflected in net income $(6) After-tax business unit impact reflected in net income $(5) 1 Excludes net realized capital gains (losses) and exited business. 2025 business unit impacts were reported in pre-tax operating earnings under the prior methodology. 11
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Audience disclosure Investment performance 34% 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, 75 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 9/30/2026 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 14% 40% 51% 29% 18% 43% 45% 69% Fixed Income 27% 27% 78% 82% 57% 71% 89% 100% Asset Allocation5 19% 50% 80% 50% N/A N/A N/A N/A Total 18% 43% 68% 45% 25% 52% 48% 69% Equal Weighted % of funds outperforming Morningstar median3 % of composites outperforming benchmarks4 As of 9/30/2026 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 25% 28% 47% 36% 33% 45% 36% 63% Fixed Income 47% 33% 53% 75% 68% 81% 78% 97% Asset Allocation5 36% 38% 54% 50% N/A N/A N/A N/A Total 35% 35% 52% 52% 47% 59% 49% 70% 12
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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% 10% 15% 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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Three months ended (in millions) Investment Management operating revenues less pass-through expenses 9/30/26 9/30/25 Operating revenues $476.8 $483.9 Commissions and other expenses (40.7) (39.9) Operating revenues less pass-through expenses $436.1 $444.0 Three months ended (in millions) Non-GAAP operating earnings (losses) 9/30/26 9/30/25 Net income attributable to PFG $631.9 $213.8 Net realized capital (gains) losses, as adjusted 122.0 8.1 (Income) loss from exited business (277.1) 251.8 Actuarial assumption review 5.0 0.0 Non-GAAP operating earnings $481. 8 $473.7 Non-GAAP financial measure reconciliations Three months ended Diluted earnings per common share 9/30/26 9/30/25 Net income $2.91 $0.95 Net realized capital (gains) losses, as adjusted 0.56 0.04 (Income) loss from exited business (1.27) 1.11 Actuarial assumption review 0.02 0.0 Non-GAAP operating earnings $2.22 $2.10 Impact of significant variances 0.27 0.22 Non-GAAP operating earnings, excluding significant variances $2.49 $2.32 Weighted-average diluted common shares outstanding (in millions) 216.9 225.2 Three months ended (in millions) Income taxes 9/30/26 9/30/25 Total GAAP income taxes $241.7 $14.5 Net realized capital gains (losses) tax adjustments 29.8 2.6 Income taxes attributable to noncontrolling interest 0.0 (0.3) Income taxes related to equity method investments 27.6 22.5 Income taxes related to exited business (194.8) 66.9 Actuarial assumption review 1.4 0.0 Income taxes $105.7 $106.2 14
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Period ended (in millions) Stockholders’ equity x- cumulative change in fair value of funds withheld embedded derivative and AOCI 9/30/26 Stockholders’ equity $11,850.3 AOCI 4,643.0 Cumulative change in fair value of funds withheld embedded derivative (2,784.3) Noncontrolling interest (34.0) Stockholders’ equity x- cumulative change in fair value of funds withheld embedded derivative and AOCI $13,675.0 Period ended (in millions) Total debt excluding non-recourse debt related to collateralized loan obligation warehouse facility 9/30/26 Short-term debt $177.6 Long-term debt 4,326.2 Collateralized loan obligation warehouse facility non-recourse debt (28.0) Total debt excluding non-recourse debt related to a collateralized loan obligation warehouse facility $4,475.8 Non-GAAP financial measure reconciliations 15
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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 9/30/26 Net Income ROE available to common stockholders (including AOCI) 16.8% Cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment (0.7)% Net realized capital (gains) losses 2.2% (Income) loss from exited business (2.3)% 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 16.0% Impact of significant variances 0.6% 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 16.6% Non-GAAP financial measure reconciliations 16
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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