Principal Financial Group Announces Third Quarter 2024 Results
Principal Financial Group (PFG) reported third quarter 2024 results with a net loss of $220 million ($0.95 per diluted share), while non-GAAP operating earnings were $412 million ($1.76 per diluted share). The company achieved assets under management of $741 billion and returned $416 million to shareholders, including $251 million in share repurchases and $165 million in dividends. PFG announced a dividend increase to $0.73 per share for Q4 2024. The company demonstrated strong business fundamentals with premium and fees growth across segments, including 6% growth in Specialty Benefits and 12% growth in Life Insurance business market.
Principal Financial Group (PFG) ha riportato risultati del terzo trimestre 2024 con una perdita netta di 220 milioni di dollari (0,95 dollari per azione diluita), mentre gli utili operativi non-GAAP sono stati di 412 milioni di dollari (1,76 dollari per azione diluita). L'azienda ha raggiunto atti gestiti pari a 741 miliardi di dollari e ha restituito 416 milioni di dollari agli azionisti, inclusi 251 milioni di dollari in riacquisti di azioni e 165 milioni di dollari in dividendi. PFG ha annunciato un aumento del dividendo a 0,73 dollari per azione per il Q4 2024. L'azienda ha dimostrato solidi fondamentali aziendali con una crescita di premi e commissioni in tutti i segmenti, compresa una crescita del 6% nei Benefici Speciali e del 12% nel mercato dell'Assicurazione Vita.
Principal Financial Group (PFG) reportó resultados del tercer trimestre de 2024 con una pérdida neta de 220 millones de dólares (0.95 dólares por acción diluida), mientras que las ganancias operativas no-GAAP fueron de 412 millones de dólares (1.76 dólares por acción diluida). La compañía alcanzó activos bajo gestión de 741 mil millones de dólares y devolvió 416 millones de dólares a los accionistas, incluyendo 251 millones de dólares en recompra de acciones y 165 millones de dólares en dividendos. PFG anunció un aumento del dividendo a 0.73 dólares por acción para el cuarto trimestre de 2024. La compañía demostró sólidos fundamentos comerciales con un crecimiento de primas y comisiones en todos los segmentos, incluyendo un crecimiento del 6% en Beneficios Especiales y del 12% en el mercado de seguros de vida.
Principal Financial Group (PFG)는 2024년 3분기 결과를 보고하며 2억 2천만 달러(희석 주당 0.95달러)의 순손실을 기록했으며, 비GAAP 운영 수익은 4억 1천2백만 달러(희석 주당 1.76달러)였습니다. 이 회사는 관리 자산이 7410억 달러에 달했으며, 4억 1천6백만 달러를 주주에게 환원했는데, 여기에는 2억 5천1백만 달러의 자사주 매입과 1억 6천5백만 달러의 배당금이 포함됩니다. PFG는 2024년 4분기 주당 배당금을 0.73달러로 인상한다고 발표했습니다. 이 회사는 모든 부문에서 프리미엄과 수수료의 성장을 통해 강력한 사업 기반을 보여주었으며, 특수 혜택 부문에서 6% 성장, 생명 보험 시장에서 12% 성장을 기록했습니다.
Principal Financial Group (PFG) a présenté ses résultats du troisième trimestre 2024 avec une perte nette de 220 millions de dollars (0,95 dollar par action diluée), tandis que les bénéfices d'exploitation non-GAAP s'élevaient à 412 millions de dollars (1,76 dollar par action diluée). L'entreprise a atteint des actifs sous gestion de 741 milliards de dollars et a retourné 416 millions de dollars aux actionnaires, dont 251 millions de dollars en rachats d'actions et 165 millions de dollars en dividendes. PFG a annoncé une augmentation du dividende à 0,73 dollar par action pour le T4 2024. L'entreprise a démontré de solides fondamentaux commerciaux avec une croissance des primes et des frais dans l'ensemble des segments, y compris une croissance de 6 % dans les Avantages Spéciaux et de 12 % dans le marché de l'Assurance Vie.
Principal Financial Group (PFG) hat die Ergebnisse des dritten Quartals 2024 mit einem Nettoverlust von 220 Millionen Dollar (0,95 Dollar pro verwässerter Aktie) veröffentlicht, während die operativen Erträge nach Nicht-GAAP 412 Millionen Dollar (1,76 Dollar pro verwässerter Aktie) betrugen. Das Unternehmen erreichte Vermögenswerte unter Verwaltung von 741 Milliarden Dollar und gab 416 Millionen Dollar an die Aktionäre zurück, darunter 251 Millionen Dollar für Aktienrückkäufe und 165 Millionen Dollar in Dividenden. PFG gab bekannt, dass die Dividende für das vierte Quartal 2024 auf 0,73 Dollar pro Aktie erhöht wird. Das Unternehmen zeigte starke Geschäftszahlen mit Wachstum bei Prämien und Gebühren in allen Segmenten, einschließlich 6% Wachstum im Bereich Spezialleistungen und 12% Wachstum im Markt für Lebensversicherungen.
- Assets under management increased 14% YoY to $741 billion
- Returned $416 million to shareholders through dividends and share repurchases
- Increased quarterly dividend to $0.73 per share
- Non-GAAP operating earnings excluding variances grew 7% to $479.8 million
- Principal International achieved record pre-tax operating earnings of $121 million
- Reported net loss of $220 million ($0.95 per diluted share)
- Non-GAAP net income decreased 23% YoY to $419.1 million
- Specialty Benefits operating margin declined to 12.4% from 19.2% YoY
- Life Insurance segment reported pre-tax operating losses of $37.3 million
- PGI operating margin decreased to 37.9% from 38.7% YoY
Insights
The Q3 2024 results show mixed performance with some concerning metrics. The
Key positives include:
- Strong AUM growth to
$741 billion (14% YoY increase) - Robust capital return of
$416 million to shareholders - Dividend increase to
$0.73 per share - Record PI earnings of
$121 million
However, challenges persist with:
- Declining operating margins in key segments
- Higher loss ratios in Specialty Benefits
- Pressure on Life Insurance earnings
Market positioning remains strong despite headwinds. The
The strategic pivot to higher-growth markets is showing results, particularly in Principal International where net cash flows reached
Raises fourth quarter 2024 common stock dividend
Third Quarter 2024 Highlights
|
Dan
“Strong business fundamentals, continued growth, and positive markets generated strong earnings in the third quarter, and we continue to be confident in our full-year target. Our strategic focus on higher growth markets, combined with our integrated product portfolio and strong distribution relationships, continues to create value and drive growth for customers and shareholders.
|
| _____________________ |
1 Use of non-GAAP financial measures and their reconciliations to the most directly comparable GAAP measures are included in this release. Non-GAAP operating earnings for total company is after tax. |
2 The total company impacts of significant variances, including the actuarial assumption review, is after tax. See Exhibit 1 for details on the impact of 3Q 2024 and 3Q 2023 significant variances on quarterly net income attributable to PFG; non-GAAP net income attributable to PFG, excluding exited business; and non-GAAP operating earnings. |
Third Quarter Enterprise Results
In millions except percentages, earnings per share, or otherwise noted
|
Three Months Ended, |
Trailing Twelve Months, |
|
||||
3Q24 |
3Q23 |
% Change |
3Q24 |
3Q23 |
% Change |
|
|
Net income (loss) attributable to PFG |
|
|
N/M |
|
|
N/M |
|
Non-GAAP net income attributable to PFG, excluding exited business |
|
|
(23)% |
|
|
(16)% |
|
Non-GAAP operating earnings |
|
|
(2)% |
|
|
|
|
Non-GAAP operating earnings, excluding impacts of significant variances2 |
|
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Diluted earnings per common share |
|
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|
|
Net income (loss) attributable to PFG |
|
|
N/M |
|
|
|
|
Non-GAAP net income attributable to PFG, excluding exited business |
|
|
(20)% |
|
|
|
|
Non-GAAP operating earnings |
|
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Non-GAAP operating earnings, excluding impacts of significant variances2 |
|
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Assets under administration (billions) |
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Assets under management (billions) |
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Third Quarter Segment Highlights
-
Retirement and Income Solutions (RIS)
40% operating margin3, excluding the significant variances outlined in Exhibit 1, and recurring deposit growth of10% -
Principal Global Investors (PGI) managed AUM of
$541 billion $28 billion $72 billion -
Principal International record pre-tax operating earnings of
$121 million $185 billion $2.3 billion $2.1 billion -
Specialty Benefits premium and fees increased
6% from third quarter 2023 -
Life Insurance business market premium and fees increased
12% from third quarter 2023
| ___________________ |
3 Operating margin for RIS = pre-tax operating earnings divided by net revenue. |
Segment Results
In millions except percentages, or otherwise noted except percentages or otherwise noted)
Retirement and Income Solutions
|
Three Months Ended, |
Trailing Twelve Months, |
||||
3Q24 |
3Q23 |
% Change |
3Q24 |
3Q23 |
% Change |
|
Pre-tax operating earnings4 |
|
|
(19)% |
|
|
|
Net revenue5 |
|
|
(4)% |
|
|
|
Operating margin |
|
|
|
|
|
|
*Operating margin – Excluding the third quarter actuarial assumption reviews and other significant variances, the trailing twelve month operating margin was
-
Pre-tax operating earnings decreased
$58.6 million $32.0 million -
Net revenue decreased
$30.4 million $60.2 million 9% , due to growth in the business, favorable market performance and higher net investment income.
Principal Global Investors
|
Three Months Ended, |
Trailing Twelve Months, |
||||
3Q24 |
3Q23 |
% Change |
3Q24 |
3Q23 |
% Change |
|
Pre-tax operating earnings |
|
|
(2)% |
|
|
(2)% |
Operating revenues less pass-through expenses6 |
|
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Operating margin7 |
|
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Total PGI assets under management (billions) |
|
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PGI sourced assets under management (billions) |
|
|
|
|
|
|
-
Pre-tax operating earnings decreased
$3.7 million -
Operating revenues less pass-through expenses increased
$4.9 million 6% growth in management fees, resulting from higher AUM, partially offset by lower performance fees and other revenue.
| ___________________ |
4 Pre-tax operating earnings = operating earnings before income taxes and after noncontrolling interest. |
5 Net revenue = operating revenues less: benefits, claims and settlement expenses, liability for future policy benefits remeasurement (gain) loss, market risk benefit remeasurement (gain) loss, and dividends to policyholders. |
6 The company has provided reconciliations of the non-GAAP measures to the most directly comparable |
7 Operating margin for PGI = pre-tax operating earnings, adjusted for noncontrolling interest divided by operating revenues less pass-through expenses. |
Principal International
|
Three Months Ended, |
Trailing Twelve Months, |
||||
3Q24 |
3Q23 |
% Change |
3Q24 |
3Q23 |
% Change |
|
Pre-tax operating earnings |
|
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|
Combined net revenue (at PFG share)8 |
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Operating margin9 |
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Assets under management (billions) |
|
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|
|
|
|
*Operating margin – Excluding the third quarter actuarial assumption reviews and other significant variances, the trailing twelve month operating margin was
-
Pre-tax operating earnings increased
$50.0 million $5.9 million -
Combined net revenue (at PFG share) increased
$42.1 million Latin America .
Specialty Benefits
|
Three Months Ended, |
Trailing Twelve Months, |
||||
3Q24 |
3Q23 |
% Change |
3Q24 |
3Q23 |
% Change |
|
Pre-tax operating earnings |
|
|
(31)% |
|
|
(2)% |
Premium and fees |
|
|
|
|
|
|
Operating margin10 |
|
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|
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|
Incurred loss ratio |
|
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|
|
|
|
*Operating margin – Excluding the third quarter actuarial assumption reviews and other significant variances, the trailing twelve month operating margin was
-
Pre-tax operating earnings decreased
$46.1 million $16.3 million
-
Premium and fees increased
$47.5 million -
Incurred loss ratio was
62.7% . Excluding the significant variances outlined in Exhibit 1, the incurred loss ratio of61.5% increased due to unusually favorable LTD results in 3Q23 along with a higher group dental and group life loss ratio.
| ___________________ |
8 Combined net revenue (a non-GAAP financial measure): net revenue for all PI companies at |
9 Operating margin for PI = pre-tax operating earnings divided by combined net revenue (at PFG share). |
10 Operating margin for Benefits and Protection = pre-tax operating earnings divided by premium and fees. |
Life Insurance
|
Three Months Ended, |
Trailing Twelve Months, |
||||
3Q24 |
3Q23 |
% Change |
3Q24 |
3Q23 |
% Change |
|
Pre-tax operating earnings (losses) |
|
|
N/M |
|
|
(77)% |
Premium and fees |
|
|
|
|
|
|
Operating margin |
(15.5)% |
|
|
|
|
|
*Operating margin – Excluding the third quarter actuarial assumption reviews and other significant variances, the trailing twelve month operating margin was
-
Pre-tax operating earnings decreased
$58.5 million $3.4 million -
Premium and fees decreased
$0.7 million $1.0 million
Corporate
|
Three Months Ended, |
Trailing Twelve Months, |
||||
3Q24 |
3Q23 |
% Change |
3Q24 |
3Q23 |
% Change |
|
Pre-tax operating losses |
|
|
|
|
|
|
-
Pre-tax operating losses decreased
$35.4 million $17.4 million
Exhibit 1
Principal Financial Group
Impact of 3Q 2024 and 3Q 2023 Significant Variances on Quarterly Net Income Attributable to PFG; Non-GAAP Net Income Attributable to PFG, Excluding Exited Business; and Non-GAAP Operating Earnings
In millions except per share data
|
Impacts of 3Q 2024 Significant Variances |
Impacts of 3Q 2023 Significant Variances |
||||||||||||||||
Actuarial
|
Other
|
Total 3Q 2024
|
Actuarial
|
Other
|
Total 3Q 2023
|
|||||||||||||
Net income (loss) attributable to PFG |
$ |
(85.7 |
) |
|
1.0 |
|
$ |
(84.7 |
) |
$ |
(9.7 |
) |
$ |
(21.1 |
) |
$ |
(30.8 |
) |
(Income) loss from exited business |
|
20.6 |
|
|
- |
|
|
20.6 |
|
|
(0.1 |
) |
|
- |
|
|
(0.1 |
) |
Non-GAAP net income (loss) attributable to PFG, excluding exited business |
|
(65.1 |
) |
|
1.0 |
|
|
(64.1 |
) |
|
(9.8 |
) |
|
(21.1 |
) |
|
(30.9 |
) |
Net realized capital (gains) losses, as adjusted |
|
(3.7 |
) |
|
- |
|
|
(3.7 |
) |
|
4.2 |
|
|
- |
|
|
4.2 |
|
Non-GAAP operating earnings |
|
(68.8 |
) |
|
1.0 |
|
|
(67.8 |
) |
|
(5.6 |
) |
|
(21.1 |
) |
|
(26.7 |
) |
Income taxes |
|
(13.2 |
) |
|
0.3 |
|
|
(12.9 |
) |
|
68.8 |
|
|
(2.6 |
) |
|
66.2 |
|
Non-GAAP pre-tax operating earnings |
$ |
(82.0 |
) |
$ |
1.3 |
|
$ |
(80.7 |
) |
$ |
63.2 |
|
$ |
(23.7 |
) |
$ |
39.5 |
|
|
|
|
|
|
|
|
||||||||||||
Per diluted share: |
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to PFG |
$ |
(0.37 |
) |
$ |
0.01 |
|
$ |
(0.36 |
) |
$ |
(0.04 |
) |
$ |
(0.09 |
) |
$ |
(0.13 |
) |
(Income) loss from exited business |
|
0.09 |
|
|
0.00 |
|
|
0.09 |
|
|
(0.00 |
) |
|
0.00 |
|
|
(0.00 |
) |
Non-GAAP net income (loss) attributable to PFG, excluding exited business |
|
(0.28 |
) |
|
0.01 |
|
|
(0.27 |
) |
|
(0.04 |
) |
|
(0.09 |
) |
|
(0.13 |
) |
Net realized capital (gains) losses, as adjusted |
|
(0.02 |
) |
|
0.00 |
|
|
(0.02 |
) |
|
0.02 |
|
|
0.00 |
|
|
0.02 |
|
Non-GAAP operating earnings |
$ |
(0.30 |
) |
$ |
0.01 |
|
$ |
(0.29 |
) |
$ |
(0.02 |
) |
$ |
(0.09 |
) |
$ |
(0.11 |
) |
Weighted average diluted common shares outstanding |
|
233.8 |
|
|
233.8 |
|
|
233.8 |
|
|
244.3 |
|
|
244.3 |
|
|
244.3 |
|
|
|
|
|
|
|
|
||||||||||||
Segment pre-tax operating earnings (losses): |
|
|
|
|
|
|
||||||||||||
Retirement and Income Solutions |
$ |
(16.7 |
) |
|
(29.5 |
) |
$ |
(46.2 |
) |
$ |
53.4 |
|
$ |
(9.0 |
) |
$ |
44.4 |
|
|
|
|
|
|
|
|
||||||||||||
Principal Global Investors |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Principal International |
|
21.1 |
|
|
17.9 |
|
|
39.0 |
|
|
- |
|
|
(5.1 |
) |
|
(5.1 |
) |
Principal Asset Management |
|
21.1 |
|
|
17.9 |
|
|
39.0 |
|
|
- |
|
|
(5.1 |
) |
|
(5.1 |
) |
|
|
|
|
|
|
|
||||||||||||
Specialty Benefits |
|
(11.6 |
) |
|
(2.0 |
) |
|
(13.6 |
) |
|
16.2 |
|
|
- |
|
|
16.2 |
|
Life Insurance |
|
(74.8 |
) |
|
4.5 |
|
|
(70.3 |
) |
|
(6.4 |
) |
|
(2.0 |
) |
|
(8.4 |
) |
Benefits and Protection |
|
(86.4 |
) |
|
2.5 |
|
|
(83.9 |
) |
|
9.8 |
|
|
(2.0 |
) |
|
7.8 |
|
|
|
|
|
|
|
|
||||||||||||
Corporate |
|
- |
|
|
10.4 |
|
|
10.4 |
|
|
- |
|
|
(7.6 |
) |
|
(7.6 |
) |
Total segment pre-tax operating earnings (losses) |
$ |
(82.0 |
) |
$ |
1.3 |
|
$ |
(80.7 |
) |
$ |
63.2 |
|
$ |
(23.7 |
) |
$ |
39.5 |
|
Income statement line item details of the 3Q24 and 3Q23 significant variances are available in our earnings conference call presentation on our website.
| ___________________ |
11 Other significant variances in 3Q24 include 1) lower than expected variable investment income in RIS, Principal International, Specialty Benefits and Life Insurance, partially offset by higher than expected variable investment income in Corporate; 2) impact of higher than expected encaje performance and Latin American inflation in Principal International; 3) impact of GAAP-only regulatory closed block adjustment in Life Insurance |
12 Other significant variances in 3Q23 include 1) lower than expected variable investment income in RIS, Life Insurance and Corporate; 2) impact of lower than expected encaje performance, Latin American inflation and other items in Principal International. |
Earnings Conference Call
On Friday, Oct. 25, 2024, at 10:00 a.m. (ET), Chairman and Chief Executive Officer Dan Houston and President and Chief Operating Officer Deanna Strable will lead a discussion of results and the impacts on future prospects, asset quality and capital adequacy during a live conference call, which can be accessed as follows:
- Via live Internet webcast. Please go to investors.principal.com at least 10-15 minutes prior to the start of the call to register, and to download and install any necessary audio software.
- Analysts who will be asking questions will be sent a dial in number and authorization code in advance of the call.
- Replay of the earnings call via webcast as well as a transcript of the call will be available after the call at investors.principal.com.
The company’s financial supplement and slide presentation is currently available at investors.principal.com, and may be referred to during the call.
Forward Looking Statements
This release 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, 2023, 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.
Use of Non-GAAP Financial Measures
The company uses a number of non-GAAP financial measures that management believes are useful to investors because they illustrate the performance of normal, ongoing operations, which is important in understanding and evaluating the company’s financial condition and results of operations. They are not, however, a substitute for
Principal Financial Group® (Nasdaq: PFG) is a global financial company with nearly 19,000 employees14 passionate about improving the wealth and well-being of people and businesses. In business for 145 years, we’re helping approximately 68 million customers14 plan, insure, invest, and retire, while working to support the communities where we do business, and build a diverse, inclusive workforce. Principal® is proud to be recognized as one of the 2024 World’s Most Ethical Companies15, a member of the Bloomberg Gender Equality Index, and a “Best Place to Work in Money Management16.” Learn more about Principal and our commitment to building a better future at principal.com.
Summary of Principal Financial Group® and Segment Results
Principal Financial Group, Inc. Results |
(in millions) |
|||||||||||
Three Months Ended, |
Trailing Twelve Months, |
|||||||||||
|
3Q24 |
|
|
3Q23 |
|
|
3Q24 |
|
|
3Q23 |
|
|
Net income (loss) attributable to PFG |
$ |
(220.0 |
) |
$ |
1,246.2 |
|
$ |
(206.1 |
) |
$ |
1,478.7 |
|
(Income) loss from exited business |
|
639.1 |
|
|
(701.8 |
) |
|
1,656.9 |
|
|
248.0 |
|
Non-GAAP net income (loss) attributable to PFG excluding exited business |
$ |
419.1 |
|
$ |
544.4 |
|
$ |
1,450.8 |
|
$ |
1,726.7 |
|
Net realized capital (gains) losses, as adjusted |
|
(7.1 |
) |
|
(124.7 |
) |
|
182.1 |
|
|
(170.1 |
) |
Non-GAAP Operating Earnings* |
$ |
412.0 |
|
$ |
419.7 |
|
$ |
1,632.9 |
|
$ |
1,556.6 |
|
Income taxes |
|
87.8 |
|
|
161.6 |
|
|
365.0 |
|
|
385.2 |
|
Non-GAAP Pre-Tax Operating Earnings |
$ |
499.8 |
|
$ |
581.3 |
|
$ |
1,997.9 |
|
$ |
1,941.8 |
|
|
|
|
|
|
||||||||
Segment Pre-Tax Operating Earnings (Losses): |
|
|
|
|
||||||||
Retirement and Income Solutions |
$ |
246.1 |
|
$ |
304.7 |
|
$ |
1,040.7 |
|
$ |
990.8 |
|
Principal Asset Management |
|
268.7 |
|
|
222.4 |
|
|
864.5 |
|
|
814.7 |
|
Benefits and Protection |
|
64.4 |
|
|
169.0 |
|
|
452.9 |
|
|
531.3 |
|
Corporate |
|
(79.4 |
) |
|
(114.8 |
) |
|
(360.2 |
) |
|
(395.0 |
) |
Total Segment Pre-Tax Operating Earnings |
$ |
499.8 |
|
$ |
581.3 |
|
$ |
1,997.9 |
|
$ |
1,941.8 |
|
|
Per Diluted Share |
||||||||||
Three Months Ended, |
Nine Months Ended, |
||||||||||
|
3Q24 |
|
|
3Q23 |
|
3Q24 |
|
3Q23 |
|
||
Net income (loss) attributable to PFG |
$ |
(0.95 |
) |
$ |
5.10 |
|
$ |
2.81 |
$ |
6.08 |
|
(Income) loss from exited business |
|
2.73 |
|
|
(2.87 |
) |
|
2.06 |
|
(1.13 |
) |
Non-GAAP net income (loss) excluding exited business |
$ |
1.78 |
|
$ |
2.23 |
|
$ |
4.87 |
$ |
4.95 |
|
Net realized capital (gains) losses, as adjusted |
|
(0.03 |
) |
|
(0.51 |
) |
|
0.17 |
|
(0.22 |
) |
Impact of dilutive shares17 |
|
0.01 |
|
|
0.00 |
|
|
0.00 |
|
0.00 |
|
Non-GAAP Operating Earnings |
$ |
1.76 |
|
$ |
1.72 |
|
$ |
5.04 |
$ |
4.73 |
|
Weighted-average diluted common shares outstanding (in millions) |
|
233.8 |
|
|
244.3 |
|
|
236.6 |
|
245.7 |
|
| ____________________ |
13 Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. |
14 As of September 30, 2024 |
15 Ethisphere, 2024 |
16 Pensions & Investments, 2023 |
17 When a net loss is reported, our basic weighted-average shares are used to calculate diluted earnings per share, as dilutive shares would have an antidilutive effect and result in a lower loss per share. |
*
Management uses non-GAAP operating earnings, which is a financial measure that excludes the effect of net realized capital gains and losses, as adjusted, income (loss) from exited business and other after-tax adjustments the company believes are not indicative of overall operating trends, 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. Note: it is possible these adjusting items have occurred in the past and could recur in future reporting periods. While these items may be significant components in understanding and assessing our consolidated financial performance, management believes the presentation of non-GAAP operating earnings enhances the understanding of results of operations by highlighting earnings attributable to the normal, ongoing operations of the company’s businesses.
Selected Balance Sheet Statistics
|
Period Ended, |
|||
3Q24 |
4Q23 |
|||
Total assets (in billions) |
$ |
322.9 |
$ |
305.0 |
Stockholders’ equity (in millions) |
$ |
11,281.4 |
$ |
10,961.7 |
Total common equity (in millions) |
$ |
11,237.4 |
$ |
10,916.0 |
Total common equity excluding cumulative change in fair value of funds withheld embedded derivative and accumulated other comprehensive income (AOCI) other than foreign currency translation adjustment (in millions) |
$ |
12,464.9 |
$ |
12,735.4 |
End of period common shares outstanding (in millions) |
|
229.3 |
|
236.4 |
Book value per common share |
$ |
49.01 |
$ |
46.18 |
Book value per common share excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment |
$ |
54.36 |
$ |
53.87 |
Principal Financial Group, Inc. |
|||||||
Reconciliation of |
|||||||
(in millions, except as indicated) |
|||||||
|
Period Ended, |
||||||
|
3Q24 |
4Q23 |
|||||
Stockholders’ Equity, Excluding Cumulative Change in Fair Value of Funds Withheld Embedded Derivative and AOCI Other Than Foreign Currency Translation Adjustment, Available to Common Stockholders: |
|
|
|||||
Stockholders’ equity |
$ |
11,281.4 |
|
$ |
10,961.7 |
|
|
Noncontrolling interest |
|
(44.0 |
) |
|
(45.7 |
) |
|
Stockholders’ equity available to common stockholders |
|
11,237.4 |
|
|
10,916.0 |
|
|
Cumulative change in fair value of funds withheld embedded derivative |
|
(1,753.9 |
) |
|
(2,027.9 |
) |
|
AOCI, other than foreign currency translation adjustment |
|
2,981.4 |
|
|
3,847.3 |
|
|
Stockholders’ equity, excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment, available to common stockholders |
$ |
12,464.9 |
|
$ |
12,735.4 |
|
|
|
|
|
|||||
|
|
|
|||||
Book Value Per Common Share, Excluding Cumulative Change in Fair Value of Funds Withheld Embedded Derivative and AOCI Other Than Foreign Currency Translation Adjustment: |
|
|
|||||
Book value per common share |
$ |
49.01 |
|
$ |
46.18 |
|
|
Cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment |
|
5.35 |
|
|
7.69 |
|
|
Book value per common share, excluding change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment |
$ |
54.36 |
|
$ |
53.87 |
|
|
Principal Financial Group, Inc. |
||||||||||||
Reconciliation of |
||||||||||||
(in millions) |
||||||||||||
Three Months Ended, |
Trailing Twelve Months, |
|||||||||||
|
3Q24 |
|
|
3Q23 |
|
|
3Q24 |
|
|
3Q23 |
|
|
Income Taxes: |
|
|
|
|
||||||||
Total GAAP income taxes (benefit) |
$ |
(100.4 |
) |
$ |
354.8 |
|
$ |
(186.2 |
) |
$ |
325.5 |
|
Net realized capital gains (losses) tax adjustments |
|
(7.6 |
) |
|
(34.2 |
) |
|
32.5 |
|
|
(47.5 |
) |
Exited business tax adjustments |
|
170.0 |
|
|
(177.4 |
) |
|
440.6 |
|
|
43.0 |
|
Income taxes related to equity method investments and noncontrolling interest |
|
25.8 |
|
|
18.4 |
|
|
78.1 |
|
|
64.2 |
|
Income taxes |
$ |
87.8 |
|
$ |
161.6 |
|
$ |
365.0 |
|
$ |
385.2 |
|
|
|
|
|
|
||||||||
Net Realized Capital Gains (Losses): |
|
|
|
|
||||||||
GAAP net realized capital gains (losses) |
$ |
77.4 |
|
$ |
179.3 |
|
$ |
(51.4 |
) |
$ |
211.8 |
|
|
|
|
|
|
||||||||
Market value adjustments to fee revenues |
|
- |
|
|
0.1 |
|
|
1.1 |
|
|
0.9 |
|
Net realized capital gains (losses) related to equity method investments |
|
0.3 |
|
|
(4.1 |
) |
|
(9.0 |
) |
|
(4.8 |
) |
Derivative and hedging-related revenue adjustments |
|
17.3 |
|
|
26.6 |
|
|
52.0 |
|
|
13.7 |
|
Certain variable annuity fees |
|
17.7 |
|
|
18.5 |
|
|
71.9 |
|
|
73.4 |
|
Sponsored investment funds and other adjustments |
|
6.4 |
|
|
5.8 |
|
|
25.0 |
|
|
22.9 |
|
Capital gains distributed – operating expenses |
|
(36.7 |
) |
|
(22.5 |
) |
|
(96.4 |
) |
|
(24.9 |
) |
Amortization of actuarial balances |
|
(0.3 |
) |
|
(0.3 |
) |
|
(0.6 |
) |
|
(0.3 |
) |
Derivative and hedging-related expense adjustments |
|
(2.6 |
) |
|
0.8 |
|
|
(1.9 |
) |
|
0.9 |
|
Market value adjustments of embedded derivatives |
|
(5.6 |
) |
|
(9.3 |
) |
|
(13.0 |
) |
|
(0.8 |
) |
Market value adjustments of market risk benefits |
|
(40.8 |
) |
|
(30.1 |
) |
|
(75.9 |
) |
|
(45.5 |
) |
Capital gains distributed – cost of interest credited |
|
(4.8 |
) |
|
(9.3 |
) |
|
(85.4 |
) |
|
(15.0 |
) |
Net realized capital gains (losses) tax adjustments |
|
(7.6 |
) |
|
(34.2 |
) |
|
32.5 |
|
|
(47.5 |
) |
Net realized capital gains (losses) attributable to noncontrolling interest, after-tax |
|
(13.6 |
) |
|
3.4 |
|
|
(31.0 |
) |
|
(14.7 |
) |
Total net realized capital gains (losses) after-tax adjustments |
|
(70.3 |
) |
|
(54.6 |
) |
|
(130.7 |
) |
|
(41.7 |
) |
|
|
|
|
|
||||||||
Net realized capital gains (losses), as adjusted |
$ |
7.1 |
|
$ |
124.7 |
|
$ |
(182.1 |
) |
$ |
170.1 |
|
|
|
|
|
|
||||||||
Income (Loss) from Exited Business: |
|
|
|
|
||||||||
Pre-tax impacts of exited business: |
|
|
|
|
||||||||
Strategic review costs and impacts |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
4.0 |
|
Amortization of reinsurance gains (losses) |
|
(46.4 |
) |
|
(8.1 |
) |
|
(492.2 |
) |
|
(69.0 |
) |
Other impacts of reinsured business |
|
(25.3 |
) |
|
(39.3 |
) |
|
69.1 |
|
|
(138.4 |
) |
Net realized capital gains (losses) on funds withheld assets |
|
39.4 |
|
|
1.0 |
|
|
151.1 |
|
|
171.7 |
|
Change in fair value of funds withheld embedded derivative |
|
(776.8 |
) |
|
925.6 |
|
|
(1,825.5 |
) |
|
(259.3 |
) |
Tax impacts of exited business |
|
170.0 |
|
|
(177.4 |
) |
|
440.6 |
|
|
43.0 |
|
Total income (loss) from exited business |
$ |
(639.1 |
) |
$ |
701.8 |
|
$ |
(1,656.9 |
) |
$ |
(248.0 |
) |
Principal Financial Group, Inc. |
||||||||||||
Reconciliation of |
||||||||||||
(in millions) |
||||||||||||
|
||||||||||||
Three Months Ended, |
Trailing Twelve Months, |
|||||||||||
|
3Q24 |
|
|
3Q23 |
|
|
3Q24 |
|
|
3Q23 |
|
|
Principal Global Investors Operating Revenues Less Pass-Through Expenses: |
||||||||||||
Operating revenues |
$ |
431.0 |
|
$ |
424.6 |
|
$ |
1,649.9 |
|
$ |
1,618.0 |
|
Commissions and other expenses |
|
(32.2 |
) |
|
(30.7 |
) |
|
(124.2 |
) |
|
(123.5 |
) |
Operating revenues less pass-through expenses |
$ |
398.8 |
|
$ |
393.9 |
|
$ |
1,525.7 |
|
$ |
1,494.5 |
|
|
|
|
|
|
||||||||
|
|
|
|
|
||||||||
Principal International Combined Net Revenue (at PFG Share): |
||||||||||||
Pre-tax operating earnings |
$ |
120.8 |
|
$ |
70.8 |
|
$ |
348.5 |
|
$ |
290.4 |
|
Combined operating expenses other than pass-through commissions (at PFG share) |
160.4 |
168.3 |
654.3 |
652.2 |
||||||||
Combined net revenue (at PFG share) |
$ |
281.2 |
|
$ |
239.1 |
|
$ |
1,002.8 |
|
$ |
942.6 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024658224/en/
INVESTOR CONTACT:
Humphrey Lee, 877-909-1105, lee.humphrey@principal.com
MEDIA CONTACT:
Jane Slusark, 515-362-0482, slusark.jane@principal.com
Source: Principal Financial Group
FAQ
What was Principal Financial Group's (PFG) net income for Q3 2024?
How much capital did PFG return to shareholders in Q3 2024?
What is PFG's new dividend amount for Q4 2024?
What were Principal Financial Group's (PFG) assets under management in Q3 2024?
