01—Abstract
Summary
Summary of the 10-K filed February 19, 2025. Cited figures are marked; the original filing is the authoritative source.
Principal Financial Group, Inc. (PFG) reported 2024 net income attributable to Principal Financial Group, Inc. of $1,571.0 milliona, up from $623.2 million in 2023, and total revenues of $16,127.7 million versus $13,665.8 million.
The increase was driven primarily by a $1,211.2 millionb after-tax favorable change in the fair value of the funds withheld embedded derivative, partially offset by a $170.4 million unfavorable one-time impact of the YRT Reinsurance Transactions in 2024. Segment pre-tax operating earnings were $2,005.0 million in total, compared with $2,009.9 million in 2023. Assets under administration reached $1,663.9 billion and assets under management $712.1 billion as of December 31, 2024.
Total stockholders' equity attributable to PFG was $11,086.4 millionc, and total debt was $4,108.0 million, or 37% of equity. Net cash provided by operating activities was $4,602.9 million. The company returned $1,700.8 million to common stockholders in 2024 through $658.4 million of dividends and $1,042.4 million of share repurchases, and its Board authorized a new $1.5 billion repurchase program in February 2025.
The filing also flags a planned one-time charge of approximately $140.0 milliond in the first quarter of 2025 tied to the January 2025 agreement to exit the Hong Kong MPF sponsor and trustee roles, with the transaction expected to close in the first quarter of 2026. Chief Executive Officer Daniel Houston retired effective January 7, 2025, and Deanna Strable-Soethout assumed the role of President and CEO on that date; Joel Pitz serves as Interim Chief Financial Officer.
02—Key points
Key Highlights
- Net income attributable to PFG rose to $1,571.0 million in 2024 from $623.2 million in 2023, largely due to a $1,211.2 million after-tax favorable change in the funds withheld embedded derivative.
- Total revenues increased to $16,127.7 million from $13,665.8 million, with premiums and other considerations up $379.3 million and net investment income up $357.3 million.
- Assets under administration were $1,663.9 billion and assets under management were $712.1 billion as of December 31, 2024.
- Diluted earnings per common share were $6.68 in 2024, compared with $2.55 in 2023.
- Capital returns totaled $1,700.8 million in 2024, including $1,042.4 million of share repurchases and $658.4 million of dividends; a new $1.5 billion repurchase authorization was approved in February 2025.
- A one-time charge of approximately $140.0 million is expected in Q1 2025 from exiting Hong Kong MPF sponsor and trustee roles, with closing expected in Q1 2026.
- Insurer financial strength ratings for Principal Life are A+ (A.M. Best), AA- (Fitch), A1 (Moody's) and A+ (S&P), all with stable outlooks.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 19, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $16.13B$13.67B | +18.0% |
| Net Income | $1.60B$670.10M | +138.5% |
| EPS (Basic) | $6.77$2.58 | +162.4% |
| EPS (Diluted) | $6.68$2.55 | +162.0% |
| Shares Outstanding (Basic) | 232.00M241.30M | −3.9% |
| Shares Outstanding (Diluted) | 235.30M244.60M | −3.8% |
05—Questions
Frequently Asked Questions
Why did net income increase so significantly in 2024?
The filing attributes the increase mainly to a $1,211.2 million after-tax favorable change in the fair value of the funds withheld embedded derivative, which was a gain of $447.4 million in 2024 versus a loss of $1,085.7 million in 2023. This was partially offset by a $170.4 million unfavorable one-time impact of the YRT Reinsurance Transactions in 2024.
What is the outlook for the Hong Kong MPF business exit?
On January 16, 2025, PFG announced an agreement with Bank Consortium Trust Company to assume the sponsor and trustee roles for the Principal MPF Schemes. The company expects a one-time charge of approximately $140.0 million in the first quarter of 2025, which will reduce pre-tax net income but have no impact on segment pre-tax operating earnings. The transaction is expected to close in the first quarter of 2026, subject to regulatory approval.
How much capital did PFG return to shareholders and what is the remaining buyback capacity?
In 2024, PFG returned $1,700.8 million to common stockholders, consisting of $1,042.4 million in share repurchases and $658.4 million in dividends, with dividends declared at $2.85 per share. As of December 31, 2024, $786.2 million remained available under existing repurchase authorizations, and in February 2025 the Board authorized an additional $1.5 billion program with no expiration date.
What leadership changes occurred at PFG?
Daniel Houston retired as Chief Executive Officer effective January 7, 2025, and currently serves as Executive Chairman. Deanna Strable-Soethout assumed the role of President and Chief Executive Officer on that date. Joel Pitz has served as Interim Chief Financial Officer since August 20, 2024.
06—Continue