01—Abstract
Summary
Summary of the 10-K filed February 18, 2026. Cited figures are marked; the original filing is the authoritative source.
Principal Financial Group, Inc. (PFG) reported total assets under administration of $1,814.6 billiona, including $781.0 billion in assets under management as of December 31, 2025.
Net income attributable to Principal Financial Group, Inc. was $1,185.1 millionb in 2025, down from $1,571.0 million in 2024, with the decline driven primarily by a $654.5 million unfavorable change in the fair value of the funds withheld embedded derivative and a $119.7 million impact from asset write-downs tied to exiting Hong Kong MPF sponsor and trustee roles. These were partially offset by a $170.4 million one-time unfavorable impact in 2024 from YRT reinsurance transactions. Total revenues were $15,625.5 million versus $16,127.7 million in 2024, and diluted earnings per share were $5.25 compared with $6.68.
Segment pre-tax operating earnings were $1,185.6 millionc for Retirement and Income Solutions (up from $1,056.2 million), $930.2 million for Principal Asset Management (up from $861.2 million), and $523.2 million for Benefits and Protection (up from $463.2 million). Stockholders' equity attributable to PFG rose to $11,883.9 million from $11,086.4 million. The company returned $1,585.3 million to common stockholders in 2025 through $684.0 million of dividends and $901.3 million of share repurchases, and completed its $1.5 billion February 2024 repurchase program in December 2025.
The filing also discloses a January 2026 agreement to sell the Chilean annuities business to Banco Santander, which the company expects to close in the third quarter of 2026 and expects to produce an estimated $280.0 milliond pre-tax net realized capital loss. Financial strength ratings from A.M. Best, Fitch, Moody's and S&P were unchanged, with stable outlooks.
02—Key points
Key Highlights
- Net income attributable to PFG fell to $1,185.1 million in 2025 from $1,571.0 million in 2024, mainly due to a $654.5 million unfavorable change in the funds withheld embedded derivative.
- Segment pre-tax operating earnings rose in Retirement and Income Solutions ($1,185.6 million vs. $1,056.2 million), Principal Asset Management ($930.2 million vs. $861.2 million) and Benefits and Protection ($523.2 million vs. $463.2 million).
- Assets under administration reached $1,814.6 billion and assets under management reached $781.0 billion as of December 31, 2025.
- Stockholders' equity attributable to PFG increased to $11,883.9 million from $11,086.4 million, and debt to capitalization was 25% versus 27%.
- Total cash returned to common stockholders was $1,585.3 million in 2025, including $901.3 million of share repurchases; a new $1.5 billion repurchase authorization was approved in February 2025 with no expiration date.
- Agreement announced January 19, 2026 to sell the Chilean annuities business to Santander, with an estimated $280.0 million pre-tax net realized capital loss and expected closing in Q3 2026.
- Diluted EPS was $5.25 in 2025 versus $6.68 in 2024; the effective income tax rate fell to 11% from 15%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 18, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $15.63B$16.13B | −3.1% |
| Net Income | $1.26B$1.60B | −21.4% |
| EPS (Basic) | $5.32$6.77 | −21.4% |
| EPS (Diluted) | $5.25$6.68 | −21.4% |
| Shares Outstanding (Basic) | 222.80M232.00M | −4.0% |
| Shares Outstanding (Diluted) | 225.70M235.30M | −4.1% |
05—Questions
Frequently Asked Questions
Why did PFG's net income decline in 2025?
Net income attributable to PFG fell $385.9 million to $1,185.1 million. The main driver was a $654.5 million decrease from the change in fair value of the funds withheld embedded derivative, which produced a loss in 2025 versus a gain in 2024. Hong Kong MPF exit write-downs of $119.7 million also weighed on results, partly offset by the $170.4 million one-time YRT reinsurance impact recorded in 2024.
How did the company's operating segments perform?
All three reportable segments reported higher pre-tax operating earnings in 2025. Retirement and Income Solutions rose to $1,185.6 million from $1,056.2 million, Principal Asset Management to $930.2 million from $861.2 million, and Benefits and Protection to $523.2 million from $463.2 million. The Corporate segment's pre-tax operating loss widened to $381.2 million from $375.6 million.
What is the status of the Chile annuities sale?
In January 2026, PFG agreed to sell its Chilean annuities business, Principal Compañía de Seguros de Vida Chile S.A., to Banco Santander, subject to regulatory approvals. The company expects to close in the third quarter of 2026 and estimates a $280.0 million pre-tax net realized capital loss, primarily from recognizing an accumulated foreign currency translation adjustment in a loss position. It does not expect a material impact on Principal Asset Management segment pre-tax operating earnings.
How much capital did PFG return to shareholders and what remains authorized?
In 2025 PFG paid $684.0 million in common dividends and repurchased $901.3 million of common stock, for total cash returned of $1,585.3 million. The February 2024 $1.5 billion repurchase program was completed in December 2025. A new $1.5 billion program authorized in February 2025 has no expiration date. Dividends declared were $3.08 per share in 2025, up from $2.85.
What do the credit ratings look like?
The filing states there were no significant changes or actions in ratings or rating outlooks from January 1, 2025 through the filing date. Principal Life's insurer financial strength ratings are A+ (A.M. Best, Superior), AA- (Fitch), A1 (Moody's) and A+ (S&P), each with a stable outlook. PFG's senior unsecured debt is rated a (A.M. Best), A- (Fitch), Baa1 (Moody's) and A- (S&P).
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