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PFG · Principal Financial Group

50 filings

10-Q

PFG 10-Q Quarterly Reports

Principal Financial Group - 50 quarterly reports

Filing record · 2016–202610-K1110-Q338-K163

PFG filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 163 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Material agreement8-K · May ’19May ’19
  3. Leadership change8-K · Nov ’21Nov ’21
  4. Leadership change8-K · Aug ’25Aug ’25
  1. 2026-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2026

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $631.9 million for the three months ended September 30, 2026, compared with $213.8 million a year earlier, and $1,459.9 million for the nine months, compared with $668.1 million. Diluted earnings per common share were $2.91 for the quarter and $6.68 for the nine months. The quarterly increase was driven primarily by a $528.9 million net increase in after-tax income from exited business, mainly a change in fair value of the funds withheld embedded derivative, partly offset by a $113.9 million decrease from after-tax net realized capital losses. Net realized capital losses for the quarter were $387.6 million, reflecting the net loss on the disposition of the Chilean annuities business. Total revenues were $4,616.4 million for the quarter, up from $3,681.6 million, and $12,051.3 million for the nine months. Total assets were $338,742.2 million as of September 30, 2026, compared with $341,376.5 million at December 31, 2025, and stockholders' equity attributable to the company was $11,816.3 million, compared with $11,883.9 million. Accumulated other comprehensive loss increased to $4,643.0 million, reflecting higher net unrealized losses on available-for-sale securities as interest rates rose. During 2026 the company completed the acquisition of Beam Benefits for $403.6 million in cash, net of cash acquired, and closed the sale of its Chilean annuities business, which carried a $276.7 million pre-tax net realized capital loss. Cash and cash equivalents were $4,450.7 million at quarter end, and the company returned $1,270.2 million to common stockholders in the nine months through dividends and share repurchases. Long-term debt rose to $4,326.2 million after issuing $400.0 million of 5.3% senior notes due 2037.

    Oct 29, 2026
  2. 2026-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2026

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $403.4 million for the three months ended June 30, 2026, compared with $406.2 million in the prior-year quarter, and $828.0 million for the six months ended June 30, 2026, compared with $454.3 million a year earlier. Basic earnings per common share were $1.87 for the quarter and $3.82 for the six months. The six-month comparison was affected by changes in the fair value of the funds withheld embedded derivative, which produced a gain of $73.0 million in 2026 versus a loss of $189.4 million in 2025, and by a 2025 impairment related to exiting the Hong Kong MPF sponsor and trustee roles. Total assets were $352.8 billion as of June 30, 2026, up from $341.4 billion at December 31, 2025. Total stockholders' equity attributable to the company was $12.1 billion, and long-term debt rose to $4.32 billion after the issuance of $400.0 million of 5.3% senior notes due 2037 on May 27, 2026. During the first six months, the company returned $838.2 million to common stockholders through $350.0 million of dividends and $488.2 million of share repurchases, and it had 214,104,641 shares outstanding as of July 22, 2026. Management reported that the company signed an agreement on July 6, 2026 to acquire Beam Benefits, which generated approximately $175.0 million in premiums in 2025 and is expected to close later in 2026 subject to regulatory approval. Management also stated that its disclosure controls were effective as of June 30, 2026, and that it had no material changes to its risk factors from the 2025 Form 10-K.

    Jul 29, 2026
  3. 2026-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2026

    Principal Financial Group, Inc. reported first-quarter 2026 net income attributable to Principal Financial Group, Inc. of $424.6 million, or $1.93 diluted earnings per common share, compared with $48.1 million, or $0.21 per diluted share, in the first quarter of 2025. Management attributes the improvement primarily to the change in fair value of the funds withheld embedded derivative, which produced a gain of $177.4 million in 2026 versus a loss of $209.7 million in 2025. Total revenues were $3.53 billion versus $3.70 billion, and total expenses fell to $3.05 billion from $3.67 billion, with lower benefits, claims and settlement expenses largely tied to fewer single premium group annuity sales with life contingencies. Segment pre-tax operating earnings were $558.5 million in the quarter, up from $485.1 million, with Retirement and Income Solutions at $302.1 million, Principal Asset Management at $208.5 million, and Benefits and Protection at $170.0 million, offset by a Corporate segment loss of $122.1 million. Total assets declined to $332.70 billion from $341.38 billion at year-end 2025, largely reflecting lower separate account assets, and stockholders' equity attributable to the company was $11.82 billion. Net cash provided by operating activities fell to $187.1 million from $977.3 million. The company returned $409.4 million to common stockholders through dividends of $173.5 million and share repurchases of $235.9 million. Accumulated other comprehensive loss widened to $4.34 billion, reflecting $578.5 million of net unrealized losses on available-for-sale securities, as interest rates rose and credit spreads widened. Gross unrealized losses on fixed maturities available-for-sale totaled $3.59 billion as of March 31, 2026. The company reported a 14% effective tax rate for the quarter and stated that no material adverse effect from pending litigation is expected.

    Apr 29, 2026
  4. 2025-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2025

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $213.8 million for the three months ended September 30, 2025, compared with a loss of $220.0 million in the prior-year quarter, and $668.1 million for the nine months ended September 30, 2025, versus $665.6 million a year earlier. Diluted earnings per common share were $0.95 for the quarter and $2.95 for the nine months. Total revenues were $3.68 billion for the quarter, up from $3.01 billion, and $11.05 billion for the nine months, down from $11.38 billion. The quarter's improvement was driven primarily by the change in fair value of the funds withheld embedded derivative, which produced a smaller loss than in the prior year. Total assets were $334.49 billion at September 30, 2025, up from $313.66 billion at December 31, 2024, and total stockholders' equity attributable to the company was $11.67 billion, up from $11.09 billion. Segment pre-tax operating earnings were $310.3 million for Retirement and Income Solutions, $274.7 million for Principal Asset Management, $86.5 million for Benefits and Protection, and a loss of $91.6 million for Corporate in the quarter. Management also noted that the company's effective income tax rate fell to 6% for the quarter from 34% in the prior-year period. Capital activity included $511.6 million of common dividends paid and $623.3 million of share repurchases over the nine months, and the company repaid $400.0 million of 3.4% senior notes that matured in May 2025 using proceeds from a contingent funding agreement exercise that issued $400.0 million of 4.111% senior notes due 2028. Cash and cash equivalents rose to $5.14 billion. Management stated it has no unique material cash requirements from known contractual obligations as of September 30, 2025.

    Oct 29, 2025
  5. 2025-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2025

    Principal Financial Group, Inc. (PFG) reported net income attributable to Principal Financial Group, Inc. of $406.2 million for the three months ended June 30, 2025, compared with $353.1 million in the same period of 2024, and $454.3 million for the six months ended June 30, 2025, compared with $885.6 million a year earlier. Total revenues were $3.67 billion for the quarter versus $4.31 billion in 2024, and $7.37 billion for the six months versus $8.36 billion. The six-month decline reflects a $189.4 million loss on the funds withheld embedded derivative (versus a $429.9 million gain in 2024), and a $111.7 million net realized capital loss that includes a $77.0 million held-for-sale write-down of a Hong Kong MPF-related customer relationship intangible asset. Diluted earnings per share were $1.79 for the quarter and $2.00 for the six months, compared with $1.49 and $3.72 in 2024, with the prior-year six-month figure affected by a one-time $158.1 million unfavorable impact from yearly renewable term reinsurance transactions. Total assets rose to $323.10 billion at June 30, 2025, from $313.66 billion at December 31, 2024, and total stockholders' equity attributable to PFG was $11.42 billion. Cash and cash equivalents fell to $3.66 billion from $4.21 billion. Net cash provided by operating activities was $1.79 billion for the six months, while $400.0 million of 2025 senior notes were repaid at maturity, funded by the exercise of a contingent funding agreement that issued $400.0 million of 4.111% senior notes due 2028. The company returned $732.2 million to common stockholders in the first half through $338.7 million of dividends and $393.5 million of share repurchases, and it declared $0.76 per share in dividends for the quarter. Management states it has no significant changes in credit ratings and that disclosure controls were effective as of June 30, 2025. The filing also notes a Hong Kong MPF transaction with Bank Consortium Trust Company, expected to close in the first half of 2026 subject to regulatory approval, and a Public Law 119-21 tax legislation enacted July 4, 2025, whose financial impact the company says cannot yet be reasonably estimated.

    Jul 30, 2025
  6. 2025-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2025

    Principal Financial Group, Inc. (PFG) reported a sharp decline in first-quarter 2025 profitability. Net income attributable to Principal Financial Group, Inc. was $48.1 million, compared with $532.5 million in the first quarter of 2024, and basic and diluted earnings per common share were $0.21 versus $2.26 and $2.22. Total revenues fell to $3,695.9 million from $4,053.3 million. The filing attributes the decline mainly to a $406.7 million swing in the change in fair value of the funds withheld embedded derivative (a $209.7 million loss in 2025 versus a $197.0 million gain in 2024) and to $119.7 million of asset write-downs tied to exiting the sponsor and trustee roles for Hong Kong MPF Schemes. Management notes the net income decrease from the funds withheld derivative was $321.4 million. Operating results were supported by growth in several areas. Net investment income rose to $1,165.7 million from $1,072.2 million, premiums and other considerations increased to $1,751.3 million, and segment pre-tax operating earnings were $485.1 million versus $472.2 million. Retirement and Income Solutions segment pre-tax operating earnings were $283.7 million, up from $262.2 million, and Benefits and Protection rose to $119.5 million from $111.8 million. Net realized capital losses were $117.1 million, compared with $0.9 million a year earlier. Balance sheet and capital activity remained substantial. Total assets were $313,003.3 million and total stockholders' equity was $11,268.3 million at March 31, 2025. During the quarter the company paid $169.0 million in common dividends ($0.75 per share declared), repurchased $241.3 million of common stock, and exercised a $400.0 million contingent funding agreement to issue 4.111% Senior Notes due 2028 to refinance 3.4% notes maturing May 15, 2025. Long-term debt was $4,321.3 million at quarter end.

    Apr 30, 2025
  7. 2024-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2024

    Principal Financial Group, Inc. reported a net loss attributable to Principal Financial Group, Inc. of $220.0 million for the third quarter of 2024, compared with net income of $1,246.2 million in the third quarter of 2023. For the nine months ended September 30, 2024, net income attributable to the company was $665.6 million, versus $1,494.9 million a year earlier. The filing attributes the decline primarily to the change in fair value of the funds withheld embedded derivative, which was a loss of $776.8 million in the quarter compared with a gain of $925.6 million in the prior-year quarter. Total revenues were $3,011.6 million for the quarter versus $4,598.7 million a year earlier, and total expenses rose to $3,305.4 million from $2,993.8 million, reflecting higher liability for future policy benefits remeasurement loss, market risk benefit remeasurement loss and operating expenses. Segment pre-tax operating earnings were $499.8 million for the quarter versus $581.3 million a year earlier, with Retirement and Income Solutions, Principal Asset Management and Benefits and Protection all lower in the quarter, while Principal Asset Management pre-tax operating earnings rose to $268.7 million from $222.4 million. The company also cited actuarial assumption updates that decreased net income attributable to Principal Financial Group, Inc. by $85.7 million in the quarter, and a one-time impact of yearly renewable term reinsurance transactions in 2024 that affected the nine-month results. Capital activity remained significant: the company paid $492.7 million in dividends to common stockholders and repurchased $739.0 million of common stock during the nine months ended September 30, 2024, and total stockholders' equity attributable to Principal Financial Group, Inc. was $11,237.4 million at quarter end, up from $10,916.0 million at December 31, 2023. Shares outstanding were 229,291,302 as of September 30, 2024. Management stated it is monitoring liquidity closely and reported the company's financial strength ratings as stable across A.M. Best, Fitch, Moody's and S&P.

    Oct 30, 2024
  8. 2024-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2024

    Principal Financial Group, Inc. (PFG) reported net income attributable to Principal Financial Group, Inc. of $353.1 million for the three months ended June 30, 2024, down from $388.8 million a year earlier, and $885.6 million for the six months ended June 30, 2024, compared with $248.7 million in the prior-year period. The filing attributes the quarterly decline primarily to a $158.1 million unfavorable one-time impact of yearly renewable term (YRT) reinsurance transactions executed in the second quarter of 2024, partially offset by a $109.8 million favorable change in fair value of the funds withheld embedded derivative. Total revenues were $4.31 billion for the quarter and $8.36 billion for the six months, and diluted earnings per share were $1.49 for the quarter and $3.72 for the six months. The balance sheet remained large, with total assets of $308.78 billion at June 30, 2024, and total stockholders' equity attributable to PFG of $11.01 billion. Total debt was $3.98 billion, and debt to capitalization was 27% as stated in the filing. Accumulated other comprehensive loss widened to $(5.41) billion, reflecting net unrealized losses on available-for-sale securities of $(4.89) billion. The company returned $812.4 million to common stockholders in the first six months through dividends of $327.6 million and repurchases of $484.8 million, and it had $1.5 billion of share repurchase authorization approved in February 2024. Investors should note the company's reliance on fixed-maturity and mortgage-loan investments, which total $99.16 billion of invested assets, and the sensitivity of earnings and fair values to interest rates. The filing states that a hypothetical 100 basis point parallel increase in interest rates would reduce the net reported fair value of financial assets and derivatives by $2,577.1 million, and that the YRT transactions produced a one-time charge in the Benefits and Protection segment.

    Jul 31, 2024
  9. 2024-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2024

    Principal Financial Group, Inc. (PFG) reported net income attributable to Principal Financial Group, Inc. of $532.5 million for the three months ended March 31, 2024, compared with a loss of $140.1 million in the same period of 2023. Management attributes the increase primarily to the change in fair value of the funds withheld embedded derivative, which was a $197.0 million gain in 2024 versus a $626.6 million loss in 2023. Total revenues rose to $4,053.3 million from $2,819.0 million, and diluted earnings per common share were $2.22 compared with a loss of $0.58 a year earlier. Pre-tax operating earnings by segment were $262.2 million for Retirement and Income Solutions, $187.1 million for Principal Asset Management, $111.8 million for Benefits and Protection and a loss of $88.9 million for Corporate, for total segment pre-tax operating earnings of $472.2 million. At March 31, 2024, total assets were $308,683.5 million and total stockholders' equity attributable to PFG was $11,185.5 million, up from $10,916.0 million at December 31, 2023. Accumulated other comprehensive loss improved to $(5,256.1) million from $(5,345.3) million, while the company repurchased $232.3 million of common stock during the quarter. The Board authorized a new share repurchase program of up to $1.5 billion in February 2024, and the company paid $162.4 million in dividends to common stockholders, or $0.69 per share declared. The filing shows cash and cash equivalents declining to $4,168.4 million from $4,707.7 million, and net cash provided by operating activities of $584.2 million. Debt to capitalization was 26% at March 31, 2024, versus 27% at December 31, 2023. Management reports that no significant changes occurred in credit ratings through the filing date, and the company states it has no unique material cash requirements from known contractual obligations.

    May 1, 2024
  10. 2023-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2023

    Principal Financial Group, Inc. reported a 10-Q for the quarter ended September 30, 2023. Net income attributable to Principal Financial Group, Inc. was $1,246.2 million for the three months ended September 30, 2023, compared with $1,315.7 million a year earlier, and $1,494.9 million for the nine months, compared with $4,773.1 million. The decline in the nine-month figure was driven primarily by the change in fair value of the funds withheld embedded derivative, which was a gain of $392.9 million versus $4,305.0 million in the prior-year period. Total revenues were $10,975.0 million for the nine months ended September 30, 2023, versus $14,385.3 million in 2022, reflecting the same embedded derivative swing along with net realized capital gains of $40.5 million compared with losses of $353.4 million. Segment pre-tax operating earnings for the nine months were $786.8 million for Retirement and Income Solutions, $598.4 million for Principal Asset Management, $393.2 million for Benefits and Protection, and a loss of $308.3 million for Corporate. Total stockholders' equity attributable to the company rose to $10,671.6 million at September 30, 2023, from $9,976.7 million at December 31, 2022, and total assets were $287,948.0 million. The company adopted the LDTI accounting guidance on January 1, 2023, and results for 2022 have been recast under it. Long-term debt was $3,930.2 million, and the company issued $700.0 million of senior notes in March 2023 while repaying a $300.0 million note due 2023. The company paid dividends of $466.5 million and repurchased $492.7 million of common stock in the first nine months of 2023. Debt to capitalization was 27% at September 30, 2023, versus 29% at year-end 2022. The filing states that management does not believe any pending litigation or regulatory matter will have a material adverse effect on the business or financial position.

    Nov 1, 2023
  11. 2023-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2023

    Principal Financial Group, Inc. reported a sharp decline in quarterly profitability for the three months ended June 30, 2023, with net income attributable to Principal Financial Group, Inc. of $388.8 million, compared with $3,118.7 million in the prior-year quarter. The filing attributes the decrease primarily to the change in fair value of the funds withheld embedded derivative, which was a gain of $93.9 million in the 2023 quarter versus $3,067.3 million in the 2022 quarter. For the six months ended June 30, 2023, net income attributable to the company was $248.7 million, versus $3,457.4 million a year earlier, with the funds withheld embedded derivative producing a loss of $532.7 million in 2023. Excluding these items, the segment view shows total segment pre-tax operating earnings of $448.0 million for the quarter, down from $528.7 million, and $888.8 million for the six months, down from $997.7 million. Retirement and Income Solutions pre-tax operating earnings fell to $232.3 million from $254.6 million in the quarter, and Principal Asset Management declined to $188.2 million from $269.4 million. Management cited lower variable investment income and a $42.4 million decrease in performance fee revenue, primarily in real estate, as drivers. Total assets were $299,186.9 million at June 30, 2023, and stockholders' equity attributable to the company was $10,344.5 million. For liquidity, the filing reports net cash provided by operating activities of $1,797.8 million for the six months, net cash used in investing activities of $1,082.4 million, and net cash used in financing activities of $1,489.5 million. Dividends to common stockholders totaled $310.4 million for the six months, and treasury stock acquisitions totaled $288.9 million. Long-term debt was $3,992.9 million, and the company issued $700.0 million of senior notes in March 2023 while repaying a $300.0 million 3.125% note due 2023 and redeeming its floating rate notes due 2055.

    Aug 2, 2023
  12. 2023-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2023

    Principal Financial Group, Inc. reported a net loss attributable to Principal Financial Group, Inc. of $(140.1) million, or $(0.58) per basic and diluted share, for the three months ended March 31, 2023, compared with net income attributable of $338.7 million, or $1.28 diluted per share, in the first quarter of 2022. Total revenues were $2,819.0 million versus $3,095.5 million a year earlier. The filing attributes the decline in net income primarily to the change in fair value of the funds withheld embedded derivative, which was a $(626.6) million charge tied to the 2022 coinsurance with funds withheld reinsurance transaction with Talcott Life & Annuity Re. Pre-tax operating earnings for the segments totaled $440.8 million, down from $469.0 million, with Retirement and Income Solutions at $249.8 million, Principal Asset Management at $187.8 million, Benefits and Protection at $99.3 million and Corporate at $(96.1) million. The balance sheet grew, with total assets of $299,408.2 million and total stockholders' equity of $10,260.8 million at March 31, 2023. Long-term debt rose to $4,688.6 million from $3,997.0 million after the company issued $700.0 million of senior notes in March 2023, with proceeds designated to redeem floating rate notes due 2055 and to repay 3.125% notes due in 2023. Net cash provided by operating activities was $695.3 million. The company adopted the LDTI accounting standard on January 1, 2023, and results for 2022 were recast under it. The filing notes that the company is in a strong capital and liquidity position despite banking sector events in 2023, and that it is not materially impacted by the failures of Silicon Valley Bank and Signature Bank of New York. Dividends declared were $0.64 per common share, and the company repurchased $188.5 million of treasury stock during the quarter.

    May 3, 2023
  13. 2022-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2022

    Principal Financial Group, Inc. (PFG) reported a substantial increase in net income for the third quarter and first nine months of 2022, driven mainly by a change in the fair value of the funds withheld embedded derivative. Net income attributable to Principal Financial Group, Inc. was $1,385.5 million for the three months ended September 30, 2022, compared with $359.9 million in the prior-year period, and $4,821.1 million for the nine months, compared with $1,238.8 million. Total revenues for the nine months were $14,369.6 million, up from $10,171.6 million, reflecting a $4,305.0 million change in fair value of the funds withheld embedded derivative and $697.5 million of net realized capital gains on funds withheld assets, both tied to the Reinsurance Transaction. The quarter was also marked by a significant decline in equity. Total stockholders' equity fell to $9,488.3 million at September 30, 2022, from $16,125.8 million at December 31, 2021, primarily because accumulated other comprehensive income swung to a loss of $(8,070.6) million, reflecting net unrealized losses on available-for-sale securities as interest rates rose and credit spreads widened. The company estimates that adopting the new long-duration insurance contracts standard on January 1, 2023 will decrease total stockholders' equity at transition by approximately $5.0 billion to $5.6 billion. Share repurchases remained active, with $1,410.7 million of treasury stock acquired in the nine months and $486.1 million in dividends paid to common stockholders. The company closed a coinsurance with funds withheld reinsurance transaction with Talcott Life & Annuity Re in the second quarter of 2022, ceding its in-force U.S. retail fixed annuity and universal life with secondary guarantee blocks, effective as of January 1, 2022. Debt declined to $4,047.5 million, and the company reported a $9.4 billion decline in total assets to $282,580.6 million. Management stated that it does not believe any pending litigation will have a material adverse effect on its business or financial position.

    Nov 2, 2022
  14. 2022-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2022

    Principal Financial Group, Inc. (PFG) reported net income attributable to Principal Financial Group, Inc. of $3,059.4 million for the three months ended June 30, 2022, versus $361.8 million in the prior-year quarter, and $3,435.6 million for the six months ended June 30, 2022, versus $878.9 million a year earlier. The filing states that the increase was primarily due to the change in fair value of the funds withheld embedded derivative, which was a $3,067.3 million gain in the quarter, tied to the coinsurance with funds withheld reinsurance transaction with Talcott Life & Annuity Re closed in the second quarter of 2022 and effective January 1, 2022. Total revenues were $6,658.7 million for the quarter, up from $3,539.4 million, while fees and other revenues declined, and the filing describes the three-month results as not comparable to prior periods because of the transaction. Balance sheet and capital figures moved significantly. Total assets fell to $293,220.2 million from $304,657.2 million at year-end 2021, and accumulated other comprehensive income (loss) swung to $(5,630.1) million from $1,610.9 million, which the filing attributes to rising interest rates and widening credit spreads. Total stockholders' equity attributable to PFG declined to $11,036.8 million from $16,069.4 million. The company repurchased $951.3 million of treasury stock in the six months, including a $700.0 million accelerated share repurchase that closed in June 2022, and paid $328.7 million in dividends to common stockholders. Basic earnings per common share were $12.11 for the quarter. The notes disclose that the company estimates a transition-date decrease to total stockholders' equity of approximately $4.8 billion to $5.8 billion from adopting the long-duration insurance contracts standard effective January 1, 2023, driven mainly by the discount rate update. The filing also states that management does not believe pending litigation, including the Rozo ERISA class action on which the district court ruled in Principal Life's favor, will have a material adverse effect on the company's business or financial position.

    Aug 9, 2022
  15. 2022-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2022

    Principal Financial Group, Inc. (PFG) reported net income attributable to Principal Financial Group, Inc. of $376.2 million for the three months ended March 31, 2022, compared with $517.1 million in the prior-year quarter. The decline was primarily due to net realized capital losses of $110.5 million in 2022, versus net realized capital gains of $151.4 million in 2021. Total revenues were $3,110.0 million and basic and diluted earnings per common share were $1.45 and $1.43, respectively. Net cash provided by operating activities fell to $31.5 million from $140.8 million. Total assets declined to $291,538.5 million at March 31, 2022, from $304,657.2 million at December 31, 2021, and total stockholders' equity attributable to the company fell to $11,897.6 million from $16,069.4 million, largely reflecting a $3,673.9 million after-tax net unrealized loss on available-for-sale securities and $754.1 million of treasury stock acquired. The company repurchased 11.2 million shares during the quarter, including a $700.0 million accelerated share repurchase program entered into in March 2022, and paid dividends of $0.64 per share. Shares outstanding were 252,684,227 as of April 27, 2022. The filing describes a Reinsurance Transaction under which the company agreed on January 31, 2022 to cede 100% of its in-force U.S. retail fixed annuity and universal life insurance with secondary guarantee blocks to Sutton Cayman, Ltd., with closing targeted for the second quarter of 2022 and economics effective January 1, 2022, subject to regulatory approval. Proceeds are to be returned to shareholders through share repurchases. Moody's affirmed PFG's senior unsecured debt at 'Baa1' and changed the outlook to 'stable' from 'positive,' citing the Reinsurance Transaction and counterparty risk and uncertainty related to PFG's operations in Chile.

    May 4, 2022
  16. 2021-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2021

    Principal Financial Group, Inc. (PFG) reported its Form 10-Q for the quarter ended September 30, 2021, showing net income attributable to Principal Financial Group, Inc. of $359.9 million for the third quarter and $1,238.8 million for the nine months, compared with $236.0 million and $923.2 million in the prior-year periods. Basic earnings per share were $1.34 for the quarter and $4.58 for the nine months. Total revenues were $3,423.7 million for the quarter and $10,171.6 million for the nine months, while total assets were $298,908.4 million at September 30, 2021, and stockholders' equity attributable to the company was $16,070.7 million. Management describes a Strategic Review announced June 28, 2021, which led the company to discontinue sales of U.S. retail fixed annuities and consumer life insurance products, to invest in growth areas including U.S. retirement, global asset management, and U.S. specialty benefits, and to strengthen capital management through additional share repurchases. The company continues to evaluate strategic alternatives for its universal life insurance products with lifetime secondary guarantees and its U.S. retail fixed annuities business. A June 2021 board authorization allows repurchases of up to $1.2 billion of common stock, and the company repurchased $585.1 million of treasury stock in the nine months. The filing also details pending litigation: the Rozo ERISA class action, in which the district court found in favor of Principal Life on April 8, 2021, with the plaintiff appealing to the Eighth Circuit. Management does not believe any pending matter will have a material adverse effect, and no loss has been accrued for this matter. Ratings were affirmed in June 2021, with outlooks revised to stable by Fitch and S&P.

    Oct 28, 2021
  17. 2021-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2021

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $361.8 million for the quarter ended June 30, 2021, versus $398.3 million a year earlier, and $878.9 million for the six months ended June 30, 2021, versus $687.2 million. Total revenues for the quarter were $3,539.4 million compared with $3,114.6 million, and diluted earnings per share were $1.32 for the quarter and $3.19 for the six months. Quarterly results were pressured by higher DAC amortization from less favorable financial markets and a COVID-19 impact that was unfavorable versus the prior year, partly offset by an increase in fee revenues from higher average AUM and mean account values. The filing describes a Strategic Review, announced June 28, 2021 and undertaken under a cooperation agreement with Elliott Investment Management, LP, which led to discontinuing sales of U.S. retail fixed annuities and consumer life insurance products, pursuing strategic alternatives for the related in-force blocks, investing in fee-based growth areas, and strengthening capital management through additional share repurchases. The Board authorized a new repurchase program of up to $1.2 billion in June 2021, and the company repurchased $381.6 million of treasury stock in the six months. The filing states that the future impact of the Strategic Review on the financial statements has not been fully assessed. Balance sheet and liquidity remained solid: total assets were $302,165.5 million and total stockholders' equity was $16,291.5 million at June 30, 2021. Fitch affirmed Principal Life's 'AA-' and revised outlooks to stable, S&P affirmed Principal Life at 'A+' and revised outlooks to stable, and Moody's said its ratings and positive outlook were unchanged. The filing also discloses that the Rozo ERISA class action ruled in favor of Principal Life on April 8, 2021, with the plaintiff appealing; no loss has been accrued.

    Jul 29, 2021
  18. 2021-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2021

    Principal Financial Group, Inc. (PFG) reported net income attributable to Principal Financial Group, Inc. of $517.1 million for the three months ended March 31, 2021, compared with $288.9 million for the same period in 2020. Total revenues were $3,208.5 million, down from $4,551.3 million, mainly because premiums and other considerations fell to $835.1 million from $2,291.0 million, reflecting lower single premium annuity sales in the Retirement and Income Solutions segment. Basic earnings per common share were $1.89 and diluted earnings per share were $1.87, versus $1.05 and $1.04 a year earlier. The filing attributes the increase in net income primarily to a $161.2 million after-tax decrease in DAC amortization tied to favorable equity markets in 2021, and a $67.7 million after-tax increase in fee revenues from higher average AUM and mean account values. The balance sheet shows total assets of $295,634.6 million and total stockholders' equity of $15,462.3 million at March 31, 2021, down from $16,617.3 million at year-end 2020, largely due to a decline in accumulated other comprehensive income to $953.8 million from $2,383.1 million as unrealized gains on available-for-sale securities fell with rising interest rates. Cash and cash equivalents decreased to $2,003.5 million, and net cash provided by operating activities was $140.8 million versus $1,589.1 million in the prior-year period. Cash returned to common stockholders totaled $267.7 million in the quarter, including $152.2 million in dividends and $115.5 million in share repurchases. Dividends declared were $0.56 per share. The filing also discloses that the court in the Rozo ERISA class action issued a ruling on April 8, 2021 in favor of Principal Life on all claims, and that management does not believe pending litigation will have a material adverse effect. Ratings affirmations include A.M. Best's 'A+' financial strength rating for Principal Life, affirmed in February 2021 with a stable outlook.

    Apr 29, 2021
  19. 2020-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2020

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $236.0 million for the three months ended September 30, 2020, versus $277.1 million a year earlier, and $923.2 million for the nine months ended September 30, 2020, versus $1,093.3 million in the prior-year period. Total revenues were $3,310.7 million for the quarter and $10,976.6 million for the nine months. The filing attributes the decrease in net income primarily to an $81.7 million more unfavorable impact of actuarial assumption updates and model refinements in 2020 compared with 2019, and in the third quarter of 2020 the company recorded an unlocking of DAC and other actuarial balances that decreased net income by $118.2 million for both the three and nine months. Total assets were $278,484.8 million at September 30, 2020, up from $276,087.8 million at December 31, 2019, and total stockholders' equity attributable to the company rose to $15,650.9 million from $14,618.0 million. Cash and cash equivalents increased to $3,556.7 million, and the company issued $500.0 million of senior notes at a discount on June 12, 2020 and an additional $100.0 million at a premium on August 3, 2020, both at 2.125% due 2030. The filing discusses COVID-19 as a material risk to claims, investment defaults, asset values and liquidity, and states that management does not expect the pending ERISA class action (Rozo) to have a material adverse effect, with no loss accrued. The company paused its share repurchase program in March 2020, with $850.3 million remaining authorization at quarter end, and it says it intends to resume repurchases as early as the fourth quarter of 2020 or first quarter of 2021. Ratings were affirmed by A.M. Best, Fitch and S&P in 2020, with Fitch and S&P revising outlooks to negative.

    Oct 29, 2020
  20. 2020-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2020

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $398.3 million for the second quarter of 2020, up from $386.3 million in the prior-year quarter, and $687.2 million for the six months ended June 30, 2020, down from $816.2 million. Diluted earnings per common share were $1.45 for the quarter and $2.49 for the six months. Total revenues were $3,114.6 million for the quarter, down from $3,972.6 million, driven largely by lower premiums in the Retirement and Income Solutions segment, while total stockholders' equity rose to $15,311.0 million at June 30, 2020, from $14,685.8 million at December 31, 2019, aided by a $2,048.1 million quarterly other comprehensive income gain. The filing highlights the COVID-19 pandemic as a central risk. Management notes that declines in equity markets reduced account values and assets under management, which may pressure future revenues, and that the company is monitoring liquidity closely. Segment pre-tax operating earnings for the six months were $873.8 million in total, with Retirement and Income Solutions at $419.0 million and U.S. Insurance Solutions at $284.5 million. The company also issued $500.0 million of 2.125% senior notes due 2030 on June 12, 2020, and paused its share repurchase program in March 2020 after completing a prior $500.0 million program in February 2020. Rating agency activity included Fitch revising the outlook on PFG's senior unsecured debt to negative from stable in May 2020, and S&P changing its outlook on all ratings to negative in April 2020. Management attributes these actions to the economic disruption from COVID-19. The filing also notes a pending Rozo ERISA class action in which no loss has been accrued because a loss is not considered probable and cannot be reasonably estimated.

    Jul 29, 2020
  21. 2020-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2020

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $288.9 million for the three months ended March 31, 2020, compared with $429.9 million in the prior-year period. Total revenues rose to $4,551.3 million from $3,743.9 million, driven largely by premiums and other considerations of $2,291.0 million (up from $1,724.9 million) and fees and other revenues of $1,145.3 million. Basic earnings per common share were $1.05 versus $1.54, and diluted earnings per share were $1.04 versus $1.53. Management attributed the decline in net income mainly to higher DAC amortization stemming from unfavorable equity markets in 2020 compared with favorable markets in 2019. The balance sheet showed total assets of $246.9 billion and total stockholders' equity attributable to the company of $12.9 billion, down from $14.6 billion at year-end 2019. Accumulated other comprehensive loss was $(599.2) million, compared with income of $1,037.9 million at December 31, 2019, reflecting net unrealized losses on available-for-sale securities and foreign currency translation. Cash and cash equivalents increased to $3.48 billion, and net cash provided by operating activities was $1,589.1 million. The company repurchased $231.8 million of treasury stock and paid $153.6 million in dividends to common stockholders during the quarter. The filing states that the company is monitoring liquidity closely in light of the COVID-19 pandemic, which it describes as creating significant economic disruption, equity and interest rate volatility, and potential increases in claims and defaults. Management cited a strong capital and liquidity position, and the filing notes that S&P changed the outlook on its ratings to negative in April 2020. Principal Life's ordinary stockholder dividend limitation for 2020 is stated as approximately $1,060.3 million.

    Apr 29, 2020
  22. 2019-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2019

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $277.1 million for the third quarter of 2019, compared with $456.3 million in the third quarter of 2018, and $1,093.3 million for the nine months ended September 30, 2019, compared with $1,310.0 million a year earlier. Basic earnings per common share were $0.99 for the quarter and $3.92 for the nine months. Total revenues were $4,458.4 million for the quarter and $12,174.9 million for the nine months, and total assets reached $270,238.4 million at September 30, 2019, up from $243,036.1 million at December 31, 2018. Management attributed part of the year-over-year decline to a $73.9 million favorable impact in 2018 from the realignment of a real estate investment team and to $68.6 million of unfavorable actuarial assumption updates in 2019. The company completed the acquisition of Wells Fargo's Institutional Retirement & Trust business on July 1, 2019, paying $1.2 billion in cash with up to $150.0 million of additional earn-out payments tied to fee revenue retention through December 31, 2020. Goodwill rose to $1,690.7 million from $1,100.0 million, and other intangibles rose to $1,801.7 million from $1,315.1 million, largely reflecting the acquisition. The company issued $500.0 million of 3.7% senior notes due 2029 to help fund the purchase. Stockholders' equity attributable to Principal Financial Group, Inc. increased to $14,804.2 million from $11,390.0 million, driven primarily by a $2,875.3 million increase in other comprehensive income. The company reported cash and cash equivalents of $3,198.0 million and declared dividends of $1.63 per share for the nine months. Share repurchases under the November 2018 program were reinstated in the third quarter of 2019, with $197.5 million of treasury stock acquired during the nine months. The filing notes no significant litigation or regulatory contingencies for which disclosure is appropriate as of September 30, 2019.

    Oct 30, 2019
  23. 2019-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2019

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $386.3 million for the three months ended June 30, 2019, compared with $456.6 million in the prior-year quarter, and $816.2 million for the six months ended June 30, 2019, versus $853.7 million a year earlier. Total revenues were $3,972.6 million for the quarter and $7,716.5 million for the six months, up from $3,234.9 million and $6,118.5 million. Diluted earnings per share were $1.37 for the quarter and $2.90 for the six months. The company attributed the decline in quarterly net income mainly to after-tax net realized capital losses in 2019 versus gains in 2018, which included a $99.5 million gain on the sale of an equity method investment in 2018. Total assets grew to $267,918.0 million at June 30, 2019, from $243,036.1 million at December 31, 2018, and total stockholders' equity rose to $14,102.0 million from $11,456.0 million, driven largely by a $2,219.0 million increase in other comprehensive income for the six months. Net cash provided by operating activities was $2,678.4 million for the six months, and the company issued $500.0 million of 3.7% senior notes due 2029 on May 7, 2019 to help fund its acquisition of the Institutional Retirement & Trust business of Wells Fargo Bank, N.A. Subsequent to the quarter, the company closed that acquisition on July 1, 2019 for $1.2 billion in cash plus an earn-out of up to $150.0 million tied to retention of fee revenue through December 31, 2020. The filing also reports that 278.6 million common shares were outstanding at June 30, 2019, dividends declared were $0.54 per share for the quarter, and that Fitch affirmed the AA- financial strength ratings of Principal Life in July 2019.

    Jul 31, 2019
  24. 2019-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2019

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $429.9 million for the three months ended March 31, 2019, up from $397.1 million in the prior-year quarter. Total revenues rose to $3,743.9 million from $2,883.6 million, driven mainly by premiums and other considerations of $1,724.9 million (versus $995.2 million) and net realized capital gains of $84.5 million (versus losses of $25.1 million). Diluted earnings per common share were $1.53, compared with $1.36 a year earlier. The filing attributes the increase in net income primarily to after-tax net realized capital gains in 2019, partially offset by a $31.9 million decrease in after-tax fees and other revenues due to lower average AUM. Total assets were $259,419.9 million at March 31, 2019, up from $243,036.1 million at December 31, 2018, and total stockholders' equity attributable to the company rose to $12,694.4 million from $11,390.0 million, largely due to a swing in accumulated other comprehensive loss to a $(418.9) million balance from $(1,565.1) million. Cash and cash equivalents declined to $2,259.7 million from $2,977.5 million, and net cash provided by operating activities was $1,176.4 million. The company suspended repurchases of the remaining $295.3 million under its November 2018 authorization during the first quarter. A subsequent event disclosed in the filing is the April 9, 2019 agreement to acquire the Institutional Retirement & Trust business of Wells Fargo Bank, N.A. for $1.2 billion in cash at closing plus an earn-out of up to $150.0 million, with closing expected in the third quarter of 2019 subject to regulatory approval and to be funded with available cash and debt financing.

    May 2, 2019
  25. 2018-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2018

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $456.3 million for the three months ended September 30, 2018, down from $810.2 million in the prior-year quarter, and $1,310.0 million for the nine months, down from $1,468.6 million. The decline was driven primarily by after-tax net realized capital losses in 2018 versus after-tax net realized capital gains in 2017, which included $690.9 million of pre-tax gains from real estate transactions. Total revenues were $4,348.1 million for the quarter and $10,466.6 million for the nine months, compared with $4,627.8 million and $10,855.5 million a year earlier. Total stockholders' equity fell to $11,768.7 million at September 30, 2018, from $12,921.9 million at December 31, 2017, largely because accumulated other comprehensive loss widened to $(1,347.6) million, reflecting higher interest rates on available-for-sale securities. The third quarter also included a $253.1 million accelerated performance fee in Principal Global Investors from the realignment of a real estate investment team, partly offset by $151.9 million of related operating expenses. Pre-tax operating earnings for the company's segments totaled $593.4 million for the quarter and $1,575.6 million for the nine months, versus $452.9 million and $1,420.2 million a year earlier. Basic earnings per share were $1.60 for the quarter and $4.57 for the nine months, compared with $2.80 and $5.08 in the prior-year periods. The company repurchased $461.5 million of common stock in the nine months ended September 30, 2018, and paid $446.5 million in dividends to common stockholders, while declaring $0.53 per share for the quarter. Management also reported that holding-company and subsidiary liquidity remained sufficient, with $2,033.5 million of cash and liquid assets held at the holding companies and other subsidiaries as of September 30, 2018.

    Oct 31, 2018
  26. 2018-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2018

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $456.6 million for the three months ended June 30, 2018, up from $309.5 million in the prior-year quarter, and $853.7 million for the six months ended June 30, 2018, versus $658.4 million a year earlier. The increase was driven primarily by after-tax net realized capital gains in 2018, including a $99.5 million gain from the sale of an equity method investment, compared with net realized capital losses in 2017. Total revenues were $3,234.9 million for the quarter and $6,118.5 million for the six months, while income before income taxes was $515.4 million and $972.4 million, respectively. The balance sheet shows total assets of $252.1 billion at June 30, 2018, versus $253.9 billion at December 31, 2017. Total stockholders' equity attributable to the company fell to $11.64 billion from $12.85 billion, largely because accumulated other comprehensive income swung to a loss of $1.14 billion from a gain of $165.5 million, reflecting net unrealized losses on available-for-sale securities and a foreign currency translation adjustment. Treasury stock purchases of $396.5 million in the first half of 2018 also reduced equity, and the company authorized a new $300.0 million share repurchase program in May 2018. The filing also notes several operating developments: the acquisitions of MetLife Afore in Mexico and INTERNOS in Europe, the completed CIMB joint venture ownership restructuring, and early adoption of revenue recognition guidance on January 1, 2018, which reduced stockholders' equity by $39.7 million as a cumulative effect adjustment. Cash flow from operating activities was $1,638.2 million for the six months, compared with $1,829.1 million a year earlier.

    Aug 1, 2018
  27. 2018-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2018

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $397.1 million for the three months ended March 31, 2018, up from $348.9 million in the prior-year quarter. Total revenues were $2,883.6 million compared with $3,049.4 million, with premiums and other considerations falling to $995.2 million from $1,248.0 million, while fees and other revenues rose to $1,011.3 million from $940.6 million. Diluted earnings per common share were $1.36 versus $1.19. Management attributed the increase in net income primarily to higher fees and other revenues, partly offset by a $20.7 million increase in DAC amortization expense. The balance sheet shows total assets of $253,636.5 million and total stockholders' equity of $12,255.8 million at March 31, 2018, compared with $12,921.9 million at December 31, 2017. The decline in equity was driven largely by a swing in accumulated other comprehensive income to a loss of $469.3 million from a gain of $165.5 million, reflecting net unrealized losses on available-for-sale securities as interest rates rose and credit spreads widened. Cash and cash equivalents fell to $2,335.7 million, and treasury stock acquisitions totaled $199.6 million during the quarter, with dividends to common stockholders of $147.3 million. The filing also discloses that the company adopted several accounting standards on January 1, 2018, including the revenue recognition guidance, which reduced stockholders' equity by a cumulative $39.7 million, and that on March 8, 2018, it entered into contingent funding agreements for up to $400.0 million and $350.0 million of senior notes due 2028 and 2048. Other developments include the February 2018 acquisition of MetLife Afore, S.A. de C.V., which increased AUM by $3.8 billion, and the April 2018 acquisition of INTERNOS.

    May 2, 2018
  28. 2017-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2017

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $810.2 million for the three months ended September 30, 2017, compared with $308.2 million in the prior-year quarter, and $1,468.6 million for the nine months compared with $998.5 million. The increase was driven primarily by after-tax net realized capital gains of $410.8 million from real estate joint venture exit transactions completed in September 2017, which produced a net pre-tax realized capital gain of $690.9 million in both the three- and nine-month periods. Total revenues were $4,627.8 million for the quarter versus $2,818.0 million a year earlier, largely reflecting higher premiums and other considerations of $2,126.1 million, up from $1,002.7 million, driven by single premium group and individual annuities with life contingencies. Total assets grew to $247.93 billion at September 30, 2017, from $228.01 billion at December 31, 2016, and total stockholders' equity rose to $12.07 billion from $10.29 billion. Basic and diluted earnings per share for the nine months were $5.08 and $5.02, respectively. The company returned $616.6 million to common stockholders in the nine months through $398.5 million of dividends and $218.1 million of share repurchases. Management also noted an unlocking of DAC and other actuarial balances that reduced net income by $26.6 million in the third quarter of 2017. Ratings affirmations were reported during 2017 from Fitch, S&P, A.M. Best and Moody's, with outlooks stated as stable for the operating insurance subsidiaries. The filing also discloses an announced acquisition of MetLife's AFORE pension business in Mexico, expected to close in the first quarter of 2018 subject to regulatory approvals, which would add approximately $3.9 billion in AUM and 0.7 million customers. Pending accounting standards, including the revenue recognition and credit loss (CECL) standards, are described as not expected to have material impacts beyond those already identified in the filing.

    Nov 1, 2017
  29. 2017-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2017

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $309.5 million for the three months ended June 30, 2017, down from $322.3 million a year earlier, and $658.4 million for the six months, down from $690.3 million. The decline was driven mainly by after-tax net realized capital losses in 2017 versus gains in 2016, including a $187.9 million change on derivatives not designated as hedging instruments for the six months. Total revenues rose to $6,227.7 million for the six months from $6,062.3 million, and segment pre-tax operating earnings grew, with the filing citing $179.8 million of higher segment pre-tax operating earnings for the six months due to business growth. Balance sheet growth was notable: total assets were $240.15 billion at June 30, 2017, versus $228.01 billion at December 31, 2016, and total stockholders' equity rose to $11.24 billion from $10.29 billion. Accumulated other comprehensive loss narrowed to $(116.1) million from $(675.2) million, largely from net unrealized gains on available-for-sale securities. Cash and cash equivalents declined to $2.01 billion from $2.72 billion, and operating cash flow was $1,829.1 million for the six months. Principal Life paid an extraordinary dividend of $1,068.4 million to its parent following the May 2017 sale of Principal Global Investors, LLC to an affiliate. The filing reports that management does not expect the DOL fiduciary rule, which became applicable June 9, 2017, to have a significant effect on financial condition or results of operations. Litigation matters, including Section 36(b) fee suits and the Lehman-related claim, are described as not having an accrued loss as of June 30, 2017, and management does not believe they will have a material adverse effect.

    Aug 2, 2017
  30. 2017-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2017

    Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $348.9 million for the three months ended March 31, 2017, compared with $368.0 million in the first quarter of 2016. Total revenues rose slightly to $3,049.4 million from $3,036.6 million, but income before income taxes declined to $414.0 million from $439.8 million, driven mainly by a $153.2 million swing in net realized capital gains (losses), which were a loss of $16.6 million in 2017 versus a gain of $136.6 million in 2016. Basic and diluted earnings per share were $1.21 and $1.19, versus $1.26 and $1.25 a year earlier. Segment pre-tax operating earnings rose to $472.8 million from $356.3 million, led by Retirement and Income Solutions ($244.2 million) and Principal Global Investors ($100.0 million). The balance sheet grew, with total assets of $235,496.0 million at March 31, 2017, up from $228,014.3 million at December 31, 2016, and total stockholders' equity of $10,684.9 million. Cash and cash equivalents fell to $1,534.7 million from $2,719.6 million, and net cash provided by operating activities was $522.9 million versus $895.5 million a year earlier. The company returned $272.8 million to common stockholders in the quarter through $130.0 million of dividends and $142.8 million of share repurchases, and declared dividends of $0.45 per share versus $0.38 in the prior-year quarter. The filing notes that the company's financial strength ratings were affirmed by S&P at 'A+' in April 2017, and that Principal Life had paid an extraordinary dividend of $1.1 billion to its parent after a May 1, 2017 sale of its interest in Principal Global Investors, LLC, which the filing describes as a corporate reorganization. Management does not expect the pending litigation to have a material adverse effect on the business or financial position.

    May 3, 2017
  31. 2016-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2016

    Principal Financial Group, Inc. reported net income of $1,023.6 million for the nine months ended September 30, 2016, compared with $994.9 million in the same period of 2015, and net income attributable to Principal Financial Group, Inc. of $998.5 million versus $980.4 million. For the three months ended September 30, 2016, net income was $327.4 million versus $300.9 million a year earlier. Total revenues for the nine months declined to $8,880.3 million from $9,157.4 million, driven mainly by lower premiums and other considerations ($3,561.1 million versus $4,155.9 million), partly offset by higher net investment income ($2,417.0 million versus $2,267.3 million) and net realized capital gains of $214.5 million versus a $10.0 million loss. Total assets were $230,367.6 million at September 30, 2016, up from $218,660.3 million at December 31, 2015, and total stockholders' equity rose to $10,863.8 million from $9,377.4 million, supported by a $989.0 million increase in other comprehensive income. Management attributed the third-quarter results to a $68.8 million after-tax reduction in net income from actuarial assumption updates and model refinements, which unlocked DAC and other actuarial balances. Cash and cash equivalents fell to $2,218.2 million from $2,564.8 million, and net cash used in investing activities was $4,497.6 million, reflecting increased purchases of available-for-sale securities, primarily in the spread businesses. The company's debt-to-equity ratio excluding AOCI was 31% at September 30, 2016, compared with 34% at December 31, 2015. Management noted that the rating agencies affirmed the financial strength ratings of Principal Life Insurance Company, and it reported $1,113.0 million of cash and liquid assets held in holding companies and other subsidiaries available for corporate purposes.

    Nov 2, 2016
  32. 2016-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2016

    Principal Financial Group, Inc. reported net income of $696.2 million for the six months ended June 30, 2016, compared with $694.0 million in the same period of 2015, and net income attributable to Principal Financial Group, Inc. of $690.3 million versus $680.0 million. For the three months ended June 30, 2016, net income was $327.0 million versus $264.9 million a year earlier, and total revenues were $3,025.7 million versus $3,259.2 million, with the improvement driven mainly by net realized capital gains in 2016 compared with net realized capital losses in 2015. Basic earnings per common share for the quarter were $1.11 and diluted earnings per share were $1.10. Total assets were $223,074.2 million at June 30, 2016, up from $218,660.3 million at December 31, 2015, and total stockholders' equity rose to $10,567.7 million from $9,377.4 million, largely reflecting a change in accumulated other comprehensive loss from $(882.5) million to $(19.3) million. The company repurchased common stock for $209.7 million and paid $223.2 million in common dividends during the six months, and a new $400.0 million share repurchase program was authorized in February 2016. Management stated it does not believe any pending litigation will have a material adverse effect on its business or financial position, and no loss was accrued for the legal matters disclosed. The filing reports that as of June 30, 2016, the company's ratings were affirmed by S&P at 'A+' and by A.M. Best at 'A+' for Principal Life, and that domestic investment contracts totaled $30,109.4 million, with 35.3% not subject to discretionary withdrawal. Cash and cash equivalents were $2,255.4 million at period end, and net cash provided by operating activities was $2,125.6 million for the six months.

    Aug 3, 2016
  33. 2016-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2016

    Principal Financial Group, Inc. reported net income of $369.2 million for the three months ended March 31, 2016, compared with $429.1 million in the same period of 2015. Net income attributable to Principal Financial Group, Inc. was $368.0 million, and diluted earnings per common share were $1.25, versus $1.39 a year earlier. Total revenues rose to $3,036.6 million from $2,657.3 million, driven largely by premiums and other considerations of $1,282.4 million (up from $916.4 million) and higher net realized capital gains of $136.6 million. Total expenses increased to $2,596.8 million, mainly from benefits, claims and settlement expenses of $1,658.5 million. Pre-tax operating earnings for the segments totaled $356.3 million, down from $420.9 million, with the Retirement and Income Solutions segment contributing $181.4 million. The balance sheet showed total assets of $217.57 billion at March 31, 2016, and total stockholders' equity of $10.11 billion, up from $9.38 billion at year-end 2015. Cash and cash equivalents declined to $2.14 billion from $2.56 billion. Net cash provided by operating activities was $895.5 million, and the company repurchased $105.6 million of common stock during the quarter. In February 2016 the Board authorized a new share repurchase program of up to $400.0 million, and the company paid $110.4 million in common stock dividends, or $0.38 per share. The filing also highlights ongoing litigation, including an Investment Company Act fee lawsuit against Principal Management Corporation and a Lehman Brothers estate claim against Principal Life of approximately $550.0 million, for which no loss has been accrued. Management stated it does not believe any pending matter will have a material adverse effect on the business or financial position. Standard & Poor's affirmed the company's ratings at 'A+' in April 2016.

    May 4, 2016
  34. 2015-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2015

    Principal Financial Group, Inc. reported third-quarter 2015 net income of $300.9 million, up from $252.8 million a year earlier, and nine-month net income of $994.9 million versus $896.1 million. Net income available to common stockholders for the nine months was $955.7 million, or $3.20 diluted earnings per share, compared with $2.75 in the prior-year period. Total revenues rose to $9.16 billion for the nine months from $7.57 billion, driven mainly by premiums and other considerations, which increased to $4.16 billion from $2.51 billion, largely from higher single premium group and individual annuity sales in Retirement and Investor Services. Balance sheet activity in the period was significant. Total assets were $215.37 billion at September 30, 2015, down from $219.09 billion at December 31, 2014, while long-term debt rose to $3.29 billion from $2.53 billion after the company issued $400.0 million of 3.4% senior notes due 2025 and $400.0 million of junior subordinated notes due 2055. Proceeds were used to redeem all Series A and Series B preferred stock for $550.0 million on June 30, 2015. Stockholders' equity fell to $9.69 billion from $10.23 billion, reflecting a $583.5 million other comprehensive loss, mainly from unrealized losses on available-for-sale securities and foreign currency translation, plus $330.2 million of common dividends and $188.2 million of share repurchases. The filing also discloses the $335.5 million acquisition of AXA's Mandatory Provident Fund and ORSO pension business in Hong Kong, completed September 1, 2015, and a $23.0 million impairment of intangibles tied to the Brazil mutual fund company. A $30.3 million reduction in net income in the first quarter resulted from re-evaluating uncertain tax positions, and a $105.2 million tax-related benefit from a Chilean entity merger was recognized in the first quarter. Pending litigation, including the McCaffree ERISA class action and the Lehman estate claim of approximately $550.0 million, is described as not having an accrued loss, and management does not believe these matters will have a material adverse effect.

    Oct 28, 2015
  35. 2015-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2015

    Principal Financial Group, Inc. reported net income of $694.0 million for the six months ended June 30, 2015, up from $643.3 million a year earlier, and net income attributable to Principal Financial Group, Inc. of $680.0 million versus $616.5 million. For the three months ended June 30, 2015, net income fell to $264.9 million from $319.2 million, and net income available to common stockholders was $241.1 million versus $306.3 million, reflecting net realized capital losses of $114.6 million in the quarter compared with gains of $86.8 million in the prior-year quarter. Diluted earnings per common share were $0.81 for the quarter and $2.20 for the six months. Total revenues rose to $5,916.5 million for the six months from $5,085.3 million, driven largely by higher premiums and other considerations, which reached $2,598.8 million versus $1,639.0 million, mainly from single premium group and individual annuities with life contingencies. The balance sheet shows total assets of $222.27 billion at June 30, 2015, compared with $219.09 billion at December 31, 2014, and total stockholders' equity of $9.76 billion versus $10.23 billion. The decline in equity reflects a $550.0 million preferred stock redemption on June 30, 2015 (series A for $250.0 million and series B for $300.0 million), $218.3 million in common dividends paid in the period, and a $371.8 million after-tax reduction in other comprehensive income, driven by net unrealized losses on available-for-sale securities. Long-term debt increased to $3,315.9 million from $2,531.2 million after the May 7, 2015 issuance of $400.0 million of 3.4% senior notes due 2025 and $400.0 million of junior subordinated notes due 2055. The filing also discloses that the company's tax positions were re-evaluated, resulting in a $30.3 million reduction in first-quarter 2015 net income, and that a $105.2 million benefit from a change in deferred tax balances tied to the merger of two Chilean legal entities was recognized in first-quarter 2015. Pending acquisitions include AXA's Hong Kong pension business for approximately $335.0 million, expected to close September 1, 2015. Principal Global Investors' assets under management were $328.4 billion at June 30, 2015.

    Jul 29, 2015
  36. 2015-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2015

    Principal Financial Group, Inc. reported first-quarter 2015 net income of $429.1 million, up from $324.1 million in the first quarter of 2014, and net income available to common stockholders of $414.2 million versus $293.7 million. Diluted earnings per common share were $1.39, compared with $0.95. The filing attributes much of the increase to a $105.2 million benefit from a change in deferred tax balances tied to the merger of two Chilean legal entities, partly offset by a $30.3 million reduction from a court ruling on uncertain tax positions. Total revenues rose to $2,657.3 million from $2,478.6 million, driven by higher premiums, fees and net realized capital gains, while net investment income fell to $723.9 million from $844.7 million. Total assets were $222.49 billion at March 31, 2015, and total stockholders' equity was $10.49 billion. Cash and cash equivalents declined to $1.45 billion from $1.86 billion at year-end 2014. The company repurchased $75.4 million of common stock in the quarter, paid $106.3 million in common dividends, and its board authorized a new $150.0 million share repurchase program in February 2015. Operating earnings by segment totaled $326.4 million, compared with $317.1 million a year earlier. The filing also notes ongoing litigation, including the McCaffree ERISA class action and a Lehman Brothers estate claim of approximately $550.0 million against Principal Life, for which management has accrued no losses. Fitch affirmed PFG's ratings at 'AA-' in April 2015, and A.M. Best affirmed Principal Life at 'A+'.

    Apr 29, 2015
  37. 2014-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2014

    Principal Financial Group, Inc. reported net income of $896.1 million for the nine months ended September 30, 2014, up from $685.7 million a year earlier, and net income attributable to Principal Financial Group, Inc. of $865.4 million versus $671.0 million. Net income available to common stockholders was $840.7 million for the nine months, or $2.75 diluted earnings per common share, compared with $2.17 a year earlier. For the third quarter alone, net income available to common stockholders was $240.7 million, or $0.77 diluted, down from $245.7 million in the prior-year quarter. The decline in the quarter was attributed primarily to an increase in net deferred tax liabilities from Chilean tax legislation enacted in the third quarter of 2014, which the filing says increased those liabilities by $58.1 million. Total assets were $216.42 billion at September 30, 2014, up from $208.19 billion at December 31, 2013, and total stockholders' equity rose to $10.37 billion from $9.78 billion. Segment operating earnings for the nine months were $993.9 million, up from $773.9 million. The Retirement and Investor Services segment drove much of the growth, with operating earnings of $632.9 million, and the filing attributes the increase mainly to higher fees from growth in account values following positive equity market performance. Cash and cash equivalents fell to $1.27 billion from $2.37 billion, and net cash provided by operating activities was $2.20 billion for the nine months. The filing also notes a $47.5 million reduction in net income in the second quarter of 2014 following a U.S. Court of Federal Claims ruling against Principal Life on the timing of gains and losses on principal-only certificates. Several litigation matters are pending, including the McCaffree ERISA class action and the In re Principal U.S. Property Account Litigation, and the company states that management does not believe any matter will have a material adverse effect on its business or financial position. The company repurchased 4.65 million shares in the nine months ended September 30, 2014 under its share repurchase programs, and a new $200.0 million repurchase authorization was approved in February 2014.

    Oct 29, 2014
  38. 2014-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2014

    Principal Financial Group, Inc. reported net income of $643.3 million for the six months ended June 30, 2014, up from $426.6 million in the prior-year period, and net income attributable to Principal Financial Group, Inc. of $616.5 million versus $417.1 million. Net income available to common stockholders was $600.0 million, or $1.98 diluted earnings per share for the six months, compared with $1.35 a year earlier. For the second quarter alone, net income was $319.2 million and diluted earnings per share were $1.03. Total revenues rose to $5,085.3 million for the six months from $4,377.3 million, driven by higher premiums, fee revenues, net investment income and net realized capital gains. Results were partly offset by a $47.5 million reduction in second-quarter net income from a re-evaluation of uncertain tax positions following a May 9, 2014 U.S. Court of Federal Claims ruling against Principal Life. The balance sheet grew over the period, with total assets of $218,322.3 million at June 30, 2014, compared with $208,191.4 million at December 31, 2013, and total stockholders' equity of $10,459.3 million, compared with $9,777.0 million. Accumulated other comprehensive income increased to $599.4 million from $183.2 million, reflecting higher net unrealized gains on available-for-sale securities. Cash flow from operating activities was $1,377.3 million for the six months, compared with $783.6 million a year earlier. The company also returned capital to shareholders, paying $176.8 million in common dividends and repurchasing $149.8 million of common stock during the six months, and a new $200.0 million share repurchase program was authorized in February 2014. The filing also discloses pending litigation, including an ERISA putative class action (McCaffree), a Section 36(b) fee lawsuit (ACE), the In re Principal U.S. Property Account Litigation, and a Lehman bankruptcy estate claim of approximately $500.0 million against Principal Life. Management states it does not believe any matter will have a material adverse effect on the business or financial position, and no loss has been accrued.

    Jul 30, 2014
  39. 2014-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2014

    Principal Financial Group, Inc. reported net income of $324.1 million for the three months ended March 31, 2014, compared with $190.0 million in the prior-year period. Net income attributable to Principal Financial Group, Inc. was $301.9 million, and net income available to common stockholders was $293.7 million, or $0.95 per diluted share, versus $0.61 a year earlier. Total revenues rose to $2,478.6 million from $2,166.7 million, driven by higher premiums and other considerations, fees and other revenues, and net investment income. The filing attributes higher earnings across all segments to positive equity market performance, growth in the business, and the Cuprum acquisition in Chile completed in the first quarter of 2013. Total assets were $211,193.9 million at March 31, 2014, up from $208,191.4 million at December 31, 2013, and total stockholders' equity was $10,057.9 million. Cash and cash equivalents fell to $1,393.1 million from $2,371.8 million. Operating cash flow was $591.3 million, investing cash outflow was $835.3 million, and financing cash outflow was $734.7 million. The company repurchased $89.0 million of common stock in the quarter and paid $82.7 million in common dividends, and its board authorized a new $200.0 million repurchase program in February 2014. The filing discloses several pending legal matters, including a putative ERISA class action filed March 18, 2014 (McCaffree) and the In re Principal U.S. Property Account Litigation, along with a Lehman estate claim of approximately $500.0 million against Principal Life. Management states that no losses have been accrued because loss is not probable and cannot be reasonably estimated, and that none is expected to have a material adverse effect on the business or financial position. In April 2014, S&P affirmed Principal Life's financial strength rating at 'A+' with a stable outlook.

    Apr 30, 2014
  40. 2013-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2013

    Principal Financial Group, Inc. reported net income of $685.7 million for the nine months ended September 30, 2013, up from $598.7 million a year earlier, and net income available to common stockholders of $646.3 million versus $558.7 million. Diluted earnings per common share were $2.17 for the nine months, compared with $1.85 in 2012. Total revenues declined to $6.62 billion from $6.92 billion, mainly because premiums fell and net realized capital losses were $181.9 million, compared with gains of $81.2 million in the prior-year period. Fees and other revenues rose to $2.34 billion from $1.91 billion, reflecting higher account values and the Cuprum acquisition. The balance sheet grew substantially, with total assets of $201.69 billion at September 30, 2013, compared with $161.83 billion at December 31, 2012. Most of the increase reflects separate account assets, which rose to $123.80 billion, and goodwill and other intangibles, which increased after the February 2013 purchase of AFP Cuprum S.A. for $1.3 billion. Total stockholders' equity was $9.37 billion, slightly lower than $9.70 billion at year-end 2012, as accumulated other comprehensive income fell to a loss of $17.7 million from income of $640.3 million, and redeemable noncontrolling interest was reclassified from equity. The filing also includes a revision of prior-period statements for the accounting treatment of the AFORE product in Mexico, which the company states is not material. Management reports pending litigation, including the Lehman bankruptcy estate claim and the In re Principal U.S. Property Account Litigation, for which no losses were accrued. The company also disclosed a classification error in certain noncontrolling interests that it corrected in the third quarter.

    Oct 30, 2013
  41. 2013-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2013

    Principal Financial Group, Inc.'s quarterly report for the period ended June 30, 2013 shows total assets of $196.51 billion, up from $161.83 billion at December 31, 2012, driven largely by the first-quarter 2013 acquisition of AFP Cuprum S.A. in Chile, which was initially accounted for as a 91.55% stake for a purchase price of $1.3 billion. Separate account assets rose to $118.74 billion, and cash fell to $1.11 billion from $4.18 billion, reflecting the acquisition funding. Net income attributable to Principal Financial Group, Inc. was $230.6 million for the second quarter of 2013 versus $175.9 million a year earlier, and net income available to common stockholders was $222.3 million, or $0.75 per diluted share, compared with $0.56 per diluted share in the prior-year quarter. Results were supported by higher fee revenues in Retirement and Investor Services and the Cuprum acquisition, while net realized capital losses of $80.1 million for the quarter and lower net investment income of $749.7 million weighed on results. Accumulated other comprehensive income moved to a loss of $0.5 million at June 30, 2013, from a gain of $640.3 million at year-end 2012, and total stockholders' equity was $9.41 billion versus $9.70 billion. The company also disclosed a revision to the accounting for its AFORE product in Mexico, which management concluded was not material to prior periods, and it reported that a 100 basis point parallel rise in interest rates would produce a net estimated potential loss in fair value of $1.94 billion as of June 30, 2013. Several litigation matters remained pending, and no loss was accrued for them.

    Jul 31, 2013
  42. 2013-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2013

    Principal Financial Group, Inc. reported first-quarter 2013 net income of $190.0 million, down from $221.3 million a year earlier, and net income attributable to Principal Financial Group, Inc. of $186.5 million versus $212.1 million. Net income available to common stockholders was $178.3 million, or $0.61 basic and diluted earnings per common share, compared with $0.68 in the prior-year quarter. The filing attributes the decline in net income available to common stockholders primarily to an increase in net realized capital losses of $50.9 million, despite higher segment earnings. Total revenues rose to $2,166.7 million from $2,095.9 million, while total expenses increased to $1,938.5 million from $1,817.9 million, driven largely by operating expenses of $795.7 million versus $555.1 million. Total assets grew to $200.76 billion at March 31, 2013, from $161.83 billion at December 31, 2012, primarily reflecting the February 4, 2013 acquisition of AFP Cuprum S.A. in Chile for a purchase price of $1.3 billion, which added $33.9 billion of separate account assets and goodwill of $646.3 million. Cash and cash equivalents declined to $1.66 billion from $4.18 billion, and net cash used in investing activities was $1,525.4 million. Operating segment earnings were $233.3 million, compared with $215.3 million a year earlier, with Retirement and Investor Services operating earnings of $170.0 million. The filing also discloses a revision to prior-period financial statements related to the accounting for the AFORE product in Mexico, which the company determined was not material and will be reflected the next time prior-period statements are filed. Litigation disclosures include several ERISA and Investment Company Act class actions, and no loss was accrued as of March 31, 2013, because the company believes a loss is not probable and cannot be reasonably estimated.

    May 1, 2013
  43. 2012-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2012

    Principal Financial Group, Inc. reported net income of $594.3 million for the nine months ended September 30, 2012, up from $532.5 million a year earlier, and net income attributable to Principal Financial Group, Inc. of $579.0 million versus $495.9 million. Total revenues for the nine months were $6.92 billion compared with $6.61 billion, while total expenses rose to $6.23 billion from $5.89 billion. Diluted earnings per common share were $1.84 for the nine months, compared with $1.47 a year earlier. For the third quarter alone, net income was $191.3 million, and diluted earnings per share were $0.60, against $0.23 in the prior-year quarter. The filing states that the third-quarter results were affected by a $141.2 million after-tax gain tied to the merger of Catalyst Health Solutions, Inc. and the later disposition of the company's remaining interest, and by a $96.7 million decrease in net income from DPAC and other actuarial balance unlocking. Balance sheet and capital activity were also significant. Total assets were $159.19 billion at September 30, 2012, up from $147.36 billion at December 31, 2011, and total stockholders' equity was $9.85 billion. Long-term debt rose to $2.18 billion from $1.56 billion after the company issued $600.0 million of senior notes in September 2012, with proceeds designated for general corporate purposes, including repayment of $400.0 million of 2014 notes and partial funding of an acquisition. The company also disclosed a definitive agreement announced October 8, 2012 to acquire AFP Cuprum S.A., a Chilean pension manager, for an approximate purchase price of $1.5 billion for 100% of Cuprum, with closing expected in the first quarter of 2013 subject to Chilean regulatory approval. The filing notes that the company had $1,227.1 million of excess capital in its holding companies as of September 30, 2012. The filing also reports a 2012 change in accounting for deferred policy acquisition costs and reinsurance, applied retrospectively, which reduced opening retained earnings as of January 1, 2011 by $612.9 million. Management states that no losses have been accrued for pending litigation because a loss is not probable and cannot be reasonably estimated, and it does not expect the matters to have a material adverse effect. Ratings agencies affirmed the company's ratings in October 2012 but moved Fitch, Moody's and S&P outlooks to negative following the Cuprum announcement.

    Oct 31, 2012
  44. 2012-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2012

    Principal Financial Group, Inc. reported net income of $184.1 million for the three months ended June 30, 2012, compared with $249.2 million in the same period of 2011, and net income available to common stockholders of $173.1 million versus $217.3 million. For the six months ended June 30, 2012, net income was $403.0 million and net income available to common stockholders was $374.6 million, compared with $458.0 million and $399.3 million a year earlier. Total revenues were $2,118.6 million for the quarter and $4,214.5 million for the six months, both lower than the prior-year periods, reflecting lower premiums tied to the exited group medical insurance business and lower net investment income. Total assets rose to $152.05 billion at June 30, 2012, from $147.36 billion at December 31, 2011, and stockholders' equity was $9.43 billion. The company's operating earnings were $216.3 million for the quarter, down from $229.0 million, and $429.3 million for the six months, down from $448.8 million. The filing attributes the decline primarily to a $46.0 million after-tax gain on a partial sale of Catalyst Health Solutions, Inc. recorded in the second quarter of 2011 with no comparable gain in 2012, along with lower investment yields. The filing also discloses that the company retrospectively adopted new deferred policy acquisition cost guidance and a Reinsurance Accounting Change, which reduced opening retained earnings as of January 1, 2011, and restated prior-period results. A subsequent event reports an after-tax gain of approximately $126.0 million from the July 2012 merger of Catalyst Health Solutions, to be recognized in the third quarter of 2012. Basic earnings per common share were $0.58 for the quarter and $1.25 for the six months.

    Aug 1, 2012
  45. 2012-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2012

    Principal Financial Group, Inc. reported net income of $218.9 million for the three months ended March 31, 2012, compared with $208.8 million a year earlier. Net income attributable to Principal Financial Group, Inc. was $209.7 million, and net income available to common stockholders was $201.5 million, or $0.66 per diluted share, versus $182.0 million, or $0.56 per diluted share, in the prior-year quarter. Total revenues declined to $2,095.9 million from $2,221.9 million, while total expenses fell to $1,818.8 million from $1,960.4 million, with operating expenses down $161.9 million. The filing attributes much of the change to a $139.6 million reduction in operating expenses from the unlocking associated with a change in how DPAC and other actuarial balances are amortized for a portion of individual universal life products, a change that also reduced fee revenues by $46.6 million and increased benefits expense by $87.9 million. Total assets were $153.74 billion at March 31, 2012, up from $147.36 billion at December 31, 2011, while total stockholders' equity rose to $9.75 billion from $9.39 billion. Net investment income declined to $824.8 million from $859.8 million, reflecting lower reinvestment yields. Cash and cash equivalents fell to $1.65 billion from $2.83 billion, and net cash used in investing activities was $690.5 million. The company also reported a $0.18 per share quarterly dividend paid March 30, 2012, and repurchased $64.2 million of common stock during the quarter, with a new $100.0 million repurchase program authorized in February 2012. The filing also notes that the company adopted retrospectively a new DPAC accounting standard and a Reinsurance Accounting Change, which reduced opening retained earnings as of January 1, 2011 and restated prior-period figures. Pending litigation includes the Fairmount Park 401(k) class action, a derivative action under the Investment Company Act, and the In re Principal U.S. Property Account Litigation, for which no loss has been accrued. The company also agreed to acquire a 60% indirect interest in Brazilian asset manager Claritas, which closed on April 2, 2012.

    May 2, 2012
  46. 2011-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2011

    Principal Financial Group, Inc. reported net income of $579.3 million for the nine months ended September 30, 2011, compared with $499.1 million in the prior-year period, and net income available to common stockholders of $518.0 million versus $467.0 million. For the three months ended September 30, 2011, net income fell to $66.3 million from $151.3 million, and net income available to common stockholders was $63.7 million versus $142.2 million. Management attributes the third-quarter decline to a court ruling on some uncertain tax positions, which resulted in a $68.9 million reduction to net income, and higher DPAC amortization from declining equity markets. Total revenues for the nine months were $6,650.6 million, down from $6,786.1 million, largely reflecting lower premiums from the exited group medical insurance business. Total assets were $143.3 billion at September 30, 2011, versus $145.6 billion at December 31, 2010, and total stockholders' equity rose to $10.29 billion from $9.89 billion, supported by stock repurchases of $456.4 million for the nine months and a $200.0 million repurchase program completed in September 2011. The filing also highlights the pending accounting change for deferred policy acquisition costs effective January 1, 2012, which the company estimates will reduce opening retained earnings by between $550.0 million and $750.0 million. The company also declared an annual common dividend of $0.70 per share, approximately $213.6 million, payable December 2, 2011.

    Nov 2, 2011
  47. 2011-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2011

    Principal Financial Group, Inc. reported net income of $513.0 million for the six months ended June 30, 2011, compared with $347.8 million for the same period in 2010, and net income attributable to Principal Financial Group, Inc. of $470.8 million versus $341.3 million. Net income available to common stockholders was $454.3 million for the six months, or $1.40 per diluted share, compared with $324.8 million, or $1.01 per diluted share. For the three months ended June 30, 2011, net income available to common stockholders was $258.0 million, or $0.80 per diluted share, versus $134.0 million, or $0.42 per diluted share, a year earlier. The filing states that the increase was driven primarily by a $63.1 million after-tax positive change in net realized capital gains (losses), largely from a gain on the sale of a portion of the company's interest in Catalyst Health Solutions, Inc., and by higher fees in the Retirement and Investor Services and U.S. Insurance Solutions segments. Total assets were $149.3 billion at June 30, 2011, up from $145.6 billion at December 31, 2010, and total stockholders' equity rose to $10.67 billion from $9.89 billion. Net cash provided by operating activities was $1.79 billion for the six months. The company reinstated its November 2007 share repurchase program in May 2011 and acquired $236.2 million of treasury stock in the six-month period. Management states that the company's exit from the group medical insurance business has not yet qualified for discontinued operations treatment. Total revenues were $4.56 billion for the six months, compared with $4.50 billion in 2010, while total expenses fell to $3.91 billion from $4.08 billion. The filing also discloses several pending matters, including the In re Principal U.S. Property Account Litigation and the Fairmount Park 401(k) class action, for which management stated no losses have been accrued because loss is not probable and cannot be reasonably estimated. Management does not believe any such matter will have a material adverse effect on the company's business or financial position. Subsequent events disclosed include the July 2011 agreement to acquire a majority stake in Origin Asset Management LLP and the completion of Finisterre Capital's acquisition on July 1, 2011.

    Aug 3, 2011
  48. 2011-Q1

    Principal Financial Group Quarterly Report for Q1 Ended Mar 31, 2011

    Principal Financial Group, Inc. reported net income of $223.1 million for the three months ended March 31, 2011, compared with $203.6 million in the prior-year quarter. Net income attributable to Principal Financial Group, Inc. was $204.5 million, and net income available to common stockholders was $196.3 million, or $0.60 per diluted common share versus $0.59 a year earlier. Total revenues declined to $2,219.8 million from $2,264.0 million, driven by lower premiums and net realized capital losses of $58.0 million, while total expenses fell to $1,936.3 million from $2,007.7 million. The filing attributes higher profitability in U.S. Insurance Solutions to improved claims experience, partly offset by lower Principal International earnings tied to the reduced economic interest in Brazil's Brasilprev. Total assets rose to $147.5 billion at March 31, 2011, from $145.6 billion at December 31, 2010, and stockholders' equity attributable to the company increased to $10.19 billion from $9.73 billion, largely reflecting higher accumulated other comprehensive income. Management reports that $1,040.0 million of excess capital sat at the holding companies, and that none of the pending litigation is expected to have a material adverse effect on the business or financial position. Net cash provided by operating activities was $1,195.5 million for the quarter. Subsequent to quarter-end, the company announced agreements to acquire HSBC AFORE, S.A. de C.V. for approximately $198.0 million and a majority stake in Finisterre Capital LLP, with an initial payment of $84.6 million, both expected to close in early third quarter 2011. It also sold a portion of its Catalyst Health Solutions interest for an approximate $46.0 million after-tax gain expected in the second quarter.

    May 4, 2011
  49. 2010-Q3

    Principal Financial Group Quarterly Report for Q3 Ended Sep 30, 2010

    Principal Financial Group, Inc. reported net income of $499.1 million for the nine months ended September 30, 2010, up from $490.8 million in the prior-year period, and net income attributable to Principal Financial Group, Inc. of $491.7 million compared with $472.5 million. For the three months ended September 30, 2010, net income fell to $151.3 million from $204.2 million, with net income available to common stockholders of $142.2 million versus $184.7 million. Diluted earnings per common share were $0.44 for the quarter, compared with $0.57 a year earlier, and $1.45 for the nine months, compared with $1.54. The quarterly decline was driven mainly by a $43.6 million pre-tax goodwill impairment and severance accruals tied to the company's September 30, 2010 decision to exit the group medical insurance business, which the filing says will be phased out over 36 months. Total assets rose to $143.46 billion from $137.76 billion at December 31, 2009, and total stockholders' equity increased to $10.03 billion from $8.02 billion, largely due to a $1.52 billion swing in accumulated other comprehensive income to $476.8 million. Operating segment results were mixed: U.S. Asset Accumulation operating earnings were $147.4 million for the quarter, and International Asset Management and Accumulation operating earnings were $33.1 million, flat year over year. The company also reported that a $153.6 million reduction to its accumulated postretirement benefit obligation resulted from a September 2010 retiree health benefit amendment, and it declared an annual common dividend of $0.55 per share on November 1, 2010.

    Nov 3, 2010
  50. 2010-Q2

    Principal Financial Group Quarterly Report for Q2 Ended Jun 30, 2010

    Principal Financial Group, Inc. reported net income of $347.8 million for the six months ended June 30, 2010, up from $286.6 million in the prior-year period, and net income available to common stockholders of $324.8 million versus $263.1 million. For the three months ended June 30, 2010, net income was $144.2 million compared with $164.0 million a year earlier, and diluted earnings per common share were $0.42 versus $0.52. Total revenues for the six months rose to $4.50 billion from $4.35 billion, while total expenses increased to $4.08 billion from $4.02 billion. Total assets were $136.60 billion at June 30, 2010, compared with $137.76 billion at December 31, 2009, and total stockholders' equity increased to $9.07 billion from $8.02 billion. The company's balance sheet and results reflect the effects of new VIE accounting guidance adopted January 1, 2010, which led to consolidation of some previously unconsolidated entities and a net $10.7 million decrease to retained earnings. Accumulated other comprehensive loss narrowed to $351.0 million from $1,042.0 million, driven by net unrealized gains on fixed maturities. The filing also notes a $80.1 million realized gain tied to the April 30, 2010 Shareholders Agreement with Banco do Brasil for the Brasilprev joint venture, which reduces PFG's economic interest to 25%, and a $66.5 million second-quarter residential mortgage loan loss provision in the Bank and Trust Services business, primarily related to home equity loans. The filing reports cash and cash equivalents of $1.83 billion, net cash provided by operating activities of $1.48 billion for the six months, and $1.05 billion of excess capital at the holding companies as of June 30, 2010. Management states it does not believe pending litigation will have a material adverse effect on the business or financial position, while noting that outcomes could materially affect net income in a particular period.

    Aug 4, 2010