01—Abstract
Summary
Summary of the 10-Q filed October 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $213.8 milliona 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 $0.95b 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 billionc 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 milliond 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.
02—Key points
Key Highlights
- Net income attributable to Principal Financial Group, Inc. was $213.8 million in Q3 2025, compared with a loss of $220.0 million in Q3 2024; nine-month net income was $668.1 million versus $665.6 million.
- Diluted earnings per share were $0.95 for the quarter and $2.95 for the nine months, compared with $(0.95) and $2.81 respectively in the prior-year periods.
- Total revenues were $3.68 billion for Q3 2025, up from $3.01 billion, while nine-month revenues declined to $11.05 billion from $11.38 billion.
- The change in fair value of the funds withheld embedded derivative was a $265.9 million loss in Q3 2025, compared with a $776.8 million loss in Q3 2024.
- Total assets increased to $334.49 billion from $313.66 billion at year-end 2024, and total stockholders' equity attributable to the company rose to $11.67 billion.
- The company returned $1.13 billion to common stockholders over the nine months through $511.6 million in dividends and $623.3 million in share repurchases.
- The effective income tax rate was 6% for Q3 2025, down from 34% in Q3 2024, which management attributed primarily to higher pre-tax income with no proportional change in permanent tax differences.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 29, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.68B$3.01B | +22.2% |
| Net Income | $213.80M-$220.00M | +197.2% |
| EPS (Basic) | $0.96$-0.95 | +201.1% |
| EPS (Diluted) | $0.95$-0.95 | +200.0% |
| Shares Outstanding (Basic) | 222.40M230.70M | −3.6% |
| Shares Outstanding (Diluted) | 225.20M230.70M | −2.4% |
05—Questions
Frequently Asked Questions
Why did Principal swing from a net loss in Q3 2024 to a profit in Q3 2025?
The filing states that net income attributable to Principal Financial Group, Inc. increased primarily due to the change in the fair value of the funds withheld embedded derivative. That line item was a $265.9 million loss in Q3 2025 versus a $776.8 million loss in Q3 2024, reflecting changes in interest rates and credit spreads.
How did the company's segments perform in the quarter?
Segment pre-tax operating earnings were $310.3 million for Retirement and Income Solutions (up from $246.1 million), $274.7 million for Principal Asset Management (up from $268.7 million), and $86.5 million for Benefits and Protection (up from $64.4 million). Corporate posted a pre-tax operating loss of $91.6 million, compared with a loss of $79.4 million a year earlier.
What happened with the company's long-term debt during 2025?
The company repaid $400.0 million of 3.400% senior notes that matured on May 15, 2025. The repayment was funded by exercising a put option under a contingent funding agreement, which resulted in the issuance of $400.0 million of 4.111% senior notes due 2028. Long-term debt carrying amount was $3,924.6 million at September 30, 2025, compared with $3,955.3 million at December 31, 2024.
What is the status of the Hong Kong MPF pension business exit?
The company signed an agreement on January 16, 2025 with Bank Consortium Trust Company to exit its sponsor and trustee roles for Mandatory Provident Fund Schemes in Hong Kong. The transaction is expected to close in 2026, subject to regulatory approval. The company recognized a $20.0 million loss in operating expenses and a $77.0 million loss in net realized capital losses in the first quarter of 2025 related to the transaction.
How much capital could Principal Life pay as dividends to its parent?
The filing states that the ordinary stockholder dividend limitation for Principal Life is approximately $1,313.1 million in 2025, based on statutory results for 2024. Principal Life paid $955.0 million of stockholder dividends to its parent in the first nine months of 2025, all of which was extraordinary and approved by the Iowa Commissioner of Insurance.
06—Continue