Skip to content
AnalystLens

Principal Financial Group 8-K Report, Financial Results (Apr 25, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 25, 2024
Period End
April 25, 2024
Security
PFG
In the 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. Leadership change8-K · Sep ’18Sep ’18
  2. Leadership change8-K · Sep ’20Sep ’20
  3. Material agreement8-K · Oct ’22Oct ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed April 25, 2024. Cited figures are marked; the original filing is the authoritative source.

Principal Financial Group, Inc. (Nasdaq: PFG) reported first quarter 2024 results in an Exhibit 99 earnings release furnished under Item 2.02 of this Form 8-K dated April 25, 2024.

The company reported net income attributable to PFG of $532.5 milliona, or $2.22 per diluted share, compared with a net loss of $140.1 million, or $(0.58) per diluted share, in the first quarter of 2023. Non-GAAP operating earnings were $394.3 million, or $1.65 per diluted share, up 7% in dollars and 11% per share from $366.8 million, or $1.48, a year earlier. Non-GAAP net income attributable to PFG excluding exited business was $376.4 million, or $1.58 per diluted share.

The quarter's segment results were mixed. Retirement and Income Solutions pre-tax operating earnings rose 5% to $262.2 millionb on net revenue growth of 6%, and Specialty Benefits pre-tax operating earnings increased 25% to $102.0 million on premium and fees growth of 8%. Principal International pre-tax operating earnings fell 7% to $73.2 million, and Life Insurance pre-tax operating earnings declined 44% to $9.8 million, which the company attributed partly to a GAAP-only regulatory closed block dividend adjustment.

Principal Global Investors pre-tax operating earnings rose 4% to $113.9 millionc. Assets under management reached $708.5 billion and assets under administration reached $1.6 trillion. Capital return was a key element of the quarter.

The company returned $362 milliond to shareholders, including $200 million of share repurchases and $162 million of common stock dividends, and reported $1.4 billion of excess and available capital. The board raised the second quarter 2024 common stock dividend to $0.71 per share, a 2 cent increase over the first quarter dividend, payable June 27, 2024, to shareholders of record as of June 3, 2024. Book value per common share was $47.60 at March 31, 2024, up from $46.18 at December 31, 2023.

02—Key points

Key Highlights

  1. Net income attributable to PFG of $532.5 million, or $2.22 per diluted share, versus a net loss of $140.1 million, or $(0.58) per share, in 1Q23
  2. Non-GAAP operating earnings of $394.3 million, or $1.65 per diluted share, up 7% in dollars and 11% per share year over year
  3. Returned $362 million to shareholders in the quarter, including $200 million of share repurchases and $162 million of common stock dividends
  4. Raised the second quarter 2024 common stock dividend to $0.71 per share, a 2 cent increase over the first quarter dividend
  5. Retirement and Income Solutions pre-tax operating earnings up 5% to $262.2 million; Specialty Benefits up 25% to $102.0 million
  6. Principal International pre-tax operating earnings down 7% to $73.2 million; Life Insurance down 44% to $9.8 million, including a GAAP-only regulatory closed block dividend adjustment
  7. Assets under management of $708.5 billion and $1.4 billion of excess and available capital at quarter end

03—Questions

Frequently Asked Questions

  1. What drove the swing from a net loss in the first quarter of 2023 to net income in the first quarter of 2024?

    The filing shows the swing largely reflects the exited business. Income from exited business was $156.1 million in 1Q24 compared with a loss of $487.0 million in 1Q23, and the change in fair value of the funds withheld embedded derivative was a $197.0 million gain in 1Q24 versus a $626.6 million loss in 1Q23. Net realized capital losses were $0.9 million in 1Q24 versus $66.0 million in 1Q23.

  2. How much capital did Principal return to shareholders, and how is the dividend changing?

    Principal returned $362 million in the quarter, consisting of $200 million in share repurchases and $162 million in common stock dividends. The second quarter 2024 common stock dividend was raised to $0.71 per share from the first quarter level, a 2 cent increase, payable June 27, 2024, to shareholders of record as of June 3, 2024.

  3. Which business segments drove earnings growth and which declined?

    Specialty Benefits pre-tax operating earnings rose $20.2 million to $102.0 million, and Retirement and Income Solutions rose $12.4 million to $262.2 million. Principal Global Investors rose $4.8 million to $113.9 million. Principal International fell $5.5 million to $73.2 million on lower combined net revenue, and Life Insurance fell $7.7 million to $9.8 million, primarily due to a GAAP-only regulatory closed block dividend adjustment.

  4. What does the company say about its financial position and outlook?

    The company stated it has $1.4 billion of excess and available capital and is in a strong financial position. Chairman, President and CEO Dan Houston said the company remains on track to deliver on its 2024 outlook and meet its long-term financial goals. The earnings release states that management would discuss future prospects, asset quality and capital adequacy on an April 26, 2024 conference call.

04—Continue

← View all 8-K filings