01—Abstract
Summary
Summary of the 8-K filed October 24, 2024. Cited figures are marked; the original filing is the authoritative source.
Principal Financial Group, Inc. reported a net loss attributable to PFG of $220 milliona, or $0.95 per diluted share, for the third quarter of 2024, driven by the loss from exited business.
Excluding exited business, non-GAAP net income attributable to PFG was $419 millionb, or $1.78 per diluted share. Non-GAAP operating earnings were $412 million, or $1.76 per diluted share, and were $480 million, or $2.05 per diluted share, excluding the impacts of significant variances, including the actuarial assumption review. Assets under management reached $741 billion and assets under administration reached $1.7 trillion.
The company returned $416 millionc to shareholders in the quarter, including $251 million of share repurchases and $165 million of common stock dividends. It raised its fourth quarter 2024 common stock dividend to $0.73 per share, a 1 cent increase over the third quarter dividend, payable December 18, 2024, to shareholders of record as of December 2, 2024. Management cited $1.6 billion of excess and available capital and stated continued confidence in its full-year target.
Segment results were mixed. Retirement and Income Solutions pre-tax operating earnings fell to $246.1 milliond from $304.7 million, while Principal International posted record pre-tax operating earnings of $120.8 million. Specialty Benefits pre-tax operating earnings declined to $101.7 million from $147.8 million, and Life Insurance posted a pre-tax operating loss of $37.3 million, largely reflecting significant variances in the quarter.
02—Key points
Key Highlights
- Net loss attributable to PFG of $220 million, or $0.95 per diluted share, versus net income of $1,246.2 million in 3Q23, driven by the loss from exited business
- Non-GAAP operating earnings of $412 million, or $1.76 per diluted share, up 2% from $1.72 in 3Q23; excluding significant variances, $480 million, or $2.05 per diluted share
- Returned $416 million to shareholders, including $251 million of share repurchases and $165 million of common stock dividends
- Raised fourth quarter 2024 common stock dividend to $0.73 per share, a 1 cent increase over the third quarter 2024 dividend
- Assets under management of $741 billion and assets under administration of $1.7 trillion; $1.6 billion of excess and available capital
- Principal International reported record pre-tax operating earnings of $121 million and record AUM of $185 billion
- Life Insurance pre-tax operating loss of $37.3 million and Specialty Benefits pre-tax operating earnings down 31% to $101.7 million, reflecting significant variances including the actuarial assumption review
03—Questions
Frequently Asked Questions
Why did Principal Financial Group report a net loss in the third quarter of 2024?
The net loss of $220 million, or $0.95 per diluted share, was driven by the loss from exited business, which totaled $639.1 million pre-tax in the quarter according to the reconciliation tables. Excluding exited business, non-GAAP net income attributable to PFG was $419 million, or $1.78 per diluted share.
How much capital did the company return to shareholders?
The company returned $416 million to shareholders in the third quarter, comprising $251 million of share repurchases and $165 million of common stock dividends.
What is the new dividend and when is it payable?
The fourth quarter 2024 common stock dividend was raised to $0.73 per share, a 1 cent increase over the third quarter 2024 dividend. It is payable December 18, 2024, to shareholders of record as of December 2, 2024.
What significant variances affected third quarter results?
Significant variances, including the actuarial assumption review, reduced third quarter 2024 non-GAAP operating earnings by $67.8 million after tax, bringing non-GAAP operating earnings to $412 million versus $480 million excluding those impacts. The release attributes these variances mainly to lower than expected variable investment income, encaje performance and Latin American inflation in Principal International, and a GAAP-only regulatory closed block adjustment in Life Insurance.
How did the core business segments perform?
Principal Global Investors pre-tax operating earnings were $147.9 million, down 2%, while Principal International rose 71% to $120.8 million. Retirement and Income Solutions pre-tax operating earnings fell 19% to $246.1 million, though excluding significant variances, pre-tax operating earnings increased $32.0 million. Specialty Benefits premium and fees rose 6%, and Life Insurance market premium and fees rose 12%.
04—Continue