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Principal Financial Group 8-K Report, Financial Results (Feb 6, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 6, 2025
Period End
February 6, 2025
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 February 6, 2025. Cited figures are marked; the original filing is the authoritative source.

Principal Financial Group, Inc. (Nasdaq: PFG) reported full-year and fourth-quarter 2024 results on February 6, 2025, and announced its 2025 outlook.

Full-year 2024 net income attributable to PFG was $1,571 milliona, or $6.68 per diluted share, compared with $623.2 million, or $2.55 per diluted share, in 2023 on a trailing twelve-month basis. Full-year non-GAAP operating earnings per diluted share, excluding significant variances, were $7.65, up 11%, in line with the company's long-term guidance of 9-12%. Fourth-quarter 2024 net income attributable to PFG was $905.4 million, or $3.92 per diluted share, versus a net loss of $871.7 million in 4Q23, and non-GAAP operating earnings per diluted share excluding significant variances rose 16% to $2.10.

The company returned $1.7 billionb to shareholders in 2024, including $1.0 billion of share repurchases and $0.7 billion of common stock dividends. The Board raised the first-quarter 2025 common stock dividend to $0.75 per share, a 2-cent increase over the fourth-quarter 2024 dividend, and approved a new $1.5 billion share repurchase authorization; approximately $0.8 billion remained under the prior authorization as of December 31, 2024. Management reiterated 2025 outlook targets of 9-12% annual non-GAAP operating earnings per diluted share growth, 75-85% free capital flow conversion, 14-16% non-GAAP ROE, and $1.4-$1.7 billion of capital deployment.

Segment results were mixed in the quarter. Retirement and Income Solutions pre-tax operating earnings rose to $280.1 millionc, Investment Management pre-tax operating earnings rose to $163.9 million, and Specialty Benefits pre-tax operating earnings rose to $147.2 million, while International Pension pre-tax operating earnings fell to $52.1 million and Life Insurance pre-tax operating earnings fell to $7.5 million. Assets under management were $712.1 billion and assets under administration were $1,663.9 billion at year-end 2024, and the statutory risk-based capital ratio for Principal Life Insurance Company was 404%.

02—Key points

Key Highlights

  1. Full-year 2024 non-GAAP operating earnings per diluted share, excluding significant variances, was $7.65, up 11%, in line with the long-term guidance of 9-12%.
  2. Fourth-quarter 2024 net income attributable to PFG was $905.4 million ($3.92 per diluted share), compared with a net loss of $871.7 million in 4Q23.
  3. Returned $1.7 billion to shareholders in 2024, including $1.0 billion of share repurchases and $0.7 billion of common stock dividends.
  4. Raised first-quarter 2025 quarterly dividend to $0.75 per share, a 2-cent increase over the 4Q24 dividend and a 9% increase over the 1Q24 dividend.
  5. Board approved a new $1.5 billion share repurchase authorization; approximately $0.8 billion remained under the prior authorization at December 31, 2024.
  6. 2025 outlook reiterates 9-12% non-GAAP operating EPS growth, 75-85% free capital flow conversion, 14-16% non-GAAP ROE, and $1.4-$1.7 billion of capital deployment.
  7. International Pension and Life Insurance pre-tax operating earnings declined in 4Q24, while Investment Management pre-tax operating earnings rose 27% to $163.9 million.

03—Questions

Frequently Asked Questions

  1. How did Principal Financial Group perform in the fourth quarter and full year of 2024?

    Net income attributable to PFG was $905.4 million ($3.92 per diluted share) in 4Q24 and $1,571.0 million ($6.68 per diluted share) for full-year 2024. Non-GAAP operating earnings per diluted share, excluding significant variances, were $2.10 for the quarter, up 16%, and $7.65 for the full year, up 11%.

  2. How much capital did the company return to shareholders in 2024?

    The company returned $1.7 billion to shareholders in 2024, including $1.0 billion of share repurchases and $0.7 billion of common stock dividends.

  3. What dividend and buyback actions were announced?

    The first-quarter 2025 common stock dividend was raised to $0.75 per share, payable March 28, 2025, to shareholders of record as of March 12, 2025. The Board also approved a new authorization to repurchase $1.5 billion of common stock, while about $0.8 billion remained under the prior authorization as of December 31, 2024.

  4. What are the company's 2025 financial targets?

    The 2025 outlook is consistent with long-term targets: 9-12% annual non-GAAP operating EPS growth, 75-85% free capital flow conversion, 14-16% non-GAAP ROE, and $1.4-$1.7 billion of capital deployment.

  5. Which business segments drove results, and which weakened?

    Retirement and Income Solutions pre-tax operating earnings rose 6% to $280.1 million and Investment Management rose 27% to $163.9 million in 4Q24. International Pension pre-tax operating earnings fell 42% to $52.1 million, mainly due to lower net revenue from encaje performance and foreign currency headwinds, and Life Insurance fell 70% to $7.5 million, driven by higher mortality and a GAAP-only regulatory closed block dividend adjustment.

04—Continue

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