2Q 2024 Financial Supplement

Period Ended,

Period Ended,

Jun-24

Mar-24

Dec-23

Sep-23

Jun-23

Jun-24

Jun-23

Assets under administration (in billions)

$

1,620.3

$

1,624.3

$

1,578.7

$

1,491.4

$

1,532.8

$

1,620.3

$

1,532.8

Three Months Ended,

Trailing Twelve Months,

Jun-24

Mar-24

Dec-23

Sep-23

Jun-23

Jun-24

Jun-23

Assets under management (in billions)

$

708.5

$

694.5

$

650.6

$

674.2

$

659.9

$

674.2

$

631.7

AUM, beginning of period

Deposits

28.8

32.8

27.5

25.8

25.1

114.9

105.1

Withdrawals

(30.9)

(33.4)

(31.5)

(27.9)

(29.0)

(123.7)

(109.0)

Net cash flow

(2.1)

(0.6)

(4.0)

(2.1)

(3.9)

(8.8)

(3.9)

Market performance

2.5

22.4

43.6

(13.3)

15.1

55.2

33.9

Other

(0.8)

(0.2)

(0.3)

(0.1)

(0.2)

(1.4)

(2.1)

Operations acquired

-

-

-

-

-

-

-

Operations disposed

-

-

(0.2)

-

-

(0.2)

-

Effect of exchange rates

(8.9)

(7.6)

4.8

(8.1)

3.3

(19.8)

14.6

AUM, end of period

$

699.2

$

708.5

$

694.5

$

650.6

$

674.2

$

699.2

$

674.2

Trailing Twelve Months,

Jun-24

Mar-24

Dec-23

Sep-23

Jun-23

Dec-22

Retirement and Income Solutions

Net revenue

$

2,792.6

$

2,731.6

$

2,690.3

$

2,615.3

$

2,522.3

$

2,616.5

Year over year net revenue growth

10.7%

7.8%

2.8%

-5.3%

-9.4%

-6.3%

Pre-tax operating earnings (losses)

$

1,099.3

$

1,063.8

$

1,051.4

$

990.8

$

892.4

$

959.1

Operating margin

39.4%

38.9%

39.1%

37.9%

35.4%

36.7%

Principal Global Investors

Operating revenues less pass-through expenses *

$

1,520.8

$

1,501.2

$

1,488.9

$

1,494.5

$

1,473.7

$

1,578.0

Operating revenues less pass-through expenses growth - year over year

3.2%

-2.7%

-5.6%

-9.5%

-13.5%

-5.4%

Pre-tax operating earnings (losses)

$

519.7

$

517.8

$

513.0

$

524.3

$

514.7

$

604.0

Pre-tax operating earnings, adjusted for noncontrolling interest

$

526.1

$

520.8

$

516.0

$

527.6

$

518.3

$

608.7

Operating margin

34.6%

34.7%

34.7%

35.3%

35.2%

38.6%

Principal International

Combined net revenue (at PFG share) *

$

960.7

$

966.1

$

976.3

$

942.6

$

921.8

$

920.7

Combined net revenue growth (at PFG share) - year over year

4.2%

3.1%

6.0%

-3.5%

-8.9%

-6.5%

Pre-tax operating earnings (losses)

$

298.5

$

299.2

$

304.7

$

290.4

$

283.6

$

298.7

Operating margin

31.1%

31.0%

31.2%

30.8%

30.8%

32.4%

Specialty Benefits

Premium and fees

$

3,177.5

$

3,114.2

$

3,055.0

$

2,986.6

$

2,927.8

$

2,804.8

Premium and fees growth - year over year

8.5%

8.4%

8.9%

9.2%

10.0%

10.8%

Pre-tax operating earnings (losses)

$

477.8

$

467.2

$

447.0

$

440.4

$

441.6

$

416.3

Operating margin

15.0%

15.0%

14.6%

14.7%

15.1%

14.8%

Life Insurance

Premium and fees

$

929.4

$

931.4

$

922.2

$

911.1

$

913.2

$

922.5

Premium and fees growth - year over year

1.8%

14.3%

0.0%

-10.4%

-16.3%

-27.9%

Pre-tax operating earnings (losses)

$

79.7

$

82.9

$

90.6

$

90.9

$

102.5

$

154.0

Operating margin

8.6%

8.9%

9.8%

10.0%

11.2%

16.7%

Principal Financial Group, Inc.

Three Months Ended,

Trailing Twelve Months,

Jun-24

Mar-24

Dec-23

Sep-23

Jun-23

Jun-24

Jun-23

Premiums and other considerations

$

1,926.6

$

1,684.6

$

2,071.7

$

1,457.9

$

1,492.7

$

7,140.8

$

6,027.4

Fees and other revenues

1,061.4

1,052.9

1,037.3

1,045.7

1,017.6

4,197.3

4,020.0

Net investment income

1,086.1

1,072.2

1,127.9

989.2

988.1

4,275.4

3,867.9

Net realized capital gains (losses)

(15.2)

(0.9)

(112.7)

179.3

(72.8)

50.5

5.1

Net realized capital gains (losses) on funds withheld assets

19.0

47.5

45.2

1.0

37.8

112.7

179.2

Change in fair value of funds withheld embedded derivative

232.9

197.0

(1,478.6)

925.6

93.9

(123.1)

52.8

Total revenues

4,310.8

4,053.3

2,690.8

4,598.7

3,557.3

15,653.6

14,152.4

Benefits, claims and settlement expenses

2,077.9

2,069.7

2,469.6

1,710.6

1,834.1

8,327.8

7,305.4

Liability for future policy benefits remeasurement (gain) loss

444.8

(1.7)

(4.4)

(42.3)

0.7

396.4

(69.0)

Market risk benefit remeasurement (gain) loss

(0.4)

(14.5)

20.5

18.4

(6.9)

24.0

2.3

Dividends to policyholders

23.9

29.3

21.9

21.0

23.1

96.1

93.5

Operating expenses

1,320.7

1,343.4

1,290.4

1,286.1

1,252.7

5,240.6

4,941.1

Total expenses

3,866.9

3,426.2

3,798.0

2,993.8

3,103.7

14,084.9

12,273.3

Income (loss) before income taxes

443.9

627.1

(1,107.2)

1,604.9

453.6

1,568.7

1,879.1

Income taxes

87.1

95.1

(268.0)

354.8

59.9

269.0

299.5

Net income (loss)

356.8

532.0

(839.2)

1,250.1

393.7

1,299.7

1,579.6

Net income (loss) attributable to noncontrolling interest

3.7

(0.5)

32.5

3.9

4.9

39.6

31.4

Net income (loss) attributable to Principal Financial Group, Inc.

$

353.1

$

532.5

$

(871.7)

$

1,246.2

$

388.8

$

1,260.1

$

1,548.2

Principal Financial Group, Inc.

Three Months Ended,

Trailing Twelve Months,

Jun-24

Mar-24

Dec-23

Sep-23

Jun-23

Jun-24

Jun-23

Non-GAAP Operating Earnings (Losses)

$

353.1

$

532.5

$

(871.7)

$

1,246.2

$

388.8

$

1,260.1

$

1,548.2

Net income (loss) attributable to Principal Financial Group, Inc.

(Income) loss from exited business ^

3.1

(156.1)

1,170.8

(701.8)

(64.3)

316.0

30.0

Net income (loss) attributable to PFG excluding exited business

356.2

376.4

299.1

544.4

324.5

1,576.1

1,578.2

Net realized capital (gains) losses

15.2

0.9

112.7

(179.3)

72.8

(50.5)

(5.1)

Net realized capital (gains) losses after-tax adjustments ^

14.7

17.0

28.7

54.6

(21.5)

115.0

(32.9)

Non-GAAP operating earnings (losses) *

386.1

394.3

440.5

419.7

375.8

1,640.6

1,540.2

Income taxes *

100.0

77.9

99.3

161.6

72.2

438.8

313.6

Non-GAAPpre-tax operating earnings (losses) *

$

486.1

$

472.2

$

539.8

$

581.3

$

448.0

$

2,079.4

$

1,853.8

Three Months Ended,

Trailing Twelve Months,

Jun-24

Mar-24

Dec-23

Sep-23

Jun-23

Jun-24

Jun-23

Non-GAAPPre-Tax Operating Earnings (Losses)

$

443.9

$

627.1

$

(1,107.2)

$

1,604.9

$

453.6

$

1,568.7

$

1,879.1

Income (loss) before income taxes

Net realized capital (gains) losses

15.2

0.9

112.7

(179.3)

72.8

(50.5)

(5.1)

Net realized capital (gains) losses pre-tax adjustments ^

6.4

30.7

46.0

23.8

(11.7)

106.9

(55.5)

Non-GAAPpre-tax operating (earnings) losses attributable to noncontrolling interest *

(1.8)

(2.3)

(14.8)

(7.4)

(2.1)

(26.3)

(19.1)

Income taxes related to equity method investments

18.5

13.4

21.0

18.5

16.8

71.4

63.1

Pre-tax (income) loss from exited business ^

3.9

(197.6)

1,482.1

(879.2)

(81.4)

409.2

(8.7)

Non-GAAPpre-tax operating earnings (losses) *

$

486.1

$

472.2

$

539.8

$

581.3

$

448.0

$

2,079.4

$

1,853.8

Operating Revenues

$

4,310.8

$

4,053.3

$

2,690.8

$

4,598.7

$

3,557.3

$

15,653.6

$

14,152.4

Total revenues

Net realized capital (gains) losses

15.2

0.9

112.7

(179.3)

72.8

(50.5)

(5.1)

Net realized capital (gains) losses revenue adjustments ^

(38.4)

(31.9)

(29.0)

(46.9)

(27.4)

(146.2)

(65.4)

Market risk benefit derivative settlements

11.4

11.3

10.9

11.9

11.9

45.5

41.3

Income taxes related to equity method investments

18.5

13.4

21.0

18.5

16.8

71.4

63.1

Revenues from exited business

(244.8)

(242.3)

1,435.7

(924.9)

(130.9)

23.7

(236.9)

Operating revenues *

$

4,072.7

$

3,804.7

$

4,242.1

$

3,478.0

$

3,500.5

$

15,597.5

$

13,949.4

Operating Expenses

$

1,320.7

$

1,343.4

$

1,290.4

$

1,286.1

$

1,252.7

$

5,240.6

$

4,941.1

Total operating expenses

Net realized capital (gains) losses operating expense adjustments ^

(11.8)

(35.6)

(12.3)

(22.5)

(7.3)

(82.2)

17.5

Expenses from exited business

(19.7)

(20.8)

(22.4)

(22.4)

(23.1)

(85.3)

(125.5)

Operating expenses *

$

1,289.2

$

1,287.0

$

1,255.7

$

1,241.2

$

1,222.3

$

5,073.1

$

4,833.1

Three Months Ended,

Trailing Twelve Months,

Jun-24

Mar-24

Dec-23

Sep-23

Jun-23

Jun-24

Jun-23

Segment Pre-Tax Operating Earnings (Losses)

Retirement and Income Solutions

$

267.8

$

262.2

$

264.6

$

304.7

$

232.3

$

1,099.3

$

892.4

Principal Asset Management

189.4

187.1

219.3

222.4

188.2

818.2

798.3

Benefits and Protection

132.3

111.8

144.4

169.0

124.9

557.5

544.1

Corporate

(103.4)

(88.9)

(88.5)

(114.8)

(97.4)

(395.6)

(381.0)

Pre-tax operating earnings (losses) *

$

486.1

$

472.2

$

539.8

$

581.3

$

448.0

$

2,079.4

$

1,853.8

Three Months Ended,

Trailing Twelve Months,

Jun-24

Mar-24

Dec-23

Sep-23

Jun-23

Jun-24

Jun-23

Categories of Segment Operating Expenses

Commission expense

$

258.7

$

263.7

$

241.7

$

231.9

$

235.1

$

996.0

$

906.5

Capitalization of DAC and contract costs

(111.9)

(122.5)

(108.6)

(105.4)

(108.0)

(448.4)

(415.9)

Amortization of DAC and contract costs

91.8

90.6

91.1

90.0

88.9

363.5

350.2

Depreciation and amortization

45.5

48.7

49.9

50.8

51.2

194.9

204.8

Interest expense on corporate debt

42.5

42.7

42.4

42.5

44.2

170.1

178.5

Compensation and other

962.6

963.8

939.2

931.4

910.9

3,797.0

3,609.0

Operating expenses *

$

1,289.2

$

1,287.0

$

1,255.7

$

1,241.2

$

1,222.3

$

5,073.1

$

4,833.1

Period Ended,

Jun-24

Mar-24

Dec-23

Sep-23

Jun-23

Mar-23

Dec-22

Assets

Total investments

$

99,157.3

$

98,912.7

$

98,320.4

$

93,982.8

$

96,792.3

$

98,031.2

$

95,135.4

Cash and cash equivalents

4,816.6

4,168.4

4,707.7

4,564.3

4,073.9

4,640.9

4,848.0

Accrued investment income

822.7

838.6

786.2

819.1

778.1

797.7

742.1

Reinsurance recoverable and deposit receivable

19,734.8

20,098.3

20,611.7

20,507.8

20,585.2

21,170.2

21,442.7

Premiums due and other receivables

3,989.9

3,920.0

3,998.8

3,897.0

3,858.2

3,837.6

3,933.3

Deferred acquisition costs

3,972.9

3,965.5

3,950.5

3,948.4

3,949.9

3,948.3

3,948.0

Market risk benefit asset

212.3

201.9

153.4

173.1

148.6

107.3

109.2

Property and equipment

805.9

913.5

938.4

958.1

957.7

986.2

996.1

Goodwill

1,569.8

1,569.1

1,608.5

1,593.6

1,638.4

1,636.1

1,598.2

Other intangibles

1,419.0

1,435.5

1,469.8

1,480.4

1,518.3

1,535.5

1,533.3

Separate account assets

171,399.8

171,788.2

167,605.6

155,478.2

164,210.6

162,000.8

155,375.1

Other assets

876.3

871.8

895.7

833.9

964.4

1,005.1

1,205.6

Total assets

$

308,777.3

$

308,683.5

$

305,046.7

$

288,236.7

$

299,475.6

$

299,696.9

$

290,867.0

Liabilities

Contractholder funds

$

41,681.3

$

42,004.4

$

41,501.1

$

42,303.9

$

42,379.9

$

42,958.0

$

42,825.3

Future policy benefits and claims

46,987.8

46,096.3

46,826.5

42,974.6

44,612.2

44,988.6

43,314.0

Other policyholder funds

887.4

880.0

916.8

946.0

943.7

930.9

911.5

Market risk benefit liability

69.3

99.6

133.2

112.5

136.1

194.4

207.4

Short-term debt

49.9

50.7

61.1

23.8

26.3

24.2

80.7

Long-term debt

3,932.2

3,931.5

3,930.9

3,930.2

3,992.9

4,688.6

3,997.0

Income taxes currently payable

10.4

7.7

11.9

10.0

7.6

24.6

19.2

Deferred income taxes

1,739.7

1,728.7

1,613.3

1,481.4

1,406.0

1,417.1

1,324.2

Separate account liabilities

171,399.8

171,788.2

167,605.6

155,478.2

164,210.6

162,000.8

155,375.1

Funds withheld payable

18,554.6

19,060.4

19,629.5

18,557.7

19,921.8

20,524.4

20,436.1

Other liabilities

12,128.5

11,434.8

11,606.2

11,436.0

11,182.3

11,411.8

12,096.7

Total liabilities

297,440.9

297,082.3

293,836.1

277,254.3

288,819.4

289,163.4

280,587.2

Redeemable noncontrolling interest

277.4

370.8

248.9

259.5

266.7

272.7

262.0

Stockholders' Equity

Common stock, at par

4.9

4.9

4.9

4.9

4.9

4.9

4.9

Additional paid-in capital

11,005.5

10,954.1

10,908.6

10,870.2

10,831.9

10,790.9

10,740.4

Retained earnings (1)

17,235.3

17,050.6

16,683.5

17,717.0

16,629.9

16,398.8

16,697.3

Treasury stock

(11,820.5)

(11,568.0)

(11,335.7)

(11,079.6)

(10,877.0)

(10,775.4)

(10,586.9)

Accumulated other comprehensive income:

Net unrealized gains (losses) on AFS securities (2)

(4,854.8)

(4,358.0)

(4,016.9)

(7,112.6)

(5,288.3)

(4,740.1)

(5,818.2)

Liability for future policy benefits discount rate remeasurement gain (loss)

1,376.4

982.9

428.2

2,082.8

709.2

200.0

740.9

Market risk benefit nonperformance risk remeasurement gain (loss)

(14.5)

(15.6)

(6.9)

6.5

24.4

30.0

24.0

Net foreign currency translation adjustment

(1,672.5)

(1,617.2)

(1,498.0)

(1,562.4)

(1,431.1)

(1,440.9)

(1,571.6)

Net unrecognized postretirement benefit obligations

(246.4)

(248.2)

(251.7)

(255.2)

(259.4)

(250.3)

(254.1)

Total stockholders' equity attributable to PFG (1)

11,013.4

11,185.5

10,916.0

10,671.6

10,344.5

10,217.9

9,976.7

Noncontrolling interest

45.6

44.9

45.7

51.3

45.0

42.9

41.1

Total stockholders' equity (1)

11,059.0

11,230.4

10,961.7

10,722.9

10,389.5

10,260.8

10,017.8

Total liabilities and stockholders' equity (1)

$

308,777.3

$

308,683.5

$

305,046.7

$

288,236.7

$

299,475.6

$

299,696.9

$

290,867.0

(1) Includes cumulative change in fair value of funds withheld embedded derivative

$

2,183.5

$

2,027.9

$

3,195.9

$

2,390.6

$

2,885.6

$

2,367.5

$

2,464.8

See also non-GAAP financial measure reconciliations on pages 30-33.

(2) Includes net unrealized gains (losses) on fixed maturities, available-for-sale associated with

external funds withheld

$

(1,632.5)

$

(1,427.5)

$

(1,250.6)

$

(2,308.0)

$

(1,629.8)

$

(1,519.0)

$

(1,939.6)