Principal Announces Second Quarter 2024 Results

Segment Results

In millions except percentages, or otherwise noted

Retirement and Income Solutions

• Pre-taxoperating earnings increased $35.5 million primarily due to higher net revenue and operating margin.
• Net revenue increased $61.0 million primarily due to growth in the business, higher net investment income, and favorable market performance.

• Pre-taxoperating earnings increased $1.9 million primarily due to higher operating revenues less pass-through expenses partially offset by higher operating expenses.
• Operating revenues lesspass-throughexpenses increased $19.6 million primarily due to higher management fees on higher average AUM.

1. Pre-taxoperating earnings = operating earnings before income taxes and after noncontrolling interest.
2. The company has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measures at the end of the release. The company has determined this measure is more representative of underlying operating revenues growth for PGI as it removes commissions and other expenses that are collected through fee revenue and passed through expenses with no impact to pre-tax operating earnings.
3. Operating margin for PGI = pre-tax operating earnings, adjusted for noncontrolling interest divided by operating revenues less pass-through expenses.

• Pre-taxoperating earnings decreased slightly primarily due to lower combined net revenue offset by lower operating expenses.
• Combined net revenue (at PFG share) decreased $5.4 million primarily due to impacts of macroeconomic headwinds in Asia and foreign currency translation.

• Pre-taxoperating earnings increased $10.6 million due to growth in the business and lower incurred loss ratio.
• Premium and fees increased $63.3 million driven by record year-to-date sales and strong retention, along with employment and wage growth.
• Incurred loss ratio improved to 61.5% driven by more favorable underwriting experience in group disability and group life.

1. Combined net revenue (a non-GAAP financial measure): net revenue for all PI companies at 100% less pass-through commissions. The company has determined combined net revenue (at PFG share) is more representative of underlying net revenue growth for PI as it reflects our proportionate share of consolidated and equity method subsidiaries. In addition, using this net revenue metric provides a more meaningful representation of our operating margin.
2. Operating margin for PI = pre-tax operating earnings divided by combined net revenue (at PFG share).
3. Operating margin for Benefits and Protection = pre-tax operating earnings divided by premium and fees.

• Pre-taxoperating earnings decreased $3.2 million primarily due to a GAAP-only regulatory closed block dividend adjustment.
• Premium and fees decreased $2.0 million driven by a one-time impact of a risk-reducing YRT reinsurance transaction executed in the quarter.

• Pre-taxoperating losses increased $6.0 million primarily due to higher operating expenses.

Earnings Conference Call

On Friday, July 26, 2024, at 10:00 a.m. (ET), Chairman, President and Chief Executive Officer Dan Houston and Executive Vice President and Chief Financial Officer Deanna Strable will lead a discussion of results and the impacts on future prospects, asset quality and capital adequacy during a live conference call, which can be accessed as follows:

• Via live Internet webcast. Please go toinvestors.principal.comat least 10-15 minutes prior to the start of the call to register, and to download and install any necessary audio software.
• Via telephone by dialing in one of the following numbers 10 minutes prior to the start of the call.

• 1. 877-407-0832(U.S. and Canadian callers) o +1 201-689-8433 (International callers)
• Replay of the earnings call via webcast as well as a transcript of the call will be available after the call atinvestors.principal.com.

The company's financial supplement and slide presentation is currently available at investors.principal.com, and may be referred to during the call.

Forward Looking Statements

This release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to share repurchases and planned dividends, the realization of our growth and business strategies and results from ongoing operations. Forward-looking statements are made based upon our current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance and actual results may differ materially from the results anticipated in the forward- looking statements. We describe risks, uncertainties and factors that could cause or contribute to such material differences in our filings with the Securities and Exchange Commission, including in the "Risk Factors" and "Note Concerning Forward-Looking Statements" sections in our annual report on Form 10-K for the year ended Dec. 31, 2023, as updated or supplemented from time to time in subsequent filings. We assume no obligation to update any forward-looking statement for any reason, which speaks as of its date.

Use of Non-GAAP Financial Measures

The company uses a number of non-GAAP financial measures that management believes are useful to investors because they illustrate the performance of normal, ongoing operations, which is important in understanding and evaluating the company's financial condition and results of operations. They are not, however, a substitute for U.S. GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measure at the end of the release. The company adjusts U.S. GAAP measures for items not directly related to ongoing operations. However, it is possible these adjusting items have occurred in the past and could recur in future reporting periods. Management also uses non-GAAP measures for goal setting, as a basis for determining employee and senior management awards and compensation and evaluating performance on a basis comparable to that used by investors and securities analysts.

About Principal®10

Principal Financial Group® (Nasdaq: PFG) is a global financial company with nearly 20,000 employees11 passionate about improving the wealth and well-being of people and businesses. In business for 145 years, we're helping approximately 64 million customers11 plan, insure, invest, and retire, while working to support the communities where we do business, and build a diverse, inclusive workforce. Principal® is proud to be recognized as one of the 2024 World's Most Ethical Companies12, a member of the Bloomberg Gender Equality Index, and a "Best Place to Work in Money Management13." Leamore about Principal and our commitment to building a better future at principal.com.

1. Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
2. As of June 30, 2024
3. Ethisphere, 2024
4. Pensions & Investments, 2023

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Summary of Principal Financial Group® and Segment Results

*U.S. GAAP (GAAP) net income attributable to PFG versusnon-GAAPoperating earnings Management uses non-GAAP operating earnings, which is a financial measure that excludes the effect of net realized capital gains and losses, as adjusted, income (loss) from exited business and other after-tax adjustments the company believes are not indicative of overall operating trends, for goal setting, as a basis for determining employee and senior management awards and compensation and evaluating performance on a basis comparable to that used by investors and securities analysts. Note: it is possible these adjusting items have occurred in the past and could recur in future reporting periods. While these items may be significant components in understanding and assessing our consolidated financial performance, management believes the presentation of non-GAAP operating earnings enhances the understanding of results of operations by highlighting earnings attributable to the normal, ongoing operations of the company's businesses.

Principal Financial Group, Inc.

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in millions, except as indicated)

Principal Financial Group, Inc.

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in millions)

Principal Financial Group, Inc.

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in millions)