FULLTEXT DEL 8 AV 8
10-K – 2026-02-18 – pfg-20251231x10k.htm
Table of Contents Principal Financial Group, Inc. Notes to Consolidated Financial Statements – (continued) December 31, 2025 21. Revenues from Contracts with Customers – (continued) The types of revenues from contracts with customers were as follows: For the year ended December 31, 2025 2024 2023 (in millions) Specialty Benefits: Administrative service fees $ 15.4 $ 15.4 $ 15.9 Total revenues from contracts with customers 15.4 15.4 15.9 Fees and other revenues not within the scope of revenue recognition guidance 17.3 17.9 18.2 Total fees and other revenues 32.7 33.3 34.1 Premiums and other considerations 3,330.0 3,223.9 3,020.9 Net investment income 208.1 191.6 174.4 Total operating revenues $ 3,570.8 $ 3,448.8 $ 3,229.4 For the year ended December 31, 2025 2024 2023 (in millions) Life Insurance: Administrative service fees $ 44.5 $ 39.3 $ 31.2 Commission income 48.5 55.1 42.8 Total revenues from contracts with customers 93.0 94.4 74.0 Fees and other revenues not within the scope of revenue recognition guidance 364.9 341.5 333.3 Total fees and other revenues 457.9 435.9 407.3 Premiums and other considerations 500.3 491.6 514.9 Net investment income 436.8 413.5 401.5 Total operating revenues $ 1,395.0 $ 1,341.0 $ 1,323.7 Corporate Fees and other revenues are earned on the performance of selling and servicing of securities and related products offered through PSI, an introducing broker-dealer registered with the FINRA. PSI enters into selling and distribution agreements with the obligation to sell or distribute the securities products, such as mutual funds, annuities and products sold through RIAs, to individual clients in return for front-end sales charges, 12b-1 service fees, annuity fees and asset-based fees. Front-end sales charges, 12b-1 fees and annuity fees are related to a single sale and are earned at the time of sale. PSI also enters into agreements with individual customers to provide securities trade execution and custody through a brokerage services platform in return for ticket charge and other service fee revenue. These services are bundled as one single distinct service referred to as brokerage services. This revenue is related to distinct transactions and is earned at a point in time. PSI also enters into agreements with individual customers to provide trade execution, clearing services, custody services and investment research services through our proprietary offered fee-based products. These services are bundled as one single distinct service referred to as advisory services. In addition, for outside RIA business PSI performs sales and distribution services only. The revenues are earned over time as the service is performed utilizing the output method. A majority of our revenue is based upon contractual rates applied to the market value of the clients’ portfolios and considered variable consideration. 228 Table of Contents Principal Financial Group, Inc. Notes to Consolidated Financial Statements – (continued) December 31, 2025 21. Revenues from Contracts with Customers – (continued) The Corporate segment also includes inter-segment eliminations of fees and other revenues. The types of revenues from contracts with customers were as follows: For the year ended December 31, 2025 2024 2023 (in millions) Commission income $ 539.6 $ 482.0 $ 373.9 Other fee revenue 99.3 89.1 84.1 Eliminations ( 393.1 ) ( 344.8 ) ( 278.8 ) Total revenues from contracts with customers 245.8 226.3 179.2 Fees and other revenues not within the scope of revenue recognition guidance ( 319.7 ) ( 315.9 ) ( 299.0 ) Total fees and other revenues ( 73.9 ) ( 89.6 ) ( 119.8 ) Premiums and other considerations ( 5.4 ) ( 5.2 ) ( 14.5 ) Net investment income 180.5 171.6 210.7 Total operating revenues $ 101.2 $ 76.8 $ 76.4 Contract Costs Sales compensation and other incremental costs of obtaining a contract are capitalized and amortized over the period of contract benefit if the costs are expected to be recovered. The contract cost asset, which is included in other assets on the consolidated statements of financial position, was $ 183.3 million and $ 198.9 million as of December 31, 2025 and December 31, 2024, respectively. We apply the practical expedient for certain costs where we recognize the incremental costs of obtaining these contracts as an expense when incurred if the amortization period of the assets is one year or less. These costs, along with costs that are not deferrable, are included in operating expenses on the consolidated statements of operations. Deferred contract costs consist primarily of commissions and variable compensation. We amortize capitalized contract costs on a straight-line basis over the expected contract life, reflecting lapses as they are incurred. Deferred contract costs are subject to impairment testing on an annual basis, or when a triggering event occurs that could warrant an impairment. To the extent future revenues less future maintenance expenses are not adequate to cover the asset balance, an impairment is recognized. For the years ended December 31, 2025, 2024 and 2023, $ 80.5 million, $ 38.5 million and $ 38.3 million, respectively, of amortization expense was recorded in operating expenses on the consolidated statements of operations Additionally, for the years ended December 31, 2025, 2024 and 2023, $ 45.4 million, $ 0.0 million and $ 0.0 million, respectively, of impairment loss was recognized in operating expenses on the consolidated statements of operations in relation to the costs capitalized. See Note 2, Goodwill and Other Intangible Assets, for further details of the agreement with BCT that led to the 2025 impairment. 229 Table of Contents Principal Financial Group, Inc. Notes to Consolidated Financial Statements – (continued) December 31, 2025 22. Stock-Based Compensation Plans As of December 31, 2025, we had the 2021 Stock Incentive Plan, the 2020 Directors Stock Plan, the 2014 Stock Incentive Plan, the Employee Stock Purchase Plan, the 2014 Directors Stock Plan, the Amended and Restated 2010 Stock Incentive Plan, the 2005 Directors Stock Plan, the Stock Incentive Plan and the Directors Stock Plan (“Stock-Based Compensation Plans”). No new grants will be made under the 2020 Directors Stock Plan, the 2014 Stock Incentive Plan, the 2014 Directors Stock Plan, the Amended and Restated 2010 Stock Incentive Plan, the 2005 Directors Stock Plan, the Stock Incentive Plan or the Directors Stock Plan. Under the terms of the 2021 Stock Incentive Plan, grants may be nonqualified stock options, incentive stock options qualifying under Section 422 of the Internal Revenue Code, restricted stock, restricted stock units, stock appreciation rights, performance shares, performance units or other stock-based awards. To date, we have not granted any incentive stock options, restricted stock or performance units under any plans. As part of our fair value process, we assess the impact of material nonpublic information on our share price or expected volatility, as applicable, at the time of grant. No awards in 2025 required a fair value adjustment. As of December 31, 2025, the maximum number of new shares of common stock available for grant under the 2021 Stock Incentive Plan was 19.1 million. For awards with graded vesting, we use an accelerated expense attribution method. The compensation cost that was charged against net income for stock-based awards granted under the Stock-Based Compensation Plans was as follows: For the year ended December 31, 2025 2024 2023 (in millions) Compensation cost $ 119.3 $ 106.8 $ 97.7 Related income tax benefit 27.7 23.9 23.1 Capitalized as part of an asset 1.2 1.1 1.1 Nonqualified Stock Options No nonqualified stock options were granted to employees during 2025, 2024 and 2023. Previously, nonqualified stock options were granted to certain employees under the 2014 Stock Incentive Plan, the Amended and Restated 2010 Stock Incentive Plan and the Stock Incentive Plan. Options outstanding were granted at an exercise price equal to the fair market value of our common stock on the date of grant and expire ten years after the grant date. The following is a summary of the status of all of our stock option plans: Weighted- average Number of options exercise price Intrinsic value (in millions) (in millions) Options outstanding as of January 1, 2025 2.1 $ 56.03 Exercised 0.2 50.74 Options outstanding as of December 31, 2025 1.9 $ 56.76 $ 58.7 Options vested or expected to vest as of December 31, 2025 1.9 $ 56.76 $ 58.7 Options exercisable as of December 31, 2025 1.9 $ 56.76 $ 58.7 The total intrinsic value of stock options exercised was $ 8.4 million, $ 21.7 million and $ 15.2 million during 2025, 2024, and 2023, respectively. 230 Table of Contents Principal Financial Group, Inc. Notes to Consolidated Financial Statements – (continued) December 31, 2025 22. Stock-Based Compensation Plans – (continued) The following is a summary of weighted-average remaining contractual lives for stock options outstanding and the range of exercise prices on the stock options as of December 31, 2025: Weighted- Number of options average remaining Range of exercise prices outstanding contractual life (in millions) $ 37.38 - $ 52.41 0.6 4.1 $ 52.42 - $ 55.89 0.3 3.2 $ 55.90 - $ 60.70 0.5 5.2 $ 60.71 - $ 63.38 0.1 1.2 $ 63.39 - $ 63.98 0.4 2.2 $ 37.38 - $ 63.98 1.9 The weighted-average remaining contractual lives for stock options exercisable is approximately 3.7 years as of December 31, 2025. As of December 31, 2025, we did no t have any unrecognized compensation cost related to nonvested stock options. Cash received from stock options exercised under these share-based payment arrangements during 2025, 2024 and 2023 was $ 13.0 million, $ 36.4 million and $ 25.0 million, respectively. The actual tax benefits realized for the tax deductions for options exercised under these share-based payment arrangements during 2025, 2024 and 2023 was $ 1.3 million, $ 8.4 million and $ 5.5 million, respectively. Performance Share Awards We granted performance share awards to certain employees under the 2021 Stock Incentive Plan, the 2014 Stock Incentive Plan and the Amended and Restated 2010 Stock Incentive Plan. The performance share awards are treated as an equity award and are paid in shares. The performance share awards include a relative total shareholder return modifier under which the number of shares ultimately awarded is also impacted by our actual shareholder return relative to our S&P 500 Financial Sector Index peer group. The fair value of performance share awards is determined using a Monte Carlo simulation model. Whether the performance shares are earned depends upon the participant’s continued employment through the performance period (except in the case of specific types of terminations) and our performance against three-year goals set at the beginning of the performance period. Performance goals based on various factors must be achieved for any of the performance shares to be earned. If the performance requirements are not met, the performance shares will be forfeited, no compensation cost will be recognized and any previously recognized compensation cost will be reversed. These awards have no maximum contractual term. Dividend equivalents are credited on performance shares outstanding as of the record date. These dividend equivalents are only paid on the shares released. Total performance share awards granted were 0.3 million, 0.3 million and 0.3 million in 2025, 2024 and 2023, respectively. 231 Table of Contents Principal Financial Group, Inc. Notes to Consolidated Financial Statements – (continued) December 31, 2025 22. Stock-Based Compensation Plans – (continued) The following is a summary of activity for the nonvested performance share awards: Number of Weighted- performance average grant-date share awards fair value (in millions) Nonvested performance share awards as of January 1, 2025 0.9 $ 77.38 Granted 0.3 90.41 Vested 0.2 64.37 Canceled 0.1 74.55 Nonvested performance share awards as of December 31, 2025 0.9 $ 84.41 The total intrinsic value of performance share awards vested was $ 17.0 million, $ 11.4 million and $ 11.0 million during 2025, 2024 and 2023, respectively. Performance share awards above represent initial target awards and do not reflect potential increases or decreases resulting from the final performance results to be determined at the end of the respective performance period. The actual number of common shares to be awarded at the end of each performance period will range between 0 % and 180 % ( 0 % and 150 % prior to 2022) of the initial target awards. The fair value of performance share awards is determined using a Monte Carlo simulation model of our common shares on the grant date. The weighted-average grant-date fair value of performance share awards granted during 2025, 2024 and 2023 was $ 90.41 , $ 82.52 and $ 91.47 , respectively. As of December 31, 2025, we had $ 16.9 million of total unrecognized compensation cost related to nonvested performance share awards granted. The cost is expected to be recognized over a weighted-average service period of approximately 1.6 years. Actual tax benefits realized for the tax deductions for performance share awards paid out under these share-based payment arrangements for 2025, 2024 and 2023 was $ 5.2 million, $ 7.0 million and $ 7.7 million, respectively. Restricted Stock Units We issue restricted stock units under the 2021 Stock Incentive Plan, 2020 Directors Stock Plan, 2014 Stock Incentive Plan, the 2014 Directors Stock Plan, the Amended and Restated 2010 Stock Incentive Plan, the 2005 Directors Stock Plan, the Stock Incentive Plan, and the Directors Stock Plan. Restricted stock units are treated as an equity award and are paid in shares. These awards have no maximum contractual term. Dividend equivalents are credited on restricted stock units outstanding as of the record date. These dividend equivalents are only paid on the shares released. Restricted stock units granted were 1.0 million, 1.1 million and 0.9 million in 2025, 2024 and 2023, respectively. Restricted stock units were issued to certain employees and agents pursuant to the 2021 Stock Incentive Plan, 2014 Stock Incentive Plan, the Amended and Restated 2010 Stock Incentive Plan and Stock Incentive Plan. Under these plans, awards have graded or cliff vesting over a three-year service period. When service for PFG ceases (except in the case of specific types of terminations), all vesting stops and unvested units are forfeited. Pursuant to the 2021 Stock Incentive Plan, 2020 Directors Stock Plan, 2014 Directors Stock Plan and the 2005 Directors Stock Plan, restricted stock units are granted to each non-employee director in office immediately following each annual meeting of stockholders and, at the discretion of the Board Nominating and Governance Committee, to each person who becomes a member of the Board other than on the date of the annual meeting of stockholders. Under these plans, awards are granted on an annual basis and cliff vest after a one-year service period. When service to PFG ceases, all vesting stops and unvested units are forfeited. 232 Table of Contents Principal Financial Group, Inc. Notes to Consolidated Financial Statements – (continued) December 31, 2025 22. Stock-Based Compensation Plans – (continued) The following is a summary of activity for the nonvested restricted stock units: Number of Weighted- restricted average grant-date stock units fair value (in millions) Nonvested restricted stock units as of January 1, 2025 3.0 $ 78.92 Granted 1.0 84.75 Vested 1.1 70.83 Canceled 0.1 84.20 Nonvested restricted stock units as of December 31, 2025 2.8 $ 84.20 The total intrinsic value of restricted stock units vested was $ 109.5 million, $ 89.9 million and $ 102.8 during 2025, 2024 and 2023, respectively. The fair value of restricted stock units is determined based on the closing stock price of our common shares on the grant date. The weighted-average grant-date fair value of restricted stock units granted during 2025, 2024 and 2023 was $ 84.75 , $ 80.25 and $ 87.71 , respectively. As of December 31, 2025, we had $ 65.1 million of total unrecognized compensation cost related to nonvested restricted stock unit awards granted under these plans. The cost is expected to be recognized over a weighted-average period of approximately 1.6 years. The actual tax benefits realized for the tax deductions for restricted stock unit payouts under these share-based payment arrangements for 2025, 2024 and 2023 was $ 21.8 million, $ 32.7 million and $ 35.9 million, respectively. Employee Stock Purchase Plan Under our Employee Stock Purchase Plan, participating employees have the opportunity to purchase shares of our common stock on a quarterly basis. Employees may purchase up to $ 25,000 in stock value annually. Employees may purchase shares of our common stock at a price equal to 90 % of the shares’ fair market value as of the end of the purchase period. Under the Employee Stock Purchase Plan, employees purchased 0.4 million, 0.4 million and 0.5 million shares during 2025, 2024 and 2023, respectively. We recognize compensation expense for the fair value of the discount granted to employees participating in the employee stock purchase plan in the period of grant. Shares of the Employee Stock Purchase Plan are treated as an equity award. The weighted-average fair value of the discount on the stock purchased was $ 8.36 , $ 8.30 and $ 7.49 during 2025, 2024 and 2023, respectively. The total intrinsic value of the Employee Stock Purchase Plan shares settled was $ 3.4 million, $ 3.4 million and $ 3.6 million during 2025, 2024 and 2023, respectively. Cash received from shares issued under these share-based payment arrangements for 2025, 2024 and 2023 was $ 30.6 million, $ 31.0 million and $ 32.8 million, respectively. The actual tax benefit realized for the tax deductions for the settlement of the share-based payment arrangements for 2025, 2024 and 2023 was $ 0.3 million, $ 0.3 million and $ 0.3 million, respectively. As of December 31, 2025, a total of 2.1 million of new shares were available to be made issuable by us for this plan. 233 Table of Contents Principal Financial Group, Inc. Notes to Consolidated Financial Statements – (continued) December 31, 2025 23. Earnings Per Common Share The computations of the basic and diluted per share amounts were as follows: For the year ended December 31, 2025 2024 2023 (in millions, except per share data) Net income $ 1,255.5 $ 1,597.9 $ 670.1 Subtract: Net income attributable to noncontrolling interest 70.4 26.9 46.9 Total $ 1,185.1 $ 1,571.0 $ 623.2 Weighted-average shares outstanding: Basic 222.8 232.0 241.3 Dilutive effects: Stock options 0.6 0.8 0.9 Restricted stock units 1.9 2.0 2.0 Performance share awards 0.4 0.5 0.4 Diluted 225.7 235.3 244.6 Net income per common share: Basic $ 5.32 $ 6.77 $ 2.58 Diluted $ 5.25 $ 6.68 $ 2.55 The calculation of diluted earnings per share for the years ended December 31, 2025, 2024 and 2023, excludes the incremental effect related to certain outstanding stock-based compensation grants due to their anti-dilutive effect. When a net loss is reported, our basic weighted-average shares are used to calculate diluted earnings per share, as dilutive shares would have an antidilutive effect and result in a lower loss per share. 24. Subsequent Event On January 19, 2026, an agreement with Banco Santander, S.A. (“Santander”) was announced whereby Santander will acquire our annuities business in Chile, Principal Compañía de Seguros de Vida Chile S.A. (“Vida”), subject to regulatory approvals. The transaction is structured such that the Vida legal entity will be sold excluding its universal life and asset management business, which will be carved out prior to the sale. We expect the transaction to close in the third quarter of 2026. We expect to incur an estimated $ 280.0 million pre-tax net realized capital loss on the disposal primarily due to recognizing into income our accumulated foreign currency translation adjustment in a loss position. We do not expect a material impact to our Principal Asset Management segment pre-tax operating earnings upon completion of the sale. 234 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. Item 9A. Controls and Procedures Disclosure Controls and Procedures In order to ensure the information we must disclose in our filings with the SEC is recorded, processed, summarized and reported on a timely basis, we have adopted disclosure controls and procedures. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure information required to be disclosed by us in the reports we file with or submit to the SEC is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Our Chief Executive Officer, Deanna D. Strable-Soethout, and our Chief Financial Officer, Joel M. Pitz, have reviewed and evaluated our disclosure controls and procedures as of December 31, 2025, and have concluded our disclosure controls and procedures are effective. Management’s Report on Internal Control Over Financial Reporting Management of Principal Financial Group, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Under the supervision and with the participation of management, including our Chief Executive Officer, Deanna D. Strable-Soethout, and our Chief Financial Officer, Joel M. Pitz, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on criteria established in the Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). Based on our evaluation, management has concluded that Principal Financial Group, Inc.’s internal control over financial reporting was effective as of December 31, 2025. Ernst & Young LLP, the independent registered public accounting firm that audited our financial statements included in this Annual Report on Form 10-K, has issued its report on the effectiveness of our internal control over financial reporting. The report is included in Item 8. “Financial Statements and Supplementary Data.” Changes in Internal Control Over Financial Reporting We had no change in our internal control over financial reporting during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Item 9B. Other Information N o n e . 235 Table of Contents PART III Item 10. Directors, Executive Officers and Corporate Governance The information called for by Item 10 pertaining to directors is set forth in Principal Financial Group, Inc.’s proxy statement relating to the 2026 annual meeting of stockholders (the “Proxy Statement”), which will be filed with the SEC on or about April 6, 2026, under the captions, “Election of Directors,” “Corporate Governance,” and “Security Ownership of Certain Beneficial Owners and Management — Delinquent Section 16(a) Reports.” Such information is incorporated herein by reference. The information called for by Item 10 pertaining to executive officers can be found in Part I of this Form 10-K under the caption, “Information about our Executive Officers.” The Company has adopted a code of ethics that applies to our principal executive officer, principal financial officer and principal accounting officer. The code of ethics has been posted on our internet website, found at www.principal.com . We intend to satisfy disclosure requirements regarding amendments to, or waivers from, any provision of our code of ethics on our website . The Company has adopted an insider trading policy governing the purchase, sale and/or other disposition of Principal Financial Group, Inc. securities by directors, officers and employees. The Company’s insider trading policy is reasonably designed to promote compliance with insider trading laws, rules and regulations, as well as the listing requirements and standards set forth by the Nasdaq Global Select Market. The Company’s insider trading policy is attached hereto as Exhibit 19. Item 11. Executive Compensation The information called for by Item 11 pertaining to executive compensation is set forth in the Proxy Statement under the caption, “Executive Compensation,” and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information called for by Item 12 pertaining to security ownership of certain beneficial owners and management is set forth in the Proxy Statement under the caption, “Security Ownership of Certain Beneficial Owners and Management,” and is incorporated herein by reference. Equity Compensation Plan Information In general, we have two compensation plans under which our equity securities are authorized for issuance to employees or directors (not including our tax qualified pension plans): the Principal Financial Group, Inc. 2021 Stock Incentive Plan and the Principal Financial Group, Inc. Employee Stock Purchase Plan. The following table shows the number of shares of common stock issuable upon exercise of options outstanding as of December 31, 2025, the weighted average exercise price of those options and the number of shares of common stock remaining available for future issuance as of December 31, 2025, excluding shares issuable upon exercise of outstanding options. (a) (b) (c) Number of securities remaining available for Number of securities Weighted-average future issuance under to be issued upon exercise price of equity compensation exercise of outstanding outstanding plans (excluding options, warrants options, warrants securities reflected Plan Category and rights and rights in column (a)) Equity compensation plans approved by our stockholders (1) 6,186,949 (2) $ 56.76 (3) 21,204,424 (4) Equity compensation plans not approved by our stockholders — n/a — (1) The Principal Financial Group, Inc. Employee Stock Purchase Plan, the Principal Financial Group, Inc. Stock Incentive Plan and the Principal Financial Group, Inc. Directors Stock Plan were each approved by our sole stockholder, Principal Mutual Holding Company, prior to our initial public offering of common stock on October 22, 2001. Subsequently, the Principal Financial Group, Inc. 2005 Stock Incentive Plan and the Principal Financial Group, Inc. 2005 Directors Stock Plan were each approved by our stockholders on May 17, 2005. An amendment to the Principal Financial Group, Inc. Employee Stock Purchase Plan to increase the number of shares available for issuance under the plan was approved on May 19, 2009. On May 18, 2010, our shareholders approved the 2010 Stock Incentive Plan, which replaced the 2005 Stock Incentive Plan. The 2010 Stock Incentive Plan was subsequently renamed the Amended and Restated 2010 Stock Incentive Plan. On May 20, 2014, our shareholders approved the Principal Financial Group, Inc. 2014 Stock Incentive Plan and the Principal Financial Group, Inc. 2014 Directors Stock Plan. On May 19, 2020, our shareholders approved the Principal Financial Group, Inc. 2020 Directors Stock Plan. On May 18, 2021, our shareholders approved the Principal Financial Group, Inc. 2021 Stock Incentive Plan. (2) Includes 1,867,782 options outstanding under the employee stock incentive plans, 921,407 performance shares under the employee stock incentive plans, 3,156,608 restricted stock units under the employee stock incentive plans, 185,873 restricted stock units under the directors stock plans and 55,279 other stock-based awards under the director stock plans for obligations under the Deferred Compensation Plan for Non-Employee Directors of Principal Financial Group, Inc. (3) The weighted-average exercise price relates only to outstanding stock options, not to outstanding performance shares, restricted stock units or other stock-based awards. (4) This number includes 2,149,581 shares remaining for issuance under the Employee Stock Purchase Plan and 19,054,843 shares available for issuance in respect of future awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other stock-based awards under the 2021 Stock Incentive Plan. 236 Table of Contents Item 13. Certain Relationships and Related Transactions, and Director Independence The information called for by Item 13 pertaining to certain relationships and related transactions is set forth in the Proxy Statement under the captions, “Corporate Governance — Director Independence,” and “Corporate Governance — Certain Relationships and Related Party Transactions,” and is incorporated herein by reference. Item 14. Principal Accounting Fees and Services The information called for by Item 14 pertaining to principal accounting fees and services is set forth in the Proxy Statement under the caption, “Ratification of Independent Public Accounting Firm,” and is incorporated herein by reference. 237 Table of Contents PART IV Item 15. Exhibits and Financial Statement Schedules a. Documents filed as part of this report. 1. Financial Statements (see Item 8. Financial Statements and Supplementary Data) Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Audited Consolidated Financial Statements Consolidated Statements of Financial Position Consolidated Statements of Operations Consolidated Statements of Comprehensive Income Consolidated Statements of Stockholders’ Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements 2. Schedule I — Summary of Investments — Other Than Investments in Related Parties Schedule II — Condensed Financial Information of Registrant (Parent Only) Schedule III — Supplementary Insurance Information Schedule IV — Reinsurance All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and therefore have been omitted. 3. Exhibits 238 Table of Contents Index of Exhibits (Item 15.a.3.) Incorporated by reference herein Exhibit Number Description Form File Date 2.1 Sale and Purchase Promise Agreement, dated October 5, 2012, among Principal Financial Services, Inc., Empresas Penta S.A. and Inversiones Banpenta Limitada 8-K November 13, 2012 2.2 Purchase Agreement, dated as of April 9, 2019, by and between Wells Fargo Bank, N.A., Principal Financial Services, Inc. and (for certain limited purposes) Wells Fargo & Company 10-Q May 2, 2019 3.1 Amended and Restated Certificate of Incorporation of Principal Financial Group, Inc. 8-K June 17, 2005 3.2 Amended and Restated By-Laws of Principal Financial Group, Inc. 8-K March 2, 2018 4.1 Form of Certificate for the Common Stock of Principal Financial Group, Inc., par value $0.01 per share S-1/A August 2, 2001 4.2 Senior Indenture, dated as of October 11, 2006, between Principal Financial Group, Inc. and The Bank of New York, as Trustee 8-K October 17, 2006 4.2.1 First Supplemental Indenture, dated as of October 16, 2006, among Principal Financial Group, Inc., Principal Financial Services, Inc. and The Bank of New York, as Trustee 8-K October 17, 2006 4.2.2 6.05% Senior Note ($500,000,000) due October 15, 2036 8-K October 17, 2006 4.2.3 6.05% Senior Note ($100,000,000) due October 15, 2036 8-K December 6, 2006 4.2.4 Guarantee from Principal Financial Services, Inc. with respect to the 6.05% Senior Notes due 2036 8-K October 17, 2006 4.3 Senior Indenture, dated as of May 21, 2009, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York, as Trustee 8-K May 21, 2009 4.3.1 Fourth Supplemental Indenture (including the form of 2042 Notes), dated as of September 10, 2012, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee 8-K September 10, 2012 4.3.2 Sixth Supplemental Indenture (including the form of 2023 Notes), dated as of November 16, 2012, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee 8-K November 16, 2012 4.3.3 Seventh Supplemental Indenture (including the form of 2043 Notes), dated as of November 16, 2012, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee 8-K November 16, 2012 4.3.4 Eighth Supplemental Indenture (including the form of 3.400% Senior Note due 2025), dated as of May 7, 2015, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee, relating to the 3.400% Senior Notes due 2025 8-K May 7, 2015 4.3.5 Ninth Supplemental Indenture (including the form of 3.100% Senior Note due 2026), dated as of November 10, 2016, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee, relating to the 3.100% Senior Notes due 2026 8-K November 10, 2016 4.3.6 Tenth Supplemental Indenture (including the form of 4.300% Senior Note due 2046), dated as of November 10, 2016, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee, relating to the 4.300% Senior Notes due 2046 8-K November 10, 2016 4.3.7 Guarantee from Principal Financial Services, Inc. with respect to the 4.625% Senior Notes due 2042 8-K September 10, 2012 4.3.8 Guarantee from Principal Financial Services, Inc. with respect to the 3.125% Senior Notes due 2023 8-K November 16, 2012 4.3.9 Guarantee from Principal Financial Services, Inc. with respect to the 4.350% Senior Notes due 2043 8-K November 16, 2012 4.3.10 Guarantee from Principal Financial Services, Inc. with respect to the 3.400% Senior Notes due 2025 8-K May 7, 2015 4.3.11 Guarantee from Principal Financial Services, Inc. with respect to the 3.100% Senior Notes due 2026 8-K November 10, 2016 4.3.12 Guarantee from Principal Financial Services, Inc. with respect to the 4.300% Senior Notes due 2046 8-K November 10, 2016 4.3.13 Thirteenth Supplemental Indenture (including the form of 3.700% Senior Note due 2029), dated as of May 10, 2019, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee, relating to the 3.700% Senior Notes due 2029 8-K May 10, 2019 4.3.14 Guarantee from Principal Financial Services, Inc. with respect to the 3.700% Senior Notes due 2029 8-K May 10, 2019 4.3.15 Fourteenth Supplemental Indenture (including the form of 2.125% Senior Note due 2030), dated as of June 12, 2020, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee, relating to the 2.125% Senior Notes due 2030 8-K June 12, 2020 239 Table of Contents Incorporated by reference herein Exhibit Number Description Form File Date 4.3.16 Guarantee of Principal Financial Services, Inc. with respect to the 2.125% Senior Notes due 2030 8-K June 12, 2020 4.3.17 Fifteenth Supplemental Indenture (including the form of 5.375% Senior Note due 2033), dated as of March 8, 2023, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee, relating to the 5.375% Senior Notes due 2033 8-K March 8, 2023 4.3.18 Sixteenth Supplemental Indenture (including the form of 5.500% Senior Note due 2053), dated as of March 8, 2023, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee, relating to the 5.500% Senior Notes due 2053 8-K March 8, 2023 4.3.19 Guarantee of Principal Financial Services, Inc. with respect to the 5.375% Senior Notes due 2033 8-K March 8, 2023 4.3.20 Guarantee of Principal Financial Services, Inc. with respect to the 5.500% Senior Notes due 2053 8-K March 8, 2023 4.4 Junior Subordinated Indenture, dated as of May 7, 2015, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee 8-K May 7, 2015 4.4.1 First Supplemental Indenture (including the form of 4.700% Fixed-to-Floating Rate Junior Subordinated Note due 2055), dated as of May 7, 2015, among Principal Financial Group, Inc., as issuer, Principal Financial Services, Inc., as guarantor, and The Bank of New York Mellon Trust Company, as trustee, relating to the 4.700% Fixed-to-Floating Rate Junior Subordinated Notes due 2055 8-K May 7, 2015 4.4.2 Guarantee from Principal Financial Services, Inc. with respect to the 4.700% Fixed-to-Floating Rate Junior Subordinated Notes due 2055 8-K May 7, 2015 10.1 Principal Financial Group, Inc. Stock Incentive Plan 10-Q August 6, 2003 10.1.1 Form of Restricted Stock Unit Award Agreement 8-K March 7, 2005 10.1.2 Form of Stock Option Award Agreement 8-K March 7, 2005 10.1.3 Principal Financial Group, Inc. 2005 Stock Incentive Plan 10-Q August 3, 2005 10.1.4 Principal Financial Group, Inc. 2010 Stock Incentive Plan DEF14A April 6, 2010 10.1.5 Amended and Restated Principal Financial Group, Inc. 2010 Stock Incentive Plan 10-Q May 2, 2012 10.1.6 Principal Financial Group, Inc. 2014 Stock Incentive Plan DEF14A April 7, 2014 10.1.7 Principal Financial Group, Inc. 2021 Stock Incentive Plan DEF14A April 5, 2021 10.1.8 Principal Financial Group, Inc. 2021 Stock Incentive Plan, as amended and restated effective November 20, 2023 10-K February 20, 2024 10.2 Principal Financial Group Long-Term Performance Plan S-1 June 8, 2001 10.3 Resolution of Human Resources Committee of the Board of Directors of Principal Financial Group, Inc. amending the Principal Financial Group Long-Term Performance Plan as of October 31, 2002 10-K March 5, 2003 10.4 Principal Financial Group Incentive Pay Plan (PrinPay), amended and restated effective January 1, 2003 10-Q May 7, 2003 10.5 Principal Financial Group, Inc. Annual Incentive Plan 10-K March 4, 2005 10.6 Revised Summary of Standard Compensatory Arrangement for Non-Employee Directors of the Principal Financial Group, Inc. Board of Directors 10-Q November 5, 2008 10.6.1 Revised Summary of Standard Compensatory Arrangement for Non-Employee Directors, effective March 28, 2009 10-Q May 6, 2009 10.6.2 Revised Summary of Standard Compensatory Arrangement for Non-Employee Directors of the Principal Financial Group, Inc., effective May 17, 2010 10-K February 16, 2011 10.6.3 Revised Summary of Standard Compensatory Arrangement for Non-Employee Directors of the Principal Financial Group, Inc., effective January 1, 2012 10-K February 15, 2012 10.6.4 Revised Summary of Standard Compensatory Arrangement for Non-Employee Directors of Principal Financial Group, Inc., effective January 1, 2015 10-K February 11, 2015 10.6.5 Revised Summary of Standard Compensatory Arrangement for Non-Employee Directors of the Principal Financial Group, Inc., effective November 28, 2017 10-K February 9, 2018 10.7 Principal Financial Group, Inc. Directors Stock Plan S-1 June 8, 2001 10.7.1 Principal Financial Group, Inc. 2005 Directors Stock Plan 10-Q August 3, 2005 10.7.2 Principal Financial Group, Inc. 2014 Directors Stock Plan DEF14A April 7, 2014 10.7.3 Principal Financial Group, Inc. 2020 Directors Stock Plan DEF14A April 6, 2020 10.8 Deferred Compensation Plan for Non-Employee Directors of Principal Financial Group, Inc. 10-K March 2, 2006 10.9 Principal Select Savings Excess Plan, restated as of January 1, 2004 10-Q May 5, 2004 240 Table of Contents Incorporated by reference herein Exhibit Number Description Form File Date 10.9.1 Amendment No. 1 to Principal Select Savings Excess Plan 10-K March 2, 2006 10.9.2 Principal Select Savings Excess Plan for Employees, amended and restated effective January 1, 2016 10-K February 10, 2016 10.9.3 Principal Select Savings Excess Plan for Individual Field, amended and restated effective January 1, 2016 10-K February 10, 2016 10.9.4 Nonqualified Deferred Compensation Plan for Select Investment Professions of Principal Financial Group, Inc. and Affiliates, effective January 1, 2016 10-K February 10, 2016 10.10 Supplemental Executive Retirement Plan for Employees, restated as of January 1, 2003 10-Q May 5, 2004 10.10.1 Amendment No. 1 to the Principal Supplemental Executive Retirement Plan for Employees 10-K March 2, 2006 10.11 Form of Principal Financial Group, Inc. and Principal Life Insurance Company Change-of-Control Employment Agreement (Tier One Executives), dated as of February 28, 2006, by and among Principal Financial Group, Inc., Principal Financial Services, Inc., Principal Life Insurance Company and an Executive 10-Q May 4, 2006 10.11.1 Form of Principal Financial Group, Inc. and Principal Life Insurance Company Change-of-Control Employment Agreement (Tier One Executives) 8-K December 2, 2008 10.11.2 Form of Principal Financial Group, Inc. and Principal Life Insurance Company Change of Control Employment Agreement (Tier One Executives), effective December 31, 2010 10-K February 16, 2011 10.11.3 Form of Principal Financial Group, Inc. and Principal Life Insurance Company Change of Control Employment Agreement, effective December 18, 2021 10-K February 11,2022 10.12 Form of Principal Financial Group, Inc. Indemnification Agreement 8-K December 2, 2008 10.12.1 Form of Principal Financial Group, Inc. Indemnification Agreement dated as of June 9, 2016. 10-Q August 3, 2016 10.13 Compensatory Arrangement, dated as of March 14, 2002, between Principal Life Insurance Company and James P. McCaughan 10-Q May 10, 2002 10.14 The Principal Severance Plan for Senior Executives, restated effective March 1, 2009 10-Q May 6, 2009 10.14.1 The Principal Financial Group, Inc. Executive Severance Plan effective September 1, 2021 10-Q October 28, 2021 10.15 The Principal Financial Group Nonqualified Defined Benefit Plan for Employees. 10-K February 14, 2020 97 Principal Financial Group, Inc. Mandatory Compensation Recovery Policy 10-K February 20, 2024 4.5 Description of the Registrant’s Securities Registered Under Section 12 of the Securities Exchange Act of 1934 19 Principal Financial Group, Inc. Insider Trading Policy as of December 31, 2025 21 Principal Financial Group, Inc. Member Companies as of December 31, 2025 23 Consent of Independent Registered Public Accounting Firm 31.1 Certification of Deanna D. Strable-Soethout 31.2 Certification of Joel M. Pitz 32.1 Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code — Deanna D. Strable-Soethout 32.2 Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code — Joel M. Pitz 101 The following materials from Principal Financial Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Statements of Financial Position, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, (vi) the Notes to Consolidated Financial Statements, (vii) Schedule I — Summary of Investments — Other Than Investments in Related Parties, (viii) Schedule II — Condensed Financial Information of Registrant (Parent Only), (ix) Schedule III — Supplementary Insurance Information and (x) Schedule IV — Reinsurance 104 The cover page from Principal Financial Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2025 formatted in iXBRL and contained in Exhibit 101. Paper copies of exhibits will be provided to shareholders upon reasonable request and upon payment of reasonable copying and mailing expenses. 241 Table of Contents Signatures Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PRINCIPAL FINANCIAL GROUP, INC. Dated: February 18, 2026 By /s/ JOEL M. PITZ Joel M. Pitz Executive Vice President and Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated. Dated: February 18, 2026 By / s / DEANNA D. STRABLE-SOETHOUT By /S/ H. ELIZABETH MITCHELL Deanna D. Strable-Soethout H. Elizabeth Mitchell Chair, President, Chief Executive Officer and Director Director By / s / JOEL M. PITZ By /S/ CLAUDIO N. MURUZABAL Joel M. Pitz Claudio N. Muruzabal Executive Vice President and Chief Director Financial Officer (Principal Financial Officer and Principal Accounting Officer) By / s / JONATHAN S. AUERBACH By /S/ DIANE C. NORDIN Jonathan S. Auerbach Diane C. Nordin Director Director By / s / MARY E. BEAMS By /S/ BLAIR C. PICKERELL Mary E. Beams Blair C. Pickerell Director Director By / s / JOCELYN CARTER-MILLER By / s / CLARE S. RICHER Jocelyn Carter-Miller Clare S. Richer Director Director By / s / ROGER C. HOCHSCHILD By / s / ALREDO RIVERA Roger C. Hochschild Alfredo Rivera Director Director By / S / SCOTT M. MILLS Scott M. Mills Director 242 Table of Contents Schedule I - Summary of Investments - Other Than Investments in Related Parties December 31, 2025 Amount as shown in the consolidated statement of Fair financial Type of Investment Cost value position (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 2,126.2 $ 1,867.6 $ 1,867.6 States, municipalities and political subdivisions 8,107.8 7,138.7 7,138.7 Foreign governments 554.7 517.7 517.7 Public utilities 6,042.4 4,857.5 4,857.5 Redeemable preferred stock 250.1 237.5 237.5 All other corporate bonds 33,575.1 32,452.5 32,452.5 Residential mortgage-backed pass-through securities 3,868.4 3,805.1 3,805.1 Commercial mortgage-backed securities 5,659.6 5,371.6 5,371.6 Collateralized debt obligations 6,417.4 6,422.3 6,422.3 Other debt obligations 10,981.2 10,690.2 10,690.2 Unallocated portfolio layer method basis adjustment ( 16.9 ) — — Total fixed maturities, available-for-sale 77,566.0 73,360.7 73,360.7 Fixed maturities, trading 1,243.8 1,243.8 1,243.8 Equity securities: Banks, trust and insurance companies 391.2 391.2 391.2 Public utilities 0.5 0.5 0.5 Industrial, miscellaneous and all other 1,592.3 1,592.3 1,592.3 Other corporate 143.1 143.1 143.1 Non-redeemable preferred stock 110.2 110.2 110.2 Total equity securities 2,237.3 2,237.3 2,237.3 Mortgage loans 21,008.3 XXXX 21,008.3 Real estate, net: Real estate acquired in satisfaction of debt 1.3 XXXX 1.3 Other real estate 2,408.4 XXXX 2,408.4 Policy loans 866.7 XXXX 866.7 Other investments 9,775.0 XXXX 9,775.0 Total investments $ 115,106.8 XXXX $ 110,901.5 243 Table of Contents Schedule II - Condensed Financial Information of Registrant (Parent Only) Statements of Financial Position December 31, 2025 2024 (in millions) Assets Fixed maturities, available-for-sale $ 13.4 $ 14.5 Other investments 12.6 12.1 Cash and cash equivalents 110.4 31.8 Income taxes currently receivable 0.9 1.9 Deferred income taxes 276.6 283.0 Amounts receivable from subsidiaries 19.7 15.8 Other assets 30.4 22.3 Investment in unconsolidated entities 15,663.3 14,987.1 Total assets $ 16,127.3 $ 15,368.5 Liabilities Long-term debt $ 3,923.4 $ 3,930.6 Accrued investment payable 35.1 30.6 Pension liability 272.2 308.4 Other liabilities 12.7 12.5 Total liabilities 4,243.4 4,282.1 Stockholders’ equity Common stock, par value $ 0.01 per share; 2,500,000,000 shares authorized; 496,884,232 and 494,734,908 shares issued as of 2025 and 2024; 217,380,912 and 226,225,161 shares outstanding as of 2025 and 2024 5.0 4.9 Additional paid-in capital 11,275.4 11,100.9 Retained earnings 18,071.3 17,583.5 Accumulated other comprehensive loss ( 4,188.4 ) ( 5,224.8 ) Treasury stock, at cost ( 279,503,320 and 268,509,747 shares as of 2025 and 2024) ( 13,279.4 ) ( 12,378.1 ) Total stockholders’ equity attributable to Principal Financial Group, Inc. 11,883.9 11,086.4 Total liabilities and stockholders’ equity $ 16,127.3 $ 15,368.5 See accompanying notes. 244 Table of Contents Statements of Operations For the year ended December 31, 2025 2024 2023 (in millions) Revenues Net investment income $ 3.2 $ 7.9 $ 14.7 Net realized capital gains 0.3 — — Total revenues 3.5 7.9 14.7 Expenses Other operating costs and expenses 227.7 207.5 224.0 Total expenses 227.7 207.5 224.0 Loss before income taxes ( 224.2 ) ( 199.6 ) ( 209.3 ) Income tax benefits ( 46.3 ) ( 31.8 ) ( 44.7 ) Equity in the net income of subsidiaries 1,363.0 1,738.8 787.8 Net income attributable to Principal Financial Group, Inc. $ 1,185.1 $ 1,571.0 $ 623.2 See accompanying notes. 245 Table of Contents Statements of Cash Flows For the year ended December 31, 2025 2024 2023 (in millions) Operating activities Net income $ 1,185.1 $ 1,571.0 $ 623.2 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Net realized capital gains ( 0.3 ) — — Stock-based compensation 1.6 1.6 1.7 Equity in the net income of subsidiaries ( 1,363.0 ) ( 1,738.8 ) ( 787.8 ) Changes in: Net cash flows for trading securities and equity securities with operating intent 388.7 — — Current and deferred income taxes (benefits) 13.5 ( 33.5 ) ( 10.7 ) Other 1.8 47.1 27.0 Net cash provided by (used in) operating activities 227.4 ( 152.6 ) ( 146.6 ) Investing activities Fixed maturities available-for-sale and equity securities with intent to hold: Maturities 1.6 1.4 1.9 Net purchases of property and equipment — — ( 0.1 ) Net change in other investments ( 0.5 ) — 0.6 Dividends and returns of capital received from unconsolidated entities 1,793.1 1,545.4 1,239.0 Net cash provided by investing activities 1,794.2 1,546.8 1,241.4 Financing activities Issuance of common stock 43.7 67.7 57.8 Acquisition of treasury stock ( 902.7 ) ( 1,042.4 ) ( 740.4 ) Dividends to common stockholders ( 684.0 ) ( 658.4 ) ( 625.5 ) Principal repayments of long-term debt ( 400.0 ) — ( 700.0 ) Issuance of long-term debt — — 691.5 Net cash used in financing activities ( 1,943.0 ) ( 1,633.1 ) ( 1,316.6 ) Net increase (decrease) in cash and cash equivalents 78.6 ( 238.9 ) ( 221.8 ) Cash and cash equivalents at beginning of year 31.8 270.7 492.5 Cash and cash equivalents at end of year $ 110.4 $ 31.8 $ 270.7 See accompanying notes. 246 Table of Contents (1) Basis of Presentation The accompanying condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto of Principal Financial Group, Inc. In the parent company only financial statements, our investment in unconsolidated entities is stated at cost plus equity in undistributed earnings of subsidiaries. Principal Financial Group, Inc. sponsors nonqualified benefit plans for select employees and agents and is responsible for the obligations of these plans. Nonqualified plan assets are held in Rabbi trusts for the benefit of all nonqualified plan participants. The invested assets and benefit plan liabilities reported in the statements of financial position exclude amounts held in these trusts. The Rabbi trusts had $ 1,064.7 million and $ 1,014.5 million of plan assets and $ 865.5 million and $ 827.0 million of benefit plan liabilities as of December 31, 2025 and 2024, respectively. (2) Dividends and Returns of Capital Received from Unconsolidated Entities The parent company received cash dividends and returns of capital totaling $ 1,793.1 million, $ 1,545.4 million and $ 1,239.0 million from subsidiaries in 2025, 2024 and 2023, respectively. 247 Table of Contents Schedule III - Supplementary Insurance Information As of December 31, 2025 and 2024 and for each of the years ended December 31, 2025, 2024 and 2023 Contractholder Deferred Future policy and other Market risk acquisition Market risk benefits and policyholder benefit Segment costs benefit asset claims funds liability (in millions) 2025: Retirement and Income Solutions $ 1,016.5 $ 197.1 $ 32,044.4 $ 38,404.1 $ 66.9 Principal Asset Management 1.3 — 4,603.7 440.7 — Benefits and Protection 3,053.8 — 14,915.2 7,833.3 — Corporate — — 186.4 ( 357.0 ) — Total $ 4,071.6 $ 197.1 $ 51,749.7 $ 46,321.1 $ 66.9 2024: Retirement and Income Solutions $ 957.2 $ 199.5 $ 29,818.3 $ 36,027.0 $ 62.1 Principal Asset Management 5.9 — 4,129.0 457.8 — Benefits and Protection 3,043.8 — 14,046.4 7,940.8 — Corporate — — 185.7 ( 359.6 ) — Total $ 4,006.9 $ 199.5 $ 48,179.4 $ 44,066.0 $ 62.1 248 Table of Contents Schedule III - Supplementary Insurance Information - (continued) As of December 31, 2025 and 2024 and for each of the years ended December 31, 2025, 2024 and 2023 Liability for Benefits, future policy Market risk Amortization of Premiums and Net claims and benefits benefit deferred Other other investment settlement remeasurement remeasurement acquisition operating Segment considerations income (2) expenses (gain) loss (gain) loss (1) costs expenses (2) (in millions) 2025: Retirement and Income Solutions $ 2,979.1 $ 3,300.8 $ 5,291.6 $ ( 17.6 ) $ 63.1 $ 96.1 $ 1,689.0 Principal Asset Management 5.9 586.7 322.8 ( 0.4 ) — 5.0 1,639.9 Benefits and Protection 3,800.8 633.0 2,929.2 74.4 — 298.9 1,221.1 Corporate ( 5.4 ) 210.0 20.9 — — — 483.8 Total $ 6,780.4 $ 4,730.5 $ 8,564.5 $ 56.4 $ 63.1 $ 400.0 $ 5,033.8 2024: Retirement and Income Solutions $ 3,136.9 $ 3,061.6 $ 5,183.5 $ ( 14.5 ) $ 50.6 $ 95.2 $ 1,685.3 Principal Asset Management 28.7 568.3 423.0 1.0 ( 20.3 ) 1.1 1,565.4 Benefits and Protection 3,689.8 594.5 2,460.4 684.9 — 296.2 1,182.8 Corporate ( 5.2 ) 224.8 5.7 — — — 537.9 Total $ 6,850.2 $ 4,449.2 $ 8,072.6 $ 671.4 $ 30.3 $ 392.5 $ 4,971.4 2023: Retirement and Income Solutions $ 2,935.0 $ 2,674.3 $ 4,653.5 $ ( 68.5 ) $ 33.7 $ 95.8 $ 1,590.7 Principal Asset Management 29.0 628.6 477.6 0.9 ( 4.6 ) 1.1 1,544.2 Benefits and Protection 3,521.4 549.5 2,647.7 16.0 — 292.9 1,088.0 Corporate ( 14.5 ) 239.5 9.4 — — — 459.4 Total $ 6,470.9 $ 4,091.9 $ 7,788.2 $ ( 51.6 ) $ 29.1 $ 389.8 $ 4,682.3 (1) The Principal Asset Management segment offered defined contribution plans in Asia with a guarantee on the minimum account balance under certain qualifying events. These were closed in the second quarter of 2024. (2) Allocations of net investment income and certain operating expenses are based on a number of assumptions and estimates. Reported operating results would change by segment if different methods were applied. 249 Table of Contents Schedule IV - Reinsurance As of December 31, 2025, 2024 and 2023 and for each of the years then ended Percentage Ceded to Assumed of amount Gross other from other assumed amount companies companies Net amount to net ($ in millions) 2025: Life insurance in force $ 764,018.1 $ 243,754.0 $ 154.3 $ 520,418.4 — % Premiums: Life insurance and annuities $ 4,544.5 $ 396.3 $ 0.5 $ 4,148.7 — % Accident and health insurance 2,785.3 153.6 — 2,631.7 — % Total $ 7,329.8 $ 549.9 $ 0.5 $ 6,780.4 — % 2024: Life insurance in force $ 741,781.1 $ 236,556.4 $ 298.8 $ 505,523.5 0.1 % Premiums: Life insurance and annuities $ 4,674.8 $ 380.8 $ 0.6 $ 4,294.6 — % Accident and health insurance 2,706.4 150.8 — 2,555.6 — % Total $ 7,381.2 $ 531.6 $ 0.6 $ 6,850.2 — % 2023: Life insurance in force $ 717,991.5 $ 230,126.5 $ 446.6 $ 488,311.6 0.1 % Premiums: Life insurance and annuities $ 4,384.6 $ 335.1 $ 0.9 $ 4,050.4 — % Accident and health insurance 2,576.7 156.2 — 2,420.5 — % Total $ 6,961.3 $ 491.3 $ 0.9 $ 6,470.9 — % 250