SEC EDGAR · 10-Q
10-Q – 2026-04-29 – pfg-20260331x10q.htm
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Omsättning
- Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
- Sales |
- | We include disaggregated rollforwards for deferred acquisition costs (“DAC”), the unearned revenue liability, separate account liabilities, policyholder account balances, the liability for future policy benefits, the additional liability for certain benefit features and MRBs. Further, for certain actuarial balances, disclosures are required for the significant inputs, judgments, assumptions and methods used in measurement, including changes in those inputs, judgments and assumptions, and the eff |
- Net Realized Capital Gains and Losses | Net realized capital gains and losses on sales of investments are determined on the basis of specific identification. In general, in addition to realized capital gains and losses on investment sales and periodic settlements on derivatives not designated as hedges, we report gains and losses related to the following in net realized capital gains (losses) on the consolidated statements of operations: mark-to-market adjustments on certain equity securities, mark-to-market adjustments on certain fix
- (1) Includes credit sales, adjustments to the credit loss valuation allowance, write-offs and recoveries on available-for-sale securities. | (2) The change in fair value of fixed maturities, available-for-sale and the change in fair value of derivative hedging instruments in fair value hedging relationships are reported in net investment income with the earnings effect of fixed maturities, available-for-sale. Gains (losses) for fixed maturities, available-for-sale related to terminated cash flow hedges continue to be reflected in net realized capital gains (losses).
- (5) Includes a held for sale write-down of an intangible asset in 2025. | Proceeds from sales of investments (excluding call and maturity proceeds) in fixed maturities, available-for-sale were $ 386.3 million and $ 764.8 million for the three months ended March 31, 2026 and 2025, respectively.
- Allowance for Credit Loss | We have a process in place to identify fixed maturity securities that could potentially require an allowance for credit loss. This process involves monitoring market events that could impact issuers’ credit ratings, business climate, management changes, litigation and government actions and other similar factors. This process also involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projectio | Each reporting period, all securities in an unrealized loss position are reviewed to determine whether a decline in value is due to credit. Relevant facts and circumstances considered include: (1) the extent the fair value is below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for structured securities, the adequacy of the expected cash flows. To the extent we
- Effect of Fair Value and Cash Flow Hedges on Consolidated Statements of Operations | The following tables show the effect of derivatives in fair value and cash flow hedging relationships and the related hedged items on the consolidated statements of operations. Gains (losses) reflected in the table increase (decrease) the amount reported in the consolidated statement of operations revenue line items and decrease (increase) the amount reported in the expense line items. |
Rörelseresultat
- Effective Income Tax Rate | The provision for income taxes for interim periods is based on an estimated annual effective tax rate. Excluded from the estimated annual effective tax rate are discrete items occurring during the period, including those which do not relate to ordinary operating income. | The effective tax rate for the three months ended March 31, 2026 was 14 %. The effective tax rate differed from the U.S. federal statutory tax rate of 21 % due primarily to tax benefits from the dividends received deduction, interest exclusion from taxable income and the impact of equity method presentation.
Periodens resultat
- Net income |
- Net income (loss) attributable to noncontrolling interest |
- Net income attributable to Principal Financial Group, Inc. |
- Net income (1) |
- Fixed maturities include bonds, ABS, redeemable preferred stock and certain non-redeemable preferred securities. Equity securities include mutual funds, common stock, non-redeemable preferred stock and required regulatory investments. We classify fixed maturities as either available-for-sale or trading at the time of the purchase and, accordingly, carry them at fair value. Equity securities are also carried at fair value. See Note 15, Fair Value Measurements, for methodologies related to the det | The amortized cost of fixed maturities includes cost adjusted for amortization of premiums and discounts, computed using the interest method. The amortized cost of fixed maturities, available-for-sale is adjusted for changes in fair value of the hedged portions of securities in fair value hedging relationships and excludes accrued interest receivable. Accrued interest receivable is reported in accrued investment income on the consolidated statements of financial position. Fixed maturities, avail
- We have a process in place to identify fixed maturity securities that could potentially require an allowance for credit loss. This process involves monitoring market events that could impact issuers’ credit ratings, business climate, management changes, litigation and government actions and other similar factors. This process also involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projectio | Each reporting period, all securities in an unrealized loss position are reviewed to determine whether a decline in value is due to credit. Relevant facts and circumstances considered include: (1) the extent the fair value is below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for structured securities, the adequacy of the expected cash flows. To the extent we | We estimate the amount of the allowance for credit loss as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The methodology and assumptions for establishing the best estimate cash flows vary depending on the type
- The net interest effect of interest rate swap and currency swap transactions for derivatives in cash flow hedges is recorded as an adjustment to income or expense of the underlying hedged item in our consolidated statements of operations. | The maximum length of time we are hedging our exposure to the variability in future cash flows for forecasted transactions, excluding those related to the payments of variable interest on existing financial assets and liabilities, is 0.9 years. As of March 31, 2026, we had $ 15.2 million of net gains reported in AOCI on the consolidated statements of financial position related to active hedges of forecasted transactions. If a hedged forecasted transaction is no longer probable of occurring, cash | The following table shows the effect of derivatives in cash flow hedging relationships on the consolidated statements of financial position.
- | We expect to reclassify net gains of $ 7.8 million from AOCI into net income in the next twelve months, which includes both net deferred gains on discontinued hedges and net gains on periodic settlements of active hedges. Actual amounts may vary from this amount as a result of market conditions.
Resultat per aktie
- Refer to Note 9, Market Risk Benefits, for further information on the MRBs associated with the contracts mentioned above. | As of March 31, 2026 and December 31, 2025, the separate accounts included a separate account valued at $ 79.8 million and $ 81.7 million, respectively, which primarily included shares of our stock that were allocated and issued to eligible participants of qualified employee benefit plans administered by us as part of the policy credits issued under our 2001 demutualization. These shares are included in both basic and diluted earnings per share calculations. In the consolidated statements of fin
- For our redeemable noncontrolling interest related to other consolidated subsidiaries, redemptions are required to be purchased at fair value or a value based on a formula that management intended to reasonably approximate fair value based on a fixed multiple of earnings over a measurement period. The carrying value of the redeemable noncontrolling interest is compared to the redemption value at each reporting period. Any adjustments to the carrying amount of the redeemable noncontrolling intere | Following is a reconciliation of the changes in the redeemable noncontrolling interest:
- | The calculation of diluted earnings per share for the three months ended March 31, 2026 and 2025, 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. |
Kassaflöde
- This authoritative guidance aims to more closely align financial reporting with the economics of an entity’s risk management activities by expanding and refining the hedge accounting guidance in five key areas: | 1. Similar risk assessment for cash flow hedges
- 3. Cash flow hedges of non-financial forecasted transactions | 4. Net written options as hedging instruments
- Fixed Maturities | Fixed maturities include bonds, ABS, redeemable preferred stock and certain non-redeemable preferred securities. Equity securities include mutual funds, common stock, non-redeemable preferred stock and required regulatory investments. We classify fixed maturities as either available-for-sale or trading at the time of the purchase and, accordingly, carry them at fair value. Equity securities are also carried at fair value. See Note 15, Fair Value Measurements, for methodologies related to the det | The amortized cost of fixed maturities includes cost adjusted for amortization of premiums and discounts, computed using the interest method. The amortized cost of fixed maturities, available-for-sale is adjusted for changes in fair value of the hedged portions of securities in fair value hedging relationships and excludes accrued interest receivable. Accrued interest receivable is reported in accrued investment income on the consolidated statements of financial position. Fixed maturities, avail
- Net Realized Capital Gains and Losses | Net realized capital gains and losses on sales of investments are determined on the basis of specific identification. In general, in addition to realized capital gains and losses on investment sales and periodic settlements on derivatives not designated as hedges, we report gains and losses related to the following in net realized capital gains (losses) on the consolidated statements of operations: mark-to-market adjustments on certain equity securities, mark-to-market adjustments on certain fix
- (1) Includes credit sales, adjustments to the credit loss valuation allowance, write-offs and recoveries on available-for-sale securities. | (2) The change in fair value of fixed maturities, available-for-sale and the change in fair value of derivative hedging instruments in fair value hedging relationships are reported in net investment income with the earnings effect of fixed maturities, available-for-sale. Gains (losses) for fixed maturities, available-for-sale related to terminated cash flow hedges continue to be reflected in net realized capital gains (losses). | (3) Unrealized gains (losses) on fixed maturities, trading still held at the reporting date were $ 0.1 million and $( 0.1 ) million for the three months ended March 31, 2026 and 2025, respectively. This excludes $( 3.0 ) million and $ 2.8 million for the three months ended March 31, 2026 and 2025, respectively, that were reported in market risk benefit remeasurement (gain) loss and $( 2.9 ) million and $( 0.2 ) million for the three months ended March 31, 2026 and 2025, respectively, that were r
- Allowance for Credit Loss | We have a process in place to identify fixed maturity securities that could potentially require an allowance for credit loss. This process involves monitoring market events that could impact issuers’ credit ratings, business climate, management changes, litigation and government actions and other similar factors. This process also involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projectio | Each reporting period, all securities in an unrealized loss position are reviewed to determine whether a decline in value is due to credit. Relevant facts and circumstances considered include: (1) the extent the fair value is below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for structured securities, the adequacy of the expected cash flows. To the extent we
- Each reporting period, all securities in an unrealized loss position are reviewed to determine whether a decline in value is due to credit. Relevant facts and circumstances considered include: (1) the extent the fair value is below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for structured securities, the adequacy of the expected cash flows. To the extent we | We estimate the amount of the allowance for credit loss as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The methodology and assumptions for establishing the best estimate cash flows vary depending on the type | Amounts on fixed maturities, available-for-sale deemed to be uncollectible are written off and removed from the allowance for credit loss. A write-off may also occur if we intend to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity.
- Net Unrealized Gains and Losses on Available-For-Sale Securities and Derivative Instruments | The net unrealized gains and losses on investments in available-for-sale securities and the net unrealized gains and losses on derivative instruments in cash flow hedge relationships are reported as separate components of stockholders’ equity. The cumulative amount of net unrealized gains and losses on available-for-sale securities and derivative instruments in cash flow hedge relationships net of adjustments related to actuarial balances, policyholder liabilities, noncontrolling interest and ap |
Likvida medel
- Cash and cash equivalents (2026 and 2025 include $ 101.5 million and $ 89.1 million related to consolidated variable interest entities) |
- Net decrease in cash and cash equivalents |
- Cash and cash equivalents at beginning of period |
- Cash and cash equivalents at end of period |
- (4) The assets of the residential mortgage loans VIEs primarily include residential mortgage loans. The liabilities primarily include other liabilities. | (5) The assets of the asset-backed limited partnership VIE primarily include consumer loans, auto loans, other loans and credit facilities. These assets are reported with cash and cash equivalents, other investments and fixed maturities, trading on the consolidated statements of financial position.
- (1) The gross amount of recognized derivative and reverse repurchase agreement assets are reported with other investments and cash and cash equivalents, respectively, on the consolidated statements of financial position. The gross amounts of derivative and reverse repurchase agreement assets are not netted against offsetting liabilities for presentation on the consolidated statements of financial position. | (2) Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated statements of financial position.
- Cash and cash equivalents |
- Cash and cash equivalents
Nettoskuld
- Net cash provided by operating activities |
- Net cash used in investing activities |
- Net cash provided by (used in) financing activities |
- AUM | AUM forms the basis for generating our management fee revenues. However, in Chile, the Cuprum business operates differently, as most fees are collected with each deposit made by mandatory retirement customers, based on a capped salary level rather than asset levels. AUM growth is primarily driven by two factors: market performance and net cash flow. Market performance encompasses the returns from equity, fixed income, real estate and other alternative investments, while net cash flow reflects cl | The following table presents the AUM rollforward for assets managed by the Principal Asset Management segment for the periods indicated.
- Net cash flow |
- Cash Flows. Cash flow activity, as reported in our consolidated statements of cash flows, provides relevant information regarding our sources and uses of cash. The following discussion of our operating, investing and financing portions of the cash flows excludes cash flows attributable to the separate accounts. | Net cash provided by operating activities was $187.1 million and $977.3 million for the three months ended March 31, 2026 and 2025, respectively. Our insurance business typically generates positive cash flows from operating activities, as premiums collected from our insurance products and investment income received exceed acquisition costs, benefits paid, redemptions and operating expenses. These positive cash flows are then invested to support the obligations of our insurance and investment pro | Net cash used in investing activities was $959.8 million and $952.7 million for the three months ended March 31, 2026 and 2025, respectively. The increase in cash used in investing activities was due to net acquisitions and originations of mortgage loans in 2026 compared to net sales of mortgage loans in 2025, which were mostly offset by lower net purchases of available-for-sale securities in 2026 as compared to 2025.
- Net cash provided by operating activities was $187.1 million and $977.3 million for the three months ended March 31, 2026 and 2025, respectively. Our insurance business typically generates positive cash flows from operating activities, as premiums collected from our insurance products and investment income received exceed acquisition costs, benefits paid, redemptions and operating expenses. These positive cash flows are then invested to support the obligations of our insurance and investment pro | Net cash used in investing activities was $959.8 million and $952.7 million for the three months ended March 31, 2026 and 2025, respectively. The increase in cash used in investing activities was due to net acquisitions and originations of mortgage loans in 2026 compared to net sales of mortgage loans in 2025, which were mostly offset by lower net purchases of available-for-sale securities in 2026 as compared to 2025. | Net cash provided by financing activities was $395.7 million for the three months ended March 31, 2026, compared to net cash used in financing activities of $360.8 million for the three months ended March 31, 2025 . The increase in cash provided by financing activities was due to an increase in banking operations net deposits and net investment contract deposits in 2026 as compared to 2025.
- Net cash used in investing activities was $959.8 million and $952.7 million for the three months ended March 31, 2026 and 2025, respectively. The increase in cash used in investing activities was due to net acquisitions and originations of mortgage loans in 2026 compared to net sales of mortgage loans in 2025, which were mostly offset by lower net purchases of available-for-sale securities in 2026 as compared to 2025. | Net cash provided by financing activities was $395.7 million for the three months ended March 31, 2026, compared to net cash used in financing activities of $360.8 million for the three months ended March 31, 2025 . The increase in cash provided by financing activities was due to an increase in banking operations net deposits and net investment contract deposits in 2026 as compared to 2025. | Guarantors and Issuers of Guaranteed Securities. PFG has issued certain notes pursuant to transactions registered under the Securities Act of 1933. Such notes include all currently outstanding senior notes (the “registered notes”). For additional information on the senior notes, see Item 8. “Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 13, Debt” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Eget kapital
- | Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2026 and 2025 |
- | 14. Stockholders’ Equity |
- Stockholders’ equity |
- Total stockholders’ equity attributable to Principal Financial Group, Inc. |
- Total stockholders’ equity |
- Total liabilities and stockholders’ equity |
- Principal Financial Group, Inc. | Condensed Consolidated Statements of Stockholders’ Equity | (Unaudited)
- (1) Excludes amounts attributable to redeemable noncontrolling interest. See Note 14, Stockholders’ Equity, for further details. |
Antal aktier
- Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ | The total number of shares of the registrant’s Common Stock, $0.01 par value, outstanding as of April 22, 2026, was 216,012,384 . |
- Common stock, par value $ 0.01 per share; 2,500,000,000 shares authorized; 498,507,505 and 496,884,232 shares issued as of 2026 and 2025; 216,449,333 and 217,380,912 shares outstanding as of 2026 and 2025 |
- Performance Share Awards | Performance share awards were granted to certain employees under the 2021 Stock Incentive Plan. Total performance share awards granted were 0.3 million for the three months ended March 31, 2026. The performance share awards granted 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 performance period. The performance share awards include a relative total shareholder return modifier un | As of March 31, 2026, we had $ 38.0 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 1.9 years.
- Weighted-average shares outstanding: |
- (1) Includes the number of shares of common stock utilized to execute certain stock incentive awards and shares purchased as part of publicly announced programs. | (2) In February 2025, our Board authorized a share repurchase program of up to $1.5 billion of our outstanding common stock, which has no expiration date.
Antal anställda
- We provide financial products and services through the following segments: Retirement and Income Solutions, Principal Asset Management and Benefits and Protection. In addition, we have a Corporate segment. The segments are managed and reported separately because they provide different products and services, have different strategies or have different markets and distribution channels. | The Retirement and Income Solutions segment provides retirement and related financial products and services primarily to businesses, their employees and other individuals. The segment includes workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities (including RILAs), pension risk transfer, investment only and our exited retail fixed annuities business. | The Principal Asset Management segment provides global investment solutions to institutional, retirement, retail and high net worth investors in the U.S. and select emerging markets. The segment is organized into Investment Management, which provides public, multi-asset and private market capabilities across all asset classes, including equity, fixed income, real estate and alternatives, to serve a breadth of client investment objectives; and International Pension, which provides long-term savin
- The Principal Asset Management segment provides global investment solutions to institutional, retirement, retail and high net worth investors in the U.S. and select emerging markets. The segment is organized into Investment Management, which provides public, multi-asset and private market capabilities across all asset classes, including equity, fixed income, real estate and alternatives, to serve a breadth of client investment objectives; and International Pension, which provides long-term savin | The Benefits and Protection segment focuses on solutions primarily for small-to-mid sized businesses and their employees. The segment is organized into Specialty Benefits, which provides group dental, group life insurance, group disability insurance (including short-term disability, long-term disability and paid family and medical leave), supplemental health products (including vision, critical illness, accident and hospital indemnity) and individual disability insurance; and Life Insurance, whi
- Our Corporate segment manages the assets representing capital that has not been allocated to any other segment. Financial results of the Corporate segment primarily reflect our financing activities (including financing costs), income on capital not allocated to other segments, inter-segment eliminations, income tax risks and certain income, expenses and other adjustments not allocated to the segments based on the nature of such items. Results of our affiliated distribution businesses and our exi | Our chief operating decision maker (“CODM”) is our chief executive officer. Our CODM and management team, use segment pre-tax operating earnings in evaluating performance, which is consistent with the financial results provided to and discussed with securities analysts. In addition, the financial information provided to our CODM is used in making decisions about the allocation of resources and determining annual incentive compensation paid to our employees. We determine segment pre-tax operating | The pre-tax net realized capital gains (losses), as adjusted, excluded from pre-tax operating earnings reflects consolidated U.S. GAAP pre-tax net realized capital gains (losses) excluding the following items that are included in pre-tax operating earnings:
- Nonqualified Stock Options | No nonqualified stock options were granted to employees during both the three months ended March 31, 2026 and 2025. All outstanding nonqualified stock options are vested and have been fully expensed. | Performance Share Awards
- Performance Share Awards | Performance share awards were granted to certain employees under the 2021 Stock Incentive Plan. Total performance share awards granted were 0.3 million for the three months ended March 31, 2026. The performance share awards granted 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 performance period. The performance share awards include a relative total shareholder return modifier un | As of March 31, 2026, we had $ 38.0 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 1.9 years.
- Restricted Stock Units | Restricted stock units were issued to certain employees and non-employee directors pursuant to the 2021 Stock Incentive Plan. Total restricted stock units granted were 1.0 million for the three months ended March 31, 2026. 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 these restricted stock units granted was $ 92.70 per common share. | As of March 31, 2026, we had $ 127.9 million of total unrecognized compensation cost related to nonvested restricted stock unit awards granted. The cost is expected to be recognized over a weighted-average period of approximately 2.2 years.
- Employee Stock Purchase Plan | Under the Employee Stock Purchase Plan, employees purchased 0.2 million shares for the three months ended March 31, 2026. The weighted average fair value of the discount on the stock purchased was $ 9.01 per share. | As of March 31, 2026, a total of 2.0 million of new shares were available to be made issuable by us for this plan.
- We provide financial products and services through the following reportable segments: | ● Retirement and Income Solutions provides retirement and related financial products and services primarily to businesses, their employees, and other individuals. This segment includes workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities, pension risk transfer, investment only and our exited retail fixed annuities business. We offer a comprehensive portfolio of products and services for retirement savings and retirement income: | ● To businesses of all sizes, we offer products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, employee stock ownership plan services and pension closeout services. For more basic retirement services, we offer SIMPLE IRAs and payroll deduction plans;
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2026-04-22 0001126328 2026-01-01 2026-03-31 xbrli:shares iso4217:USD xbrli:pure iso4217:USD xbrli:shares pfg:item Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 1-16725 (Commission file number) PRINCIPAL FINANCIAL GROUP, INC . (Exact name of registrant as specified in its charter) Delaware 42-1520346 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 711 High Street , Des Moines , Iowa 50392 (Address of principal executive offices) ( 515 ) 247-5111 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock PFG Nasdaq Global Select Market