First Quarter 2026 HighlightsNon-GAAP operating earnings per diluted share, excluding significant variances2 of $2.17 increased 13% over prior year quarter; reported non-GAAP operating earnings per diluted share increased 14%Returned $374 million of capital to shareholders, including $200 million of share repurchases and $174 million of common stock dividendsAnnounced common stock dividend increase of $0.02 to $0.82 per share in the second quarter 2026; representing an 8% increase over the second quarter 2025 dividend and on a trailing twelve-month basisAssets under management (AUM) of $770 billion, which is included in assets under administration (AUA) of $1.8 trillionStrong financial position with $1.45 billion of excess and available capital
Deanna Strable, Chair, President and CEO of Principal® “Driven by fundamentals and a sharp focus on higher growth markets, we delivered strong revenue growth, EPS growth and ROE expansion in the quarter. We continue to execute on our commitment to return excess capital to shareholders while maintaining a robust capital position. Entering 2Q26, we are confident in the strength of our diversified, integrated portfolio. Disciplined risk management and focused growth investments further enable the delivery of long‑term value for shareholders and customers.”
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1 Use of non-GAAP financial measures and their reconciliations to the most directly comparable GAAP measures are included in this release. Non-GAAP operating earnings for total company is after tax.
2 The total company impacts of significant variances is after tax. See Exhibit 1 for details on the impact of 1Q 2026 and 1Q 2025 significant variances on net income attributable to PFG; non-GAAP net income attributable to PFG, excluding exited business; and non-GAAP operating earnings.
First Quarter Enterprise ResultsIn millions except percentages, earnings per share, or otherwise noted
Three Months Ended,
Trailing Twelve Months,
1Q26
1Q25
Change
1Q26
1Q25
Change
Net income (loss) attributable to PFG
$424.6
$48.1
783%
$1,561.6
$1,086.6
44%
Non-GAAP net income attributable to PFG, excluding exited business
First Quarter Segment Highlights (compared to 1Q25)
RIS transfer deposits of $12 billion, up 35%
Investment Management gross sales of $37 billion increased 21%
International Pension record AUM of $160 billion increased 20%
Specialty Benefits record sales of $213 million increased 24%
Life Insurance business market premium and fees increased 15%
Segment ResultsIn millions except percentages, or otherwise noted except percentages or otherwise noted) Retirement and Income Solutions
Three Months Ended,
Trailing Twelve Months,
1Q26
1Q25
Change
1Q26
1Q25
Change
Pre-tax operating earnings3
$302.1
$283.7
6%
$1,204.0
$1,077.7
12%
Net revenue4
$750.8
$724.2
4%
$2,970.5
$2,833.7
5%
Operating margin5
40.2%
39.2%
40.5%
38.0%
Pre-tax operating earnings increased $18.4 million primarily due to higher net revenue and disciplined expense management.
Net revenue increased $26.6 million due to favorable market performance and growth in the business.
Investment Management
Three Months Ended,
Trailing Twelve Months,
1Q26
1Q25
Change
1Q26
1Q25
Change
Pre-tax operating earnings
$125.1
$116.3
8%
$623.2
$572.9
9%
Operating revenues less pass-through expenses6
$426.0
$416.0
2%
$1,740.8
$1,686.0
3%
Operating margin7
30.0%
29.0%
36.5%
34.9%
Assets under management (billions)
$578.0
$555.8
4%
Pre-tax operating earnings increased $8.8 million primarily due to higher operating revenues less pass-through expenses and disciplined expense management.
Operating revenues less pass-through expenses increased $10.0 million primarily due to higher management fees, resulting from higher AUM.
____________________________________
3 Pre-tax operating earnings = operating earnings before income taxes and after noncontrolling interest.
4 Net revenue = operating revenues less: benefits, claims and settlement expenses, liability for future policy benefits remeasurement (gain) loss, market risk benefit remeasurement (gain) loss, and dividends to policyholders.
5 Operating margin for Retirement and Income Solutions = pre-tax operating earnings divided by net revenue.
6 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 Investment Management 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.
7 Operating margin for Investment Management = pre-tax operating earnings adjusted for noncontrolling interest divided by operating revenues less pass-through expenses.
International Pension
Three Months Ended,
Trailing Twelve Months,
1Q26
1Q25
Change
1Q26
1Q25
Change
Pre-tax operating earnings
$83.4
$71.2
17%
$328.0
$288.7
14%
Net revenue
$169.3
$146.7
15%
$668.5
$620.3
8%
Operating margin8
49.3%
48.5%
49.1%
46.5%
Assets under management (billions)
$159.6
$133.5
20%
Pre-tax operating earnings increased $12.2 million due to higher net revenue.
Net revenue increased $22.6 million primarily due to foreign currency tailwinds, performance fees, and growth in the business.
Specialty Benefits
Three Months Ended,
Trailing Twelve Months,
1Q26
1Q25
Change
1Q26
1Q25
Change
Pre-tax operating earnings
$136.8
$106.2
29%
$562.0
$463.8
21%
Premium and fees
$861.4
$831.5
4%
$3,392.6
$3,287.4
3%
Operating margin9
15.9%
12.8%
16.6%
14.1%
Incurred loss ratio
58.5%
60.7%
58.1%
60.4%
Pre-tax operating earnings increased $30.6 million primarily due to more favorable underwriting.
Premium and fees increased $29.9 million driven by growth in the business, supported in part by record sales.
Incurred loss ratio improved to 58.5% and was below targeted range driven by improved group life and group dental results along with continued strong group disability experience.
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8 Operating margin for International Pension = pre-tax operating earnings divided by net revenue.
9 Operating margin for Benefits and Protection = pre-tax operating earnings divided by premium and fees.
Life Insurance
Three Months Ended,
Trailing Twelve Months,
1Q26
1Q25
Change
1Q26
1Q25
Change
Pre-tax operating earnings
$33.2
$13.3
150%
$11.7
$7.1
65%
Premium and fees
$238.6
$235.1
1%
$961.7
$928.6
4%
Operating margin
13.9%
5.7%
1.2%
0.8%
Pre-tax operating earnings increased $19.9 million driven by improved mortality experience.
Premium and fees increased $3.5 million as strong business market growth outpaced the run-off of the legacy life business.
Corporate
Three Months Ended,
Trailing Twelve Months,
1Q26
1Q25
Change
1Q26
1Q25
Change
Pre-tax operating losses
$(122.1)
$(105.6)
(16)%
$(397.7)
$(392.3)
(1)%
Pre-tax operating losses increased $16.5 million due to timing of expenses.
Common Stock Dividend
Announced a second quarter cash dividend of $0.82 per share to holders on common shares. This represents a 2-cent increase over first quarter of 2026 and an 8% increase over the prior year quarter.
The second quarter dividend will be payable on June 26, 2026, to shareholders of record as of June 1, 2026.
Exhibit 1Principal Financial GroupImpact of Significant Variances10 on Net Income Attributable to PFG; Non-GAAP Net Income Attributable to PFG, Excluding Exited Business; and Non-GAAP Operating EarningsIn millions except per share data
Three Months Ended,
Trailing Twelve Months,
1Q26
1Q25
1Q26
1Q25
Net income (loss) attributable to PFG
$
(22.7
)
$
(24.7
)
$
(68.5
)
$
(175.3
)
(Income) loss from exited business
–
–
6.1
20.6
Non-GAAP net income (loss) attributable to PFG, excluding exited business
(22.7
)
(24.7
)
(62.4
)
(154.7
)
Net realized capital (gains) losses, as adjusted
–
–
0.2
(3.7
)
Non-GAAP operating earnings
(22.7
)
(24.7
)
(62.2
)
(158.4
)
Income taxes
(3.2
)
(5.6
)
(13.1
)
(36.2
)
Non-GAAP pre-tax operating earnings
$
(25.9
)
$
(30.3
)
$
(75.3
)
$
(194.6
)
Per diluted share:
Net income (loss) attributable to PFG
$
(0.10
)
$
(0.11
)
(Income) loss from exited business
–
–
Non-GAAP net income (loss) attributable to PFG, excluding exited business
(0.10
)
(0.11
)
Net realized capital (gains) losses, as adjusted
–
–
Non-GAAP operating earnings
$
(0.10
)
$
(0.11
)
Weighted average diluted common shares outstanding
220.3
228.8
Segment pre-tax operating earnings (losses):
Retirement and Income Solutions
$
(16.0
)
$
(21.0
)
$
(31.1
)
$
(96.2
)
Investment Management
–
–
4.8
–
International Pension
2.4
–
38.7
11.1
Principal Asset Management
2.4
–
43.5
11.1
Specialty Benefits
(3.0
)
(5.0
)
3.4
(17.9
)
Life Insurance
(4.0
)
(0.6
)
(109.0
)
(92.9
)
Benefits and Protection
(7.0
)
(5.6
)
(105.6
)
(110.8
)
Corporate
(5.3
)
(3.7
)
17.9
1.3
Total segment pre-tax operating earnings (losses)
$
(25.9
)
$
(30.3
)
$
(75.3
)
$
(194.6
)
Income statement line item details of significant variances are available in our earnings conference call presentation on our website.
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10 Significant variances (SVs) in 1Q26 include 1) lower than expected variable investment income in RIS, Specialty Benefits, Life Insurance and Corporate, partially offset by higher than expected variable investment income in International Pension; 2) lower than expected encaje performance in International Pension; 3) higher than expected Latin American inflation in International Pension. SVs in 1Q25 include 1) lower than expected variable investment income in RIS, Specialty Benefits, Life Insurance and Corporate; 2) impact of GAAP-only regulatory closed block adjustment in Life Insurance. SVs on a trailing twelve months in 1Q26 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, and Life Insurance, partially offset by higher than expected variable investment income in Corporate; 2) impacts of 2025 actuarial assumption review; 3) higher than expected encaje performance and Latin American inflation in International Pension; 4) impact from a one-time expense accrual release in RIS, Investment Management, Specialty Benefits, Life Insurance, and Corporate. SVs on a trailing twelve months in 1Q25 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, and Life Insurance, partially offset by higher than expected variable investment income in Corporate; 2) impacts of 2024 actuarial assumption review; 3) impact of model refinement in Specialty Benefits 4) lower than expected encaje performance; 5) higher than expected Latin American inflation in International Pension; 6) impact of GAAP-only regulatory closed block adjustment in Life Insurance.
Earnings Conference Call
On Friday, Apr. 24, 2026, at 10:00 a.m. (ET), Chair, President and Chief Executive Officer Deanna Strable and Executive Vice President and Chief Financial Officer Joel Pitz will lead a discussion of results during a live conference call, which can be accessed as follows:
Via live Internet webcast. Please go to investors.principal.com at least 10-15 minutes prior to the start of the call to register, and to download and install any necessary audio software.
Analysts who will be asking questions will be sent a dial in number and authorization code in advance of the call.
Replay of the earnings call via webcast as well as a transcript of the call will be available after the call at investors.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.
