PFG
Updated: 23/09/2026, 09:43:21
Principal Financial Group, Inc. engages in the investment management offering business. It offers financial products and services to businesses, individuals, and institutional clients. It operates its business through the following segments: Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. The Retirement and Income Solutions Segment offers a comprehensive portfolio of products and services for retirement savings along with select products for retirement income. 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 Benefits and Protection segment includes selling individual life insurance products. The company was founded by Edward A. Temple in 1879 and is headquartered in Des Moines, IA.
No summaries found.
Reported and calculated KPIs plus operational exposure disclosed in the FY 2025 filing.
Revenue
N/A
FY — · Reported
Net income
1.2B
FY 2025 · Reported
Gross margin
N/A
FY — · Reported
Free cash flow
N/A
FY — · Reported
R&D intensity
N/A
FY — · Reported
Share repurchases
0.9B
FY 2025 · Reported
Other offerings mentioned without separate sales
Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.
Map layer
Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.
Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.
Company overview
$1,814.6B AUA including $781.0B AUM as of Dec 31, 2025; global retirement, asset management and workplace benefits provider
“We had $1,814.6 billion in assets under administration (“AUA”), including $781.0 billion in assets under management (“AUM”) as of December 31, 2025.”
Reportable segments
Three reportable segments: Retirement and Income Solutions; Principal Asset Management; Benefits and Protection; plus Corporate
“●Retirement and Income Solutions; ●Principal Asset Management and ●Benefits and Protection.”
Corporate segment content
Corporate segment holds financing activities, Principal Securities broker-dealer, and exited group medical and LTC businesses
“Results of Principal Securities, Inc., our retail broker-dealer and registered investment advisor, and our exited group medical and long-term care insurance businesses are reported in this segment.”
Competitive landscape by segment
RIS and Principal Asset Management compete with asset managers, wealth managers, banks, mutual funds, trust companies, broker-dealers, recordkeepers, insurers; Benefits and Protection competes with insurers
“Our Retirement and Income Solutions segment and our Principal Asset Management segment primarily compete with asset managers, wealth managers, banks, mutual funds, institutional trust companies, broker-dealers, recordkeepers and insurers.”
Small and medium-sized business focus
Small and medium-sized businesses seen as an underserved market offering attractive growth opportunities
“We believe small and medium-sized businesses are an underserved market, offering attractive growth opportunities in the retirement and employee benefit markets.”
Annuity sales through affiliated representatives
Affiliated financial representatives accounted for 68% (2025), 70% (2024), 85% (2023) of annuity sales
“our affiliated financial representatives, who accounted for 68%, 70% and 85% of annuity sales for the years ended December 31, 2025, 2024 and 2023”
WSRS defined contribution and defined benefit plans
Over 42,000 DC plans ($625.3B, ~11.3M participants); over 1,600 DB plans ($17.2B, 371,000+ participants) as of Dec 31, 2025
“we provided WSRS products to (a) over 42,000 defined contribution plans including $625.3 billion in assets and covering approximately 11.3 million eligible plan participants”
Individual variable annuities and RILAs
$7.4B variable annuity balances (88% PAM/guaranteed); $4.7B with GMWB rider; GMWB separate account values $4,684.0M (2025) vs $5,596.1M (2024)
“As of December 31, 2025, $4.7 billion of the $7.4 billion of variable annuity separate account values had the GMWB rider.”
Pension risk transfer
PRT via single premium group annuities, mostly from terminating DB plans; sponsors require insurers with superior/excellent ratings
“The majority of our business originates from defined benefit plans that are being terminated.”
Investment only products (GICs and funding agreements)
GICs and funding agreements issued to institutions, FHLB Des Moines and SPEs; sales can vary widely quarter to quarter with debt capital markets
“Funding agreements are issued directly to non-qualified institutions, the Federal Home Loan Bank of Des Moines (“FHLB Des Moines”) and unconsolidated special purpose entities.”
Benefits and Protection product families and reinsurance
Benefits and Protection earns premiums on specialty benefits and traditional life; fees from UL, VUL and IUL products; uses reinsurance to manage mortality/morbidity risk.
“We receive premiums on our specialty benefits insurance products as well as our traditional life insurance products. Fees are generated from our universal life, variable universal life and indexed universal life insurance products. We use several reinsurance programs to help manage the mortality and morbidity risk.”
Chile Cuprum mandatory pension fee model
In Chile, Cuprum collects most fees with each deposit from mandatory retirement customers based on a capped salary level rather than asset levels.
“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”
Chile closed block annuity sales decline
Principal Asset Management premiums fell $22.8M primarily due to lower sales of annuities in the Chile closed block.
“Premiums and other considerations decreased $22.8 million for the Principal Asset Management segment primarily due to lower sales of annuities in our Chile closed block.”
Retirement and Income Solutions segment summary 2025 vs 2024 (millions)
RIS pre-tax operating earnings $1,185.6M in 2025 vs $1,056.2M in 2024; total operating revenues $8,181.9M.
“Pre-tax operating earnings $ 1,185.6 $ 1,056.2 $ 129.4”
Principal Asset Management segment summary 2025 vs 2024 (millions)
Principal Asset Management pre-tax operating earnings $930.2M in 2025 vs $861.2M in 2024; fees and other revenues $2,140.8M.
“Pre‑tax operating earnings $ 930.2 $ 861.2 $ 69.0”
Non-U.S. FX translation exposure
Foreign subsidiary AUM is translated at period-end spot rates and revenue/expenses at average rates; 2025 FX effect added $20.0B to AUM.
“our non-U.S. results are influenced by fluctuations in foreign currency exchange rates relative to the U.S. dollar”
Positional advantages vs competitors
Differentiates via SMB/retirement ecosystem customer access, integrated cross-segment expertise, and attractive market focus
“our privileged customer access through small and midsized businesses, retirement ecosystem and global asset management”
RIS segment earnings drivers
RIS revenue/earnings depend on distribution sales/retention, competitive pricing, investment performance, and equity market/interest rate changes.
“the ability of our distribution channels to generate new sales and retain existing business; pricing decisions that take account of competitive conditions, persistency, investment returns, mortality trends, and operating expense levels; investment management performance; equity market returns and interest rate changes”
Exit of Hong Kong MPF sponsor and trustee pension roles
PFG exited its Hong Kong MPF sponsor/trustee pension roles with $119.7M of asset write-downs plus $65.4M of intangible/contract cost impairments.
“exiting our sponsor and trustee (pension) roles in Hong Kong for MPF schemes”
Consolidated operating expense increases 2025
Operating expenses rose on $95.3M higher compensation, $65.4M Hong Kong impairments, $64.6M nondeferrable commissions; partially offset by $78.1M lower nonqualified pension credits and $41.0M accrual release.
“a $95.3 million increase in compensation costs, $65.4 million of impairments of our distribution agreement intangible asset and contract cost asset in Hong Kong and a $64.6 million increase in nondeferrable commission expense”
Net income drivers 2025 vs 2024
Net income fell on a $654.5M unfavorable funds withheld embedded derivative fair value change and $119.7M Hong Kong MPF exit write-downs, partly offset by the $170.4M unfavorable 2024 YRT Reinsurance impact.
“a $654.5 million decrease due to the change in fair value of the funds withheld embedded derivative and a $119.7 million decrease due to the impact from asset write-downs related to exiting our sponsor and trustee (pension) roles in Hong Kong for MPF schemes”
Insurance financial strength ratings
Principal Life/PNLIC ratings: A.M. Best A+, Fitch AA−, Moody's A1, S&P A+ — all stable outlook
“A.M. Best Company, Inc. A+ (“Superior”) with a stable outlook”
U.S. insurance and related regulation
Regulated by state insurance regulators (Iowa domicile), NAIC RBC standards, SEC/FINRA, ERISA, OCC, and state trust regulators
“Principal Life and PNLIC are domiciled in Iowa and their principal insurance regulatory authority is the Insurance Division of the Department of Commerce of the State of Iowa.”
Capital and credit market liquidity risk
Adverse capital and credit market conditions may limit access to capital; external financing may not be available on favorable terms
“Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs, as well as our access to capital and cost of capital.”
Interest rate risk (both low and rising rates)
Changes in interest rates or credit spreads may adversely affect results, liquidity and net income
“Changes in interest rates or credit spreads or a prolonged low interest rate environment may adversely affect our results of operations, financial condition and liquidity and our net income can vary from period to period.”
AUM/AUA revenue sensitivity to equity, bond, real estate markets
Declines in domestic and global equity, bond or real estate markets decrease AUM, AUA and revenues
“Because the revenues of our asset accumulation and management businesses are largely based on the value of AUM and AUA, a decline in domestic and global equity, bond or real estate markets will decrease our revenues.”
Commercial mortgage loan credit risk
Increased delinquency and defaults on commercial mortgage loans, including balloon maturities, may adversely affect profitability
“An increased rate of delinquency and defaults on our commercial mortgage loans, including balloon maturities with and without amortizing payments, may adversely affect our profitability.”
Funds withheld embedded derivative market sensitivity
The funds withheld embedded derivative swung from gain (2024) to loss (2025) due to changes in interest rates and credit spreads.
“The change in fair value of the funds withheld embedded derivative resulted in a loss in 2025 as compared to a gain in 2024 due to changes in interest rates and credit spreads.”
International fixed maturities exposure
International fixed maturities of $2.6 billion, or 40%, of total international invested assets, of which 7% are government bonds (Dec 31, 2025)
“As of December 31, 2025, the international investment operations of our fully consolidated subsidiaries held $2.6 billion of fixed maturities, or 40%, of total international invested assets, of which 7% are government bonds.”
Macro/consumer drivers of specialty benefits and retirement flows
Employment levels and payroll deferrals drive specialty benefits membership/premium income and retirement plan deposits
“Reductions in employment levels of our existing employer customers may result in a reduction in membership levels and premium income for our specialty benefits products.”
Iowa insurance law dividend restrictions on Principal Life
Iowa insurance laws limit Principal Life dividends to parent, constraining PFG dividends and share repurchases
“Our ability to pay stockholder dividends, make share repurchases and meet our obligations may be constrained by the limitations on dividends or other distributions Iowa insurance laws impose on Principal Life.”
Litigation and regulatory investigations
Regular litigation and regulatory proceedings may affect financial strength or reduce profitability
“Litigation and regulatory investigations may affect our financial strength or reduce our profitability.”
Ratings downgrade risk
Ratings downgrade by A.M. Best, Fitch, Moody's and S&P could increase surrenders and cost of capital
“A downgrade in our financial strength or credit ratings may increase policy surrenders and withdrawals, reduce new sales, terminate relationships with distributors, impact existing liabilities and increase our cost of capital”
Credit spread risk
Credit spread widening causes unrealized portfolio losses and higher allowances; tightening reduces new investment income
“A widening of credit spreads would cause unrealized losses in our investment portfolio”
Illiquidity of privately placed assets
Difficulty selling privately placed fixed maturities, mortgage loans and real estate investments
“We may have difficulty selling our privately placed fixed maturities, mortgage loans and real estate investments because they are less liquid than our publicly traded fixed maturities.”
Pricing pressure from competitor pricing
Competitor pricing may pressure premiums/fees; AUM retention tied to recordkeeping quality and investment performance
“Competitor pricing may pressure us to reduce premiums or fees.”
Passive investing / target date fund exposure
Increased reliance on passive strategies including target date funds may amplify market volatility impacts
“increased reliance on passive investment strategies, including target date funds, may amplify market volatility impacts and reduce flexibility in responding to adverse economic conditions.”
AUM/AUA-based asset accumulation and management revenues decline with equity, bond and real estate market downturns.
“Because the revenues of our asset accumulation and management businesses are largely based on the value of AUM and AUA, a decline in domestic and global equity, bond or real estate markets will decrease our revenues.”
Both prolonged low and rapidly rising rates affect spreads, crediting rates, surrenders, reserves, DAC amortization and fee revenue.
“Changes in interest rates or credit spreads or a prolonged low interest rate environment may adversely affect our results of operations, financial condition and liquidity”
SMBs are a core target market for retirement and employee benefit products, viewed as underpenetrated with attractive growth opportunities.
“We believe small and medium-sized businesses are an underserved market, offering attractive growth opportunities in the retirement and employee benefit markets.”
Insurance subsidiaries face state insurance holding company laws, RBC standards, dividend restrictions, actuarial opinion requirements and guaranty association assessments.
“State insurance statutes also typically place restrictions and limitations on the amount of dividends or other distributions payable by insurance company subsidiaries to their parent companies.”
Aging populations globally drive demand for retirement accumulation, asset management, and income solutions in international asset management and accumulation businesses.
“aging populations around the world drive increased demand for retirement accumulation, retirement asset management and retirement income management solutions.”
Exit of Hong Kong MPF sponsor/trustee roles drove $119.7M write-downs, $65.4M intangible impairments, and AUM outflows.
“asset write-downs related to exiting our sponsor and trustee (pension) roles in Hong Kong for MPF schemes”
Employment level reductions at employer customers cut specialty benefits membership/premium income and retirement plan deposits.
“Reductions in employment levels of our existing employer customers may result in a reduction in membership levels and premium income for our specialty benefits products.”
Iowa insurance laws limit Principal Life's dividends to the parent, constraining PFG stockholder dividends, buybacks and debt service capacity.
“Iowa insurance laws impose limitations on the ability of Principal Life to pay dividends or make other distributions to its parent.”
Interest rate and credit spread changes drove the $654.5M unfavorable funds withheld embedded derivative swing and affect RIS net revenue.
“due to changes in interest rates and credit spreads”
WSRS products are distributed nationally primarily through a captive retirement services sales force compensated via salary and production-based incentives.
“We distribute our WSRS products and services nationally, primarily through a captive retirement services sales force.”
Majority of individual annuity and RILA sales flow through affiliated financial representatives (68% in 2025), with the rest via unaffiliated broker-dealers.
“our affiliated financial representatives, who accounted for 68%, 70% and 85% of annuity sales”
Foreign subsidiary results translated at spot (AUM) and average (revenues) rates; 2025 FX added $20.0B to AUM and caused $7.5M headwinds in International Pension earnings.
“our non-U.S. results are influenced by fluctuations in foreign currency exchange rates relative to the U.S. dollar”
OECD base erosion and profit shifting proposals could reduce profitability as adopted by participating countries.
“Our profitability could be negatively impacted as legislation is adopted by participating countries.”
Products and services for U.S. and Puerto Rico employee benefit plans subject the company to ERISA reporting, disclosure and standards of conduct.
“As we provide products and services for U.S. and Puerto Rico employee benefit plans, we are subject to regulation under the Employee Retirement Income Security Act (“ERISA”).”
Chile hosts the Cuprum mandatory pension business and a closed block annuity business with declining sales.
“Premiums and other considerations decreased $22.8 million for the Principal Asset Management segment primarily due to lower sales of annuities in our Chile closed block.”
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