Principal Financial Group, Inc. (PFG) reported $16.1 billion in total revenues for the year ended December 31, 2024, a $2.5 billion increase compared to the $13.7 billion reported in 2023. This increase was driven by a $1.5 billion favorable change in the fair value of funds withheld embedded derivatives, partially offset by a $170.4 million unfavorable one-time impact from yearly renewable term reinsurance transactions. Net income attributable to PFG increased to $1.6 billion in 2024, up from $623.2 million in 2023.
Significant changes in segment performance occurred. Retirement and Income Solutions segment pre-tax operating earnings increased slightly to $1.1 billion in 2024 from $1.0 billion in 2023, primarily due to increased fee revenue from higher average monthly account values. Principal Asset Management segment pre-tax operating earnings rose to $861.2 million in 2024 from $817.7 million in 2023, mainly due to higher management fee revenue from increased average assets under management. Conversely, Benefits and Protection segment pre-tax operating earnings decreased to $463.2 million in 2024 from $537.6 million in 2023, primarily due to unfavorable actuarial assumption updates.
During the fourth quarter of 2024, PFG reorganized its Principal Asset Management segment, aligning global operations by business function. This restructuring combined Principal Global Investors and Principal International into Investment Management and International Pension. The company also announced on January 16, 2025, an agreement with Bank Consortium Trust Company to expand investment management capabilities and exit its sponsor and trustee roles in Hong Kong for Mandatory Provident Fund Schemes, anticipating a one-time charge of approximately $140 million in the first quarter of 2025. As of December 31, 2024, PFG employed approximately 19,700 people globally, with roughly 12,000 in the U.S. and 7,700 internationally.
Key operational developments included Workplace Savings and Retirement Solutions products serving over 43,000 defined contribution plans with $550.7 billion in assets and approximately 11.3 million eligible participants. In the Benefits and Protection segment, over 123,000 group dental and vision insurance policies were in force, covering over 3 million employees. The company also reported approximately 772,000 customers and $8.8 billion in assets for Principal Bank as of December 31, 2024. Principal Trust Company had over 35,000 accounts and approximately $658.6 billion in assets under administration.
PFG's outlook is subject to various risks and uncertainties, including economic conditions, market volatility, interest rate changes, credit spreads, regulatory changes, and competition. The company's financial strength ratings remain strong, but a downgrade could negatively impact profitability and financial condition. Future dividend decisions will depend on several factors, including results, financial requirements, and regulatory restrictions. The company's Board authorized share repurchase programs totaling up to $3 billion.
About PRINCIPAL FINANCIAL GROUP INC
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