Principal Financial Group Reports $1.81 Trillion in Assets and $15.63 Billion in Revenues for 2025

Principal Financial Group Inc. (PFG) reported $1,814.6 billion in assets under administration (AUA), including $781.0 billion in assets under management (AUM) as of December 31, 2025. The company's operations are organized into three reportable segments: Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection, along with a Corporate segment for unallocated assets and activities. The Retirement and Income Solutions segment serves businesses of all sizes, offering products and services for defined contribution plans, defined benefit plans, nonqualified executive benefit plans, and pension risk transfer services. As of December 31, 2025, the segment provided Workplace Savings and Retirement Solutions (WSRS) products to over 42,000 defined contribution plans with $625.3 billion in assets and approximately 11.3 million eligible plan participants, and to over 1,600 defined benefit plans with $17.2 billion in assets and covering over 371,000 eligible plan participants.

The Principal Asset Management segment provides global investment solutions to institutional, retirement, retail, and high-net-worth investors. As of December 31, 2025, the Investment Management teams managed $593.9 billion in assets. The segment operates through global investment teams and local investment teams in Chile, Mexico, China, Hong Kong, and Southeast Asia. In January 2025, an agreement was signed with Bank Consortium Trust Company (BCT) to expand investment management capabilities and exit sponsor and trustee roles in Hong Kong for MPF Schemes, with the transaction expected to close in 2026.

The Benefits and Protection segment serves approximately 103,000 employer groups, providing 321,000 total coverages to more than 3.3 million employees. The segment offers a range of employee benefits, including group dental, life, and disability insurance, supplemental health, and individual disability insurance. As of December 31, 2025, the company administered approximately 710,000 individual life insurance policies with over $570 billion of individual life insurance in force in the U.S. In 2021, the company narrowed its focus to the business market and ceased sales to the retail consumer market, and in 2022, it reinsured its universal life with secondary guarantee (ULSG) block of business.

For the year ended December 31, 2025, Principal Financial Group reported total revenues of $15.63 billion and net income attributable to Principal Financial Group, Inc. of $1.19 billion, compared to $16.13 billion and $1.57 billion, respectively, for the year ended December 31, 2024. The decrease in net income was primarily attributed to 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 its sponsor and trustee (pension) roles in Hong Kong for MPF schemes. The company's effective income tax rate decreased to 11% for 2025 from 15% for 2024, primarily due to a decrease in pre-tax income, a foreign valuation allowance impact, and a foreign tax credits impact. On January 19, 2026, an agreement with Banco Santander, S.A. was announced whereby Santander will acquire PFG's annuities business in Chile, Principal Compañía de Seguros de Vida Chile S.A., subject to regulatory approvals. The transaction is expected to close in the third quarter of 2026, with PFG expecting to incur an estimated $280.0 million pre-tax net realized capital loss on the disposal.