Principal Financial Group Reports Third Quarter 2025 Financial Results

Principal Financial Group Reports Third Quarter 2025 Results

Principal Financial Group, Inc. (PFG) has released its financial results for the third quarter of 2025, revealing a net income attributable to Principal Financial Group, Inc. of $213.8 million, compared to a net loss of $220.0 million in the same period last year. Total revenues for the quarter reached $3.68 billion, a significant increase from $3.01 billion in the third quarter of 2024. This growth was primarily driven by increases in premiums and other considerations, fees and other revenues, and net investment income. The company's total assets stood at $334.49 billion as of September 30, 2025, up from $313.66 billion at the end of 2024.

The company's expenses also saw an increase, with total expenses for the third quarter of 2025 amounting to $3.43 billion, compared to $3.31 billion in the same period of 2024. This rise in expenses was mainly due to higher benefits, claims, and settlement expenses, as well as increased operating expenses. Basic earnings per common share were reported at $0.96, while diluted earnings per common share were $0.95, compared to a basic and diluted loss per share of $0.95 in the third quarter of the previous year. Comprehensive income attributable to Principal Financial Group, Inc. was $620.5 million for the quarter, compared to $606.8 million for the same period in 2024.

For the nine-month period ending September 30, 2025, Principal Financial Group reported a net income attributable to the company of $668.1 million, slightly up from $665.6 million for the same period in 2024. Total revenues for the nine months were $11.05 billion, compared to $11.38 billion in the previous year. The company's expenses also saw a decrease, with total expenses for the nine months of 2025 amounting to $10.27 billion, compared to $10.60 billion in the same period of 2024. Basic earnings per common share were reported at $2.98, while diluted earnings per common share were $2.95, compared to a basic earnings per share of $2.85 and diluted earnings per share of $2.81 in the nine months of the previous year.

Key operational developments included the signing of an agreement with Bank Consortium Trust Company (BCT) to expand investment management capabilities and exit sponsor and trustee roles in Hong Kong for Mandatory Provident Fund Schemes (MPF Schemes). This transaction is expected to close in 2026, subject to regulatory approval. As a result of this agreement, the company impaired its distribution agreement intangible asset, resulting in a $20.0 million loss reported in operating expenses. Additionally, the customer relationship intangible asset was classified as held-for-sale, resulting in a $77.0 million loss reported in net realized capital gains (losses). The company also deconsolidated a sponsored investment fund in 2025 due to the acquisition of substantial voting rights by external investors.

Looking ahead, Principal Financial Group continues to focus on managing its investment portfolio and mitigating risks associated with market fluctuations. The company is also closely monitoring global enactments of the Pillar Two model rules proposed by the Organisation for Economic Co-operation and Development, which brings forward a 15% global minimum tax, and assessing any future impacts as additional guidance becomes available. The company's management believes that its current financial position and strategic initiatives will enable it to navigate the evolving economic landscape and deliver long-term value to its stakeholders.