Principal Financial Group
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Principal Financial Group (PFG) investor relations material

Principal Financial Group Bank of America Financial Services Conference 2026 summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Bank of America Financial Services Conference 2026 summary11 Feb, 2026

Financial performance and outlook

  • Delivered strong 2025 results with adjusted EPS growth of 12% and reported EPS near 20%, both at or above targeted ranges.

  • Free cash flow and ROE were at the top end or above targets, with ROE target raised to 15%-17% for 2026.

  • Consistent 9%-12% EPS growth targeted for 2026, reflecting confidence in ongoing performance.

  • Dividend payout ratio targeted at 40%, with a combined 75%-85% payout including buybacks.

  • Low capital needs support organic growth and allow for progressive dividends and share repurchases.

Business strategy and market positioning

  • Focused on retirement ecosystem, small to midsize businesses (SMB), and global asset management as growth priorities.

  • SMB segment shows resilience and stability, with most clients established for decades and long-term customer relationships.

  • Cross-sell opportunities exist but are challenged by distribution structure; success seen in bundled retirement solutions and expanding benefits coverage.

  • International strategy leverages U.S. strengths in select markets, focusing on China, Brazil, Chile, and Mexico for pensions.

Product trends and risk management

  • Employee benefits business led by dental, with claim trends shifting post-COVID; dental claims up, life and disability loss ratios down.

  • Bundled approach allows annual repricing, providing premium stability and customer retention.

  • Group life block focused on working populations, with no significant trend changes observed but ongoing monitoring planned.

  • Real estate and private asset management remain growth areas, with strong flows and global client demand, especially in Asia and the Middle East.

WFH impact on disability claims and dental pricing
AI investment impact on future expense growth
Data center fund demand and global real estate strategy
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Q1 202624 Apr, 2026
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Frequently asked questions

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients. The company operates through three segments: Principal Retirement Group, Principal Life Insurance Company, and group benefits services. It offers retirement plans and savings products; defined contribution plan services; health savings accounts, medical savings accounts, individual disability income insurance policies, group disability income insurance policies, stop-loss insurance products; preferred provider organization and point-of-service plans; fixed indexed annuity products; life insurance policies; various electronic delivery channels comprising its interactive voice recognition telephone system for customer service operations that support transaction processing and customer service activities including individual service policy requests for insurance and investment products; e-mail notification of transactions to customers of customers' accounts, or special offers and events; information systems support for its customer service operations, risk management processes and business continuity activities.

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