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  2. Variable Annuity Performance Update
  3. Principal® Freedom Variable Annuity 2
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Principal® Freedom Variable Annuity 2
Performance Update

Variable annuities are long term investments and thus are not suitable for everyone; earnings grow tax-deferred; and withdrawals prior to age 59 ½ may result in a 10% penalty tax.

The initial offering of the Principal® Freedom Variable Annuity 2 was September 18, 2006. The separate account that funds the contract was established on January 12, 1970.

The investment results shown represent historical returns based upon the assumption that the Principal® Freedom Variable Annuity 2 was available for the period shown. Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data shown.

The return and principal value of an investment in any of the divisions will fluctuate so that the value, when redeemed, may be worth more or less than its original cost.

Except where noted, investment results include all charges and expenses (no contingent deferred surrender charge applies).

An investment in the Fidelity VIP Government Money Market subaccount is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. You could lose money by investing in the subaccounts. Although the subaccount seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The subaccounts sponsor has no legal obligation to provide financial support to the subaccount, and you should not expect that the sponsor will provide financial support to the subaccount at any time. The current yield reflects the current earnings of the fund, while the total return refers to a specific past holding period. The 7-Day Yield is the average income return over the previous seven days, assuming the rate stays the same for one year. It is the Fund's total income net of expenses, divided by the total number of outstanding shares and includes any applicable waiver or reimbursement.

Before investing in a variable annuity, investors should carefully consider the investment objectives, risks, charges and expenses of the contract and its underlying investment options. This and other information is contained in the free prospectus and, if available, the summary prospectus which can be obtained online or call customer service at 1.800.852.4450. Please read the prospectus and, if available, the summary prospectus carefully before investing.

Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Fixed-income investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.

Principal® Freedom Variable Annuity 2
Quarterly Performance Update		 Average Annual Total Returns %
as of 03/31/2023
Division Portfolio
Inception
Date		 Total
Expenses		 Unit Value
(UV)
as of
05/26/2023		 Daily
Change
in UV 		YTD 1 Year 3 Year 5 Year 10 Year Since
Portfolio
Inception *		 Since
Division
Inception *
SHORT-TERM FIXED INCOME
FIDELITY GOV MONEY MARKET 04/01/1982 0.23% 10.112386 0.001092 0.83 1.55 -0.11 0.28 -0.21 2.87 0.08
Current 7-day yield % 4.63
As of 04/30/2023 		 
SHORT-TERM INCOME 01/12/1994 0.47% 12.262092 - 0.000319 1.42 -0.41 -0.45 0.39 0.41 2.28 2.28
FIXED INCOME
CORE PLUS BOND 12/18/1987 0.49% 13.694147 - 0.000356 2.62 -6.91 -2.34 0.23 0.69 4.31 4.31
GOVT & HIGH QUALITY BOND 05/06/1993 0.51% 11.550593 0.013600 2.55 -5.62 -3.91 -0.95 -0.28 2.65 2.65
BALANCED/ASSET ALLOCATION
LIFETIME STRAT INCOME 08/30/2004 0.52% 15.012706 0.071307 3.61 -5.82 2.43 1.80 2.27 2.95 2.95
LIFETIME 2020 08/30/2004 0.55% 19.658613 0.113316 4.06 -6.30 6.55 3.41 4.58 4.77 4.77
LIFETIME 2030 08/30/2004 0.59% 21.276376 0.155389 4.79 -7.35 9.28 4.27 5.57 5.21 5.21
LIFETIME 2040 08/30/2004 0.65% 23.126198 0.238132 5.37 -7.85 11.47 4.95 6.40 5.74 5.74
LIFETIME 2050 08/30/2004 0.66% 24.024363 0.272758 5.77 -8.08 12.98 5.35 6.84 5.97 5.97
SAM BALANCED PORTFOLIO 06/03/1997 0.77% 20.599373 0.169078 4.24 -7.99 8.37 3.98 5.20 5.82 5.82
SAM CONSERVATIVE BALANCED 04/23/1998 0.77% 18.397152 0.103760 3.37 -7.29 5.38 2.76 3.76 4.14 4.14
SAM CONSERVATIVE GROWTH 06/03/1997 0.77% 22.210981 0.224145 4.85 -8.75 11.31 5.02 6.52 6.35 6.35
SAM FLEXIBLE INCOME 09/09/1997 0.73% 17.157502 0.065421 2.90 -6.69 3.02 1.92 2.77 4.33 4.33
SAM STRATEGIC GROWTH 06/03/1997 0.79% 23.356894 0.285185 5.57 -8.59 14.04 5.84 7.39 6.91 6.91
LARGE US EQUITY
AMCENT VP DISCIPCOREVALUE 10/31/1997 0.70% 26.457860 0.231071 -1.60 -13.75 13.47 5.69 8.26 5.82 4.60
CAPITAL APPRECIATION 04/28/1998 0.63% 36.066661 0.470044 5.61 -6.72 17.42 10.52 10.99 9.08 9.08
EQUITY INCOME 04/28/1998 0.47% 13.359166 0.096759 -0.12 -7.74 15.07 6.91 8.54 7.42 7.42
LARGECAP GROWTH I 06/01/1994 0.66% 43.282624 0.732719 12.57 -14.61 11.53 9.33 11.98 9.28 9.28
LARGECAP S&P 500 INDEX 05/03/1999 0.24% 37.365083 0.482382 7.20 -8.82 17.18 9.84 10.87 5.39 5.39
SMALL/MID US EQUITY
FIDELITY VIP MID CAP 12/28/1998 0.71% 17.610511 0.183671 3.06 -7.13 21.76 5.45 8.04 10.44 6.87
MIDCAP 12/18/1987 0.53% 51.836171 0.326034 5.37 -8.86 15.54 9.14 10.80 11.54 11.54
REAL ESTATE SECURITIES 05/01/1998 0.79% 25.584415 0.332995 2.88 -19.60 9.60 5.70 6.41 8.69 8.69
SMALLCAP 05/01/1998 0.82% 27.753693 0.307668 5.50 -9.80 19.90 5.73 8.52 5.40 5.40
INTERNATIONAL EQUITY
DIVERSIFIED INTERNATIONAL 05/02/1994 0.90% 16.636878 0.227481 7.60 -5.62 11.58 1.38 3.71 4.76 4.76

* Denotes performance for partial period - since Inception Date noted. If Inception Date is less than one year from the date of these returns, the performance is a cumulative return, not an annual return.

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Not all investment advisors or Separate Account Divisions listed are available in every state.

Portfolio Inception Date and Since Portfolio Inception columns refer to the date the underlying funds into which the divisions invest were established. Division Inception Date and Since Division Inception Date columns refer to the date that each division was included in the separate account. Performance including surrender charges for each division is based on the Division Inception Date. Performance excluding surrender charges is based on the Portfolio Inception Date. The time frame for each may vary. The "Daily Change in UV" column reflects the difference in unit values between the date listed in the prior column and the business day preceding that date.

Performance data prior to the inception date of the separate account represent adjusted hypothetical performance.

Calculated returns typically reflect the historical performance of the oldest share class of the fund, adjusted to reflect the fees and expenses of the in effect share class. Please see the fund's prospectus for more information on specific expenses, and the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class.

V.I. and VIP refer to Variable Insurance and Variable Insurance Products.

�2018-2020 Morningstar, Inc. All Rights Reserved. Part of the mutual fund data contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

S&P 500® is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Principal Life Insurance Company and Principal Management Corporation. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the product.

While the underlying securities of the Government & High Quality Bond, Short-Term Income, and Fidelity VIP Government Money Market Subaccounts are guaranteed by the U.S. government as to timely payment of principal and interest. Account values are not guaranteed.

Investments in the Diversified International Division are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments.

The LargeCap S&P 500 Index Division employs a "passive management"-or indexing-investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The Portfolio attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index.

The LargeCap S&P 500 Index Division is invested in the stocks of the index it tracks. Performance of indexes reflects the unmanaged result for the market segment the selected stocks represent. There is no assurance an index based investment option will match the performance of the index tracked.

Investments in the SmallCap Division, MidCap Division, and Fidelity VIP MidCap Division are subject to more fluctuation in value than other investment options with stocks of larger, more stable companies.

An investment in the Real Estate Securities Division is subject to risks inherent in real estate and Real Estate Investment Trusts, such as risks associated with general and local economic conditions.

The Principal Variable Contracts LifeTime Accounts indirectly bear their pro rata share of the management fees incurred by the underlying funds in which this fund invests. Based on the asset allocation of the funds outlined in the prospectus dated May 1, 2023, the weighted average operating expenses of the underlying funds are: Principal LifeTime Strategic Income, 0.51%; Principal LifeTime 2020, 0.53%; Principal LifeTime 2030, 0.57%; Principal LifeTime 2040, 0.63%; Principal LifeTime 2050, 0.67%; Principal LifeTime 2060, 0.66%.

The Principal LifeTime Accounts, which are target-date accounts, invest in underlying Principal Funds. Each Principal LifeTime Account is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. As each Principal LifeTime Account approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investment options and reducing exposure to typically more aggressive investment options. The asset allocation for each Principal LifeTime Account is regularly re-adjusted within a timeframe that extends 10-15 years beyond the target date, at which point it reaches its most conservative allocation. Principal LifeTime Accounts assume the value of the investor's account will be withdrawn gradually during retirement. Neither the principal nor the underlying assets of the Principal LifeTime Accounts are guaranteed at any time, including the target date. Investment risk remains at all times.

The Principal Investors Strategic Asset Management Portfolio (SAM) indirectly bear their pro rata share of the management fees incurred by the underlying funds in which this portfolio invests. Based on the asset allocation of the SAM Portfolio outlined in the prospectus dated May 1, 2021, the weighted average operating expenses of the underlying funds are: Flexible Income, 0.48% Conservative Balanced, 0.52%; Balanced, 0.52%; Conservative Growth, 0.54%; Strategic Growth, 0.59%. While the operating expenses of the underlying mutual funds are not part of the SAM Portfolio operating expenses they are included in the Total Investment Expense. Performance results shown for the SAM Portfolios reflect the application of these expenses.

Effective June 8, 2019, the Short-Term Income, Core Plus Bond, Government & High Quality Bond, Principal LifeTime 2020, Principal LifeTime 2030, Principal LifeTime 2040, Principal LifeTime 2050, LargeCap Growth I, Diversified International, Principal Variable Contract Account is no longer available to customers with an application signature date on or after June 8, 2019.

Asset allocation does not guarantee a profit or protect against a loss. Investing in real estate, small-cap, international, and high-yield investment options involves additional risks.

Variable annuities are not Federal Deposit Insurance Corporation (FDIC) insured. They may lose value and there is no bank guarantee.

The Principal® Freedom Variable Annuity 2 is issued by Principal Life Insurance Company and distributed by Principal Securities, Inc, member SIPC. Principal Life and Principal Securities are members of the Principal Financial Group®, Des Moines, Iowa, 50392-0200, 800/852-4450.

Policy Form #SF467
Approval #1193807-062023

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