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Financial highlights

In 2021, we outlined our strategic path forward with a focus on a higher growth, more capital efficient portfolio and a commitment to return more capital to shareholders. This guided our successful execution in 2022; despite a challenging macroeconomic environment, we made meaningful progress toward our goals. We delivered on our strengthened capital deployment strategy and our commitment to right-size and return the excess capital we had built up during the pandemic.

Long-term financial targets

Annual growth in earnings per share(View annual growth in earnings per share)

9-12%

Return on equity(View return on equity)

14-16%

Free capital flow conversion

75-85%

2022 financial results

Assets under management(View assets under management)

(as of Dec. 31, 2022)

Donut chart showing breakdown of $635B of assets under management, 73% from Principal Global Investors and 27% from Principal International and other entities of Principal Financial Group. As of December 31, 2022.

Non GAAP pre-tax operating earnings(View non GAAP pre-tax operating earnings)

(as of Dec. 31, 2022)

Donut chart showing breakdown of $2.4B of Non GAAP pre-tax operating earnings: 42% from Retirement and Income solutions (comprised of 19% from RIS-Fee and 23% from RIS-Spread), 38% from Principal Asset Management (comprised of 25% Principal Global Investors and 13% Principal International), and 20% from Benefits and Protection (comprised of 14% Specialty Benefits and 6% Individual Life). As of December 31, 2022.

Total assets under management (AUM)

(in billions)

  • 2022 $635
  • 2021 $714
  • 2020 $665

Net income attributable to Principal Financial Group®

(in millions)

  • 2022 $4,812
  • 2021 $1,711
  • 2020 $1,396

Non-GAAP operating earnings(View non-GAAP operating earnings)

(in millions)

  • 2022 $1,701
  • 2021 $1,848
  • 2020 $1,366

Total revenue

(in millions)

  • 2022 $17,492
  • 2021 $14,263
  • 2020 $14,742

Non-GAAP operating earnings per diluted common share(View non-GAAP operating earnings)

(in dollars)

  • 2022 $6.66
  • 2021 $6.77
  • 2020 $4.94

Dividends declared per common share

(in dollars)

  • 2022 $2.56
  • 2021 $2.44
  • 2020 $2.24

Year-end closing PFG common stock price

(in dollars)

  • 2022 $83.92
  • 2021 $72.33
  • 2020 $49.61

Total stockholders' equity attributable to Principal Financial Group®

(in millions)

  • 2022 $10,002
  • 2021 $16,069
  • 2020 $16,559

Non-GAAP operating earnings return on equity (ROE)

(excluding cumulative change in fair value of funds withheld embedded derivative and AOCI, other then foreign currency translation adjustment)(View non-GAAP operating earnings)(View non-GAAP operating earnings return on equity)

  • 2022 13.3%
  • 2021 14.3%
  • 2020 10.9%

Capital deployments

(in billions)

Non-GAAP financial measure reconciliations

(in millions, except as indicated)

For the year ended Dec. 31
2022 2021 2020
Net income attributable to Principal Financial Group
Net income attributable to Principal Financial Group 4,811.6 1,710.6 1,395.8
Net realized capital (gains) losses, as adjusted(View net realized capital (gains) losses, as adjusted) 193.3 137.0 (29.4)
Income from exited business (3,304.0) - -
Non-GAAP operating earnings 1,700.9 1,847.6 1,366.4
Net realized capital gains (losses)
GAAP net realized capital gains (losses) (258.4) 2.5 302.6
Recognition of front-end fee revenues (4.7) (2.9) 11.4
Market value adjustments to fee revenues 0.7 (0.6) (1.6)
Net realized capital gains (losses) related to equity method investments (15.0) (24.0) (1.5)
Derivative and hedging-related revenue adjustments (126.3) (160.3) (132.9)
Sponsored investment fund adjustments 22.2 21.3 17.3
Amortization of deferred acquisition costs 6.5 (0.2) (0.5)
Capital gains distributed—operating expenses 102.9 (69.4) (41.7)
Amortization of other actuarial balances (4.0) 11.3 (26.3)
Market value adjustments of embedded derivatives (44.1) 79.8 (55.0)
Capital gains distributed—cost of interest credited 33.5 (37.3) (8.2)
Net realized capital gains (losses) tax adjustments 64.2 56.2 (28.2)
Net realized capital gains (losses) attributable to noncontrolling interest, after-tax 29.2 (13.4) (6.0)
Total net realized capital gains (losses) after-tax adjustments 65.1 (139.5) (273.2)
Net realized capital gains (losses), as adjusted (193.3) (137.0) 29.4
Diluted earnings per common share
Net income 18.85 6.27 5.05
Net realized capital (gains) losses, as adjusted 0.76 0.50 (0.11)
(Income) from exited business (12.95) - -
Non-GAAP operating earnings 6.66 6.77 4.94
Stockholders' equity
Stockholders' equity 10,042.8 16,125.8 16,617.3
Noncontrolling interest (41.1) (56.4) (58.4)
Stockholders' equity attributable to Principal Financial Group, Inc. 10,001.7 16,069.4 16,558.9
Net unrealized capital (gains) losses 5,357.6 (3,519.2) (4,156.5)
Net unrecognized postretirement benefit obligation 254.1 344.7 460.5
Cumulative change in fair value of funds withheld embedded derivative (2,885.7) - -
Stockholders' equity, excluding AOCI other than foreign currency translation adjustment, available to common stockholders 12,727.7 12,894.9 12,862.9
Net income ROE available to common stockholders (including AOCI)
Net income ROE available to common stockholders (including AOCI) 36.9 10.5 9.0
Cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment 0.7 2.8 2.1
Net income ROE available to common stockholders (excluding cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment) 37.6 13.3 11.1
Net realized capital (gains) losses 1.5 1 -0.2
(Income) loss from exited business -25.8 0.0 0.0
Non-GAAP operating earnings ROE (excluding cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment) 13.3 14.3 10.9

Footnote

  1. Non-GAAP operated earnings per diluted share

    ↩︎

  2. Non-GAAP operating return on average equity, excluding cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment

    ↩︎

  3. Assets under management by asset manager; at the end of 2021, the company changed its definition of AUM to exclude assets managed by third parties on its retirement platforms

    ↩︎

  4. Trailing 12 months, excludes Corporate and impacts from actuarial assumption reviews

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  5. This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations below.

    ↩︎

  6. Non-GAAP operating earnings return on equity equals trailing 12 months non-GAAP operating earnings divided by average stockholders’ equity available to common stockholders excluding cumulative change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment.

    ↩︎

  7. This is a non-GAAP financial measure. See reconciliation below.

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This report contains forward-looking statements. Actual results may differ materially from the results anticipated in these forward-looking statements. For a complete explanation, and a list of the risks, uncertainties, and factors that could cause or contribute to such material differences, see our Forward-looking cautionary statements.

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