Principal Financial Group Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Principal Financial Group Inc. filed its quarterly 10-Q report for the period ending March 31, 2024.</b>

AI Summary

PRINCIPAL FINANCIAL GROUP INC (PFG) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Principal Financial Group Inc. filed a 10-Q report for the period ending March 31, 2024. The filing is for the fiscal quarter ending March 31, 2024. The company's principal business is Accident & Health Insurance. The filing was made on May 1, 2024. The company is incorporated in Delaware and its fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking PRINCIPAL FINANCIAL GROUP INC, this filing contains several important signals. This 10-Q filing provides investors with updated financial performance and operational details for the first quarter of 2024. Understanding the company's financial health and strategic disclosures in this report is crucial for assessing its current market position and future prospects.

Risk Assessment

Risk Level: medium — PRINCIPAL FINANCIAL GROUP INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the complexity of financial instruments and insurance operations can introduce inherent risks.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand PFG's performance drivers and any emerging risks.

Key Numbers

• 20240331 — Period of Report (CONFORMED PERIOD OF REPORT)
• 20240501 — Filed As Of Date (FILED AS OF DATE)
• 1231 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• PRINCIPAL FINANCIAL GROUP INC (company) — FILER
• 0001126328 (company) — CENTRAL INDEX KEY
• 6321 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• 1934 Act (regulator) — SEC ACT
• 001-16725 (company) — SEC FILE NUMBER
• DES MOINES (company) — CITY
• IA (company) — STATE

FAQ

Industry Context

Principal Financial Group operates within the Accident & Health Insurance sector, a segment of the broader financial services industry.

Regulatory Implications

The filing adheres to SEC regulations for quarterly reporting under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and key balance sheet items.
2. Review the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' section for insights into performance drivers.
3. Identify any new or updated risk factors disclosed in the filing.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a timely update on the company's financial performance and condition.)

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly financial update.

Key Financial Figures

• $0.01 — hares of the registrant's Common Stock, $0.01 par value, outstanding as of April 23,

Filing Documents

• pfg-20240331x10q.htm (10-Q) — 11518KB
• pfg-20240331xex31d1.htm (EX-31.1) — 11KB
• pfg-20240331xex31d2.htm (EX-31.2) — 12KB
• pfg-20240331xex32d1.htm (EX-32.1) — 4KB
• pfg-20240331xex32d2.htm (EX-32.2) — 4KB
• pfg-20240331x10q055.jpg (GRAPHIC) — 29KB
• 0001410578-24-000583.txt (&nbsp;) — 51403KB
• pfg-20240331.xsd (EX-101.SCH) — 176KB
• pfg-20240331_cal.xml (EX-101.CAL) — 178KB
• pfg-20240331_def.xml (EX-101.DEF) — 960KB
• pfg-20240331_lab.xml (EX-101.LAB) — 1376KB
• pfg-20240331_pre.xml (EX-101.PRE) — 1238KB
• pfg-20240331x10q_htm.xml (XML) — 16367KB

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Unaudited Condensed Consolidated Statements of Financial Position as of March 31, 2024 and December 31, 2023 3 Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 4 Unaudited Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 6 Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 7 Notes to Unaudited Condensed Consolidated Financial Statements — March 31, 2024 8 1. Nature of Operations and Significant Accounting Policies 8 2. Variable Interest Entities 13 3. Investments 18 4. Derivative Financial Instruments 37 5. Deferred Acquisition Costs and Other Actuarial Balances 48 6. Separate Account Balances 51 7. Contractholder Funds 55 8. Future Policy Benefits and Claims 60 9. Market Risk Benefits 69 10. Reinsurance 73 11. Income Taxes 76 12. Employee and Agent Benefits 76 13. Contingencies, Guarantees and Indemnifications 77 14. Stockholders' Equity 78 15. Fair Value Measurements 82 16. Segment Information 98 17. Revenues from Contracts with Customers 103 18. Stock-Based Compensation Plans 108 19. Earnings Per Common Share 110 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 111 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 141 Item 4.

Controls and Procedures

Controls and Procedures 147

— OTHER INFORMATION

Part II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 148 Item 1A.

Risk Factors

Risk Factors 148 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 148 Item 5. Other Information 148 Item 6. Exhibits 149 Signature 150 2 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Principal Financial Group, Inc. Condensed Consolidated Statements of Financial Position March 31, December 31, 2024 2023 (Unaudited) (in millions) Assets Fixed maturities, available-for-sale (1) $ 65,691.3 $ 65,673.1 Fixed maturities, trading (2024 and 2023 include $ 187.8 million and $ 81.2 million related to consolidated variable interest entities) 877.7 836.2 Equity securities (2024 and 2023 include $ 369.4 million and $ 394.4 million related to consolidated variable interest entities) 1,488.9 1,478.1 Mortgage loans (2024 and 2023 include $ 856.9 million and $ 871.9 million related to consolidated variable interest entities) 20,294.5 20,142.8 Real estate (2024 and 2023 include $ 829.0 million and $ 779.1 million related to consolidated variable interest entities) 2,363.5 2,345.3 Policy loans 818.6 809.3 Other investments (2024 and 2023 include $ 734.5 million and $ 596.4 million related to consolidated variable interest entities and $ 163.9 million and $ 163.2 million measured at fair value under the fair value option) 7,378.2 7,035.6 Total investments 98,912.7 98,320.4 Cash and cash equivalents (2024 and 2023 include $ 75.6 million and $ 83.6 million related to consolidated variable interest entities) 4,168.4 4,707.7 Accrued investment income 838.6 786.2 Reinsurance recoverable and deposit receivable 20,098.3 20,611.7 Premiums due and other receivables 3,920.0 3,998.8 Deferred acquisition costs 3,965.5 3,950.5 Market risk benefit asset 201.9 153.4 Property and equipment 913.5 938.4 Goodwill 1,569.1 1,608.5 Other intangibles 1,435.5 1,469.8 Separate account assets (2024 and 2023 include $ 32,516.4 million and $ 34,688.3 million related to consolidated variable interest entities) 171,788.2 167,605.6 Other assets 871.8 895.7 Total assets $ 308,683.5 $ 305,046.7 Liabilities Contractholder funds $ 42,004.4 $

financial statements or other

financial statements or other significant matters Standards not yet adopted: Improvements to reportable segments disclosures This authoritative guidance enhances the disclosures about a public entity's reportable segments and addresses requests from investors for additional, more detailed information about a reportable segment's expenses. January 1, 2025 We are currently evaluating the impact this guidance will have on our consolidated financial statements. Improvements to income tax disclosures This authoritative guidance provides improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. January 1, 2025 We are currently evaluating the impact this guidance will have on our consolidated financial statements. Standards adopted: Targeted improvements to the accounting for long-duration insurance contracts This authoritative guidance updated certain requirements in the accounting for long-duration insurance and annuity contracts. 1. The assumptions used to calculate the liability for future policy benefits on traditional and limited-payment contracts are reviewed and updated periodically. Cash flow assumptions are reviewed at least annually and updated when necessary with the impact recognized in net income. Discount rate assumptions are prescribed as the current upper-medium grade (low credit risk) fixed income instrument yield and are updated quarterly with the impact recognized in other comprehensive income ("OCI"). 2. MRBs, which are contracts or contract features that provide protection to the policyholder from capital market risk and expose us to other-than-nominal capital market risk, are measured at fair value. The periodic change in fair value is recognized in net income with the exception of the periodic change in fair value related to our own nonperformance risk, which is recognized in OCI. 3. DAC and other actuarial balances for all insurance and annuity contracts are amorti

financial statements or other

financial statements or other significant matters 4. Additional disclosures are required, including disaggregated rollforwards of significant insurance liabilities and other account balances as well as disclosures about significant inputs, judgments, assumptions and methods used in measurement. The guidance for the liability for future policy benefits for traditional and limited-payment contracts and DAC was applied on a modified retrospective basis; that is, to contracts in force as of the beginning of the earliest period presented (January 1, 2021, also referred to as the transition date) based on their existing carrying amounts. An entity could elect to apply the changes retrospectively. The guidance for market risk benefits was applied retrospectively. Troubled debt restructurings and vintage disclosures This authoritative guidance eliminated the accounting requirements for troubled debt restructurings by creditors and enhanced the disclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. The update required entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. The amendments in this update were applied prospectively, except for the transition method related to the recognition and measurement of troubled debt restructurings, for which an entity had the option to apply a modified retrospective transition method. Early adoption was permitted. January 1, 2023 This guidance did not have a material impact on our consolidated financial statements. Targeted improvements to accounting for hedging activities – portfolio layer method This authoritative guidance is intended to further align the economics of a company's risk management activities in its financial statements with hedge accounting requirements. The guidance expanded the current single-layer method to allow multiple hedge layers of a single

financial statements or other

financial statements or other significant matters Facilitation of the effects of reference rate reform on financial reporting This authoritative guidance provided optional expedients and exceptions for contracts and hedging relationships affected by reference rate reform. An entity could elect not to apply certain modification accounting requirements to contracts affected by reference rate reform and instead account for the modified contract as a continuation of the existing contract. Also, an entity could apply optional expedients to continue hedge accounting for hedging relationships in which the critical terms changed due to reference rate reform. This guidance eased the financial reporting impacts of reference rate reform on contracts and hedging relationships and was effective until December 31, 2022. A subsequent amendment issued in December 2022 extended the relief date from December 31, 2022, to December 31, 2024, and was effective upon issuance. March 12, 2020 We adopted the guidance upon issuance prospectively and elected the applicable optional expedients and exceptions for contracts and hedging relationships impacted by reference rate reform through December 31, 2024. The guidance did not have an impact on our consolidated financial statements upon adoption. When we adopt new accounting standards, we have a process in place to perform a thorough review of the pronouncement, identify the financial statement and system impacts and create an implementation plan among our impacted business units to ensure we are compliant with the pronouncement on the date of adoption. This includes having effective processes and controls in place to support the reported amounts. 11 Table of Contents Principal Financial Group, Inc. Notes to Condensed Consolidated Financial Statements – (continued) March 31, 2024 (Unaudited) Long-Duration Insurance Contracts Disclosures We include disaggregated rollforwards for DAC, the unearned revenue liability, separate

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View this 10-Q filing on SEC EDGAR